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PT Kahatex: Update and Urgent Action request

13 Dec. 2003

Dismissed Kahatex Workers Dear friends,

Your support is urgently needed for the fired workers at PT Kahatex Sweater Division in Bandung! On October 9 the CCC reported about the actions undertaken in among others Germany and Austria to pressure companies Tom Tailor and s.Oliver to rehire the 537 workers who were locked out after going on strike to demand that they be paid the minimum wage and that other legal rights be implemented. At and earlier stage H&M and Nike, the other main buyers, already agreed to cooperate with the Workers Rights Consortium (WRC) and local groups to investigate matters.

PT Kahatex FactoryDevelopments since then include:

In early October 200 new workers were hired, but only 40 out of those were among the originally fired workers. H&M and Nike have responded positively to pressure, and on October 13 successfully pushed Kahatex Management to agree to rehire all 537 workers. Management however claimed that it would only be possible to start reemploying people after the Ramadan break ends (Dec. 3rd), and with the condition that the brands or workers first submit a complete list of ALL workers requesting reemployment.

Labels from the Kahatex factoryA first list of 93 workers was submitted to PT Kahatex by H&M in the last week of October, other workers have not yet submitted their names due to fear of further retaliation and other disincentives resulting from PT Kahatex management's lack of trustworthiness thus far. It was deemed unacceptable by the workers, their local support organizations, and some buyers to wait until after Ramadan to begin the promised reemployment process. H&M and Nike agreed to keep pressuring management to reinstate the first 93 workers immediately, but shamefully Kahatex did not reinstate even a single worker before the break. What's even more appalling is that the break is now almost two weeks past yet there still hasn't been any forward movement on behalf of Kahatex management.

After continued pressure from the German and Austrian CCC, the German companies also (finally) started to respond. At s.Oliver's request, Systain, a German social audit company owned by Otto Versand, conducted an audit. The audit took place on 16th September 2003 but according to the CCC the report contains many inconsistencies and incorrect information, which CCC communicated to s.Oliver and Systain on the 2nd of October. A subsequent meeting between CCC, s.Oliver and Systain took place on October 24, in which s.Oliver promised to talk to Kahatex Sweater about reemployment of all workers.

Meanwhile, Tom Tailor finally contacted PT Kahatex end of November, saying that they would place new orders if the workers were reinstated. CCC welcomed this position and asked Tom Tailor to become more active.

On the 4th of December a meeting between S.Oliver, Tom Tailor and Kahatex Sweater Division took place. It's shocking that the outcome of the meeting (presented as a "milestone" by the German company s.Oliver) was that Kahatex Sweater would give no real guarantees for re-hiring any of the workers and that, according to the opinion of the attendees of this meeting, eventual reemployment might take place in subcontracting facilities, would be entirely conditional upon new orders to Kahatex and upon the CCC "revoking" its international campaign for reinstatement of all Kahatex Sweater workers.

This outcome is clearly unacceptable, and CCC has since communicated this to Tom Tailor and S. Oliver, asking them to urgently contact Kahatex management to inform them that they expect Kahatex to immediately rehire the 93 workers from the original list and subsequently all the other fired workers concerned. Furthermore the CCC has demanded that a meeting take place not later than the 22nd of December between representatives of the dismissed workers to discuss the timeline for the reinstatement of the remaining 350-400 workers.

On 5th of December the local CCC group in Hamburg organized another action, which received good media attention. Regarding the other companies: Olsen declares not to produce anymore at Kahatex for more than a year, this however contradicts other findings and Olsen should investigate the matter (possibly there is illegal subcontracting) and in any case they should make an effort to support reemployment of the workers. Lerros has not responded to any of the CCC's inquires.

In summary, several brands, most notably H&M and Nike, and (in a later stage) Tom Tailor and S. Oliver continue to pressure the PT Kahatex management regarding their promise to find these workers jobs again within the Kaha Group. The situation however is becoming extremely difficult for the workers, many of whom will have to leave the area unless progress is made soon.


What can you do?

1. Write to the top PT Kahatex managers in charge of this case (Mr. Song, Mr. Trisna, and Mr. Haruman) TODAY stating that you expect them to:

  • Re-employ all 500 dismissed workers as soon as possible, beginning with the first 93 workers whose names are on the list in the week of December 15 without further penalty (meaning no fee or forced payback of the "severance") in Majalaya, Bandung. Please specify that Kahatex management should prioritize creating job opportunities within the Kaha Group factory compound. Workers have requested employment within the Majalaya area because this is where there homes are located.

  • Meet with representatives of the dismissed workers by (at the latest) the 22nd of December to discuss the timeline for the reinstatement of all of the remaining 350-400 workers.

Please send a copy of your messages to H&M, Nike, Tom Tailor and S. Oliver; to show Kahatex that you are also contacting their clients, and to show the buyers that you are interested and involved.

2. Write to Lerros and Olsen and tell them that you are extremely upset about their irresponsible behaviour and that you expect them to join the other companies in pressuring Kahatex management without delay.

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