Maquila Solidarity Network <info@maquilasolidarity.org>

February 16, 2001
Maquila Solidarity Network
Nike Campaign Update and Urgent Action Alert

Independent Union Leaders at Kuk Dong Attempt to Return to the Factory Your Solidarity is Urgently Needed

The MSN has received reports that some of the five workers who were originally fired in early January for their leadership in the struggle for an independent union at the Kuk Dong factory in Atlixco, Puebla, Mexico will attempt to return to work early next week, perhaps as early as 7:00 a.m. Monday morning.

This is a defining moment in the campaign for an independent union, as their return would encourage perhaps hundreds of workers who are afraid to go back to work because of company intimidation tactics. Kuk Dong management, through its security chief, has threatened physical harm against the leaders of the independent union effort and has not publicly denied reports that they still have warrants out for the arrests of five workers and one organizer who have been leading the campaign.

Despite the fact that threats to these workers are in direct violation of the principles of freedom of association in university codes of conduct and its own code, Nike has not specifically called for the safe return of the five leaders originally fired, nor has it called for the charges to be dropped against them.

The return of these five leaders of the union effort was strongly recommended in the reports of both the independent investigation of the Worker Rights Consortium and respected Mexican labour lawyer, Arturo Alcalde, who was chosen by the International Labor Rights Fund (ILRF) at Nike's request. The ILRF, which also participated in drafting the Alcalde report, said it best: "We believe that the crisis at the Kuk Dong factory can be resolved if action is taken swiftly to re-employ all the workers who were on strike. When it comes to union representation, justice delayed is justice denied."

Meanwhile, other violations of workers' rights continue at the factory:

• Because of an arbitrary and illegal deadline set by management for workers to return to their jobs, all employees illegally fired during the strike are currently being rehired as new employees. This is a clear violation of the agreement signed by Kuk Dong to allow workers to return to their jobs unconditionally under the same conditions of employment. Instead workers who have been allowed to return are being denied their previous salaries, positions and seniority rights. They are also being forced to sign statements of loyalty to the FROC CROC (the "official" procompany union).
• Kuk Dong management has isolated workers who it believes are leaders of the independent union effort to actively discourage organizing among workers in the factory.
• Last week, over 70 workers were not allowed to return immediately to the factory. Rather, they were told by Kuk Dong officials that management would get back to them days later after reviewing their files, since "nobody could be trusted" and the company would only hire those workers that were "convenient." Although they were told they would receive telegrams detailing their status early this week, it still is not clear at this point that all of the workers have been allowed back to the factory.
• US Students Against Sweatshops representatives report that the company is now physically dividing up the factory and telling workers that they are now working for multiple owners and multiple companies. This is a clear union-busting tactic.
• Nike has allied itself with the FROC CROC by falsely insisting that under Mexican law, workers must sign statements of support for the "official" union before getting their jobs back (which they should not have to do because they are not new employees).
• Nike has not yet committed to having a continual presence of independent external monitors at the factory during the crucial next few weeks to ensure that there is no further intimidation of workers.

While Nike studies and delays, serious violations of freedom of association continue, and illegally fired workers are denied the right to return to their jobs.

Please send a letter or make a phone call to Nike as soon as possible making the demands listed in the Sample Letter below.

Write or Phone:

Philip H. Knight, Chairman and CEO
Nike Corporation
One Bowerman Drive
Beaverton, OR 97003-6433
Phone: (503) 671-6453
Fax: (503) 671-6300
Email: phil.knight@nike.com

Send a cc to:

Dusty Kidd
Global Director for Labor Practices
Nike Corporation
One Bowerman Drive
Beaverton, OR 97003
Phone: (503) 671-6453
Fax: (503) 532-0440
Email: Dusty.Kidd@nike.com

Kukdong International Mexico S.A. de C.V. Retorno de Ave. Continentes Num. 38
Rancho Los Soles
Atlixco de Puebla, Mexico
Tel: 011-52-244-61020~3
Fax: 011-52-244-61024
Email: kukdong.@rpc.com.mx

Kukdong Corporation (Korea)
Kukdong Building 229-3 Young Dap-Dong
Sungdong-Ku, Seoul, Korea
Tel: (02) 3407-7701~7905
Fax: (02) 2249-5915
2243-7776
http://www.kd.co.kr
email: kukdong@kd.co.kr

SAMPLE LETTER (Please write your own, and send a copy to the MSN.)

Philip H. Knight, Chairman and CEO
Nike Corporation
One Bowerman Drive
Beaverton, OR 97003-6433
Fax: (503) 671-6300
Email: phil.knight@nike.com

Dear Mr. Knight:

I am disturbed to hear new reports of continuing violations of workers' right to freedom of association at your Kuk Dong supply factory in Atlixco, Mexico. Reports I have received indicate that the five workers who were originally fired for protesting unjust working conditions and leading an effort for an independent union have not yet been allowed to return to their jobs, and that management has so far failed to renounce earlier threats against their physical safety and the issuing of warrants for their arrest.

