Collective bargaining negotiations between Paxar and the trade union Teksif have been stalled once again by the uncompromising attitude of Paxar management, especially in relation to wage rises and bonus payments.

We apologise for the timelapse since our last update on June 20. Since then, following pressure from multi-stakeholder initiatives and brands, we were encouraged to see Paxar commit to a negotiation schedule and received positive feedback about the initial meetings.

Parties were hopeful that on August 15th a collective bargaining agreement would be signed. Since Paxar has repeatedly failed in the past to fulfil its commitment to negotiate in good-faith, CCC decided to wait until then before circulating an update. Unfortunately, our decision proved to be the correct one.

We previously reported that Paxar Turkey produces labels, prints logos, designs and texts on garments for garment companies. Clients of the Turkish factory include Marks and Spencer, Next, Adidas, Wal-Mart, Levi Strauss and Co., Puma, Disney, Gap, C&A, OTTO, Esprit, Nike, S.Oliver and Tommy Hilfiger.

Paxar, a US based company, has flagrantly violated Turkish law and corporate codes of conduct by attempting to destroy trade union organizing at the company, firing worker activists, pressuring union members to renounce their membership, discrimination against union members and failing to negotiate in good faith with a trade union that was lawfully authorised to represent workers at the factory.

All the brands identified as producing at Paxar, as well as some other Paxar clients, took action in this case. Many of the companies producing at Paxar are members of a multi-stakeholder initiative (MSIs): the Ethical Trading Initiative, Social Accountability International or the Fair Labor Association. These MSIs and their member brands worked together in a constructive way leading to collective and coordinated pressure on Paxar. The action request called upon the brands to threaten commercial sanctions. Whilst most brands stopped short of doing this, the pressure was enough to make Paxar sit down and agree to negotiate with Teksif, following a long period of delays. Progress was made finally when Paxar sent a senior manager from the UK to assist local management. On July 14 an agreement was reached on the negotiation schedule, some initial clauses of an agreement and to establish a technical committee with representatives of both the company and the union. Teksif reported that these initial negotiations were progressing positively. More than 60 clauses of the agreement were negotiated by the technical committee. The crunch came on the financial elements of the agreement, which were negotiated without the presence of Paxar representatives from outside Turkey. The negotiations on August 15, however, ended with without an agreement being signed and no date being set for a new meeting.

For more detail on why the CCC believes Paxar is violating the principles of good-faith negotiations, see box. Also see the report made by the independent observer who attended the negotiations on behalf of the FLA, which has also been accepted by SAI and ETI, available at http://www.fairlabor.org/all/complaint/Paxar_report_Thorpe_8.15.06.pdf

Demands to the brands

The brands sourcing from Paxar must contact Paxar immediately to express their dismay on Paxar's failure to engage in good faith bargaining, and demand that they resume negotiations immediately and bargain in good faith before September 4. We believe that this gives Paxar more than sufficient opportunity to make a reasonable counter proposal, particularly since negotiations should have started back in November 2005 when Teksif were given legal authority to negotiate. Given the extensive delays and the repeated failure of Paxar stand by its commitments, the brands should also be ready to stand by their own codes of conduct and take the necessary measures if negotiations haven't started by this deadline.

In addition, brands should call upon Paxar to take active measures immediately in partnership with Teksif to reassure all their employees that they are free to join the trade union, to bargain collectively and that workers will not suffer any discrimination for their union related activities. These could include training of both management and workers on freedom of association, collective bargaining and labour-management relations. Paxar should also encourage those workers it had induced to renounce their membership of Teksif to rejoin and for Paxar to meet the necessary legal costs involved. Especially now that negotiations have stalled once again, it is imperative to take these measures without delay. Finally Paxar must settle all outstanding re-instatement issues concerning the various dismissed workers directly with Teksif. Why Paxar's 'offer' is unreasonable

Please read the Feb 28 2007 UPDATE
Agreement reached in Paxar case!!

Dear Sir/Madam

I am extremely disappointed to have been informed by the Clean Clothes Campaign that Paxar has failed to negotiate with the trade union Teksif in good faith, by failing to make reasonable proposals in relation to wages and bonuses in particular. I understand this was a key obstacle to the finalisation and signing of a collective bargaining agreement.

We welcome the pressure you have put on Paxar so far, and also the fact that you have worked collaboratively with other brands and multi-stakeholder initiatives to push Paxar to comply with your code of conduct, national law and international standards by negotiating with Teksif.

