Update and request for action on Kenya EPZ layoffs

Dear Friends,

29 Apr 2003, The Tailors and Textiles Workers Union, the Kenyan Human Rights Commission (KHRC), and representatives from workers at garment factories located in Kenya's EPZs are asking for a follow up to the appeal for action that was sent out on March 4th concerning massive dismissals at garment factories located there. As you will remember, thousands of workers in the zones were fired after voicing their grievances in relation to a number of major rights violations. Action is specifically requested in relation to five specific factories: Indigo, Sahara, Kentex, Baraka, and JAR. In none of these factories has the union been recognized. To support their efforts to win recognition of the union, please send letters to the Kenyan government, factory management, and the companies that are sourcing at these facilities. Please see the action request at the end of this appeal. A representative of the CCC visited Kenya this month and met with union representatives, the KHRC and dismissed workers. The situation is urgent. They appreciate the solidarity actions that members of the CCC network have taken, and believe that continued pressure on the factories owners and their clients can make a difference. Please take action today to support freedom of association in Kenya.

• BACKGROUND
• ACTION REQUEST

(source: CCC visit to Kenya, April 2003)

Thousands of garment workers, employed in Kenya’s Export Processing Zones up until the end of January 2003, remain jobless. In the Ruaranka EPZ many former employees of four companies -- Indigo, Kentex, Sahara, and Baraka -- continue to stand outside the EPZ, in the hopes that they will be rehired. Since they have been dismissed from their jobs they have been unable to find other employment.

January 16th, 2003 -- workers from 16 of the garment factories operating in the Kenyan EPZs go out on a one-day strike. At that time, the workers had presented a list of 17 grievances to the department of labor. These grievances included underpayment (below the minimum wage), trade union repression, excessive working hours, sexual harassment, and unrealistic production targets that lead to unpaid overtime. In the wake of the strike, a stakeholders committee of representatives of employers, employees, and the labor department is formed to discuss these grievances.

January 31st -- The stakeholders committee of representatives concluded two weeks of discussions. Participants in these discussions tell the CCC that the talks were stalled by the employers representatives. The workers that were following the progress of these talks through there representatives felt not very confident that the process would have positive results. They felt that their grievances were not taking seriously and in some factories the workers went on a “go-slow” to signal to the employers that they indeed should be taking the workers grievances seriously. None of the issues were resolved.

This is what happened:

A press release from the assistant minister at the department of Labor, dated January 31st, reported that the workers felt that the employers did not want to “discuss the main issues which initially precipitated the industrial unrest. These are; hours of work, production targets, and wage increments.” The employers, according to this press release were “ready to negotiate the issues of salaries alongside other terms and conditions of employment only through the established machinery as provided for in law. They have also agreed to recognize the Tailors and Textiles Workers Union in accordance with the stipulations of the Trade Dispute Act, Cap. 234.” The press release concluded that the union should have free access to recruit workers, and this should finish in not more than 30 days, after which time the parties should engage in formal recognition in order to pave the way for collective bargaining and negotiations for better terms and conditions of employment. The assistant minister further ordered the workers to refrain from industrial actions and the employers not to victimize the workers.

This was reported back to the workers the next day by the representatives and immediately the recruitment process started for workers to join the trade unions. Workers were working in the factory on this Saturday. In some of the factories the workers left work at the end of their shift, at 12 o’clock noon, refusing to work overtime, to signal to the employers again to take things seriously. The employers however met that same day to discuss their strategy. In the words of one of the employers; “these people are not working, the government should use the law so we can start anew.” The managers said they were losing money due to the situation. Consequently they phoned the commissioner of labor and told him the workers were not keeping to the “ agreement” as stated in the Jan. 31st press release of the Assistant Minister of Labor, said the workers were on strike, and asked the Minister to declare these “strikes” illegal. One day after the so-called agreement, at the moment that workers were starting to register themselves for the trade union, without checking any of the allegations made by the managers, the Minster declared the non-existing strikes illegal and gave, according to the managers, them the right to dismiss all the workers. “The law was on our side” another manager said, “workers have to face it.”

February 3rd -- workers returning to their jobs at four of the factories located in the Ruaranka EPZ Indigo, Kentex, Sahara, and Baraka factories to find that they had been locked out. No explanation was given -- there was only a notice that the factory was closed and they were all dismissed. None of the workers had expected this to happen at this time. On the contrary, they tell the CCC, they were expecting to resume work at their factories where they understood that the deplorable working conditions were to be improved.

A few days later notices were put up to tell workers to report back to collect their final compensation and that the company was hiring again, both old and new workers. However, when workers wanted to collect their final compensation, it became clear that the company was not paying them the money that they felt was due to them, for being dismissed. If they would re-apply for their jobs they would forsake their final compensation and many workers refused to re-apply before this was settled. The right to payment for the leave days and severance pay is disputed by the employers and part of the workers have filed a claim with the industrial court.

Also the known organizers were barred from re-applying for their jobs.

