Recent Updates and Alerts for the Chentex Solidarity Campaign

- Union Leaders, Workers Reinstated 
- Union Court Victory 
- Nien Hsing Media Assualt 
- Workers File Class Action Suit
- Chentex Management Backtracks Again 
- Nien Hsing / Chentex Now Challenging the U.S. Embassy 
- Potential for victory in Nicaragua 
- Taiwainese Governement Criticizes Nien Hsing
- Chentex Negotiations Falter 
- Chentex Negotiations to resume shortly 
- Chentex Negotiations Set for December 12 
- New York Times and Taiwan paper articles on Chentex 
- An inside look at Nien Hsing -- Report from Taiwanese solidarity
  activists 
- Taiwanese protests at Nien Hsing annual meeting 
- After Meeting with Religious Leaders, Kohl's Still Refuses to 
  Move on Chentex 
- NLC on Tour
- NLC Delegations to Nicaragua
- Archive Updates and Alerts

---

NLC Nicaragua Update: Chentex Union Wins Unprecedented Victory!

Highest Court in Nicaragua Demands the Immediate Reinstatement of the Fired Union Leaders.

Today, at 11:15 AM EST, the Appeal Tribunal for the Managua region ruled that the Taiwanese-owned Chentex / Nien Hsing company must immediately reinstate all nine fired union leaders and pay all back wages for the entire period they were illegally locked out.

The Tribunal is the highest court in the land, and its rulings are not open to appeal. The decision taken by the three justices of the labor section of the Tribunal is unprecedented. No transnational in the maquila sector has ever been ordered by the courts, in Nicaragua or elsewhere in Central America, to reinstate fired union leaders.

The court’s decision is a complete and total vindication for the Chentex union. As the union insisted all along, its leaders were illegally fired.

By implication, the Court’s ruling also establishes that the struggle at the Chentex factory was a legitimate labor conflict, and that the bogus criminal charges brought against the fired union leaders by the company should be dropped. Chentex’s attempt to "criminalize" legitimate union activities has been thoroughly defeated. The legal department of the Nicaraguan human rights group CENIDH argued the case on behalf of the Chentex union.

The Nicaraguan court’s ruling also significantly strengthens the legal suit filed against Nien Hsing’s subsidiary in the U.S., C & Y, seeking damages on behalf of the illegally fired Chentex union leaders and workers.

Finally, the decision by the highest court in Nicaragua exposes Kohl’s for the hypocrisy of its so-called monitoring program—led by PriceWaterhouseCooper—which could find no worker rights violations at Chentex, let alone the illegal mass firing of all nine union leaders.

What will Kohl’s do now? Will they do the right thing? Will they insist that their contractor Chentex adhere to Nicaragua’s highest court and immediately reinstate the union leaders? And what about the scores of other workers who were also illegally fired.

If Chentex refuses to reinstate the fired union leaders by Monday, they will be sued for damages.

We will keep you posted. See below for a translation of the court decision.

---

 

Court of Appeals, Managua Region

Judicial Decree

Clerk of Division Labor

Hearing No. 252/00

Edgar Palacios Ortiz Esq. Attorney for the Plaintiffs Gladys Manzanares and others.

Hearing: Labor

Parties: Gladys Manzanares and Others

Versus: Chentex Garment Factory

Judgement which literally reads:

Court of Appeals. Mangua Circumscription. Division of Labor.

Managua, April 4, 2001. 9:15 a.m.

In view of the allegation presented and the articles 271, 272, and 347 C.T.

The Court's Resolution:

I. Appeal granted.

II. The court has reversed the appeal judgement referred to above. Consequently, the defendant corporation, Chentex Garment, must reinstate, within three days of being notified of the compliance of this judgement, the plaintiffs: 1) Gladys Mananares, 2) Zenayda Torres, 3) Blanca Torres Zeas, 4) Harling Bobadilla, 5) Roberto Manzanares, 6) Felix Rosales Garcia, 7) Felix Rosales Sanchez, 8) Santiago Villalbos, and 9) Maura Parzon; all of them to their former position and under the same identical working conditions. The employer being obligated to pay the wages that they did not receive from the date of the firings to date reinstatement takes effect.

III. - There are no costs.

Magistrate Dr. Ricardo Barcenas Molina dissents. In relation to the acts of indiscipline committed in the company facilities, he is not in agreement with the central axis upon which this decision is based, which becomes a grace period, exculpation, extension, privilege indemnity, seal or dispensation with regard to the disciplinary matter established in Consideration II, and that it would comprise from the moment of firing authorization request until the moment the administrative resolution authorizing the firing was dictated. The correct actions, in this case, would have been to confirm the judgement of the A-quo.

Humberto Solis Barker, A. Garcia Garcia, R. Barcenas M., A D Cespedes Sria

---

February 18, 2001
Vicious Attack Ad Exposes Nien Hsing's True Personality
 

The attached paid ad—which was written and orchestrated by Chentex Nien-Hsing’s General Manager Lucas Huang—appeared in the Nicaraguan media last Thursday, February 15. As ridiculous as the ad is, the language speaks volumes about the true corporate character and thinking which is driving Nien Hsing management. It is so clear that Chentex management never had any serious inteention of negotiating a compromise resolution to reinstate the fired CST union leaders and workers.

The Nien Hsing ad refers to Body Shop founders Anita and Gordon Roddick as irresponisible, manipuative, lying, "recognized leftist militants" and criminals who maurauded at the edge of the FTZ. The Body Shop is funding development projects in Nicaragua.

If Nien Hsing will so crudely lash out at progressive business leaders—because they do not like what they say about respect for human and workers rights and the need to pay fair wages—then just imagine how Nien Hsing management treats the young women locked inside Chentex behind barbed wire and armed guards, who are not in sight, and who will never make it to into the media.

Also attached is a fact sheet to respond to some of Nien Hsing’s and Lucas Huang’s lies and distortions.

---

 

INFORMATION REGARDING THE FREE ZONES COMMUNIQUE TO THE PEOPLE OF NICARAGUA:

For several months the Taiwanese factories in the ZF in Nicaragua have been victims of a merciless national and international campaign, orchestrated by Sandinista union leader Pedro Ortega Mendez, who appears to have no fatherland for he has become the number one enemy of investment in Nicaragua, since his campaigns put at risk the jobs of more than 40,000
workers, a great majority of them women.

In his nefarious campaign this pseudo-unionist is supported by the regrettably known Charles Kernaghan, supposed director of the National Labor Committee of the United States and recognized enemy of investment in the Central American free zones. The aforementioned Kernaghan cloaks his personal interests with a false "solidarity" in which unionists like Ortega easily fall into being useful fools.

Surprisingly, in the past few days, a pair of English business owners, representatives of the Body Shop International and recognized leftist militants touring through Nicaragua, who publicly declare themselves as members of the National Labor Committee, and have added to this campaign, launching a series of slanders against our factories, provoking labor instability, and risking national as well as international investment in this country. The level of irresponsibility and manipulation of these SUBJECTS is surprising: They lyingly said they had visited the free zone factories, when they didn't even have the courtesy to ask to be attended by the Corporation of the Free Zone Corporation. Rather, like CRIMINALS, they marauded the edges of the Industrial Park.

Accordingly to them, they base their "studies" confirming the SUPPOSED SLAVERY on the stories given by well-known radical unionists. The true slavery is practiced on the of millions of undocumented in the U.S.A. who work under conditions more than precarious due to their lack of legal status. Kernaghan and the Roddicks should concern themselves with the rights of these defenseless illegal immigrants and leave it to the Nicaraguan authorities it look out for the interests of their nationals.

It is surprising and suspicious, the interest that these English business owners who say they control an empire whose profits are greater than a billion dollars, might have in directing their attack against the Taiwanese factories located in Nicaragua. If the "precarious" position of thousands of Nicaraguans makes them so sad, they ought to share THEIR JUICY BILLIONAIRE PROFITS in order to alleviate the plight of the poorest of this country.

The noble people of Nicaragua should not be deceived by these bad sons of Nicaragua, who lend themselves to the games of foreign interests and media to ask that our products be shut out of the North American market, which has brought a reduction in orders to some of our factories, instead of pressing for the creation of more and better workplaces to benefit their Nicaraguan brothers. This is the time that all of us together must defend the jobs, present and future, of thousands of Nicaraguans.

Managua, February 15, 2001

PUBLIC RELATIONS OF THE COMPANIES:

Nien Hsing International (Managua) S.A. Chentex Garments, S.A.

Chih Hsing Garments S.A.I. Chih Hsing Garments SA II

Chao Hsing International (Managua) S.A. Fortex Industrial S.A.

John Garments S.A. Roo Hsing

China United Formosa Textile

Chen John Garments S.A. Preshex

Haill Chang Chu Hsing

---

 

NLC Response: Setting the record straight – with the truth

Lucas Huang and Nien Hsing are lying!

The American people support jobs in Nicaragua. There is not and has never been a boycott. Nicaragua is gaining maquila jobs – not losing them.

The American people purchase $28.4 million worth of clothing each month that was made in
Nicaragua. Last year, the American people purchased more than 53 million garments made in Nicaragua.

Maquila jobs are increasing! Nicaragua's apparel exports to the U.S. were up a full 26 percent last year!

