Please find below an update from the Center for Labour Information Service and Training (CLIST) on what has been happening with the Ladybird case in the past few weeks.

• UPDATE JUNE 15TH: 77 Workers Locked out of Factory; GUESS? denies production at the factory.
• UPDATE JUNE 21ST: The 77 locked out workers of Ladybird Garment Company climbed the fence of the Ministry of Labour on Wednesday when they were denied access ...
• Letter from The Garment Industry Union
• Current Demands of the workers as of June 22nd, 2001
• Original Demands of the Union (submitted April 19th, 2001)
• Contact the following companies producing at Ladybird

Thus far in response to our requests to Ladybird's clients (Guess, Gymboree, PreNatal, TJMax and Marshalls) to intervene on behalf of the workers, the CCC has only heard from PreNatal, which forwarded us a letter they received from Ladybird management which disputed the facts of the case.

The Garment Industry Union responded to their version of the events, and a copy of this letter is included below, for your reference in writing follow up letters on this matter. For your information the list of original demands made by the Ladybird workers, as well as their current demands are also included below.

The Ladybird workers have compromised on every point, yet the company still refuses to given them anything more than chairs with backs for pregnant workers and union days off, but subject to employer's discretion.

Please continue to pressure Ladybird management to bargain in good faith with the Ladybird workers. While the women at Ladybird make clothes for our children, they don't earn enough to feed their own children!

For more information on this case or to express your solidarity with the Ladybird workers, please contact the Center for Labour Information Service and Training at clist2@loxinfo.co.th.

For those of you preparing materials on this case, images from the demonstrations are available from the CCC.

UPDATE JUNE 15TH:
(provided by CLIST)

77 Workers Locked out of Factory; GUESS? denies production at the factory.

The negotiations on the 23rd of May were the last negotiations during conciliation period, in which it is illegal to wage a strike or a lockout. While there weren't negotiations immediately after the 23rd, union members continued organizing and strategizing. On the 29th of May, the union at Ladybird brought an impressive 80 workers to join with a larger struggle of the labor movement for increased minimum wages and unemployment insurance.

On the 7th of June, the company circulated a fake announcement in the name of the union, urging workers to have patience with the negotiations.

On the 8th of June the company announced a lockout of 77 workers, all affiliated with the negotiations, to take place beginning on Monday the 11th. A lockout is the legal right of the employer, because the case has entered the labour dispute process, yet whether or not the partial lockout is legal is not yet clear.

On the night of the 11th, about 140 workers along with 40 supporters from other unions marched through Samutprakan district to the Provincial Labour Authority Office. Carrying signs such as 'We make children's clothing for GUESS? but we can't feed out own children." and "Ladybird Company has high profits but won't give us a 10 day bonus," the workers rallied outside the Provincial Office and demanded an official come to talk to them to encourage the Labour Authority to continue to intervene in the case and push for further negotiations. This resulted in a negotiation session the 13th, but nothing was gained. In fact, during the negotiations on the 13th, the government meditators pushed the workers to negotiate on the employer's demands.

The owner has hired about 100 new workers to replace the 77 locked out workers; he is obviously prepared for a long term fight and has taken measures to ensure that production does not slow down. The workers have also written follow up letters to companies producing at the factory after failing to get a response from their first appeals to the corporate buyers. Only GUESS? has thusfar replied, saying that they do not know the Ladybird Company. This is of course, ridiculous, as the factory is currently processing an order for GUESS? The workers will gather evidence and will continue to hold GUESS? accountable for the situation.

It is the legal right of both employer and employees to submit demands for negotiation; hence the employer's submission. The employer has only submitted demands to the 150 workers who he claims are affiliated with the negotiations. His demands are to change the workday to 2 shifts, to require workers to meet 90% of production quotas and to freeze their wages for 3 years. The employer knows that workers with families will not be able to switch to a night shift. Requiring workers to meet 90% of a production quota which he sets also paves the way for easy dismissals. Submitting demands to only those workers who he believes are standing up for their rights in negotiation shows his determination to break the union.

The workers continue to demand that he cease his union discrimination and negotiate in good faith.

UPDATE JUNE 21ST:
(provided by CLIST)

The 77 locked out workers of Ladybird Garment Company climbed the fence of the Ministry of Labour on Wednesday when they were denied access ...

