Maquila Closings Continue in Central America

Workers at the only two maquiladoras in Guatemala with a union contract mobilized the international community in May when management began taking actions that suggested a factory closing was imminent. Management first sought a three-month suspension of work at the Cimatextile plant, claiming a reduction in orders.

Workers fears of a more permanent closing were fanned when the company began moving equipment out of the plant, prompting workers to barricade the factory. After factory client Liz Claiborne reported that management had adjusted its plans to seeking a shut down of six lines, negotiations were initiated between management and the union. Details were not available at presstime.

Workers at the two sister factories, Cimatexile and Choishin, won collective bargaining agreements in 2003 following a major international campaign in response to violent intimidation of union members.

BJ&B Closed in Dominican Republic
An international campaign succeeded in persuading the BJ&B factory management to provide legally-required severance to laid off workers but demands that the factory remain open were rejected. Interventions by the Worker Rights Consotrium (WRC) and the International Textile, Garment, and Leather Workers Federatio (ITGLWF) backed by grassroots campaigning by USAS persuaded Nike to meet with the union and BJ&B management in May 2007 to reconcile differences about the terms of the closing. Workers at BJ&B, owned by Korean-based Yupoong, won a major victory with the strong support of the student sweatshop movement in March 2003 when their union signed a contract.

At presstime, the WRC posted on its website an extensive report about major worker rights violations at another factory in the Dominican Republic, TOS Dominicana, owned by Hanesbrand, owner of Leggs, Hanes, and other familiar brands.

Nicaraguan Factory Closes

KB Manufacturing, owned by Bayer Clothing, a major U.S. firm, announced its closing in May. Workers who KB formed an independent union have been reporting since last year that management has been conducting an anti-union campaign. JC Penney, KB's primary client, dismissed the reports after being contacted by USLEAP, the AFL-CIO Solidarity Center, the ITGLWF, and the WRC, and refused to participate in a conference call to discuss the closing. At presstime, most workers had accepted their severance but the union reported that management was skirting the law in carrying out the shutdown.