More than $341 million of clothing made in Nicaragua was shipped to the U.S. in the year 2000. In the last three years Nicaragua has exported $851 million worth of clothing to the U.S. Apparel exports to the U.S. were $277.4 million in 1999, and $232.1 million in 1998.

Nicaragua’s maquila exports to the U.S. are growing not shrinking. Nicaragua is adding maquila jobs not losing them. The American people are not and never will boycott Nicaraguan goods. We want jobs in Nicaragua – and we want these to be jobs with dignity and justice, with fair wages, and with the right to organize.

Nien Hsing’s profits and sales are soaring!

Don’t let them lie to you. Nien Hsing’s sales are up a full 24 percent!! In one month alone, January 2001, Nien Hsing sales totaled $24 million! This is a 24 percent increase over last year. Any so-called losses Nien Hsing is talking about are lies made up to try to confuse and frighten the hard working people of Nicaragua.

In fact, Nien Hsing just announced that projected sales for all of 2001 are expected to grow by an astounding 20 percent! Total Nien Hsing sales will top $310 million this year.

Nien Hsing pays no taxes: Remember, despite the fact that Nien Hsing makes its profits off the backs of the Nicaraguan people, Nien Hsing does not pay one single cent of taxes back into Nicaragua—not a penny in corporate, income, or even sales tax! In fact, the hard-working people of Nicaragua are actually subsidizing the giant Nien Hsing company. Nien Hsing is the largest
jeans manufacturer in the world. Ask them—why don’t they pay taxes?

Nien Hsing itself admits that Nicaragua is a major source of its great profits – since the Nicaraguan people are so hard working.

The real question to ask Nien Hsing: is it fair for the Nicaraguan workers to earn just 2.574 cordobas for every pair of 390 cordoba blue jeans that they sew?

The workers in Nicaragua deserve a raise; real wages are falling: Despite a steady increase in
apparel exports to the U.S. and the growth in jobs, real wages—or purchasing power—for the
maquila workers in Nicaragua are falling due to double-digit inflation over the last five years, hitting 11.5 percent in 2000. This follows inflation rates of 11.2 percent in 1999 and 13.1 percent in 1998. At the same time, the cordoba is losing value. Since 1996, the cordoba has lost more than half its value, falling from 8.44 cordobas to the dollar in 1996 to just 12.8 today. This means it actually costs Nien Hsing less and less each year to operate in Nicaragua.

Tell Nien Hsing it is time for them to stop lying.

Tell Nien Hsing it is time for them to respect human a worker rights and to pay fair wages.

Tell Nien Hsing to stop its intransigence, its bad faith, to stop undermining the negotiations to reach a peaceful resolution to the crisis at Chentex.

Regarding Nien Hsing's slander of the Body Shop and Anita and Gordon Roddick:

The people of Nicaragua should know the truth. As a company, the Body Shop is well recognized as a leader in the world, treating its workers with respect and dignity, paying living wages and providing full day care centers.

The Body Shop, through its central office in London, donates approximately $1.5 million – or
19,073,570 Cordobas – to charities each year! This does not include other large donations made through regional offices. What does Nien Hsing donate – a few pairs of jeans to Labor Ministry inspectors?

Just imagine the real mentality driving Nien Hsing management: if Nien Hsing and Lucas Huang are so ready to viciously attack and slander two of the world’s prominent and recognized progressive business leaders, Anita and Gordon Roddick, of the Body Shop—just because Nien Hsing did not like what Anita and Gordon said in defense of human and workers rights, the right to organize real unions, and payment of fair wages—just imagine how Nien Hsing feels it can treat the young women workers who are locked behind barbed wire and armed guards in its factories. It is a frightening thought.

Rather than slandering the Body Shop Nien Hsing should adopt Body Shop fair wage, and human and worker rights standards. That would be a positive step forward.

back to top

---

 

Chentex Workers File Court Complaint

Dan Stormer (S.B. #101967)
Cornelia Dai (S.B. #207435)
HADSELL & STORMER, Inc.
128 North Fair Oaks Ave., Suite 204
Pasadena, Ca. 91103-3664
Tel: (626) 585-9600; Fax: (626) 577-7079

DANIEL M. KOVALIK
Assistant General Counsel
United Steelworkers of America
Five Gateway Center
Pittsburgh, Pennsylvania 15222
Tel: (412) 562-2518; Fax: (412) 562-2574

MAX ZIMNY
UNITE
Legal Deparment
1710 Broadway
New York, NY 10019
Tel: (212) 285-7000 ext. 714; Fax: (212) 307-6904

Counsel for Plaintiffs

IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF CALIFORNIA

COMPLAINT

NATURE OF ACTION

1.               Plaintiffs Gladys Manzanarez Tercero, Zenayda Torrez Aviles, Harling Bobadilla, Félix Rosales Sánchez, and Ángel Suárez (collectively referred to hereinafter as "Plaintiffs") bring this action on behalf of themselves for compensatory and punitive damages for violations of international and domestic law, including: the right of association; the right to organize a labor organization and collectively bargain; the right to be free from cruel, inhuman and degrading treatment; the right to life, liberty and security of person; the right to peaceful assembly.  Plaintiffs further bring this action for violation of the California Business & Professional Code, Section 17200.   Plaintiffs institute this action against Defendants C&Y Sportswear, Inc., Nien Hsing Textile Co., Ltd. (Nien Hsing), and Chentex Garments, S.A. (collectively referred to herein as the "Defendants").  The bases for Jurisdiction and Venue are set forth in paragraphs 10-13 below.

2.         The claims in this action arise from the actions of Defendant Nien Hsing at one of its four (4) textile production factories in Managua, Nicaragua.  At this factory, called Chentex Garment, S.A. ("Chentex"), the Defendants employ approximately 1,750 workers in the production of denim jeans.  These jeans are imported into the United States by Defendant C&Y Sportswear, Inc. ("C&Y"), and are sold throughout the United States and in the State of California.  In connection with and in furtherance of the Company's operations in Nicaragua, the Plaintiffs have been subjected to serious human rights abuses in violation of international law and the law of California.

Parties

3.         Plaintiff Gladys Manzanarez is a citizen of the Republic of Nicaragua and General Secretary of the Sindicato de Trabajadores de la Empresa Chentex Garment ("CST Union"), the union representing employees at the Defendant Nien Hsing’s Chentex facility.  Ms. Manzanarez was employed by the Defendants Nien Hsing and Chentex at the Chentex facility from November of 1995 until her firing  in May of 2000.  While under the employ of the Defendants, Ms. Manzanerez worked on an assembly line, sewing garments for a piece rate.  At the time of her firings, Ms. Manzanarez earned between 400 to 450 cordobas (or, about $30 U.S.) per two-week pay period from Chentex.

4.         Plaintiff Zenayda Torrez Aviles is a citizen of the Republic of Nicaragua and holds the position of Director of Women Affairs on the CST Union Executive Board.  Ms. Torrez was employed by Defendants Nien Hsing and Chentex at the Chentex facility from May of 1995 until her firing in May of 2000.  While under the employ of the Company, Ms. Torrez's duty was to attach labels to garments in return for a piece rate of pay.  At the time of her firing, Ms. Torrez earned about 1,700 cordobas (or, about $130 U.S.) per two-week pay period.

5.         Plaintiff Harling Bobadilla is a citizen of the Republic of Nicaragua and is the Secretary of Labor Affairs for the CST Union.  Mr. Bobadilla was employed by Defendants Nien Hsing and Chentex at the Chentex facility from March of 1995 until his firing in May of 2000.  Mr. Bobadilla was employed as an assembly line worker to sew garments in return for a piece  rate.  At the time of his firing, he earned about 500 to 600 cordobas (or, about $45 U.S.) per two-week pay period.

6.         Plaintiff  Félix Rosales Sánchez is a citizen of the Republic of Nicaragua and serves as Chief Spokesperson for the Executive Board of the CST Union.  Mr. Rosales was employed by the Defendants Nien Hsing and Chentex at the Chentex facility for approximately 1 ½ years until his firing in May of 2000.  Mr. Rosales was employed as a maintenance worker at Chentex and earned about 900 cordobas (or, about $70 U.S.) per two-week pay period.  

7.            Defendant Nien Hsing Textile Co., Ltd. ("Nien Hsing") is vertically-integrated textile corporation based in Taiwan and doing business throughout the world, and in particular, throughout the United States.  In pertinent part, Nien Hsing does business in California through its agent and/or alter ego subsidiary, Defendant C&Y Sportswear, Inc. ("C&Y").  Nien Hsing also does business in California through the web-site "i-textile" (www.i-textile.com), accessible in California, through which it sells garments directly to the public.   Defendant Nien Hsing has developed partnerships with major retailers/importers in the United States including Kmart, J.C.Penney, Target, Sears, Bugle Boy.  Nien Hsing is the largest specialized denim fabric and garment manufacturer in the world.

8.                Defendant C&Y is incorporated under the laws of the State of California, with its principal place of business at 1420 North Claremont Blvd., #106B, Claremont, CA 91711, within the County of Los Angeles.  C&Y is the sales arm of Nien Hsing in the United States, and operates as Nien Hsing's agent in the United States.  Upon information and belief, defendant C & Y was and is the agent and/or alter ego of Nien Hsing.