Wednesday morning at around 11:30, Akiko Gono, Asia regional secretary for the International Textile Garment and Leatherworkers Federation met with Ladawan Wongseewong, Deputy Minister of Labour to discuss the case of the Ladybird Workers. Ms. Gono told the Deputy Minister that if the problem at Ladybird was not fixed by the end of the month, the international community would organize a solidarity campaign. Ms. Ladawan apparently responded that she would fix the problem but did not give details.

At 11 am Ladybird workers gathered at Victory Monument and began their march to the Ministry of Labour. They intended to show support for the union committee which would negotiate at 1 pm. When the workers arrived at the Ministry at noon they were not allowed to enter and thus climbed the fence. [The Ministry, like many government buildings, is usually open to the public.] They then attempted to enter the office building and go up to the 6th floor where the Minister's office is located. They were prevented from using the lift and had to take the stairs. When they arrived at the 6th floor a line of security guards tried to prevent them from entering the floor. One worker was so shocked and nervous by the guards aggressiveness that she fainted on the steps. The Ministry arranged to transport her to a hospital.

The workers then agreed to wait out the negotiations to see if they yielded anything before talking with Ministry officials. When the negotiations did not result in an agreement the workers asked to speak to Ladawan Wongseewong, the Deputy Minister of Labour who had agreed earlier to meet with them. Ms. Ladawan told the workers that she would call the employer in to negotiate himself on Thursday.

Letter from The Garment Industry Union
82/1 Kingkaew Road Bangpress district
Samutprakean Province 10540
Thailand
(to contact theunion, please do so via CLIST)

June 22nd, 2001

Dario Pasquale
Personnel and Legal Affairs Manager
Prenatal Spa
Fax: 039-605-8043

Re: Labour dispute at Ladybird Garment Company

Dear Mr. Dario Pasquale,

I received the communication from the employer at Ladybird Garment Company from the Clean Clothes Campaign. I appreciate PreNatal's interest in the case and attempts to understand the current dispute. To that end, please allow me to clear up several issues raised by the employer, Veerasak Ratanabraphat.

Unfortunately, since Mr. Veerasak wrote you, the situation has worsened. He has locked out 77 employees since Monday June 11th. It is true that this is his legal right according to Thai labour law, but it has created great difficulties for those of us who are now unable to work and have no income.

Mr. Veerasak mentions that those involved in the demands represent only a minority of the workers involved. In fact, the contract that is being negotiated will apply to every employee in the factory, not just those associated with demands. This means if we are able to negotiate improved transportation, for example, everyone will benefit. The reason that so many employees withdrew their names from the demands is because of the climate of fear that Mr. Veerasak created through submitting his own demands to those of us most active in the negotiations and through persuasion efforts such as promising things such as new workpants and salary in the event of a strike. At the time negotiations began, there were only 540 employees in the factory, including management.

The company regularly relies on subcontracting to finish orders. Yes, there is sewing in the factory, but there are also 30 different subcontracting facilities, including homeworkers on which the company relies.

Unfortunately, there has not been progress in negotiations. The only significant offers from the company has been to agree to provide chairs with backs to pregnant women and to allow 30 days off for union activities, but only at his discretion and with his permission. It is evident by comparing the workers original demands (of which I am enclosing a copy) with our current demands, that the 'progress' has only been our willingness to lower what we are asking for.

The worker representatives have always been ready and willing to negotiate. We are the ones who need a swift resolution to this case as 77 of us are currently locked out of the factory with no salary and families to feed. Mr. Veerasak maintains that he only submitted demands to us because he wanted to continue negotiating. Yet he and provincial labour government officials involved have pushed us to discuss his demands of wanting to freeze our wages for 3 years! If he truly is sincere in negotiating, then he would not have locked out 77 of us rather than continue to talk.

Unfortunately discrimination against union members does exist in the factory because union members are regularly prohibited from doing overtime work. Demand number 4, from the original list, that overtime work be issued based on a non-discriminatory basis reflects this.

It is true that the company is not currently violating Thai labour law. It may also be true that the two firms he mentioned have certified the factory's operations. We would not know because we have never been interviewed or even approached by representatives from CSCC or MTL.

