Workers blocking the door of Hermsoa when bank representatives try to go in.

May 16, 2006 - Thanks to all of you who have taken action to support the Hermosa workers in their struggle. Unfortunately, there has been no real progress made towards meeting the demands as outlined in our last appeal: (Seewhat happened before)

The former Hermosa employees continue to be owed substantial legally-mandated severance, as well as overtime, disability leave, maternity leave, sick leave, annual vacation, and other benefits to which they are entitled by law. Hermosa Manufacturing also continues to owe several hundred thousand dollars to government health and pension funds, including monies deducted from employee paychecks which were never remitted to the funds.

There has been some movement on the part of the brands and the government, of which we provide a brief summary below. Your actions are having an effect.

Please keep supporting the Hermosa workers to help them achieve their aims.

Take action now! >>

Nike and adidas have responded to those of you who have been writing letters, indicating various steps they have undertaken or believe that the government of El Salvador has made. For our response to Nike's letter go to [reply to Nike]. For a point-to-point reaction to the adidas statement, go to The CCC’s response to adidas AG’s statement in the case Hermosa / El Salvador

Reebok and Russell have indicated they are working with adidas and the other FLA brands on this matter. Puma has admitted that there was Puma production in Hermosa in the years 2000 and 2001 when workers' rights violations already took place, but denies more recent involvement. Puma does not want to be actively involved unless proven that Puma products were recently produced at Hermosa. Pentland/Speedo has provided a brief response referring to the work undertaken by the others, but without indicating any steps on their part, apart from contacting adidas. Walmart so far has refused to respond.

Adidas describes in its 4 page response of the various steps it has taken to investigate the case, and of its dialogue with various stakeholders on the ground. The investigations, conducted together with GMIES (a local independent monitoring group), as well as the various court documents that have arisen from the legal cases presently pursued against the owner, largely confirm the claims made by the workers regarding the severance and overtime payments due, as well as the failure to pay social security premiums. They also confirm workers having incurred uninsured medical costs and having lost homes.

While CCC appreciates the fact the adidas has undertaken a thorough investigation and, together with Nike, Russell and supported by FLA, has engaged in intensive dialogue locally, we have to point out that this has to date still not resulted in any genuine improvements of the workers' situation.

With respect to this demand, the key problem today is not a dispute over the findings, but the dispute over whose responsibility it is to solve it.

Adidas in its letter states that 'they will not take on the government and employers responsibilities to compensate these workers because we have not employed those workers'. Nike also recognizes that "the workers still need to be paid what is owed to them", but repeats that they are looking for the government to "take the lead in securing fair treatment of the workers, including payment of unpaid overtime wages (not regular wages) and severance to the workers".

The workers, in a letter dated April 26 to adidas, Nike and Russell, "now ask [that] given that you understand the process that we have been through, would directly address the situation by contributing to an emergency monetary fund to help mitigate the situation we are living through. As rich and powerful companies, we believe you are in a position to help us. This emergency fund, which would be used to help cover basic expenses for food and housing, would be a very important part of the solution to this crisis".

CCC wishes to make it clear that our call for the brands to meet this demand, and take responsibility for paying the workers what they are due, is not to negate responsibility on the part of the employer or the government. This is to ensure that brands, when they have failed to implement the very standards they claim to uphold, take effective remediation measures. A lot of time and resources were spent in an attempt to free remaining assets of the owner to settle the debts to the workers; this has failed. A lot of time and resources were spent on trying to re-open; this has also failed. The time spent on pressuring the government of El Salvador to improve the implementation of its labour law might be time well spent for the benefit of future workers, but is not helping to settle the claims of the 64 unionised Hermosa workers nor of the other dismissed workers.

CCC underlines again that these brands, having code compliance programs and having been called upon by CCC since the year 2000 to improve working conditions at the Hermosa factory, share the responsibility for ensuring effective remediation. In this particular case that includes paying the money legally owed to the workers concerned, and we fail to see why the proposal for an 'emergency fund' would be rejected on the grounds of the brands not being employers.

Both adidas and Nike report that they believe they have successfully pressured the government to offer the former Hermosa workers medical coverage to be effective for one year or until re-employment. According to the communication from adidas, the government agreed to send a written notification to all the workers on April 17. Unfortunately, workers to date have not received this notification, something they informed adidas, Nike and Russell about on April 26.

While medical coverage, if provided, would be a definite step forward, only relying on the very government that failed to protect these workers to begin with, the brands take a very large risk.

