May 2004 Update on PT Busana Prima Global case

Thirty six of the workers who were fired last July for participating in a strike are still campaigning for their reinstatement at the factory. The ABGteks/GSBI union reports that the new union leadership is confronted with continuous pressure to resign from the union. ABGteks/GSBI also reports that the grievances of workers which led to the start of the conflict initially, including forced overtime and harassment and intimidation in their workplace, have not been resolved. The factory produces for Lotto, Head, Le Coq Sportif, Ecko and Bear USA.

We ask you to make some time to support workers of the PT Busana Prima Global factory in their struggle to come to a satisfactory solution with the factory management.

Sept 2005, Update and action request PT Busana Prima Global - Indonesia
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In July 2003, 166 PT Busana Prima Global workers held a 4-day strike, demanding that their employer respect Indonesia's minimum wage laws and bring an end to harassment and intimidation in their workplace. He responded by dismissing them. At the moment 36 workers are still campaigning for their reinstatement at the factory.

On 18 February 2004 the relevant labor arbitration committee (P4P) of the Indonesian Ministry of Labor found that the workers' dismissal was legal under Indonesian law. The workers' legal representatives are concerned that proper processes were not followed in the case since the committee made its decision without hearing the workers' case and without requiring the company to provide the workers' legal representatives with documents that they needed in order to fairly argue their case. The workers are planning to appeal the decision.

The members of the union who continued working have elected new union leadership because the old union representatives who had been dismissed felt they could not be effective outside the factory. The ABGteks/GSBI union reports that management of the factory has pressured the new leaders to resign from the union. One union leader, Asep Saefulah, reports that he was offered a bribe to leave the union. The factory management has also established a so-called ‘institute for bipartite co-operation’ to act in the place of a union. Asep was also approached to take a seat in this committee on the condition that he leave the union.

ABGteks/GSBI and representatives of the dismissed workers are calling for the reinstatement of the 36 dismissed workers. Further they call on the owners' cooperation with an independent factory investigation and the implementation of the recommendations, including improvements in the conditions at the factory.

Despite some promising steps taken by the brands Lotto, Le Coq Sportif, and Head and by GPS/Focus Far East in November and December last year, reports from the ABGteks/GSBI trade union indicate that labour rights are still not being respected at the factory. Taken the fact that the great majority of production of PT Busana Prima Global is arranged through GPS/Focus Far East it is clear that GPS/Focus Far East has the leverage to pressure the factory owner to resolve the conflict.

GPS/Focus Far East is asked to work with the Clean Clothes Campaign and other international human rights organizations to ensure that a credible and independent factory investigation takes place as soon as possible.

Brands are asked to send a senior staff representative to Jakarta to have detailed meetings with ABGteks/GSBI and with former and current Busana Prima Global workers to learn about the situation. Both GPS/Focus Far East and brands are asked to persuade the factory owner, Mr. Park to urgently negotiate the reinstatement of the dismissed workers who are still campaigning to get their jobs back. Further GPS/Focus Far East and the brands are asked to make a clear public commitment that if Mr. Park, the owner of the factory would decide to close the factory and move its activities elsewhere he will lose the orders from GPS/Focus Far East and the brands - he cannot take them to another factory.

Sept 2005, Update and action request PT Busana Prima Global - Indonesia
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ACTION REQUEST:

1. Write to the owner of PT Busana Prima Global, Mr. Park

2. Write to the brands Lotto, Head and Le Coq Sportif who have taken some action in this case, stating that further action on their behalf is needed, using the sample letter below.

3. Write to the brands Ecko and Bear USA who have not taken their responsibility in any way in this case, stating campaigning against their brand will continue until the conflict has been resolved, using the sample letter below.

4. Write to GPS/ Focus Far East

5. Write to the Indonesian Minister of Labor

Please send copies of your letters to the union and the Clean Clothes Campaign:
ABGTeks, Jakarta - e-mail: abgteks@hotmail.com
GSBI, Jakarta - e-mail: gsbi_pusat@hotmail.com
Clean Clothes Campaign

1. Sample letter to Mr. Park, owner of the PT Busana Prima Global factory:

Mr. Park Jae Han
President diretor PT Busana Prima Global
Jl. Mercedes Benz No.223 A Ds. Cicadas Kec. Gn. Putri
Bogor , Jawa Barat. Indonesia 16964
Fax: + 62 21 867 6115

May 2004

Re: ongoing dispute and labour rights violations at PT Busana Prima Global

Dear Mr. Park,

I am contacting you because I have been informed about ongoing labour rights violations at your factory, PT Busana Prima Global.