It is also true that our union receives training and advice from a local NGO. This is an absolute necessity in negotiations as the employer has a team of seven negotiators. Three of these are staff and the other three are professionals he has hired with a long history of negotiating experience. One of them, Mr. Tammanoon Tanikoon, is currently being challenged in an unfair practice suit for his negotiations at Far East Garment Company, also in Thailand.

Finally, it is likely that the employer's compensation plan has been approved by the Ministry of Labour as it meets legal requirements. At the same time, not only are our current salaries not enough to support our families, it is our legal right to collectively bargain with our employer. We should not be punished for doing so. We also believe that the meager provisions we are now asking for are completely justified in the name of 'human rights,' which the employer implies we are abusing. We also believe that these provisions are justified for us as we have worked many years bringing profit to the company and its buyers such as PreNatal.

None of us will every be able to afford to buy the goods we produce for PreNatal. While there are different living standards between different nations, it is not right that we cannot afford basic provisions, such as milk, for our children. I am urging your company to push the employer to respect us as worthy individuals and negotiate with us in good faith. When those of us locked out are able to resume working, we intend to do so with the same diligence and hard work as we have for years.

Please do not hesitate to contact us with any further questions. We can be reached through the Center for Labour Information Service and Training as we do not have access to our own e-mail or fax machine.

Thank you for your consideration,

Lamai Tipdee
Secretary
(Translated by Somyot Pruksakasemsuk, CLIST)

Current Demands of the workers as of June 22nd, 2001

1) The company pay a yearly bonus of the equivalent of
For employees working 1 to 3 years - 3 days
For employees working 3 to 5 years - 5 days
For employees working more than 5 years - 8 days.

2) A 100 baht per month compensation for three months for pregnant workers for a total of 300 baht (because they are restricted by law from doing overtime work and thus have less earning potential); chairs with backrests for pregnant women; the allowance of pregnant workers to work below target rates for women and to refrain from hurrying or rushing pregnant workers so they do not experience stress on the job.

3) To raise salaries in the amount:
Workers classified as Grade C - 5 baht per year (Currently 3 baht per year)
Workers classified as Grade B - 7 baht per year (Currently 5 baht per year)
Workers classified as Grade A - 10 baht per year (Currently 8 baht per year)

4) To add company transportation to the existing routes so that at whatever time the company requires workers to enter the factory or at what time they finish work, there is transportation. To keep the bus route from Bangna to Ladybird, to upgrade the small songtaew [open air vehicle] from Wat Song to the factory to be a bus, and to add to two more routes: a bus from Bak Tang King Kaew to the factory and a large songtaew from Wat Song to the factory.

5) For the company to allow union committee members or union members selected by the committee to take off work for any activities relevant to the union or strengthening the union 5 days per year with pay, and 5 days per year without pay, irrelevant of official holidays.

Original Demands of the Union (submitted April 19th, 2001)

1) For the company to issue a meal subsidy of 20 baht per worker per day as well as improve the cafeteria by removing stray animals and pests.

2) For the company to organize excursions for the workers the same as before, or, if the company is unable to do so, to pay compensation of 600 baht per worker.

3) For the company to pay a cost of living adjustment of 600 baht per month for every employee working longer than 120 days. [Including temporary workers.]
[There is currently no cost of living adjustment paid]

4) The company shall arrange for overtime work as follows: All overtime work will be voluntary and the company will not enforce it. The company will assign overtime as needed to all workers in a particular sector and there shall not be any discrimination or individual preference by the employer in permitting workers to work overtime.

5) A 600 baht per month compensation for pregnant workers (because they are restricted by law from doing overtime work and thus have less earning potential); chairs with backrests for pregnant women; the allowance of pregnant workers to work below target rates for women and to refrain from hurrying or rushing pregnant workers so they do not experience stress on the job.
[The factory currently has no compensation for pregnant women]

6) To add company transportation to the existing routes so that at whatever time the company
requires workers to enter the factory or at what time they finish work, there is transportation. To keep the bus route from Bangna to Ladybird, to upgrade the small songtaew [open air vehicle] from Wat Song to the factory to be a bus, and to add to two more routes: a bus from Bak Tang King Kaew to the factory and a large songtaew from Wat Song to the factory.