The companies hired new workers and those that refused to settle are now without jobs. The companies got rid of the trade unionists and signalled very clearly to all workers that any demand on their part would not be honored and that indeed any protest would be dealt with effectively. Not all companies reacted accordingly. Some of the employers in the EPZ have recognized the union in their factories and are engaging in collective bargaining negotiations (at the moment in one of the EPZs, called Athi River). The rest of the employers should follow this example.

JAR is the fifth factory that we have been asking you to write to. At the time of the CCC's March appeal JAR had not dismissed all of its workers, but was preventing workers from exercising their right to organize. However, since that time JAR has also dismissed all of its workers. After the union recognition form was sent to the factory, the factory announced that it wanted to acknowledge the union but instead dismissed all of its workers.

Since then the situation is grim in the EPZ in Ruaranka. After the four initial companies dismissed all their workers, several other companies have used this strategy to either get rid of union organizing or make very clear to their workforce that no complaints will be allowed. They rehire a large part of the workforce, so that they do not lose all their experienced workers, only the “trouble makers” and the union in the process. They tell the minister of labor they have a strike and ask the minister to declare this illegal. The Minister of Labour and the Minister of Trade and Industry have supported the employers in this, in order to create a favorable environment for investors. A situation has occurred in which the employers dictate to the government the terms of employment or non-employment. The law is very weak in that it is basically giving the employers the right to dismiss any worker. All the employers claim there is a legal basis for the mass dismissals and any other arbitrary dismissals. The Export Processing Zone Authority also seems to be siding with the investors in this. Although their role should be “facilitating” (their own words), they have been very clearly a party in this, speaking at some points during the last months on behalf of the EPZ investors. They do not perceive the labor conditions in the EPZ factories to be problematic but rather think that “the more investors we attract the better, the labour conditions will improve eventually.”

ACTION REQUEST

Please send letters to the following:

1. The Ministry of Labour and the Ministry of Industry and Trade

Please ask them to put an immediate stop to the arbitrary dismissals. The Ministry of Labour as well as the Ministry of Trade and Industry should not condone nor encourage such behavior by investors in their country. They should make sure that the unions can freely organize in all factories. They should intervene immediately in those factories where the union is prevented from organizing, where workers are being dismissed for trying to organize, or where the freedom to organize is being impeded in any other way. Ask both ministries to take steps to ensure that the workers that were dismissed get the dues that they are entitled to for wrongful dismissal. Point out that these workers have been wrongfully dismissed and the employers should pay the workers accordingly.

Contacts

Mrs. Deborah Ongewe
Permanent Secretary
Social Security House, Bishop Road
P.O. Box 40326, Nairobi
Kenya
Tel. 729800

Alex Keter
Permanent Secretary
Teleposta Towers, Kenyatta Avenue
P.O. Box 30027, Nairobi
Kenya
Tel. 331030, 315002-7

2. The Employers Federation and the Factories

Please send a letter to the Federation of Kenyan Employers (FKE). All the factories involved -- Indigo, Sahara, Kentex, JAR and most of the other factories are members of this federation. Sent a letter to each factory as well.

In your letters please ask the companies to recognize the union in the factory, the Tailors and Textile Workers Union, and that they engage in collective bargaining. Ask the companies to refrain from mass dismissals.

Also ask the companies to:

• Not employ workers on casual contracts
• Not demand impossible targets to be fulfilled in a normal working day, which means the workers have to do unpaid overtime until they have reached the targets
• To implement health and safety measures such as not locking the emergency exits at night, having appropriate protection such as masks, gloves etc.,
• To pay the workers a living wage
• To put a stop to sexual harassment

Please tell the companies that these rights are not only internationally-recognized rights, but are also called for under most of the codes of conduct of the buyers of the companies they are producing for.

Federation of Kenyan Employers
Chief Executive
P. O. Box 48311,
Nairobi, Kenya
fke@arcc.or.ke
254 - 2 - 721929/720242/728903
Fax: 254 - 2 - 721990

Sahara Stitch EPZ
P.O Box 43832
Nairobi, Kenya
Tel: + 254 2 213302/221095
Fax: + 254 2 337773

Indigo Garments (EPZ) Limited
P.O. Box 64969
Ruaraka, Nairobi. Kenya
Tel: +254-862412/43
Fax: +254-2-861915
E-mail gautam@indigo-kenya.com

Additional background on Indigo:
The union sent recognition forms to the company in 2002 proving that the union has more than 51% of the members in the factory. The company refused to recognize the union as according to them the union had falsified names. A complaint regarding union recognition was filed with the Department of Labour at the time which resulted in a positive verdict on Feb. 11, 2003. The union has again sought the membership of all the workers after the mass dismissal at the beginning of February and sent a recognition form to the management in mid-March. Management still refuses to acknowledge the union.

The CCC received a response from Indigo on March 18th saying that the strikes were illegal and any action their management has taken was in consultation with the Ministry of Labour, Ministry of Industry and Trade, the Export Processing Zones Authority and the Kenya Association of Manufacturers. They said they have no problem with workers joining trade unions. While this is what they say, Indigo management continues to stall by ignoring the union recognition forms.