Reports from the ABGteks/GSBI trade union indicate that the workers who were dismissed for participating in a strike in July 2003 have not been reinstated, and that freedom of organisation – an internationally recognised human right – is still not respected at your factory.

In order to resolve the conflict I am asking you to reach an acceptable solution with the workers and ensure that their human rights are respected, particularly their right to form and join a trade union.

Therefore, I urge you to:

• Urgently enter into serious negotiations with GSBI and the dismissed workers about their reinstatement
• Improve conditions at the factory.
• Cooperate in an independent factory investigation which will be conducted by a team established by GPS/Focus Far East and international human rights organisations and implement the recommendations of that investigation.

I have also informed GPS/Focus Far East and the brands Lotto, Head, Bear USA, Ecko, and Le Coq Sportif about my concern in this case.

Thank you for your consideration. I hope that you will take action as recommended above.

Sincerely,
[insert name/organization here]

2. Sample letter to Le Coq Sportif, Lotto and Head:

Thierry Scheydecker
Directeur Général
Le Coq Sportif France
57 bis, rue des Romains
68390 SAUSHEIM
FRANCE
Tel. 00 33 3 89 61 82 32
Fax. 00 33 3 89 61 83 85

Mauro Favaretti
Lotto Sport Italia Spa
Via San Gaetano, 200
31044 Montebelluna (TV)
ITALIA
Tel: (+39) 0423 6181
Fax: (+39) 0423 600402

Johan Eliasch
Birgit Strele
HEAD N.V.
Blaak 16
3011 TA Rotterdam, The Netherlands
Phone: +31-10-214-1923
Fax: +31-10-401-6462

Re: ongoing dispute and labour rights violations at PT Busana Prima Global

May, 2004

Dear

I am contacting you with regard to reports of ongoing labour rights violations at your supplier factory, PT Busana Prima Global.

Despite some promising first steps taken by your company and GPS/Focus Far East in November and December last year, reports from the ABGteks/GSBI trade union indicate that over four months later the unfairly dismissed workers have not been reinstated, and that freedom of organisation – an internationally recognised human right – is still not respected at the factory.

In order to resolve the conflict I am convinced that your company has to do more. Please understand that I am NOT asking you to cut your contracts with PT Busana Prima Global, but rather that you try to work with them to reach an acceptable solution that is satisfactory to the workers and ensures that their human rights are respected, particularly their right to form and join a trade union.

Therefore, I urge you to:

• Send a senior staff representative to Jakarta to have detailed meetings with the GSBI union and with former and current PT Busana Prima Global workers to learn about the situation.
• Do all you can to persuade the factory owner (Mr. Park) to urgently enter into serious negotiations with ABGteks/GSBI and the dismissed workers in order to negotiate their reinstatement and to cooperate to improve conditions at the factory.
• Pressure GPS/Focus Far East to work with the Clean Clothes Campaign and other human rights organisations to arrange an independent factory investigation and to ensure that the recommendations are implemented.
• Make a clear public commitment that if Mr. Park closes the factory he will no longer receive orders from your brand - he cannot take those orders to another factory. This could for example be expressed in a letter to Mr. Park, copies of which would be made available to the GSBI union.

I hope to hear from you what steps you have taken in order to solve this conflict and to improve working conditions ay your supplier’s factory.

Sincerely,
[insert name/organization here]

3. Sample letter to Bear USA and Ecko:

Bear USA
530 Secausaw Road
Secaucas NJ 07094
USA
Fax: + 1 201 461 6629

Mark Ecko
Ecko Unltd.
1 Martin Ave.
South River NJ 08882
USA
Fax: + 1 732 432 5410

May 2004

Re: ongoing dispute and labour rights violations at PT Busana Prima Global

Dear

I am contacting you with regard to reports of ongoing labour rights violations at your supplier factory, PT Busana Prima Global. I have written to you before about this case and I am informed that your company has not taken any action to resolve the pressing situation at your supplier factory.

The fact that your licensee GPS/Focus Far East is responsible for the great majority of orders from of PT Busana Prima Global shows that your company has an important role to play in helping to resolve this dispute. Your company is responsible for the working conditions of the workers that make your goods. Please understand that I am NOT asking you to cut your contracts with PT Busana Prima Global. I am asking you to work with the factory management to reach an acceptable solution that is satisfactory to the workers and to ensure that their human rights are respected, particularly their right to form and join a trade union.