I was also disturbed to learn that 70 workers who attempted to return to their jobs were told that management would get back to them days later after reviewing their files, since "nobody could be trusted" and the company would only hire those workers that were "convenient." Although they were told they would receive telegrams detailing their status early this week, it still is not clear whether all 70 workers have been allowed back to the factory.

Reports also indicate workers who have been allowed to return to their jobs are facing continuing harassment and discrimination. In violation of the agreement between Kuk Dong and worker representatives, the company is treating the returning workers as if they were new employees, denying them their rightful wages, benefits and other conditions of employment. As well, some employees have not been permitted to return to their former jobs, and are being isolated from other workers.

I am particularly concerned that your company appears to be allying itself with Kuk Dong management and the FROC CROC, by falsely insisting that under Mexican law workers must sign statements of support for that union before being reinstated. As you are aware, this only applies to new employees. The returning workers are current employees who have the right to be reinstated in their former jobs.

As you are also aware, the report from the respected Mexican labour lawyer, Arturo Alcalde, who investigated the situation at Kuk Dong at your request, indicates that the FROC CROC union at the factory was formed and a "protection contract" negotiated before any workers were hired, and without their knowledge or consent. According to Alcalde, the current contract is not valid under Mexican law.

Given these disturbing reports, I would strongly urge that your company do the following:

1. Guarantee the safe and unconditional return to work of the five leaders originally fired at Kuk Dong, and pressure Kuk Dong to publicly renounce earlier threats to their physical safety and the issuing of warrants for their arrest;
2. Demand that Kuk Dong reinstate all returning workers in their previous positions with no loss of salary, seniority rights or other rights, benefits or other conditions of employment, and that they guarantee that there will be no further discrimination against or isolation of independent union supporters.
3. Demand that Kuk Dong discontinue the illegal process of forcing returning workers to sign statements of loyalty to the FROC CROC, and urge Kuk Dong to drop its illegal and invalid "protection contract" with the FROC CROC.
4. Commit to the continual presence of mutually agreed upon local independent monitors at the factory to ensure there is a free and fair climate for an election at Kuk Dong where the workers can secure a union that represents their interests and aspirations.
5. Publicly reaffirm your commitment to continue the same levels of production at Kuk Dong - Mexico as you have since the factory opened, and urge Kuk Dong to remain in Atlixco de Puebla.

I look forward to hearing from you on the steps your company is taking to ensure that the right of Kuk Dong employees to freedom of association is respected. I urge you act without further delay to facilitate the reinstatement of all workers who have been fired or pressured to resign. As Mr. Alcalde states in his report, "justice delayed is justice denied."

Yours truly,

Background Information:

On January 9, 800 workers at the Kuk Dong factory staged a work stoppage to protest the illegal firing of five workers and the forced resignations of 20 others who had complained about low wages (US$32 for a 50-hour week) and rotten food served in the factory cafeteria, and had requested a copy of the collective agreement.

The striking workers demanded that the company reinstate the fired workers and respect their right to organize an independent union. The workers are currently "represented" by the FROC-CROC, a union federation controlled by the historical ruling party of Mexico, the PRI. Workers complain that the FROC-CROC was brought in by the company without the workers' consent, and that it negotiated a "protection contract" with their employer without their knowledge or approval.

On January 12, 300 state police in full riot gear attacked 300 workers who were guarding the factory. The workers, who put their hands in the air and retreated to the factory gates, were hit, pulled, pushed and insulted by the police.

Fifteen workers ended up in the hospital, and two were kept overnight. One of them was in serious condition from blows to the head. Two strike leaders were violently kidnapped by the police, but were later released. The police had apparently been ordered to remove the strikers by the PRI state governor. As well, Rene Sanchez Juarez, the local leader of the FROCCROC, was reportedly at the scene of the police attack, pointing out strike leaders to the police.

Faced with protests by independent unions in Mexico, including the National Workers' Unity, the Telephone Workers, and the Independent Volkswagen Workers' Union, and increasing pressure on Nike from student, labour and solidarity groups in the US, Canada and Europe, Kuk Dong management agreed to allow strikers to return to their jobs with no reprisals.

On January 17, management violated the agreement by refusing entry to the factory to several independent union supporters. Others union supporters who succeeded in entering the plant were picked out by representatives of the "official" union, reported to security guards and told to leave, or told they would have to resign "voluntarily."

On January 25, a six-member investigative team from the Worker Rights Consortium (WRC), a code implementation body involving 67 US universities, released a preliminary report confirming that severe ongoing violations of university codes were taking place, and calling on its member universities to take immediate steps to seek the reinstatement of the five fired leaders of the independent union and all other workers who have been "idled after the work stoppage and are willing to go back to work."

On the same day, the International Labor Rights Fund (ILRF) release a report to universities affiliated to the Fair Labor Association (FLA), confirming that the company had failed to reinstate striking workers, and this would have a negative impact on any subsequent union representation election. The report calls on Nike to send someone to the factory with the authority to insist that all workers be reinstated.

Nike has since contracted the US non-profit social auditing firm, Verite, to carry out a third investigation.

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