Baraka Export Processing Zone
P.O. Box 9959-00100
Nairobi, Kenya
Tel: + 254-2-652081/89

Kentex Apparels
Export Processing Zones LTD
P.O. 64020
Nairobi, Kenya
Tel: +254-2- 802961
Fax: +254-2- 861971
E-mail: kentex@swiftkenya.com

JAR Kenya Ltd.
Michel Mouyard
P.O. Box 78788-00507
Nairobi, Kenya
Tel. 254-2-532040/50
Fax: 254-2-532090
E-mail: michel@jarkenya.com

Additional background on JAR:
After the strike not many of the workers returned to re-apply after the announcement went out. The company is notorious for its aversion to unions and union organizing. In 2001 the company dismissed two workers that were organizing other workers, after locking them up for hours. Their cases have still not been heard in the court.

The following companies are producing their garments at the Kenyan factories in question:

• Indigo: Dayton Hudson, Target;
• Sahara: Matchpoint, Ashton;
• Kentex: Wal-Mart
• Baraka: Wal-Mart, Sears, Target
• JAR: Jordache, Joe Boxer, Wal-Mart

Please ask these companies to ensure that the right to organize is exercised in the factories were they source and to make sure that factory management does not dismiss the workers either when they try to organize or try to put their grievances to the employers, or for any other arbitrary reason. Ask them how they check implementation of their codes of conduct. Most workers report that the workers are interviewed in the presence of the management. Ask them not to interview the workers in the presence of the management as most of the workers will not feel confident enough to relate the real situation, especially as there is no protection against dismissals. Also most buyers announce their visits so the factories make sure that the factory, toilets etc are clean etc. The management should You might want to ask also to makes sure that. Make very clear that they should not stop sourcing in these factories but ask for improvements!

CONTACT INFORMATION FOR SOURCING COMPANIES:

1.TARGET

Following the first appeal, Target responded (March 28th) to at least one letter writer, however their response does not give any information about the dispute in Kenya and only states that they have an internal monitoring system that includes educating their suppliers on how to improve workplace conditions and that they will give them an opportunity to take corrective action before deciding to terminate their contract. Write to Target and ask them what they are doing to investigate the situation at their Kenyan suppliers and what steps they are taking to make a positive intervention that will result in a just resolution of this dispute. Request copies of their audit reports and corrective action plans. Remind them that cutting and running when confronted with rights violations is not responsible corporate behavior. Tell them that you expect them to support workers who stand up for their rights.

Robert J. Ulrich
Chairman and CEO
Target Corporation
1000 Nicollet Mall
Minneapolis, MN 55403
United States
Tel. +1-612-304-6073
Fax: +1-612-696-3731

2. WAL-MART
H. Lee Scott Jr.
President and CEO
Wal-Mart
702 SW Eighth St.
Bentonville, AR 72716
United States
Tel. +1-479-273-4000
Fax: +1-479-273-1917

3. Matchpoint, Inc.
1013 S. San Julian St. #B
Los Angeles, CA 90015
Tel. +1-213-745-5875
Fax: +1-213-745-5095

4. Joe Boxer

This is a brand owned by:
Windsong Allegiance Apparel Group, LLC
Joseph Swedler, Chairman
1599 Post Road East
Westport, CT 06880-5602
United States
Fax: 1-203-319-3610
e-mail: info@windsongallegiance.com

and sold exclusively by:

Kmart Corporation
James Adamson, Chairman
3100 W. Big Beaver Rd.
Troy, MI 48084
United States
Fax: 1-248-463-5636

5. Jordache Enterprises
Joe Nakash, Chairman and CEO
1400 Broadway, 15th Fl.
New York, NY 10018
United States
Fax: 1-212-239-0063
Jordache brand goods are sold mostly at Wal-Mart

6. SEARS

Sears wrote (March 14) a short reaction to the first appeal stating that they are “monitoring the situation closely. Since the factory recently reopened no new orders have been placed for Sears Merchandise. Be assured that before any future orders for Sears Merchandise are placed with the factory, Sears will verify that the factory’s operation are in accordance with Kenyan Law and Sears’ own vendor Standards.”

According to industry sources in Kenya Sears has completely pulled out of Kenya. Please tell Sears that cutting and running is no way to deal with a labor rights dispute. If they are really a company that seeks to operate in a socially-responsible manner, they have a responsibility to support the workers that produce their goods when they seek to exercise their rights. Cutting their ties to factories once labor rights violations are uncovered does nothing but punish workers. Sears should work with their suppliers to improve working conditions.

Alan J. Lacy
Chairman and CEO
Sears, Roebuck, and Co.
3333 Beverly Rd.
Hoffman Estates, IL 60179
United States
Tel. +1-847-286-2500
Fax: +1-847-286-7829

Please send copies of your protest letters and any responses that you
receive to:

William Akech Muga
General Secretary
Tailors and Textile Union
Head Office
Consulate House Chambers
First Floor
Rescourse Rpad
P.S. Box 72076
Nairobi, Kenya

And

Kenya Human Rights Commission
Gitanga Road
Valley Arcade
Nairobi
Kenya
P.O Box 41079
Tel: (254-722) 264-497; 254-2-576063/4/5/6
Fax: 254-2-574997
E-mail: souma@khrc.or.ke