9.                Chentex Garments, S.A. ("Chentex")  is a wholly-owned,subsidiary of Nien Hsing.  Chentex is the agent/alter ego of Nien Hsing and  C & Y. Chentex’s policies, practices and activities are directed, supervised, authorized, ratified and confirmed by its parent, Defendant Nien Hsing.

Jurisdiction & Venue

10.       This Court has federal question jurisdiction under 28 U.S.C., § 1331 and The Alien Torts Claim Act, 28 U.S.C. § 1350.   The Alien Torts Claim Act provides federal jurisdiction for "any civil action by an alien for a tort only, committed in violation of the law of nations or a treaty of the United States."  Plaintiffs' causes of action arise, inter alia, under customary international law, as expressed in the Constitution of the International Labor Organization (ILO) and ILO Conventions 87 & 98 of; the Universal Declaration of Human Rights; the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment; the  International Covenant of Civil and Political Rights; The Charter of the Organization of American States, the American Declaration of the Rights and Duties of Man, The American Convention on Human Rights, and the Caribbean Basin Trade Partnership Act.  

11.       This Court has supplemental and ancillary jurisdiction over the state law claims. 

12.       This Court also has jurisdiction over the federal and state claims  pursuant to 28 U.S.C. Section 1332, because the matter in controversy exceeds $75,000 exclusive of interest and costs for each named Plaintiff, and there is diversity jurisdiction between Plaintiffs and Defendant.

13.       Venue properly lies in this Court pursuant to 28 U.S.C. Section 1391 (c)  because Defendant Nien Hsing does business in California itself and/or through its agent/alter ego, Defendant C&Y Sportswear, which, in turn, maintains offices in Los Angeles County.  

Facts

14.       The Defendant Nien Hsing manufactures denim jeans at its Nicaraguan Chentex garment factory.  The Defendants thrive on high-volume, low-cost production and employs approximately 1,750 workers, mostly women, at the Chentex plant.  Through  Defendant Nien Hsing’s efforts of global marketing and sales it has  imported thousands of jeans a day into the U.S. from the Chentex plant.

15.              Defendants Nien Hsing and Chentex pay their employees, including Plaintiffs, barely subsistence wages.  To wit, the Defendants pays their production line workers -- including Plaintiffs Gladys Manzanarez Tercero, Zenayda Torrez Aviles, and Harling Bobadilla -- 20 cents for each pair of blue jeans they sew, or about 30 cents an hour.   The retail value of these jeans is approximately $25 to $30.  In other words, the Defendants pays its employees less than 1% of the retail price of each jean produced as compared to the 5% to 10% of the retail price of similar garments paid to garments workers in the U.S. by other manufacturers.   

16.       In 1998, Chentex employees, including Plaintiffs Gladys Manzanarez Tercero, Zenayda Torrez Aviles, and Harling Bobadilla, organized a labor organization in an attempt to improve the conditions and wages of the workers.  In part, the union was formed to challenge the Company's policy of forced overtime at Chentex -- a policy, pursuant to which employees, including Plaintiffs, have been forced to work up to 90 hours a week and in 24-hours shifts.   This union is known as the Union of Chentex Garment Workers (hereinafter, "CST Union").

17.     As the CST Union was being organized in 1998 -- under the chief leadership of Plaintiff Gladys Manzanarez -- the Company circulated Ms. Manzanarez's name throughout the employers of the Las Mercedes Free Zone, accusing her, inter alia, of being "undisciplined" and "violent."  In addition, from the time the CST Union was being organized until the time of her discharge in May of 2000, Company officials would monitor Ms. Manzanarez's every movement in the facility, verbally assault her and humilate her in front of her co-workers.  The Company would also prevail upon co-workers to verbally assault her as well.   

18.       In addition, shortly after the CST Union was organized at Chentex, Chentex Management immediately began to form an employees union (the "CTN-A") which was to operate under its direction and control and was created for the purpose of destroying the incipient CST Union.  To this end, members of Chentex senior management, including Ana Romero, approached employees individually and asked them to join the CTN-A.  Chentex senior management told employees, such as Nieves de Lourdes Dias Ruiz, that if they joined the CTN-A, they would be given all the support they needed, including economic resources, transportation and materials.  Defendant Chentex pays dues on behalf of all employee members to the CTN-A.

19.       The Defendants, through Senior Management at Chentex Director of Human Resources Lic. Aurora Rayo, has conspired with the leadership of the CTN-A, including Camilo Buitrago, to engage in the surveillance, assault and intimidation of CST Union leadership, including Plaintiffs Gladys Manzanaras and Félix Rosales, in furtherance of this purpose.  In addition, the Defendants have prevailed upon CTN-A members to set up CST Union supporters for discharge by framing them for theft of Defendant Chentex’s property, including jeans, and by attempting to incite such supporters to violence.

20.       In August of 1998, Defendant Chentex signed a collective bargaining agreement with both the CTN and the CST Union.  Plaintiffs Gladys Manzanarez Tercero, Zenayda Torrez Aviles, and Harling Bobadilla are signatories to this agreement.  This agreement contained no provision on wages or transport and lunch allowances.  However, Defendant Chentex agreed by separate letter that it would review these items within a year depending upon its financial situation.

21.       In July of 1999, the CST Union Executive Board, including Plaintiffs Gladys Manzanaras and Harling Bobadilla, wrote to Chentex General Manager Chen Yun Po, and asked that Defendant Chentex negotiate the economic items listed above.  Defendant Chentex refused to discuss these items.  The CST Union then made a formal contract proposal, which included a demand for an 8 cent wage increase, upon the expiration of the 1998 agreement on August 3, 1999.  Defendant Company refused to bargain with CST Union.

22.       In March of 2000, Chentex Company implemented a wage increase for those workers represented by the CTN-A but not for those represented by the CST Union. 

23.       In response to the Chentex's actions, and after a number of unsuccessful requests to the Nicaraguan Labor Ministry for mediation, the CST -- under the leadership of Plaintiffs -- went out on a one-hour strike against Chentex on April 27, 2000.

24.       On May 1, 2000, Plaintiff Félix Rosales Sánchez was accosted by Camilo Buitrago, a pressing area supervisor of the Chentex facility, and an individual affiliated with the CTN-A.  Plaintiff Sanchez was verbally abused and assaulted by Buitrago because of his participation in the April 27 strike.   When Mr. Rosales attempted to defend himself against this assault, he was arrested and jailed for two days.   When he returned to work on May 4, Mr. Rosales overheard a conversation between Lic. Aurora Rayo, Chentex Director of Human Resources, and Camilo Buitrago, in which they happily discussed the fact that Buitrago had fulfilled the objective Ms. Aurora had charged him -- i.e., setting up Mr. Rosales for arrest and imprisonment.  As Ms. Aurora stated, "there is one less on the road."

25.       On May 2, 2000,  an official of the Nicaragua Ministry of Labor informed Plaintiffs that the Defendant Chentex had requested permission to discharge them.  Under Nicaraguan law, the Nicaragua Ministry of Labor must approve the discharge of an employee before it is carried out. 

26.       In response, almost all of the workers at the Chentex plant engaged in a work stoppage which continued on May 2 and May 3, 2000.  The striking workers, including Plaintiffs, protested at the Chentex facility during this two-day strike.

27.      Before they left the Chentex premises on or around May 3, 2000, each striking employee was asked by security guards contracted by Chentex to sign a declaration, in return for a payment of 20 cordobas, affirming their lack of support for the strike and the CST Union.   Those workers who did not sign such a declaration were retained by the security guards at the gates of the plant and individually identified.  Each worker who refused to sign such a declaration, approximately 350 in total, were ultimately fired by Chentex with the express approval of the Nicaragua Ministry of Labor.  Chentex, again with the approval of the Nicaragua Ministry of Labor, fired approximately 150 other workers after the strike for refusing to resign from the CST.  Many other workers have simply resigned from the CST in the face of the threat of discharge.

28.       On or around May 3, 2000, an individual holding a senior management position at Chentex directed and conspired with a security guard employed by Chentex, to physically attack and incapacitate Plaintiff Gladys Manzanarez.  Although the assault was not consummated, Plaintiff Gladys Manzanarez was subsequently advised of this attempt by Chentex to have her incapacitated, thereby put in fear for her life and physical well-being.  Moreover, at the direction of Chentex senior management, members of the CST Union Executive Board, including Plaintiff Gladys Manzanarez Tercero, were followed, and surveilled  in and around Managua, and meetings of the CST Union were noted and reported to members of Chentex’s senior management staff.

29.            Defendant Chentex directed and conspired with other individuals employed by said defendant, including security guard Jose Angel Solano, to conduct surveillance upon the members of the CST Union Executive Board, to penetrate the assemblies they held, and to report their activities, as well as the names of other workers attending their meetings, to Chentex Senior Management.  Workers who were observed talking with members of the CST Executive Board were immediately discharged from their positions by Defendants.  Defendants provided those individuals who performed the aforesaid services on their behalf with a cell phone and transportation.   Plaintiffs became aware that they were being so followed, and were thereby put in fear for their lives and physical well-being.  For example, Plaintiff Gladys Manzanarez many times could not sleep as a result of her fear that either herself or her children would be physically attacked.

30.       On or around May 3, 2000, members of senior management at Chentex, members of the CTN-A Executive Board and an official of the  Nicaraguan Interior Ministry to address the labor unrest at Chentex, how to confront the CST Union and for permission and approval to discharge of all eleven members of the CST Union Executive Board.  Such approval was given.