Another important demand has been for the workers to be rehired. As mentioned in our first appeal, workers have reported being subject to blacklisting. The WRC has initiated an investigation into alleged blacklisting of former Hermosa workers at the Chi Fung apparel facility, located near Hermosa. Chi Fung is the largest apparel factory and one of the only apparel factories in the region, making blacklisting at this facility particularly damaging to the workers' ability to find employment. According to university disclosure data, the facility is a producer of collegiate logo goods for Nike, Jansport (a division of VF Corporation), Page & Tuttle, and Team Edition Apparel. The facility is also a current producer of adidas garments.

It bears noting that WRC has gathered credible evidence indicating that Chi Fung subcontracted the production of apparel goods (including adidas and Nike garments) to Hermosa, apparently on an unauthorized basis, during the two years prior to the unlawful closure of the Hermosa facility. The Chi Fung and Hermosa facilities appear to have had an exceptionally close relationship, frequently working together to complete orders.

1) Not a single one of the Hermosa workers in question who applied for work at Chi Fung has been hired, though the facility did hire a substantial number of other workers contemporaneously.

2) Chi Fung has carried out, and maintains, hiring policies that preclude the hiring of any former Hermosa worker who is viewed by Hermosa management as a "troublemaker".

3) Workers provided highly credible testimony that clear statements of discriminatory intent were made by Chi Fung managers during the application process.

For a full report and for the recommendations made by the WRC to the Chi Fung buyers and particularly to adidas and Nike, see:
23kb) WRC report on blacklisting of former Hermosa workers at Chi Fung

WRC has been in consultation with the relevant brands (adidas in particular) concerning the problem of blacklisting at Chi Fung and hopes to be able to reach agreement shortly on the establishment of a process to ensure non-discriminatory hiring at Chi Fung for former employees of Hermosa.

Adidas states "to address the allegations of blacklisting, the government has scheduled a job fair in a central exhibition hall in San Salvador for May 12-13, and will ensure that unemployed Hermosa workers are given priority for interviews and employment opportunities during this event. Written invitations will be sent to the Hermosa workers by the Ministry of Labour". Nike also mentions "personal and priority invitations [will be sent] to unemployed workers to a job fair in San Salvador in mid-May". Similar to the medical coverage, this news to date has not reached the workers. It also bears noting that the job fair invitation, while perhaps valuable to workers, does not actually represent remediation of the illegal blacklisting at Chi Fung, since the illegal behavior of one supplier cannot be remedied by simply telling workers to find work elsewhere.

Adidas and Nike, as buyers of Chi Fung and former Hermosa, should make sure that firstly the blacklisting ends, and secondly that, once hired, the workers are free from harassment or discrimination and that the right to organize is respected. This whole process of rehiring should be monitored in the long run by an actor of the local civil society that is trusted by the workers, to avoid discrimination against these workers after a certain time.

Adidas and Nike also report that at a meeting called by the El Salvadoran government on Tuesday April 4, brand representatives from adidas and Nike met with officials from the Executive branch, the Ministries of Labour and Economy, and the Presidential Commission for Democratic Government, and it was announced that the Ministry of Labour is in the process of hiring 69 new labour inspectors, effectively doubling the labour inspectorate. During this meeting, the government agreed to send the new inspectors to external training in the Guidelines of Best Employment Practice. This training program was developed by the FLA's Central America Project, and was delivered to more than 200 inspectors and officials of the Guatemalan Ministry of Labour in late 2005. The El Salvador training is to be scheduled during the first two weeks of May.

The doubling of the number of labour inspectors in the country is an important step forward. However it should be guaranteed that these inspectors follow the interests of the employees and not those of the employers. Therefore it is imperative that in the trainings for labour inspectors, civil society representatives like women's organisations active on workers' rights issues in the garment industry are included.

While this is possibly an important step for the future, it will not help the current Hermosa workers' plight.

The German CCC will use the occasion of the World Championship 2006 in Germany, where adidas has its headquarters, to bring the Hermosa case under the attention of the broad German public. A speaker tour with the spokeswoman of the organized Hermosa workers, Estela Ramirez, will be realized from May 14 till 27. Estela Ramirez will participate in press conferences and give about 10 speeches all over Germany. Also, at the annual meeting of the adidas shareholders, the German CCC will declare a critical statement in name and with authorization of the Critical Shareholders' Association Germany.

