Workers still without jobs, medical care and severance pay.

The spokeswoman of the organized Hermosa workers, Estela Ramirez Speaking in Germany.

Whilst we welcome the actions that some of the brands have been taking to attempt to resolve the case, this action is clearly insufficient, and therefore, we are calling on the brands - once again - to ensure that the workers demands are met.

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 will not result in paying the workers what they are legally due. The trial is due to start in September after being repeatedly postponed.

Materials put out by adidas acknowledge the accuracy of 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.

• Contribute to a fund to cover their legally outstanding wages, overtime payments and severance pay;

• require their suppliers to hire the former Hermosa workers on a priority basis in order to facilitate these workers gaining employment and to address the illegal discrimination that has occurred;

• Prevent further retaliation against these workers, in the form of intimidation and hiring discrimination;

• Pressure the Salvadoran government to fulfil the laws, ensure payment of the outstanding wages, overtime payments and severance pay; and respect the right to organize in a union.

Workers are also calling on the government to fulfil the laws, ensure payment of the outstanding wages, overtime payments and severance pay; and respect the right to organize in a union.

The factory owner is being called on to immediately pay the workers their outstanding wages, overtime payments and severance pay.

WHAT HAS (NOT) HAPPENED SINCE THE LAST UPDATE

Outstanding Wages, Overtime Pay and Severance Pay

Materials put out by adidas confirm that Hermosa workers are owed substantial legally-mandated severance, as well as overtime payments and other benefits. The workers have still not received any financial support and 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"./

The workers have not received a direct response to their letter. In responses to the CCC, many of the brands maintain that it is the government’s responsibility to ensure that the factory owner makes the outstanding payments to the workers. As stated in our previous appeal, CCC wishes to make it clear that our call for the brands to meet this demand, and pay into an emergency fund for workers, is not to negate responsibility on the part of the employer or the government. Eventually the government should ensure that the owner of Hermosa makes the outstanding payments to the workers, but the government is currently failing to ensure this is the case, despite considerable pressure on the government by the brands. Therefore, the brands, in upholding their codes of conduct, must take action to ensure that the former Hermosa workers receive the outstanding payments.

CCC underlines again that these brands, which failed to pick up on violations of workers’ rights that have been public knowledge since the year 2000, share the responsibility for ensuring effective remediation.

As we have previously stated, a lot of time and resources have been 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 the factory, and to get the government to take action against the factory owner; this has also failed.

The brands, which have failed to implement the very standards they claim to uphold, should take effective remediation measures. 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.

We urge all brands 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.

Pressure on the Salvadoran Government:

Nike, Wal-Mart, Reebok, adidas, Puma and Russell Athletic give the impression that they have confidence in the steps the Salvadorian government has pledged to take on behalf of the former Hermosa workers, including provision of health care to workers, invitations to a job fair held in mid-May, changes in the law to strengthen factory oversight and a doubling of labour inspection authorities, and training for labour inspectors, unions and employers.

While we welcome the intentions of the government’s proposals, and the promise to double the labour inspection authorities and provide training is extremely welcome, no progress towards meeting the Hermosa workers’ claims has been made. Neither do these steps help workers meet their main demand: payment of legally due severance pay and outstanding wages and benefits.

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.

New Jobs and blacklisting

On August 7 2006, the workers who were involved in the defending their rights at Hermosa informed CCC that none of them had yet found work in another garment factory, despite trying to find work. As mentioned in our first appeal, workers reported being subject to blacklisting, and a WRC investigation found evidence of blacklisting of former Hermosa workers who were involved in protests against Hermosa’s practices.

Various brands attempted to reassure workers that the job fairs organised by the government would deal with the demand to find them new work. In May 2006, the Salvadoran government did organise a job fair. None of the organized workers attended this job fair however because they were given no guarantee that they would not be dismissed immediately because of their union activity. All sixty-three of the organised workers did attend a meeting at the Ministry of Labour (despite only ten of them being invited). When the workers asked where they would be able to find new work, the answer was simply that there were some jobs in a bakery.

The brands that sourced from 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.

The brands still sourcing in El Salvador should require their suppliers to hire the former Hermosa workers on a priority basis in order to facilitate these workers gaining employment and to address the illegal discrimination that has occurred.

Medical Coverage

In previous statements, adidas had said, “Starting from the beginning of April, the social security authorities take over the costs of the health insurance of all employees of the Hermosa enterprise including other members of their families for the duration of max. one year or otherwise until the employees get regular jobs with another business in the region”.

In a meeting on May 22 2006 in Germany, Estela Ramirez explained to Mr. Henke, adidas World Director for Social Affairs, that the workers only had access to the free government health clinics, which do not provide basic medical services. The workers do not have access to the medical system for employees, called ISSS, which gives them greater medical care, as the workers had requested. Mr. Henke replied he had other information and would verify this immediately, but the CCC has not received a reply from him about this. On July 4, the organized workers confirmed to the CCC that they still did not have access to the ISSS.

We again call on the brands to ensure that the government fulfils its promise to provide ISSS medical insurance to the Hermosa workers.

Third Party Complaint to the Fair Labor Association (updated 13 September, 2006)

In December 2005, the Christliche Initiative Romero (CIR), German CCC member, filed a third party complaint regarding the Hermosa case to the Fair Labor Association (FLA), of which Nike, Reebok, Puma, Russell Athletic and adidas are members. On August 25th 2006, the FLA published an interim progress report that includes action points they will now take (see www.fairlabor.org) . The FLA have not set a date for publishing a final report, but do commit to producing one.

I appreciate the efforts to put pressure on the Salvadoran government. It is important to continue to apply this pressure. However, continuing pressure on the government should not distract brands from taking responsibility for meeting the workers’ demands.

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.

I urge you, as you have been urged many times before, to meet the demands of the workers to:

• Contribute to a fund to cover their legally outstanding wages, overtime payments and severance pay;
• Require their suppliers to hire the former Hermosa workers on a priority basis in order to facilitate these workers gaining employment and to address the illegal discrimination that has occurred
• Prevent further retaliation against these workers, in the form of intimidation and hiring discrimination;
• Pressure the Salvadoran government to fulfil the laws, ensure payment of the outstanding wages, overtime payments and severance pay; and respect the right to organize in a union.

I look forward to hearing what action you have taken in this case.

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 fulfil 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 an issue of great concern for the international community. I call upon you to immediately pay these workers their outstanding wages and overtime payments and severance pay.

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]