Therefore, I urge you to:

• Send a senior staff representative to Jakarta to have detailed meetings with the ABGteks/GSBI union and with former and current PT Busana Prima Global workers to learn about the situation.
• Do all you can to persuade the factory owner (Mr. Park) to enter into serious negotiations with GSBI and the dismissed workers about their reinstatement and to improve conditions at the factory.
• Pressure GPS/Focus Far East to work with the Clean Clothes Campaign and other human rights organisations to arrange an independent factory investigation and to ensure that the recommendations are implemented.
• Make a clear public commitment that if Mr. Park closes the factory he will no longer receive orders from your brand - he cannot take those orders to another factory. This could for example be expressed in a letter to Mr. Park, copies of which would be made available to the GSBI union.

I hope to hear from you what steps you have taken in order to solve this conflict and to improve working conditions ay your supplier’s factory.

Sincerely,
[insert name/organization here]

4. Sample letter to GPS/Focus Far East:

Mr. Mark Schaffer, Financial Director,
Vertical Sports Group
Ashley Road, St Albans
Hertfordshire AL1 5UG
Fax: 44 (0) 1727 88 3550

May 2004

Re: Resolving issues at the PT Busana Prima Global factory.

Dear Mr. Schaffer,

I am contacting you with regard to reports of ongoing labour rights violations at PT Busana Prima Global. As you would be aware, the great majority of orders from this factory come from Focus Far East, a company which is owned by your company, the Vertical Sports Group (VSG). I understand that VSG is in turn owned by another company, GPS.

I have written to you before about this case and I remain concerned about labor standards at the PT Busana Prima Global factory. The dismissal of workers who participated in a strike last July is a breach of workers' rights to freedom of association and collective bargaining. These rights are enshrined in the International Labor Rights conventions and include the right to strike. I am disappointed to learn these workers have not been reinstated.

I am writing to urge your company to work with the Clean Clothes Campaign and other human rights organization to arrange a credible and independent factory investigation which will formulate recommendations to solve the conflict.

In addition to these proposals regarding the factory investigation, I call on GPS/VSG/Focus Far East to:

• Persuade the factory owner (Mr. Park) to negotiate with ABGteks/GSBI to arrange the reinstatement of the dismissed workers who are still campaigning to get their jobs back.
• Make a written commitment that if Mr. Park closes the factory then GPS/VSG/Focus Far East will no longer do business with him or with factories linked to his company. This could for example be expressed in a letter to Mr. Park, copies of which would be made available to the GSBI union.

I hope to hear from you what steps you have taken in order to solve this conflict and to improve working conditions at your supplier’s factory.

Sincerely,
[insert name/organization here]

5. Sample letter to the Indonesian Minister of Labor:

The honourable minister for labor and transmigration
Mr. Yacob Nuwa Wea
Jl.Taman Makam Pahlawan No.17 Jakarta Selatan 12740
Indonesia
Fax: + 62 21 797 44 88

P4P committee
Fax: +62 21 525 1013

May 2004

Re: procedure followed by the P4P committee in the case of the dismissed PT Busana Prima Global workers

Cc: P4P committee

Dear Minister of Labor, Mr. Yacob Nuwa Wea,

I am contacting you to express my concern about the procedure followed by the P4P committee in the recent case of workers dismissed from the PT Busana Prima Global factory in Bogor, West Java.

I have been informed that only one hearing took place in which both the lawyers from the company and the workers' lawyers' were present. At that meeting only the company lawyers presented their case. The workers' lawyers made the point that the company had failed to provide requested documents that were necessary in order for the workers' lawyers to prepare their case and requested that the committee require the company to make those documents available

On 18 February 2004, the Committee made its decision, without requiring the company to provide those documents to the workers' lawyers and without hearing the workers' case. The letter informing the workers' lawyers of the decision is dated 24 March, and the letter was only delivered to the workers' lawyers on 21 April. Taken the fact that an appeal must be made within 90 days after the date mentioned on the letter announcing the decision, this delay in informing workers' of the committee's decision seems highly inappropriate.

I understand that the workers have decided to appeal against the decision of the P4P committee since the process followed by the committee did not allow the workers' representatives to fairly present their case. Hereby I would like to request that the appeal be given fair and reasonable consideration. Further I hope to be informed whether the appeal will be heard.

Yours sincerely,
[insert name/organization here]