You can support the Hermosa workers by once more contacting the brands concerned, the factory owner and the relevant government offices. Please take some time today to send a protest message. Sample letters are given below.

Dear [add name]

I'm writing to you to express my concern regarding the situation of the workers of the Hermosa Factory in El Salvador that in previous years also produced clothes for your company. I have been informed by the Clean Clothes Campaign that these workers lost their jobs in May 2005, and since then have been campaigning to be re-instated and to receive their legally due severance pay and outstanding wages.

Obviously, the workers are distressed by their difficult situation, and now face great hardship due to the termination of their employment. Many of them now cannot find new work, having been blacklisted for defending their rights.

I understand that efforts have been made to persuade the owner and the local governmental authorities to settle the matter, but that so far this has not been successful. I am also aware that CCC and other labour rights groups have contacted you over the past month asking you to:

• Contribute to a fund to cover their legally outstanding wages, overtime payments and severance pay;
• Take the necessary action to either get the factory re-opened, or get the workers rehired at other suppliers;
• Prevent further retaliation against these workers, in the form of intimidation and hiring discrimination

I am very disappointed to learn that so far no concrete action has been taken by you in response to these requests.

I have been informed that the owner has been violating labour laws for years, particularly with respect to wages and social security payments, but that even though you have a code of conduct and a monitoring program you failed to identify and address these violations at the time when the factory was still open. Workers now are punished in three ways: not only did they work for years in a factory that failed to respect national and international labour standards, they also lost their jobs due to organizing, which is an internationally recognized human right, and are discriminated against when it comes to rehiring. On top of this, they have not received their severance pay and outstanding wages (which they are legally entitled to). Surely the responsible action on your part is to meet the demands outlined above?

Please let me know what steps you intend to take

Sincerely

[Insert name here]

SAMPLE LETTER TO LOCAL AUTHORITIES - English version

Ministra de Economia: Sra. Yolanda Mayora de Gavidia webmaster@minec.gob.sv

Ministry of Labour: Ministro de Trabajo y Prevision Social: Lic. Jose
Roberto Espinal Escobar, telefax (++503) 22093728 jrespinal@mtps.gob.sv

Dear [insert name]

I'm writing to you to express my concern regarding the situation of the workers of the Hermosa Factory in El Salvador, I have been informed by the International Clean Clothes Campaign that these workers have lost their jobs in May 2005, and since then have been campaigning to be re-instated and to receive their legally due severance pay and outstanding wages. I understand the owner, Mr. Montalvo, has failed to pay legal premiums for social security and pension funds since 1996, building up a huge debt with various government agencies and is now being prosecuted but this does not result in paying the workers what they are legally due.

Obviously, the workers are distressed by their difficult situation, and now fact great hardship due to their termination of employment. Many of them are even punished for trying to fight for justice by getting discriminated against when trying to find new work. This is becoming an issue of great concern for the international community.

I understand that local labour rights groups have contacted you over the past month and asked you to fulfill the laws, ensure payment of the outstanding wages, overtime payments and severance pay; and respect the right to organize in a union.

I am very disappointed to learn that the government of El Salvador so far has taken no concrete action to meet these requests, and wish to express my support for the Hermosa workers and politely ask you to meet their demands. Please let me know what steps you will take to ensure this. For your information, I will also contact the buyers previously sourcing from Hermosa with my concerns.

Sincerely,
[Insert name here]

SAMPLE LETTER TO THE PUBLIC AUTHORITIES Spanish version

Muy estimado (Name)

Me dirijo a Vd. para expresar mi suma preocupación por la situación de los trabajadores de la Maquila Hermosa en El Salvador. Según informaciones recibidas por parte de la Clean Clothes Campaign, estos trabajadores fueron despedidos en mayo del 2005, sin haberles pagado la cantidad completa que les corresponde de sus salarios y cotizaciones prescritas por la ley.

Según las informaciones obtenidas, el dueño de la Maquila, el Sr. Montalvo, no ha pagado desde 1996 ni las cotizaciones legales al fondo de pensiones, ni las cotizaciones al seguro social. Por esta deuda considerable con agencias gubernamentales, el Sr. Montalvo es objeto de investigaciones oficiales. Estas diligencias oficiales no consiguieron que el Sr. Montalvo haya pagado su deuda con los trabajadores.

Los trabajadores se encuentran obviamente en una situación muy difícil, habiendo perdido su empleo. Algunos de ellos, al buscar un empleo nuevo, se ven discriminados por haber luchado por sus derechos laborales. Todo ello causa una gran preocupación a la comunidad internacional.

