Labor Alerts: a service of Campaign for Labor Rights

CLR Labor Alert posted July 12, 2001

Ladybird Update and Action

• 1. Introduction to the Ladybird Struggle
• 2. Update on Ladybird-partial victory
• 3. What You Can Do
• 4. Background-factory and union information.

{Information in this Labor Alert provided by the Center for Labour Information Service and Training (CLIST) in Thailand and the Clean Clothes Campaign (CCC) in Europe}

INTRO TO THE LADYBIRD STRUGGLE:

On the April 19, 2001, a total of 386 workers of the Ladybird Garment Company in Samutprakan, Thailand submitted demands about better wages, hours, and conditions to their employer. From the April 29 to May 1, the company sent representatives to meet with the workers at their homes encouraging them one-by-one to withdraw from the demands. The representatives promised the workers that if they withdrew their names from the demands, the company would provide them with a new pair of workpants, give them a bonus, and pay them in the event of a strike or lockout. After this union busting campaign, the company representatives reported to the union that the company had been successful in getting 136 workers to take their names off of the list of those supporting the union's demands.

There have been 7 mediated negotiations to discuss the worker's demands that continued through May 23, yet the two sides had been unable to come to an agreement. On June 5, the company distributed a fake announcement, in the name of the union, urging workers to be patient with the negotiations and not rush into action.

On June 8, the company announced a lockout of 77 workers, who were leaders or affiliates of the union. There was a negotiation session scheduled for the 15, but the employer failed to show.

During this struggle, the Clean Clothes Campaign of Europe and the Campaign for Labor Rights in the US have been working in solidarity with the Ladybird workers. CLR has mobilized its Labor Defense Network in the form of faxes to the owners of Ladybird as well as to the two main US companies that produce there: Guess and TJX (Marshall's and TJ Max). CLR has not received responses from any of those companies. [For more background information on this struggle, see the "background" section of this Labor Alert below]

UPDATE ON LADYBIRD-PARTIAL VICTORY!

The good news is that all 77 locked out workers have returned to work without repercussions and were able to negotiate a contract with the owners of Ladybird. Unfortunately, however, the employer has failed to keep his end of the bargain in implementing agreed upon provisions in the contract. While the employer has added agreed upon transportation in the morning, he has not done so in the evening and workers are still crowded into the company vehicles and have to stand for the ride. There is still no nurse in the factory (legally required and also written into the new contract) and there has been talk of the employer sending a worker for a weeklong nursing course to satisfy this agreement. This is unacceptable to the workers since a professional nurse in Thailand must complete 4 years of education.

Union members have still not been allowed to work overtime, despite the employer's pledge that there would be no more discrimination and that the company would pursue good relations with the union from now on. Union members are kept separated from non-union members in the factory to discourage organizing and workers describe an overall unpleasant work environment. Non-union members tell the union that they are still afraid to affiliate because of repercussions like the loss of overtime work.

Ladybird workers are asking for international support to continue to contact the buyers (Guess, Gymboree, PreNatal and TJ Max and Marshalls) to let them know that while they are glad to be working again, they need the agreed-upon contract to be implemented. Also, and most importantly, they are requesting that THE UNION DISCRIMINATION BE PUT TO AN END. Again, the workers don't want the buyers to withdraw orders, but to urge the company to allow union members the same rights as other employees and to forge a good, working relationship with the union.

WHAT YOU CAN DO:

• Contact the following companies that produce at Ladybird and sell goods in the US.
• Tell them that you support the workers in the Ladybird factory in their effort to organize a union and negotiate wages, hours, and conditions with their employers.
• Let the companies know that you expect them to demand that their contractor (Ladybird) stop union discrimination in the factory and implement the agreement reached between workers and the factory managers.

BACKGROUND: FACTORY AND UNION INFORMATION

Ladybird Garment factory in Thailand employs 540 workers, 90% of whom are women. Ladybird exports to more than 10 countries including the European Union and the US. Current brands produced at the factory include Marshalls, PreNatal, Gymboree, Guess, TJ Max and Auka Collezioni. Most of the work and the factory consists of cutting fabric-the fabric is then sent to subcontracted factories that handle the sewing of garments.

At the factory, workers receive the minimum legal wages; and there are no benefits such as bonuses or cost of living adjustment, which are common in garment factories around the world. Ladybird workers complain that the biggest problem in the factory is the low salary. There is no system to raise salaries according to experience; instead management arbitrarily raises the wages of favored employees. According to the workers, a few of these favored employees have large salaries while about 180 employees are only earning the very minimum wage.

Another major problem in the factory is severe union discrimination. The owner refuses to let union members work overtime, which is a financial necessity for most workers, making it very difficult for the union to organize and recruit members.

The Ladybird Union was organized in 1994, but was not active until 1998. Of the 540 factory workers, manyof these workers are temporary workers which means they are not allowed to be union members. Out of the potential union members in the factory, most of them are in favor of having the union represent them in negotiations with their employer.

Workers who gain the status, "Monthly workers," get salary increases every year. Ladybird's owner has refused to give union members monthly wage status and says they can only get it if they quit the union. There have recently been threats to union members: one person was threatened that if she didn't leave the union she wouldn't get monthly wages and would be switched to a daily wage.

Brand information
Current brands being produced in the Ladybird factory:
-Marshalls
-PreNatal (French), Exports to Chile, Argentina, Mexico, Spain, Europe
-Gymboree, Exports mainly to Europe
-Guess, Exports mainly to the US
-TJ Max, Exports mainly to the US
Auka Collezioni - sells in Thailand

Corporate involvement

In the beginning of January, 2001, a Gymboree representative came to inspect the factory. He first came on an unexpected visit and the manager rushed around to distribute protective masks to the workers and had everyone sign their names that they received a mask. The workers were quite surprised, as this was the first time in years they had been issued protective gear. The inspector also asked the owner why there was no toilet paper in the bathroom. The owner had someone run out and purchase a few rolls - the first time in the history of the factory that he provided the workers with toilet paper.

The inspector also interviewed four workers, one of which was a union member. They complained to him about the problems in the factory including the lack of benefits, and discrimination against union members who are not allowed to work overtime. While they did complain about the financial situation, they did not mention the demands that they were going to ask of the factory. The workers were interviewed confidentially by the inspector and there was some harassment from management of those who were interviewed, but nothing significant.

The Gymboree representative asked about the company health officer. Apparently there used to be a health officer who is no longer there. The management agreed to send one worker to classes to learn nursing skills. The workers expressed worry about this - how can someone learn nursing skills in a few classes? To the workers this appeared to be a way to appease the buyer that there was indeed a health officer in the factory, when in fact this person's lack of knowledge in an emergency could seriously jeopardize the health of workers. The second visit of the Gymboree inspector in January was announced and the manager was much better prepared.

There were some improvements from his visit such as the cafeteria being cleaned up a bit and the removal of a surveillance camera. However, the workers were not sure if this was related to his visit or not. The main complaint about wage levels in the factory and union discrimination has not improved.

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