31.       When Plaintiff Zenayda Torrez Aviles attempted to return to work on May 4, 2000, she was stopped at the entrance of the Chentex facility by General Manager Chen Yun Po and by security guards contracted out by Defendant Chentex.  These security guards, with the intent to prevent Ms. Torrez from returning to work, beat her with batons about the body, thereby inflicting physical injury upon them.

32.       After this strike, Defendant Chentex hired officers of the National Police to stand guard in the Chentex facility to prevent any further labor actions.                              

33.       On May 27, 2000, the Nicaraguan Labor Department approved the Defendant Chentex’s firing of nine CST leaders, including Plaintiffs Gladys Manzanarez Tercero, Zenayda Torrez Aviles, Harling Bobadilla, and Félix Rosales Sánchez.

34.       Defendant Chentex “blacklisted” the hundreds of employees it discharged after the strike, including Plaintiffs, by circulating their names amongst other employers so that they cannot be hired.

35.       Even after it discharged the members of the CST Union Executive Board, including Plaintiffs, the Defendant Chentex continued to have them followed by security guards, CTN-A members and gang members they hired from the community for this purpose.  For example, in June of 2000, a number of such individuals, at the behest of the Company, surrounded the CST Union Executive Board members as they were going to a union meeting.   These individuals verbally threatened the CST Union Executive Board members and hurled a large rock at Plaintiff Harling Bobadilla, striking and injuring him.  On another occasion, the members of the CST Union Executive Board were surrounded by such individuals while they met a Managua restaurant.  On these occasions, the members of the CST Union Executive Board, including  Plaintiffs, were put in fear for their lives and physical well-being.

36.       On June 29, 2000, the Defendant Chentex brought criminal charges against a number of CST Union leaders, arising out of the work stoppages of April 27 and May 2 to May 3 in an attempt to punish said plaintiffs for their labor union activity, to cause the CST Union’s permanent extermination and to intimidate other individuals from engaging in CST Union or other pro-labor activity. The charges carry a maximum prison sentence of 12 years.  These charges are still pending, and Plaintiffs are expending a great deal of resources, and are enduring pain and humiliation in being forced to defend themselves against these charges.  In addition, Plaintiffs have been wrongfully detained in connection with these charges.

37.       In furtherance of its attempt to cause the destruction of the CST Union, Defendant Chentex, claiming that the CST Union had lost the requisite employee support, has initiated proceedings with the Nicaraguan Labor Court to have the CST Union dissolved.

38.              Defendant  Nien Hsing  has threatened that it will close its 4 facilities in Nicaragua and pull out all of the defendant’s investment from Nicaragua -- including the Company’s $100 million free trade zone project in the city of Leon -- unless the government continues to press the criminal charges against the CST Union Executive Board members and unless it upholds the discharges of Plaintiffs.  This threat is effective in Nicaragua, the second poorest country in the Western Hemisphere with a 60% unemployment rate, which has received millions of dollars in aid (including a new Presidential Palace) and thousands of jobs from Taiwan.  

39.            Defendants Nien Hsing and Chentex give  representatives of the Nicaraguan Ministry of Labor more than $120 worth of garments upon their almost-weekly visits to the Chentex plant.  The Ministry of Labor also receives allotments of fuel from the same Defendants.            

40.            Defendants’ actions have been undertaken with the consent, connivance, cooperation, authorization or knowledge of the Nicaraguan government or individuals acting under of color of law and deprived plaintiffs of a fair and impartial judicial process in Nicaragua. It is futile and impossible for the plaintiffs to receive a fair trial or to employ the courts in Nicaragua to resolve their denial of rights.

41.       As a result of the aforesaid acts of the Defendants, Plaintiffs are without their jobs at Chentex and are blacklisted from other employment.  As a result they are unable to support their families.  They face the real prospect of many years in jail in retaliation for their union activity.

42.       On October 3, 2000, U.S. Trade Representative Charlene Barshefsky, from the Executive Office of the President of the United States, wrote to the Nicaraguan Minister of Foreign Affairs about the aforesaid labor abuses.   In this letter, Ms. Barshefsky stated that Nicaragua's benefits under the Caribbean Basin Trade Partnership Act ("CBTPA") may be in jeopardy in light of the government's failure to protect the labor rights of the Chentex employees as required by the CBTPA as well as the Conventions of the International Labor Organization.  As Ms. Barshefsky stated, "your government's efforts to assure the application of labor laws that protect worker rights in the maquila zone will be a central element of our ongoing monitoring.  Failure to achieve an improvement in this situation could place part or all of Nicaragua's CBTPA trade preferences in jeopardy."   

43.            Plaintiffs are informed and believe, and on that basis allege, that at all times material hereto: (a) Defendants were working in concert with the Nicaraguan authorities; and (b) the Nicaraguan authorities was acting as the agent of, and/or working in concert with defendants and was acting within the course and scope of such agency, employment and/or concerted activity.  To the extent that said conduct was perpetrated by the authorities, Defendants conspired in, confirmed, and/or ratified, the same.

44.       There is no independent functioning judiciary in Nicaragua which can adjudicate claims against Defendants.   Any civil action there would have been and would still be futile and would result in serious reprisals against those who participate in the suit.

Claim For Relief

First Cause of Action

FREEDOM OF ASSOCIATION AND RIGHT TO ORGANIZE
(By All Plaintiffs Against All Defendants)

45.       Plaintiffs incorporate by reference herein paragraphs 1 to 44 of this Amended Complaint as if set forth herein.  

46.       Defendant’s actions of, inter alia,  discharging Plaintiffs, having them assaulted and/or beaten, blacklisting them from other employment and bringing criminal charges against them -- all with the intent of halting their associational activities of forming and maintaining a union, collective bargaining and striking -- have resulted in serious violations of Plaintiffs’ fundamental human rights.  In particular, these actions have resulted in the deprivation of Plaintiffs’ internationally recognized human rights and internationally recognized  workers rights that establish minimum labor standards including,  rights of association, their right to work and earn a living, and they imminently threaten their right to freedom from imprisonment in retaliation for exercising protected associational rights.

47.  The acts described herein interfere with Plaintiffs’ rights of association, the right to organize and bargain collectively in violation of the Alien Tort Claims Act, customary international law, the common law of the United States, the statutes and common law of California.

Second Cause of Action

Cruel, Inhuman, or Degrading Treatment
(By All Plaintiffs Against All Defendants)

48.       The allegations set forth in paragraphs 1 through 47 of this Complaint are realleged and incorporated by reference as if fully set forth herein.

49.       The acts of the Defendants alleged herein were intentionally inflicted upon the plaintiffs for the purpose of punishing and intimidating plaintiffs and others from exercising their fundamental human rights as  described herein, had the intent and the effect of grossly humiliating and debasing plaintiffs to force them to act against their will and conscience, inciting fear and anguish, and breaking their physical and/or moral resistance and occured with the consent, connivance, acquiescence, or assistance of the government(s) of Nicaragua and/or Taiwan.

50.       The acts described herein constitute cruel, inhuman or degrading treatment, in violation of the Alien Tort Claims Act, customary international law, the common law of the United States, the statutes and common law of California.

Third Cause of Action

Violation of the Rights to Life,
Liberty and Security of Person
and Peaceful Assembly and Association
(By All Plaintiffs Against All Defendants) 

51.         The allegations set forth in paragraphs 1 through 50 of this Complaint are realleged and incorporated by reference as if fully set forth herein.

52.         The assault and/or battery of Plaintiffs by Defendant's in retaliation to their peacefully demonstrating against the actions of Defendants constitute violations of their rights to life, liberty and security of person, and their rights to peaceful assembly and association.

53.         The arrest and detention of plaintiffs were violations of their rights to life, liberty and security of person and peaceful assembly and association for which Defendants are liable.

54.         The acts described herein constitute violations of Plaintiffs' rights to life, liberty and security of person, and to peaceful assembly and association, in violation of the Alien Tort Claims Act, customary international law, the common law of the United States, the statutes and common law of California.

55.         Defendants are liable for said conduct in that Defendants directed, ordered, confirmed, ratified, and/or conspired with the Nicaraguan authorities in bringing about the violations of the rights to life, liberty and security of person and peaceful assembly and association.

Fourth Cause of Action

Violation Of Business & Professions Code Section 17200
(By All Plaintiffs Against All Defendants)

56.         Plaintiffs incorporate by reference paragraphs 1 to 55 of this Complaint as if fully set forth herein.

57.         Plaintiffs bring this cause of action on behalf of themselves and on behalf of the general public, pursuant to Business and Professions Code, Section 17204.  The conduct of Defendant Company as alleged herein has been and continues to be deleterious to Plaintiffs and the general public, and Plaintiffs are seeking to enforce important rights affecting the public interest within the meaning of Code of Civil Procedure, Section 1021.5.

58.         Defendant Company’s practices as alleged herein constitute ongoing and continuous unfair business practices within the meaning and in violation of Business and Professions Code, Section 17200.  Such practices include, but are not limited to the discharge and blacklisting of workers in retaliation for their union activity, assault & battery, criminal prosecution of union leaders for their labor activities, the blackmailing of a poor nation in support of its anti-union activities.  Members of the public have been and will in the future likely be damaged by these practices.

