Peruvian Unions Build Global Support for Repeal of Textile Law

Peruvian textile unions are gaining broad international support for repeal of a law that limits garment worker rights. The 1978 law subjects workers to temporary contracts without the right to collectively bargain, strike or join a union. Between 80 and 100 percent of the country’s textile workers are on short-term contracts, an employment tactic that enables employers in Peru and around to world deny workers job security, seniority rights and health benefits, often while paying them low wages.

Since passage of the law, Peru’s textile industry has grown by 2,000 percent, yet garment workers sometimes labor up to 14 hours a day to earn a minimum wage, which represents only a quarter of what they need to survive.

“Some people … have worked 25 years on temporary contracts of six months or less,” said IndustriALL General Secretary Jyrki Raina, during a recent trip to Peru to meet with employers, government officials and lawmakers to call for repeal of the law. In March, six international apparel companies signed a letter to Peruvian President Ollanta Humala Tassosupporting repeal of the Non-Traditional Export Promotion Law, Decree 22342. The corporations, which include Nike and the parent companies of Tommy Hilfiger and Calvin Klein, argued that the law’s repeal would demonstrate the government’s support for decent working conditions.

The International Labor Organization (ILO) has repeatedly urged the government to repeal the law, a move supported by the International Textile, Garment and Leather Workers’ Federation (ITGWLF), the International Metalworkers’ Federation (IMF) and the International Federation of Chemical, Energy, Mine and General Workers (ICEM).

Raina and the global union movement also are urging the Peruvian Congress to pass a bill introduced more than a year ago that would ensure equal rights for textile and garment workers. The bill is stuck in a congressional committee.

In 2011, a court ruled in favor of 129 textile workers whose contracts were not renewed, finding that some of the workers had worked up to 10 years on short-term contracts. In the ruling, the judge stated that Decree 22342 and its “exceptional” short-term contracting scheme were no longer necessary to support the growth of the country’s textile and apparel sector.

In fact, Peru has pledged to double its textile and apparel exports—which make up 60 percent of Peru’s value-added exports—by 201

Peru: Six Global Apparel Brands Reject Short-term Work Contracts

Short-term work contracts are one way employers around the world deny workers job security, seniority rights and health benefits, often while paying them low wages. So it’s noteworthy that six international apparel companies now support repeal of a law in Peru that allows employers in the garment and textile export industries to hire workers on consecutive short-term employment contracts.

In a letter to Peru President Ollanta Humala Tasso earlier this month, the companies write that repeal is “an opportunity for your government to demonstrate its strong support for social inclusion and decent working conditions.” The law, DL 223422, allows companies that export “non-traditional products” to employ workers on short-term contracts—typically for six months, but often for three months and sometimes for as little as one month—to work on specific export orders. The workers are re-hired on subsequent contracts, but never attain full-time job status.

The letter from New Balance; Nike; PVH Corp (owner of the Tommy Hilfiger and Calvin Klein brands); VF Corporation (owner of Wrangler, Lee’s, North Face, Nautica and Timberland brands); 47 Brand; and Life Is Good, comes as the Peruvian Congress is getting set to reconvene. A proposal to repeal the labor provisions of DL 223422 has been presented to congressional committees by members of congress, but textile and apparel manufacturers strongly oppose it.

Passed in 1978 to promote the textile industry, the law was slated to be in place only 10 years, says Vicente Castro, secretary general of the Textile Workers Federation of Peru (Federación de Trabajadores en Tejidos del Perú, FTTP).

In their letter, the corporations also wrote that “in addition to monitoring our suppliers in order to ensure compliance with labor standards, we also look to governments to support and enforce the rule of law in order to ensure that business and workers can operate in a fair and safe environment.”

Jyrki Raina, General Secretary of IndustriALL Global Union says: “Peru produces quality cotton and fibers and has succeeded in positioning itself as a provider for major brands.

However, the ‘made in Peru’ label is being tainted by the abuse that comes with the use of short-term employment contracts.”

The International Labor Organization (ILO) has repeatedly asked the government of Peru to amend the law and during his 2011 election campaign, President Ollanta Humala promised to abolish the decree.

The two Peruvian textile federations, Federacion Nacional de Trabajadores Textiles de Peru (FNTTP) and the Federacion de Trabajadores en Tejidos de Peru (FTTP), are urging members of the Peruvian Congress to ensure that the legal reform proposal is discussed in committee.

The federations also are working with their membership and media to generate grassroots pressure so that if needed changes are not made, the U.S. Congress and the Obama administration can add their influence on behalf of Peru’s workers.

Read more at The Maquila Solidarity Network and US LEAP.

 

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