However, due to the failure of Paxar to engage in good-faith negotiations, I call on you to increase your pressure on Paxar by:

• contacting Paxar immediately to express your dismay on Paxar's failure to engage in good faith bargaining, and demand that they resume negotiations immediately and bargain in good faith before September 4. We believe that this gives Paxar more than sufficient opportunity to make a reasonable counter proposal, particularly since negotiations should have started back in November 2005 when Teksif were given legal authority to negotiate;
• being ready to stand by your code of conduct and take the necessary measures if negotiations haven't started by this deadline;
• calling on Paxar to take active measures immediately in partnership with Teksif to reassure all their employees that they are free to join the trade union, to bargain collectively and that workers will not suffer any discrimination for their union related activities. These could include training of both management and workers on freedom of association, collective bargaining and labour-management relations. Paxar should also encourage those workers it had induced to renounce their membership of Teksif to rejoin and for Paxar to meet the necessary legal costs involved. Especially now that negotiations have stalled once again, it is imperative to take these measures without delay.
• calling on Paxar to settle all outstanding re-instatement issues concerning the various dismissed workers directly with Teksif.

I look forward to hearing about the steps you have taken in this case.

Yours sincerely

Contact info

ESPRIT
Jerome Squire GRIFFITH
Chief Operating Officer of the ESPRIT brand, USA
fax +1 852.2764 2875
EMAIL: jerome.griffith@esprit.com

Esprit Europe GmbH, Germany
fax +49 2102-123-45-100

OTTO
Johannes Merck
Social Compliance Department, Germany
Email: johannes.merck@otto.de

Charles Weissberg
OTTO I.stanbul Office, Turkey
e-mail: charles.weissberg@oiist.otto.de
fax: +90 212 654 85 38

S.OLIVER
Bernd Freier
President, Germany
Fax: +49 93 023 098 9279
e-mail: befrei@s.oliver.de

Tanja Sahraage
Social Compliance Department, Germany
Fax: +49 93 023 098 9279
e-mail: tasahr@s.oliver.de

S.Oliver I.stanbul Ofis:
Ays,egül Candas,
Social Compliance Department, Turkey
Fax: +90 212 886 51 10

TOMMY HILFIGER
e-mail: globallaborpractices@tommy.com.

Sesby (Tommy Hilfiger Türkiye Temsilcilig(i), Turkey
Nafiye Caf
Sosyal Uyumluluk Departman?
Phone: +90 212 465 10 10
Fax: +90 212 465 10 11
e-mail: nafiyec@sesby.com

WAL-MART
Rajan Kamalanathan, Rob Kusiciel, USA
rkamala@wal-mart.com
Rob.Kusiciel@wal-mart.com

WALT DISNEY
Mark Spears, USA
Mark.Spears@disney.com

C&A
Frank Hoendervangers
C&A Corporate Social Affairs
e-mail: df10@retail-sc.com
phone: +49 211 693 1221
+32 2 257 69 60
fax: +49 211 693 12 53

ADIDAS
Frank Henke
Social & Environmental Affairs, Germany
Fax: +49 91 32 84 32 42
e-mail: frank.henke@adidas.de

Evelyn A. M. Ulrich
Head of Europe / Social & Environmental Affairs, Germany
Fax: +49 91 32 84 32 42
e-mail: evelyn.ulrich@adidas.de

Selçuk Büyüközer
Manager Europe Social & Environmental Affairs, Turkey
Fax: +90 212 329 55 80
Selcuk.Buyukozer@adidas.com.tr

GAP
Lakshmi Menon Bhatia
Corporate Social Responsibility Manager, USA
Lakshmi_Bhatia@gap.com

LEVI STRAUSS AND CO.
Manuel Baigorri
Levi Strauss Europe, Brussels
Fax: +322 641 62 67
e-mail: Mbaigorri@levi.com

MARKS AND SPENCER
Julia Dobson, UK
Julia.Dobson@marks-and-spencer.com,

Matt Kelly
Social Compliance Department, UK
Fax: +44 20 7487 2679
e-mail: Matt.Kelly@marks-and-spencer.com

Sylvie Dayi
Social Compliance Department, Turkey
Fax: +90 212 465 00 98
e-mail: Sylvie.Dayi@marks-and-spencer.com

Orkun Darnel
Turkey Team Manager
Fax: +90 212 465 00 98
e-mail: orkun.darnel@marks-and-spencer.com

NEXT
Bernice Leppard, UK
Bernice_Leppard@next.co.uk,

Özer Altunel
Supply Chain Coordinator, Turkey
Fax: +90 212 454 51 02
e-mail: ozer_altunal@nextsl.com.tc

NIKE
I.brahim Eker
EMEA Senior Compliance Manager, Turkey
Fax: +90 212 365 01 02
e-mail: ibrahim.eker@nike.com

Corporate Social Responsibility in the Europe, Middle East and Africa Office
cr.emea@nike.com

PUMA
Reiner Hengstman
S.A.F.E Director, Germany
Fax: +49 9132 81 2660
e-mail: reiner.hengstmann@puma.com

Stefan D. Seidel
S.A.F.E. Manager Europe, Germany
Fax: +49 9132 81 2514
e-mail: stefan.seidel@puma.com

Yonca Kaya
QA Manager, Turkeyn
Fax: +90 212 876 22 84
e-mail: yonca.kaya@puma.com