59.         The conduct as alleged herein constitutes clear violations of customary international law and the laws of California.  The actions of the Company in suppressing labor activity through illicit means such as discharge, blacklisting, wrongful criminal prosecution and blackmail, thereby artificially depressing the wages of workers abroad, creates an unfair business advantage over competitors within California and the United States.

60.         Plaintiffs seek injunctive relief, disgorgement of all profits resulting from these unfair business practices, restitution and other appropriate relief on behalf of themselves and members of the general public as provided in Business and Professions Code, Section 17203.

Demand For Jury Trial

61.          Plaintiffs demand a trial by jury on all issues so triable.

Prayer for Relief

WHEREFORE, Plaintiffs respectfully request the Court to:

(a)        enter judgment in favor of Plaintiffs on all counts of the Complaint;
(b)        award Plaintiffs compensatory and punitive damages;
(c)        award plaintiffs declaratory relief
(d)        award Plaintiffs the cost of suit, including reasonable attorneys’ fees, and
(e)        award Plaintiffs such other and further relief as this Court deems just under the circumstances.
(f)        award Plaintiffs injunctive relief, restitution, disgorged profits, and other appropriate relief under the
            California Business & Professional Code, Section 17200.

 

DATED: December 5, 2000                            Respectfully submitted,

HADSELL & STORMER, INC. 

By:                                               
Dan Stormer
Attorneys for Plaintiffs

 

  back to top

---

 

January 15, 2001
Lucas Huang now says Chentex can reinstate only 7 of the fired workers
 

The undermining of the agreement continues as Nien Hsing's representatives repeatedly lie, backtrack, and do everything possible to sabotage an agreement the company already commited to, with help from and in the presence of an official of the U.S. Embassy.

Lucas Huang is now saying that upon his review, only 7 workers from the list of 139 fired have clean work records while the rest have multiple infractions.  So, after agreeing to the return of 80 to 100 of the fired workers, now he claims Chentex can only reinstate 7.  In other words, at Chentex, on average, 95 percent of the workers are either incompetent or troublemakers.  Only five percent of the workers have clean records.

The farce continues.

 

back to top

---

 

January 12, 2001

Nien Hsing Now Challenging the U.S. Embassy/Lucas Huang Attempts Once Again to Sabotage the Agreement/Nien Hsing Increasingly Isolated

On Tuesday, January 9, an official at the U.S. Embassy in Managua (who asked "not to be identified," but was almost certainly labor attach¨¦ Mario Fernandez) told the Milwaukee Journal Sentinal that he "expects the agreement to be signed."  The comment was referring to the verbal agreement, which Mario Fernandez helped facilitate, reached late last week between the Chentex union and Nien Hsing's Lucas Huang.  Mr. Fernandez brokered the deal by phone and was witness to the agreement.

Now Lucas Huang is calling the U.S. Embassy labor attach¨¦ a liar, saying that there was a misunderstanding and that he never agreed to what Mr. Fernandez said he did.  These are the same tactics that Lucas Huang and Nien Hsing have employed over the last several months to undermine and sabotage all efforts to resolve the conflict at Chentex.

In a good faith attempt to resolve the ongoing crisis at Chentex, the CST union acted with reason and willingness to compromise, agreeing to the reinstatement of just two of the eleven fired union leaders along with 80 to 100 of the fired workers and a withdrawal of the trumped-up criminal charges.  The CST union did this so that Nien Hsing's intransigence would not cause Nicaragua lasting damage.

Yesterday, in yet another farce, Nien Hsing staged a "worker protect" in front of the U.S. Embassy!

Yes, in the middle of the week, a thousand or so workers just got up and spontaneously concluded:  "This is a wonderful day for a protest at the U.S. Embassy.  Let's go.  We won't worry about our jobs or being fired or losing our pay.  What do we care?  We just feel like protesting.  And we have a heck of a beef with the U.S. Embassy..."

The puppet protest was of course orchestrated and financed by Nien Hsing.  They gave the workers the day off with pay (they received a vacation day), provided them with a small travel stipend, rented eight buses and transported them to "their" demonstration.  Supposedly the company's puppet union was in charge of all this.  This little outing cost Nien Hsing at least $10,000.  Nien Hsing now stands along.  They have lied their way into a corner.

Yesterday, Congressman Sherrod Brown wrote to U.S. Ambassador to Nicaragua Oliver P. Garza requesting the Ambassador's assistance to "encourage the process to move in a positive direction."" Congressman Brown wrote:

"Unfortunately, there is concern that the Nien Hsing management may not have been dealing in good faith.  The agreement has yet to be signed and as more time passes, the likelihood of a signed agreement only decreases."

After committing to Mario Fernandez that 80 to 100 of the fired workers would be reinstated to their former jobs, now Lucas Huang is saying that he never agreed to that.  And besides, Lucas Huang is now claiming he is "under pressure from the Taiwanese companies."  But this is quite strange, since the Nien Hsing consortium is the Taiwanese companies, and Lucas Huang as general manager runs the show.  So he must be arguing with himself.

Nien Hsing is now opposing:

* The Chentex Union, the Nicaraguan Textile Federation and the CST confederation;
* the Nicaraguan Center for Human Rights (CENIDH)
* the U.S. Embassy;
* the Taiwanese Government.

Lucas Huang is claiming that he "agrees with everything," only Chentex cannot possibly take back 80 to 100 workers--as he agreed to do last week witnessed by the U.S. Embassy.

There is another meeting scheduled for this afternoon.  The Chentex Union will not budge another inch--they have already gone the extra mile agreeing in good faith to very significant compromises.

We'll keep you posted.

Nien Hsing is turning out to be one of the nastiest companies we have yet to encounter.

Below is the statement from the workers in Nicaragua.
------------------------------------------------------------
 

To:         National and International Public

From:     Chentex Garment Workers Union  
              Federation of Textil Unions
              CST-Jose Benito Escobar Confederation

RE:        Agreements / Resolution of Labor Conflict 
              in Chentex

Date:      January 11, 2001

After eight months of conflict, May 2000 to January 2001, and after intense negotiations to resolve the disputes between the union and company with the participation of national observers;  conscious that we must work for national stability and the economic development of the country, that we respect investment and need sources of jobs and dignified wages that help to elevate the standard of living of the Nicaraguan workers, we express to Mr. Lucas Wei Wang, representative of the Nien Hsing consortium and to Mrs Doris Escalona, the consortium’s legal representative and to Mr. Carlos Yin, Administrative representative of Chentex the following:  That we want and are willing to accept an agreement to definitively end the labor conflict and that we should respect our national and international laws with regard to labor rights and international conventions signed by Nicaragua in the ILO such as freedom of association and union organization and collective bargaining.

In this sense, it is important to inform and make clear that the Union has exhausted every channel, process and recourse toward a satisfactory resolution of the conflict:  meetings with the Nicaraguan Parliament;  Complaints to the Human Rights Commission [of the Legislative Assembly] presided over by Mr. Nelson Artola;  meeting with the Labor Affairs Commission presided over by Mr. José Espinoza;  meeting with the Human Rights Ombuds Office;  meeting in the offices of  CENIDH [Nicaraguan Center for Human Rights]; meeting with the Taiwanese Embassy with Mr. Carlos Líao the Economic Advisor;  meeting in the North American Embassy with Mr. Mario Fernandez, Labor Attaché;  meeting with Mr. Gilberto Wong, representative of the Government’s Free Zone Corporation.  Also visiting our country to help resolve the conflict have been important persons such as Congressman Sherrod Brown of the United States, confirming en situ the violations and requesting that the conflict be resolved signing [along with] 68 Members of Congress, and also sending a letter to the President of Taiwan signed by five Congress members asking that he help to resolve the labor conflict at Chentex in Nicaragua.

·<>        In the same vein, on three occasions, Mr. Neil Kearney, representative of the textile workers international visited Nicaragua and met with Mr. Lucas Wang, achieving no agreement.

·<>        A visit of U.S. religious leaders such as Bishop Thomas Gumbleton, who met with Lucas, with no positive result.

·<>        We have gone to the ILO to submit complaints, denunciations against the Nicaraguan Government, because we consider that our Labor Rights have not been supported and protected by the Government of Nicaragua.

·<>        International solidarity has grown and we have had support from important union organizations including UNITE, Steelworkers, AFL-CIO, National Labor Committee of the U.S., TecNica, Nicaragua Network, [as well as] unions, human rights and professional organizations of Taiwan, which have declared their backing for our struggle, for which we are infinitely thankful.

·<>        As a last comment and/or opinion which we express to all these persons and to Mr. Lucas Wei Wang and Mr. Andrew Samet of the Labor Department of the United States, we express our concern regarding [the fact that] Nicaragua has not been incorporated into the Caribbean Basin Initiative, since Nicaragua and the companies, principally the Taiwanese, do not comply with commitments and agreements with regard to Labor Rights that every beneficiary country is supposed to comply with, including respect for freedom of association, right to organize and bargain collectively, prohibition of child labor and respect for the environment.

·<>       Our willingness to dialogue is well demonstrated.  In the months of November, December and January, we held intensive negotiations with the Nien Hsing consortium headed by Mr. Lucas Wang, with Pedro Ortega and Miguel Ruiz [representing] the Union, the Federation and Confederation.

The points of agreement and/or consensus in these meetings are the following:

1.) Immediate withdrawal of the criminal suits against the workers on the Unions Executive Board, withdrawal of the labor suit and also the suit for dissolution of the union.

