TITLE: Update on Chentex - The Struggle is Not Over Yet!

AUTHOR:

ORG: Nicaragua Network

DATE: January 18, 2001

What looked like a breakthrough and labor rights victory last week in the case of the Taiwanese-owned Chentex factory has taken a turn for the worse. The verbal agreement arrived at ten days ago between the Nicaraguan Garment Workers Federation (CST) and representatives of the Nien Hsing Consortium provided for the rehiring of two union officers and at least 80% of 128 other union members from among the 700 who were fired last year. It also included the dropping of all legal actions, and the signing of a labor protocol which would cover all Nien Hsing-owned factories in Nicaragua. But now the actual signing of the agreement is unlikely due to actions and statements by Chentex owners. After reviewing the 128 files of the workers to be re-hired, the management now says that it will re-hire only 7 of the union members. This reversal is unacceptable to the union negotiators, and no further negotiations have been scheduled. Around 800 workers from the "management" union at the factory protested last Thursday, January 11, demanding an end to the negative publicity campaign waged by international activists and union leaders against the factory. They cited the threat that the factory may close due to lower orders from large U.S. customers. Ten buses full of workers arrived at the U.S. Embassy to present a letter to the U.S. President and Congress requesting that they intervene so that the gringo activists quit protesting. They also went to the Sandinista Party headquarters requesting that they end the campaign. Most of the "protesters" are members of the CTN(a) union in the factory. The CTN collaborates closely with management and was created in the 1980's with aid from the Reagan and Bush administrations. The 700 fired workers whose campaign has been supported by activists across the US and Taiwan are members of the independent, CST union. Former Chentex worker and (CST) union officer Gladys Manzanares stated that the workers who protested in support of the factory were obliged to do so by their employer. "This is just another strategy," she maintained, "to undermine the cause of the workers and weaken the verbal agreement that was made last week." Organizer Pedro Ortega reported that many of the protesters who spoke with news reporters were not really even workers but were contracted by the management of the factory. He said that local gang members were hired to intimidate workers to get them to join the protest. He added that workers who agreed to join the protest were given 25 cordobas for expenses. Factory manager Yiin stated that the workers "asked for a day of vacation to go to the march, and we couldn't deny them." Carlos Yiin, the manager of Chentex has claimed that the factory is experiencing financial difficulties which he blames on the union organizers. He says that the orders from large companies like Wal-Mart, J. C. Penney and Kohl's have been reduced due to a boycott in the U.S. However, as solidarity activists know, a boycott has never been part the international Chentex campaign and, furthermore, J.C. Penney executives announced on Friday that they have not cut back orders at Chentex but, on the contrary, hope that the two sides reach an agreement. Yiin is now threatening to close two production lines, laying-off around 200 employees. He claims that if the trend continues, the factory may be forced to close completely, leaving the 1,800 Chentex workers without jobs. Pedro Ortega, head of the Garment Workers' Federation, claims only Wal-Mart, which is not one of the factory's major clients, has cut back on its orders. Call To Action! The fired workers and the CST union leaders in Nicaragua have asked that solidarity activists in the US and in Taiwan continue with the international pressure campaign. Chentex management was close to signing the agreement last week, and it is important that they keep feeling pressure from all points of leverage internationally. Things you can do: **Keep the pressure on at Kohl's stores across the country. Kohl's is a major purchaser from Chentex and can use its influence to get Chentex management to sign the agreement made verbally with union leaders. Make sure your message conveys that we expect Kohl's NOT TO CUT AND RUN from Chentex. Kohl's action organizing packets are still available at the Campaign for Labor Rights. Respond to this email by sending us your snail mail address, and we will mail you one. **Write a letter (and get your friends, family, and co-workers to write them, too!) to the CEO of Nien Hsing. See the text of a sample letter below. You can either fax the letter to Nien Hsing headquarters directly, or mail them to Campaign for Labor Rights. We will be sending a box of them to Taiwan every Friday. Please send copies of letters to Campaign for Labor Rights (fx) 202-265-5157, 1247 E Street, SE, Washington, DC 20003. **Write a letter to the Nicaraguan Labor Ministry. The text of a sample letter is also included below. These letters can be faxed directly to the labor ministry, or send to the Nicaragua Network (whose office address is the same as CLR's). Nicaragua Network will send a box of letters to the Nicaraguan Labor Ministry each Friday beginning tomorrow. Please send copies of these letters to Campaign for Labor Rights (fx) 202-265-5157.   Ron Chu Chen, CEO Nien Hsing Textile Co., LTD. 119-3, 8 LIN, TONG MING LI , HOU LUNG , MIAO LI , TAIWAN R.O.C. TEL:886-37-728711 FAX:886-37-728361   Dear Mr. Chen, I am writing to express my deep concern and outrage about the recent events of the struggle in the Chentex factory in the Las Mercedes Free Trade Zone, Managua Nicaragua. The Chentex management and CST union leaders reached a verbal agreement on Friday, January 5 stating that 80% of 139 workers would be re-hired at the factory. I am shocked that Nien Hsing's representative Lucas Huang has now said that he will re-hire only seven out of the list of 139 fired workers. For those of us who have participated in the international campaign to support the Chentex workers' right to organize a union, Mr. Huang's reversal on the agreement is unacceptable. I would like you to demand that Lucas Huang sign the agreement he reached verbally with the union leaders. The situation at Chentex has gone on too long and must be resolved. In the meantime, I will continue my work in support of the labor rights that have been violated by Nien Hsing. Sincerely, ***** Dr. Manuel Martinez Minister of Labor Managua, Nicaragua Fax: 011-505-228-2103   Dear Dr. Martinez: I wish to express my deep concern about the lack of resolution of the conflict in the Chentex Garment Factory. Ten days ago we were hopeful about a verbal agreement which included concessions and victories on both sides. The union and management agreed that two officers of the union affiliated with the Garment Workers Federation (CST-JBE) would be rehired and that, during the coming weeks, between 70 and 90 workers from among those who had been fired last year would return to work as well. The two sides also agreed to drop their legal cases and sign a labor protocol for all the factories owned by the Nien Hsing Consortium in Nicaragua. Now, due to the inopportune organizing of a provocative march to the U.S. Embassy and other sites and Chentex management's refusal to rehire more than seven of the fired workers, it seems that the agreement will not be signed. I want to urge you to do all that you can as Minister of Labor to bring this conflict to an equitable and just conclusion that respects the workers' labor rights as mandated by the Nicaraguan Constitution, its labor code, and the international conventions that Nicaragua has signed. The international campaign, which I have participated in, has at all times supported exactly this. We have asked the executives of Kohl's Department Stores to maintain their orders at Chentex at the same level and we have asked Kohl's to urge Chentex to negotiate a resolution of the conflict with the Garment Workers Federation. At no time have we promoted a boycott. Sincerely, END top