ACTION: Hermosa Emergency fund set up: more action needed
Tuesday, 23 January 2007 17:11
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Throughout 2006 we asked you to take action to support workers in El Salvador who lost their jobs following the closure of the Hermosa factory in May 2005. We asked the brands sourcing from Hermosa to ensure that workers receive the severance pay, overtime and outstanding wages owed to them.
A fund has now been set up to offer limited support to the workers, but unfortunately,
- It seems to be a 'humanitarian gesture', rather than reimbursing workers what they are legally owed.
- The initial amount distributed (US$36 000) is small compared to the amount legally owed to the workers.
More action is needed to push the brands to contribute or increase their contribution to the fund and to comply with the other demands of the workers.
Take action today >>
Background
As well as asking the brands sourcing from Hermosa, including adidas, Nike and Walmart, to contribute to a fund to cover their legally outstanding wages, overtime payments and severance pay brands were asked to require their suppliers to hire the former Hermosa workers on a priority basis and address the ongoing hiring discrimination. They were also asked to pressure the Salvadoran government to fulfil the laws, ensure payment of the outstanding wages, overtime payments and severance pay; and respect the right to organize in a union.
For earlier updates see: http://www.labourbehindthelabel.org/content/blogcategory/52/95/
Emergency fund established: amount insufficient
The fund, with an initial sum of 36.000 US$, will be administered by the Fundacion de Estudios para la Aplicacion del Derecho (FESPAD), who has cooperated closely with the group of organized workers and with the other organisations involved in the case. Former Hermosa workers who have not been able to find employment, particularly because of blacklisting, will be eligible to receive the payments. FESPAD determines which of the former Hermosa workers meet this criteria.
FESPAD reports on 29 of December that 57 workers have been identified as eligible for assistance (all of whom belong to the group of 63 organized workers) and have received and cashed their cheques. Representatives of the organized workers were present and report that the process went smoothly and with total transparency.
Despite this the fund fails to acknowledge that the brands, who had been buying from the Hermosa factory for number of years, share responsibility for the current situation. It is also disappointing that the initial amount distributed (US$36,000) is so small compared to the amount legally owed. The 63 organised workers are owned at least US$100,000 more than that and if all the ex-Hermosa workers are included ( and according to the terms of the fund they are) the total amount due to workers is over US$825,000.
In a statement released on December 20th 2006, the group of organized workers said that they are willing to accept the offer but that their campaign will continue:
“[we accept the offer] although it does not reflect in any way the hardships we have lived during this period, and it is not an indication of the good will of the brands in supporting our struggle. Rather, it is a reaction to our pressure and struggle against so many injustices. The amount, in our view, is miserable compared to the profits that the brands make based on the sacrifice of workers and on violations of human and labor rights....our struggle will continue to get the brands to guarantee in the near future the sustenance of our families though the opening of jobs in factories where work is done on products that the brands sell and on which they obtain profits of 300%.”