2.) Review and reinstatement of a list of 139 workers.

3.) Signing of a new protocol for labor relations with regard to the Collective Contract, review of wage demands and respect for the Union.

On these three points we had achieved agreements. We had not achieved agreement on points 4 and 5 which had to do with reinstatement of 4 Union Leaders to the Chentex Company, 4 Union Leaders to be placed in other companies and 3 Union Leaders to be paid severance.

Point 5: 

Is the ending of the international campaign and the international lawsuit.   In that vein, Mr. Lucas Wang and Mr. Mario Fernandez of the U.S. Embassy have had meetings and verbal communications to seek an agreement.  Mr. Mario Fernandez acting as facilitator of communication made the following proposal on Friday, January 5:  That regarding point 4 the reinstatement of the Union Leaders, that Lucas accepted the reinstatement of 2 Union Leaders.  We said that if 100 percent of the workers fired during the labor conflict were [reinstated], we could accept.  Mr. Fernandez communicated that same day with Mr. Lucas Wang and informed us of a counterproposal by Lucas to Mr. Fernandez, which he transmitted to us with consisted in the reinstatement of two Union Leaders into the company, Santiago Villalobos and Zenayda Torres, and fifteen union members to be reinstated immediately plus ten workers to be reinstated each week, that is to say every seven days.  We accepted this proposal.

We considered that we had come to a resolution of the conflict in view of the fact that Mr. Fernandez was involved and is witness to our willingness to accept the agreement.  But then, yesterday, January 10 of this year at 10 in the morning, Mr. Lucas Wang communicated via telephone with Pedro, informing him that on Monday or Tuesday of next week we would sign the agreement.

Today, January 11 of this year, Mr. Lucas Wei Wang and the leaders of the CTN union organized a Protest march, accusing the Union and the CST of causing the closure of the Chentex company.  This march was directed to the North American Embassy, the Ministry of Labor, the offices of the CST-Jose Benito Escobar.  We consider the carrying out of this action as a lack of loyalty, respect and seriousness by Mr. Lucas against all of us who have in some manner been involved in the resolution of this conflictive situation at the Chentex Company, and it puts Mr. Mario Fernandez of the North American Embassy in an uncomfortable situation, since he has served as facilitator of these last agreements.

We of the Chentex Union, the Federation of Textile Unions and the CST-Jose Benito Escobar confederation request the support of the national and international community, in view of the fact that we feel unprotected in the face of the mockery being carried out by the representatives of the Nien Hsing consortium.  We demand energetic sanctions to correct these abuses and violations against the Nicaraguan workers, and we want to make it very clear that the ones who are not willing to negotiate and sign these agreements is Mr. Lucas Wei Wang, who feels protected by the Government of Nicaragua.

Chentex Union
Gladis Manzanares
Zenaida Torres
Maura Parson
Blanca Torres
Santiago Villanueva
Felix Garcia L.
Felix Garcia
Carlos Peña 

Textile Federation
Pedro Ortega

CST-Jose Benito Escobar
Miguel Ruiz

 

^ back to top

---

 

January 5, 2000 6:00 p.m. est

RE:  Victory in Nicaragua

Late this afternoon, the Chentex union reached a verbal agreement--witnessed by U.S. Embassy representative Mario Fernandez--with Nien Hsing director Lucas Huang, to end the conflict.  This agreement could be signed on Monday morning.

The Agreement calls for:

1.) Reinstatement of two of the fired union leaders--Zenaida Torres and Santiago Villalobos and full severance for the remainder.

2.) Reinstatement of at least 80 of the fired Chentex workers--15 to return on Monday morning along with the two union leaders, and 10 more fired workers to be reinstated each week over the next two months.

3.) All criminal charges brought by the company against the union leaders are to be dropped.

4.) The company's legal suit to dissolve the union will also be immediately dropped, and

5.) A Labor-Management Protocol is to be signed to address and guarantee respect for human and worker rights, in Chentex--and in all the other Nien Hsing factories--including the right to organize, and a review of wages.

The union will issue a full report on Monday, after the agreement is signed.  The Chentex workers and union are very pleased!  This was a long, hard struggle under most difficult circumstances.

Before this campaign started, the head of the Nicaraguan Legislative Assembly's Human Rights Commission could not even enter the Free Trade Zone.  With grinding poverty and 60 percent unemployment, and with a virtual grant of impunity from the Ministry of Labor, the maquila companies did whatever they wanted to.  There were always another 1000 workers to replace those fired.  Nor is Nien Hsing your "Mom & Pop"-type maquila.  The company claims to be the largest jeans manufacturer in the world, with factories in Nicaragua, Mexico, Taiwan and Africa.  They play rough.

This will be a big victory!

Under normal circumstances, the Chentex union would have been destroyed.  But there was tremendous international solidarity from the U.S. and Taiwan, and the Nicaraguan workers did the rest.  All they needed was the hand of solidarity.

Among those 80 fired workers to be reinstated are some very brilliant, active and commited trade unionists, who will very quickly assume real leadership among all the workers in the factory.

Congratulations to the Chentex Union, to the Textile Federation and the CST-JBE Confederation!--and to all the international solidarity organizations and activists who have played a role.  This has been one hell of a good campaign!

More will follow.

 

^ back to top

---

 

January 4, 2000

Taiwanese Government Finds Nien Hsing's Labor Practices Unacceptable

Report on Taiwan Legislative Yuan Hearing on the Chentex Case
From:  Taiwan Solidarity with Nicaraguan Workers, 1/4/01

On January 2, 2001, the second day of the new century, the Legislative Yuan (parliament of Taiwan) held a hearing on the labor dispute at Chentex, a subsidiary of Taiwan's Nien-Hsing Textile. The hearing was presided by Legislator Lee Cheng-Tsong. Nien-Hsing was represented by its vice president and spokesperson. Representatives on the labor side included representatives from the two largest union federations (China Federation of Labor (CFL) and Taiwan Confederation of Trade Unions (TCTU)), Committee for Action on Labor Legislation, Labor Rights Association, and Taiwan Solidarity for Nicaraguan Workers. Officials from the Ministry of Foreign Affairs (MOFA), Council for Labor Affairs (CLA), and the Labor Insurance Fund (which owns about 5% shares of Nien-Hsing) also attended the hearing.

Representatives of TSNW started by recounting the facts of labor rights violation at Chentex, the grave consequences of this one company's conduct on the international reputation of Taiwan, and the fact that the company's representatives in Nicaragua repeatedly sabotage the negotiations.

The spokesperson of Nien-Hsing repeated their old excuses: that the unionists are politically motivated rioters, that the international solidarity is actually self interested projectionist conspiracy of the US, and that the company is the real victim in this affair.

A MOFA official confirmed what Taiwan's Representative in US, Cheng Jian-Ren, stated in his December 19 statement, namely that the government of Taiwan suggested Nien-Hsing to reinstate the 12 fired union leaders. CLA director of the Labor Dispute division reported that the Nien-Hsing facility in Miaoli County, Taiwan, employs more than 700 employees, but has no union. This is unlawful since Taiwan's union law requires every workplace with workforce over 30 to be unionized. He also confirmed that the CLA recommended Nein-Hsing to hire the 12 union leaders back.

CFL deputy secretary questioned Nien-Hsing's good faith in solving this dispute on the ground that the company sent out very hostile lawyer's letter to everyone involved in our solidarity campaign. An executive board member of TCTU, who is also a trustee of the Labor Insurance Fund, demanded that the fund sells all Nien-Hsing shares, should the company fail to improve its conduct in Nicaragua, because Taiwanese workers refuse to bankroll a violator of basic labor rights with our own money.

Subsequently, members of TSNW debunked Nien-Hsing's arguments about the political trappings of Nicaraguan unionists and the protectionism of US solidarity activists. They cite the complaint submitted by ITGLWF general secretary Neil Kearney to prove that this is a genuine issue of suppression of the rights of association of workers, and a violation of international conventions.

The fact that the company refuses to negotiate in good faith even after the Taiwanese government made its position clear shows the company's contempt. The TSNW demand that the government use every means at its disposal to Nien-Hsing to correct its unseemly conducts.

After heated debate, the chairperson of the panel arrived in four conclusions:

1.     The absence of a union at Nien-Hsing's Taiwan factory should be addressed by the CLA with utmost urgency.

2.     The Labor Insurance Fund should seriously consider Nien-Hsing's overseas labor conduct in its future investment decisions.

3.     The MOFA should closely monitor the labor dispute at Chentex, and stop all subsidies to the company should the violation of labor rights ensue.

4.     Nien-Hsing Textile should withdraw all lawsuits against Nicaraguan unionists and their supporters in Taiwan to show its good faith.

Although these recommendations are non binding, they certainly brought pressure upon Nien-Hsing. Moreover, the fact that almost all government officials showed their sympathy with the labor's side is a great improvement in the strength of the solidarity campaign. Nien-Hsing's spokesman said that the company will reopen negotiations with the CST union on January 3. We will be watching the progress of the negotiation closely and plan for further actions if the negotiation breaks down again.
 

^ back to top

 

---

December 21, 2000 -- 6:30 pm

Negotiations Dead in the Water.
Chentex/Nien Hsing Manager, Lucas Huang refuses to negotiate.