7) For the company to pay compensation of 10,000 baht in the event of the death of the
father, mother, sibling or spouse of an employee and to pay compensation of 100,000 baht in the event of a work related death.
[About 7 years ago one worker died when the company bus overturned on its way to bring the workers to the factory. Her family did not receive any compensation.]

8) To change the pay scale from a grade system to one based on length of employment. To raise wages as follows:

• 1 year worked to up to 3 years of work: 8 baht per day
• 3 years worked to up to 6 years of work: 15 baht per day
• 6 years worked to up to 10 years of work: 20 baht per day
• 10 years worked and over: 30 baht per day

[The workers want to change the wage raise system to one based on years of experience.
The current wage adjustment system is based on quality of work, but is arbitrary and the employer simply raises the wages of those whom he wishes to. About 180 workers in the factory are still earning the minimum wage of 165 baht per day, most who have worked one or two years. However, there are workers who have been employed for five years and are still earning the bare minimum wage.]

9) For the company to allow union committee members or union members selected by the committee to take off work for any activities relevant to the union or strengthening the union 30 days per year with pay, irrelevant of official holidays.
[Currently committee members can only take off work if they are attending an official Labor Department function.]

10) For the company to pay a yearly bonus to every employee depending on length of
employment:

• 180 days to work to up to 1 year work - 15 days worth of pay
• 1 year worked to up to 3 years of work - 30 days worth of pay
• 3 years worked to up to 5 years of work - 50 days worth of pay
• 5 years worked to up to 8 years of work - 60 days worth of pay
• 8 years worked and up - 90 days worth of pay

[There are currently no bonuses paid to any workers in the factory, though it is common practice in Thailand in the garment sector for the employer to pay a sizeable annual bonus]

11) Paid Vacation days to be adjusted based on years of work in the factory as follows:

• 2-4 years increase the 6 mandated vacation days by 2 days for a total of 8 days.
• 4-6 years increase the 6 mandated vacation days by 4 days for a total of 10 days
• 6 years and longer increase the 6 mandated vacation days by 6 days for a total of 12
  days.

12) For the company to provide an up-to-standard infirmary open at all times, staffed with a full-time nurse. For the company also to arrange for a doctor available to conduct examinations in the factory at least twice per week.
[There is currently no nurse in the factory and the infirmary is dirty and unsanitary.]

13) Eye examinations provided for every employee working longer than 2 years. In the event that the examination should reveal an abnormality, the company will pay for the prescription and fitting of glasses.
[There are currently no examinations but many workers suffer eye pain from the strenuous work.]

14) To retain all other existing benefits.

Contact the following companies producing at Ladybird:

Gymboree
Chairman
Stuart G. Moldaw
700 Airport Blvd., Ste. 200
Burlingame, CA 94010-1912
Phone: +1-650-579-0600
Fax: +1-650-579-1733

Guess
Co-Chairman and Co-CEO Maurice Marciano
Co-Chairman and Co-CEO Paul Marciano
1444 S. Alameda St.
Los Angeles, CA 90021
Phone: +1-213-765-3100
Fax: +1-213-744-7838

TJX Companies (owns TJ Max and Marshalls)
Chairman
Bernard Cammarata
770 Cochituate Rd.
Framingham, MA 01701
Phone: +1-508-390-1000
Fax: +1-508-390-2828

Prenatal SA
29 Botanica
08908 Hospitalet de Llobregat
Barcelona
Spain
Phone: +34-83-3355906
Fax: +34-83-335-2804

Prenatal GMBH
Oskar-Jagerstrasse 176
60825 Cologne
Germany
Phone: +49-221-548010

(note: Prenatal in Spain and Germany are is owned by Prenatal Italia, which is owned by Artsana)

Dario Pasquale
Personnel and Legal Affairs Manager
Prenatal S.p.A.
Centro Colleoni
Palazzo pegaso, 1
20041 Agrate Brianza (MI)
tel. 39-039-65571
fax: 39-039-651615

Artsana S.p.A
Via Saldarini Catelli,
1 - 22070 Grandate (CO)
Italy
Phone: +39-31-382-111
Fax: +39-31-382-400

Contact Ladybird management:
Ladybird Garment Co.,Ltd.
91/1-91/2 Moo
13 Kingkeew Rd. Bangpless
Samutprakam 10540
Thailand
tel. 3124121
Fax: 66-2-312-4120