En los meses pasados, grupos locales de derechos laborales le contactaron para pedirle a Vd. que haga cumplir las leyes, con el fin de que se les pague a los trabajadores afectados los sueldos, horas extras y las cotizaciones, y con el fin de que se respete el derecho de organizarse en sindicatos.

Estoy muy decepcionado por el hecho de que el Gobierno de El Salvador no haya tomado las medidas necesarias. Quiero expresar mi apoyo a los trabajadores de la Hermosa, y pedirle cordialmente que Vd. les apoye en sus demandas. Le agradecería mucho si me informara de los pasos tomados en esta cuestión. Para expresar mi preocupación, voy a contactar también a las empresas que encargaron la producción de la Hermosa.

Atentamente,

(Name)

SAMPLE LETTER TO THE OWNER

MB Knitting
Fax Number: (503) 2216-64 05
Phone: (503)2216-7283
Email: a_hermosamfg@123.com.sv

Dear Mr. Montalvo,

I'm writing to you to express my concern regarding the situation of the workers of the Hermosa Factory in El Salvador, I have been informed by the International Clean Clothes Campaign that these workers have lost their jobs in May 2005, and since then have been campaigning to be re-instated and to receive their legally due severance pay and outstanding wages. I understand you failed to pay legal premiums for social security and pension funds since 1996 and have in many other ways violated the rights of these workers, particularly their right to organize.

This is becoming an issue of great concern for the international community. I call upon you to immediately pay these workers their outstanding wages, overtime payments and severance pay; offer them reinstatement and respect the right to organize in a union.

For your information, I will also contact the buyers presently sourcing from MB Knitting as well as those previously sourcing from Hermosa and the El Salvador authorities with my concerns.

Sincerely,
[Insert name here]

Dear Fukumi Hauser,

Thank you for your reaction to the concerns raised by the CCC and many consumers, related to the current plight of the former workers at the Hermosa factory in El Salvador.

In your e-mail dated April 12 2006, you state that Nike was not sourcing at the Hermosa factory at the time it suspended its operations. However, the workers identified Nike products as being produced for a period as far back as 1997 until at least 2004. Your own investigations (together with adidas and other FLA related brands) and the findings of the legal process started against the owner all confirm most of the allegations made, and confirm that they were taking place in the periods for which Nike production has taken place.

In your e-mail you give the impression that you have a lot of confidence in the steps the Salvadorian government has pledged to take on behalf of the former Hermosa workers. These promises included: "provisions of health care to unemployed workers for 12 months, or until they find a new job, whichever is sooner; personal and priority invitations to unemployed workers to a job fair in San Salvador in mid-May; changes in the law to strengthen factory oversight, and a doubling of size of the labor inspection authorities; and training for labor inspectors, unions and employers by international groups such as the Fair Labor Association and the international Labor Organization".

We contend however that so far no progress has been made: workers have not received confirmation of extension of medical coverage, and none of the workers who were involved in the Hermosa protests, have gotten new jobs. In a letter dated April 26 2006, the workers wrote to you as one of the big international companies formerly sourcing from Hermosa, to inform you of this lack of advancement.

The invitation to the job fair that is offered by the Salvadorian government might be valuable to the workers. However, it does not represent remediation of the illegal blacklisting at other factories, most notably at the Chi Fung factory that was recently subjected to a WRC investigation. In our previous correspondence we already informed you about this discrimination of unionized Hermosa workers trying to find new jobs. The illegal behavior of one supplier cannot be remedied by simply telling workers to find work elsewhere.

We welcome the intentions of the government to improve their labor law and labor inspections. If the government hires more labor inspectors this will possibly help in future. However, it does not help the workers to meet their main demand: payment of legally due severance pay and outstanding wages and benefits.

Finally, as the workers made clear in their letter of April 26 2006, they are still calling upon you and other brands that used to source at Hermosa to set up an emergency fund. We urge Nike to participate in this fund and its implementation, to make sure that the workers at least receive the money now, and not when the ongoing negotiations between the authorities, the owner and the brands get settled, since if and when this will happen remains unclear. Since both the legal system and the brands monitoring programmes have failed to ensure these workers their rights, and given the complexities on the legal side as cited in your own investigations, this would be the most responsible action on your part.

For your information, we will be publishing a next update on this case on our website shortly,

Yours respectfully,

Tessel Pauli
Clean Clothes Campaign, International Secretariat