Every step of the way, Lucas Huang has acted to obstruct the negotiations, changing his position constantly, delaying, refusing to negotiate seriously.  He said that today he would arrive with a written proposal.  He did nothing of the sort.  Rather, he changed his position once again, now saying that he would not reinstate any of the fired union leaders, not even one, but would, later on, be willing to place them in another Nien Hsing plant that is under construction.  When the union refused, he threatened to shut two production lines down in Chentex and throw more than 100 workers out on the street.

Lucas Huang is a shrewd character, playing his games, biding his time and trying to wear everyone down.

He said he would speak with the union on Tuesday, December 26 -- no doubt for more of the same, another delay.  Then it will be New Years, and then it will be Bush in office, and so on.

Wasn't the U.S. Embassy supposed to be doing something?

Nien Hsing obviously needs a few more hits, a few more surprises.
Let's give Nien Hsing what it wants.

 

^ back to top

---

Monday, December 18, 2000

Chentex/Nien Hsing, Nicaragua:
Negotiations to Resume on Thursday, December 21 at 2:00 p.m.

Today's meeting was suspended by Lucas Huang who claimed he needed further last-minute consultations, apparently with Nien Hsing headquarters in Taiwan.  Nien Hsing is now to present its proposal to the union, in writing, on Thursday, December 21 at 2:00 p.m.  One remarkable thing about the meeting was that Nien Hsing's representatives for the first time refrained from any negative attacks or statements against the CST-JBE union.

The union is still guardedly optimistic that an agreement will be signed on Thursday.

However, the union let Chentex know that Thursday is D-day, and they will not wait a day longer.
 

 

^ back to top

---

 

Tuesday, December 12, 2000

Another Round of Chentex Negotiations Set for
Tuesday, December 12 at 4:00 p.m.

Up to this point, Nien Hsing's General Manager in Nicaragua, Lucas Wei Huang, has acted in every way to obstruct the negotiations.  He changes his position from day to day.  Mr. Huang stated last week that he would be willing to reinstate four of the fired union leaders to their jobs, and that three or four others could establish a labor rights office in the Free Zone, which Nien Hsing would pay for, but that they would not be allowed to return to the shop floor.

The union was prepared to accept a Nicaraguan Government official's position that five of the fired union leaders be reinstated, while the remaining six would enter this new union labor rights office to be established inside the Zone.

Now, backtracking again, Lucas Huang is saying that he will not reinstate any of the fired union leaders in their jobs, but that he will allow four of the fired leaders to create a labor rights office.  Also, now he is saying that he is willing to reinstate just 50 of the 140 fired workers on a list the union presented him.

The union had no other choice than to reject this proposal.

Obviously more pressure is needed on Chentex/Nien Hsing, Kohl's, AAFES, etc.
 

 

^ back to top

---

New York Times
December 3, 2000

Critics Calling U.S. Supplier in Nicaragua a 'Sweatshop'
By STEVEN GREENHOUSE

An arm of the Pentagon has come under fire for procuring large quantities of apparel from a Nicaraguan factory that labor rights groups say is a sweatshop and that the United States trade representative has voiced serious concerns about.

Several members of Congress say it is wrong for the Pentagon agency, which runs 1,400 stores at military bases and made $7.3 billion in sales last year, to obtain apparel from the Chentex factory, which a Nicaraguan union has accused of firing more than 150 union supporters.

In an unusually stern letter, The United States trade representative, Charlene Barshefsky, warned the Nicaraguan government in October that the United States might rescind some trade benefits unless it moved to ensure that Chentex complied with labor laws.

Labor rights groups in the United States have mounted an intense campaign against Chentex, a factory with 1,800 workers that is owned by the Nien Hsing Textile Company, after Nicaraguan workers accused the company of illegal firings. Many workers also complain about low pay, monitored bathroom visits, large amounts of mandatory overtime and being screamed at and occasionally hit by managers.

Cynthia A. McKinney, Democrat of Georgia, who sits on the procurement subcommittee of the House Armed Services Committee, said it was wrong for one federal agency, the Pentagon, to buy large amounts of apparel from Chentex while another, the trade representative's office, had singled out the factory for criticism.

Representative McKinney and several other House members are working closely with a labor rights group that has obtained shipping documents showing that the Army and Air Force Exchange Service, a nonprofit Pentagon arm that runs the post exchanges, is one of the Chentex's largest customers. Other major customers have included the retailers Wal-Mart and Kohl's.

"The United States government is the last place that should be supporting and coddling sweatshop labor and the violation of human rights," Ms. McKinney said.

Labor rights groups and several House members say the Chentex battle is important because it seeks to upgrade wages and working conditions in poor nations at a time when the American economy is importing more goods than ever and American companies are relocating operations to low-wage countries.

Fred Bluhm, a spokesman for the Army and Air Force Exchange Service, said that in light of the many criticisms of Chentex the exchange service sent officials to Nicaragua to examine the Chentex operation. "Our representative who went there found no problems," he said.

Carlos Yin, the general manager of Chentex, said in a telephone interview that his company treats its workers well. He accused the union of exagerating problems and he insisted that only 12 union supporters had been fired, all of them union leaders. He said they were dismissed legally, asserting that it was the union leaders who had broken the law by calling one-hour work stoppage and two-day strike without the workers' approval.

"We didn't do anything wrong," Mr. Yin said. "Nicaraguan law protects the workers very strong, and we can't go against the law."

But Charles Kernaghan, executive director of the National Labor Committee, a New York-based labor rights group, said the company dismissed far more than 100 union supporters after they went on strike demanding a 40 percent wage increase.

At a factory that sews 35,000 pair of jeans a day, employees earn about 20 cents for the work they put into a pair of jeans that often sell retail for $30 in the United States. The workers, in effect, demanded to be paid 8 cents more per pair.

Mr. Yin, the factory manager, said all of his workers earn at least the minimum wage, which union leaders say is set unrealistically low in developing countries in order to attract foreign investment.

Last summer, Representative Sherrod Brown, Democrat of Ohio, visited Nicaragua and met mother who worked at Chentex 60 hours a week, while her husband worked at another Nien Hsing factory for 70 hours aweek, and yet they lived in a hut with a dirt floor. "The couple had a 3-year-old daughter with discolored tips of her hair, probably from a protein deficiency," he said. "These are people who work 60, 70 hours a week, and their standard of living is just abysmal."

Mr. Brown, who got 67 House members to sign a letter to President Clinton last July about conditions at Chentex and another Nicaraguan factory, Mil Colores, said he would hold a news conference this week criticizing the Army and Air Force Exchange Service.

"I'm outraged that American taxpayers are being made part of this sweatshop global economy in this way," he said.

Taipei Times
2000/12/02
http://www.taipeitimes.com/news/2000/12/02/story/0000063823

Activists allege labor violations

WORKERS' RIGHTS: Union activists asked the foreign ministry to investigate claims that a Taiwanese-owned factory in Nicaragua has trampled the rights of workers, an allegation the company strenuously denies

By Liu Shao-hua
Staff Reporter

Around 70 union activists yesterday appealed "for the sake of both human rights and Taiwan's reputation" to the Ministry of Foreign Affairs to look into alleged violations of labor rights by Chentex textile factory in Nicaragua.

Chentex, a Taiwanese factory owned by Taipei-based Nien Hsing Textile Co Ltd, was criticized by US activists and local union workers for violating labor rights.

Ten activist representatives who went to the ministry told Lin Ki-tseng, vice minister of foreign affairs, and Huang Nan-huei, director general of economic and trade affairs, that Chentex's notoriety had become an international issue damaging Taiwan's reputation.

Since May, hundreds of workers have been fired by Chentex in a labor dispute over wages, local union leaders said. Chentex took 11 union leaders to court for criminal damages and for calling an illegal strike. Since then, a series of actions targeting Chentex and the Nicaraguan government have taken place in the US and Taiwan.

A delegation of US religious, labor, human rights and student leaders, led by Congressman Sherrod Brown, went to Nicaragua to investigate and alleged "systematic human and workers' rights violations" at the factory.

It was reported that when President Chen Shui-bian visited Nicaragua in August, some local union leaders and the investigating delegation were forcibly made to leave the country for fear they might disturb Nicaraguan President Arnoldo Aleman's meeting with Chen.

Sixty-four US congressmen wrote a letter about the matter in July to US President Bill Clinton.

The US has expanded free trade tariffs and quota benefits to Nicaragua.

In September, the International Textile, Garment and Leather Workers' Federation wrote to the International Labor Organization to protest Chentex's alleged violations of workers' rights.

In October, Charlene Barshefsky, the US trade representative, wrote to the Nicaraguan government demanding that conditions be improved at Chentex and Mil Colores, a US owned factory. She also set a deadline of next June for a US-Nicaragua discussion on worker rights.

In order to show the support of Taiwanese workers for the Nicaraguan unions, the Taiwan Solidarity With Nicaraguan Workers group was formed in October. It comprises four labor groups and is supported by many labor leaders.

Activists appealed to the foreign ministry on three counts yesterday. First, they asked that a human rights code be incorporated into the ministry's regulations governing investments in countries with diplomatic ties with Taiwan; second, that the ministry identify Taiwanese factories overseas involved in disputes over labor rights; third, that it investigate the extent of Taiwanese diplomats' collusion with businessmen.

Activists questioned the ministry's provision of a NT$10 million investment subsidy to Nien Hsing and said that Huang Ming-wei, the ministry's former military attache in Nicaragua and currently Nien Hsing's general manager in Nicaragua, was an example of ministry officials' collusion with businesses.

Activists requested that the ministry look into alleged violations of human rights by Nien Hsing and suspend its subsidy to the company before investigating further.

But Huang Nan-huei said the ministry was no longer subsidizing Nien Hsing. "We only subsidize companies for the first five years.  Nien Hsing established its business in Nicaragua eight years ago," he said.

Huang said that a meeting on this issue was held last Tuesday in Taipei and that some businessmen investing in Nicaragua and the Nicaraguan ambassador to Taiwan had attended. With Nien Hsing's report in hand, Huang emphasized Nien Hsing's contribution to generating US$150 million a year for Taiwan and employing 10,500 Nicaraguan workers.

"Nien Hsing's statement at the meeting was very different from your analysis," Huang said, suggesting the activists engage in direct talks with Nien Hsing to further their understanding.

But activists questioned the foreign ministry's acceptance of Nien Hsing's statement and what they said was the ministry's ignorance of international pressure over this issue. They showed ministry officials a pile of copied documents about US action on the issue and a press cutting about Chentex published in the British financial daily, the Financial Times, three days ago.

They also expressed doubts over Nien Hsing's attitude toward talking with activists. Activists protested to Nien Hsing in Taipei earlier in November and 15 of them shortly afterwards received a letter issued by Nien Hsing's counsel on Nov. 13 accusing them of breaking the law.

"We hope the ministry can send officials to Nicaragua to investigate the whole issue instead of listening to Nien Hsing's explanation alone," said Chen Hsin-hsing, an activist who is also a sociology professor at Shih-Hsin University.

With New Party Legislator Cheng Long-shui assisting in the negotiations, ministry officials finally agreed to invite activists and Nien Hsing officials for a talk in the near future.
 

 

^ back to top

---

 

November 20, 2000

The following comes from Taiwan - Nicaragua Solidarity -- a organization based in Taiwan that is supporting the struggle of the Chentex workers in Nicaragua.  This report is an account of statements made by Chentex General Manager Lucas Wong to the annual meeting of the Nien Hsing Corporation in October.  (Nien Hsing is the Taiwanese parent firm of the Chentex factory.)  Apparently Mr. Wong was unaware that human rights advocates were in the room at the time of his remarks.
-------------------------------

Presentation of Nien Hsing's performance in the
Company Annual Meeting in Taipei
8 November 2000

(Extracted translation from the report from Cooloud Web, Taiwan at http://www.coolloud.org)

In the annual meeting of Nien Hsing held on 8 November in Taipei, the CEO of the company, Mr Wong Shih-Kuan made a presentation to the press and shareholders on Nien Hsing's performance in Latin America and Africa.

Not knowing that there were demonstrators against the labor rights abuses committed by Nien Hsing in Nicaragua, Mr Wong played a video tape which explained the company's investments in Lesotho, Mexico and Nicaragua.  At the end of the video was a talk between the CEO of Nien Hsing and President Aleman of Nicaragua.  Mr Wong believed that "Nien Hsing is bringing happiness and good life to the people of Nicaragua."

Mr Wong kept emphasizing that Nien Hsing has "a special culture of doing business" which guaranteed the company success in Nicaragua, Mexico and Lesotho.  "Nien Hsing can do what other companies cannot do."  Mr Wong continued, "Nien Hsing has a competitive edge because 'we sell cheap'".   "We have cloths coming in the factory this moment and goods ready to sell in the market the next moment."  This is possible because, "Nien Hsing workers work 24 hours, in three shifts non-stop.  They take only one day off in Christmas in the whole year.  We are super efficient in this."

Mr Wong anticipated that, "Nien Hsing can still keep its market share in the US even when all the US trade concessions for Latin America and Africa come to an end in 2005."

The Taiwan Solidarity for Nicaragua Workers interrupted Mr. Wong and gave "supplementary" information on Nien Hsing's "performance" which were not known in Taiwan, to the stakeholders in the meeting.  They informed the stakeholders of Nien Hsing's suppression of the workers' union of Chentax and the letter of concern sent by the Trade Representative of the US, Ms Barshefsky on the Chentax issueon to the Nicaragua government.  The group also told the stakeholders about waves and waves of campaigns going on in the US and Nicaragua against the company.

The Solidarity Group warned the stakeholders to keep a good eye on their investment in the company.  Mr. Wong got mad at these demonstrators and called them "subversive figures" and "people of violence".

"Nien Hsing would not bend its knees", said Mr. Wong.  "The workers dismissed by our company are hard core figures of violence.  Nien Hsing would never allow these people to stay in the company."

The rouse alerted the financial consultants and reporters in the meeting.  To deliver quick assurance, Mr Wong told them that Barshefsky's letter to Nicaragua government was just a gesture and would lead to nothing in real terms.  According to Mr. Wong, "The economy is the pillar of the society.  I am sure that if Sandinista comes to power, they will continue to support Nien Hsing's investment in Nicaragua."

 

^ back to top

---

 

Friday, November 10, 2000

Taiwan Groups Supporting Chentex Workers
Protest at Nien Hsing's annual meeting November 8

Nien Hsing, the Taiwanese consortium to which Chentex belongs is now feeling the heat in their own front yard!  This is turning into a truly international corporate campaign.

The NLC received this message and the attached photo last night.  More details will be forthcoming shortly:

Taiwan groups staged a demo vs. Nien Hsing on 6 Nov and 8 Nov in Taipei.  8 Nov was Nien Hsing's annual meeting.  Nien Hsing responded with threats to sue them.   These activists formed a group called Taiwan Solidarity for Nicaragua.  They are students and labor groups and will follow up with Taiwan's investment in Latin America.
 

 

^ back to top

---

 

Monday, October 30, 2000

After Meeting with Religious Leaders,
Kohl's Still Refuses to Move on Chentex

Early last week, leaders of religious organizations holding institutional investments in Kohl's met with corporate executives at Kohl's headquarters outside of Milwaukee.

Kohl's officials refused to move an inch, stating that they will definitely not intervene to restore respect for human and worker rights at the Chentex factory, repeating their standard line that Kohl's will not become involved in third party labor-management disputes at its contractors' plants.

Of course, this is disingenuous in the extreme, given that every single product for sale in Kohl's is made under contract, since Kohl's does not own a single factory.  Kohl's stance is nothing less than a big green light to every one of its contractors around the world, letting them know that when it comes to firing and blacklisting hundreds of workers, sabotaging negotiations and busting a union, whatever they can get away with on the ground is fine with Kohl's;  that fundamental human and worker rights standards--which Kohl's claims to possess--do not come into play.

In a slightly new twist, after hiding behind PriceWaterhouse Coopers' whitewash monitoring reports, Kohl's representatives are now also claiming that the Chentex case is working its way through the Nicaraguan courts and is still under ongoing review by the Ministry of Labor, and that Kohl's is watching these developments carefully.

In the real world, Kohl's is no doubt aware of the fact that 84 percent of the Nicaraguan people believe corruption plagues their country, from the Presidential Palace to the courts, to the government ministries and private businesses.  Remember, the Taiwanese government build the Presidential Palace, the Ministry of Labor, the Foreign Ministry, and refurbished the National Assembly.

The only suitable response to Kohl's continued refusal to act to bring its contractor, Chentex, into line in order to restore respect for fundamental human and worker rights is to focus even more pressure on Kohl's and to dramatically increase the campaign.
If Kohl's has lost its moral compass, perhaps shame and pressure will move them to do the right thing.

Meanwhile, 700 Chentex workers remain fired, many of them blacklisted, while all 11 union leaders continue to face trumped up criminal charges that could land them in prison for 20 years.

 

^ back to top

---

NLC on tour

Recently the National Labor Committee went on tour with two workers from Nicaragua. Gladys Manzanarez, General Secretary of the Chentex union and Rosa Ocampo, Labor Secretary of the Mil Colores union spoke to religious, labor, student and solidarity groups across the country.  The tour went through Eugene, Oregon; Milwaukee, Wisconsin; Chicago, Illinois; Detroit, Michigan; Toledo and Cleveland, Ohio; Pittsburgh, Pennsylvania and New York City. 

Read some of the press coverage of the tour

---

NLC Delegations to Nicaragua

The National Labor Committee has lead three recent delegations to Nicaragua.  The first was an investigatory trip of NLC staff.  The second delegation was lead by Congressman Sherrod Brown of Ohio and included representatives of UNITE, the United Steelworkers of America and United Students Against Sweatshops.  The most recent trip was a religious delegation lead by Bishop Thomas Gumbleton and attended by Sister Mary Francis Heimann of the Sisters of St. Francis of Assisi, Milwaukee, Therese Terns of the Immaculate Heart of Mary Sisters, and Reverend David Dyson of the People of Faith Network  and the Lafayette Avenue Presbyterian Church in Brooklyn, New York.  

Read some of Nicaraguan press from the delegations

---

Archive updates and alerts

The NLC has been supporting workers in Nicaragua for a number of years.  In November 1997, the TV show Hard Copy did a three-part series exposing human and worker rights violations in the Las Mercedes Free Trade Zone in Nicaragua.  Order a copy of the video from our online resources. 

^ back to top