FIRST PUBLIC REPORT OF THE INDEPENDENT MONITORING GROUP OF EL SALVADOR

April, 1997

The Independent Monitoring Group of El Salvador was formed one year ago. The work which has been carried out since then has already produced results. For that reason, we believe that it is appropriate to begin the new year of activity with the publication of the advances which have been achieved in El Salvador through the development of independent monitoring.
We know that there are many people and institutions interested in moving forward on the elaboration of a model for oversight of labor relations in the export processing plants known as maquila.. For that reason, we hope that this report will be useful for reflection and discussion and we would like to express our openness to receiving your comments.

1. What is the IMGES?

The Independent Monitoring Group of El Salvador, IMGES, was formed in March 1996 as part of the resolutions established to solve the labor-related problems which arose at the Mandarin International maquila factory in 1995. Due to terminations and resignations motivated by the instability of the jobs at that time, there was a exodus of hundreds of Mandarin workers. The majority of the members and leaders of the Mandarin International Workers Union ("SETMI") were fired. After this, SETMI was left without leaders, and with the approval of management a new union was formed at the factory, the Association of Mandarin International Workers ("ATEMISA").

The mission of the IMGES is to follow up on the agreements signed on March 22 (which are attached to this document), to ensure the reestablishment of harmonious labor relations at Mandarin, and to oversee compliance with applicable labor laws and the Code of Conduct of the Gap company. The Gap was one of the retailers with the greatest number of production orders with Mandarin at the time that the working conditions at the factory were denounced.

The IMGES is comprised of representatives of well-known Salvadoran human and labor rights institutions: the Center for Labor Studies (CENTRA), the Human Rights Institute of the José Simeón Cañas Central American University (IDHUCA),the Human Rights Office of the Archdiocese of San Salvador (Tutela Legal), and the Archdiocese of San Salvador

2. What does the IMGES do?

Since March 1996 the IMGES has carried out a series of activities intended to comply with the contents of the March 22 agreement. This includes: Bilateral meetings with the management of Mandarin International to discuss compliance with the resolution and the solution to the problems that were being detected, meetings with leaders of ATEMISA and former leaders of SETMI, meetings/assemblies with all of the Mandarin personnel, field visits to verify the intensity of the work being done and currently existing working conditions at the factory, meetings and conference calls with the Independent Monitoring Working Group and with representatives of the Gap, and responding to people who approach the Group with complaints about conditions at Mandarin, including follow-up on complaints which are received.

The fundamental mandate of the Group is to promote the active participation of civil society in alternative conflict resolution and prevention techniques in the maquila sector in El Salvador, through the creative use of independent mediation to encourage dialogue and negotiations between the parties, in order to reach viable agreements guaranteeing full respect for the rights of all parties involved.

Concretely, the IMGES can report that point 1 of the March 22 resolution has been complied with, which deals with the rehiring of the ex-leaders of SETMI. There also have been notable advances in the development of point 2 of the document which refers to the rehiring of those workers that had lost their jobs during the labor conflict. To date, our evaluation of the progress of the process is highly positive. While it is true that there have been serious obstacles which will be discussed later in this document, the process has developed with transparency and credibility.

Without doubt, these first months of work by the IMGES represent a significant effort without precedent in El Salvador, and probably in other regions of the world. The activities carried out since the group's formation should be seen as real evidence of the viability that dialogue and negotiation can have as methods for achieving rational and responsible solutions to labor conflicts, as well as being evidence of the importance of the existence an institution having credibility with the parties which can intervene in the solution and prevention of conflicts. The work of the Independent Monitoring Group also shows how the expressed interest of the international firms, the maquila companies, and that of the workers can be unified to the benefit of working conditions and productivity.

At the same time, the experience of the IMGES should serve as an example of the capacity which exists in the civil society and its organizations to contribute in a creative and efficient way to the establishment of more acceptable levels of respect for rights and freedoms, as a solid basis to move forward in the construction of a fair, secure and peaceful society. This same experience offers a real contribution to those national governmental institutions that do not fully carry out their mandate due to a lack of capacity.

In the sections which follow, we will explain in detail the activities which have been carried out with relation to points 1, 2 and 3 of the March 22 resolution.

3. Compliance with Point 1 of the March 22 resolution:

Point 1 of the March 22, 1996 resolution established that six former leaders of SETMI would be rehired by May 1, 1996. When that date arrived, the company argued that it did not have enough work to justify rehiring those individuals. Production orders had declined and they were utilizing only 20% of the factory's capacity. The company argued that they were suffering losses and that this was not the right moment to rehire the people.

In the months that followed, intensive work was done to obtain the production orders that the company needed. The IMGES was not only interested in ensuring that the company would be able to continue to provide work for its workers, but also in ensuring that the experience with Mandarin would continue to produce results. The signing of the resolution and the agreements reached were something that had never been done before in the country, and, if successful, could well open the way to seeking alternative resolutions for labor conflicts in the maquila sector.

In part, the lack of orders at Mandarin was due to the lack of confidence felt by the company's prospective customers, especially after the way that the labor conflicts were handled in 1995. In this framework, the rehiring of the six former leaders of SETMI was set forth by the Monitoring Group as a strategic step to improve the company's image. Nevertheless, Mandarin argued that it was impossible, given the losses which continued.

By August 1996, the factory still did not have enough work, so there were no prospects for compliance even with point 1 of the Resolution, and furthermore, the company raised the possibility of closing. At that point, the IMGES decided to suspend monitoring activities. The IMGES argued that after 5 months of intensive work, there still had not been the expected favorable responses which were key to compliance with the terms of the agreements. This was in turn a reflection of the fact that there was still not firm support from those people who were directly or indirectly committed to the process.

In September 1996, a commission of the Independent Monitoring Working Group (IMWG) visited El Salvador, and through a series of meetings both with the IMGES and Mandarin was able to achieve the signing of a "Document of Understanding" on September 12. In this document, several institutions agreed on measures to support compliance with the March 22 resolution. The Gap would give more production orders to Mandarin, Mandarin would rehire the six SETMI leaders and would verify production quality standards, the IMGES would reestablish its monitoring work, and the IMWG would support the entire process. The agreements have been complied with and the process has been greatly facilitated.

On October 15 the return of the six former leaders of SETMI was planned. For personal reasons, two of them decided not to return to work, and one more did not appear on the agreed upon date and did not present any justification for this failure to appear, thus remaining excluded from the process. With this, point 1 of the Resolution was settled and can be considered fulfilled.

The 3 former leaders who wanted to return to the factory have been rehired and are now working at the factory. In meetings prior to their rehiring, both the representatives of SETMI and the representatives of ATEMISA agreed to start work in an atmosphere of mutual respect and cooperation toward compliance with production goals. The company agreed to help maintain a harmonious working environment, and the IMGES committed itself to support the consolidation of an atmosphere of productivity, harmony, and respect for the rights of the workers. At the same time it emphasized what its role would be at Mandarin, which is that of oversight of compliance with relevant national laws as well as the Code of Conduct of the Gap company.

It is certainly true that there were some problems related to fears and mutual lack of trust among the Mandarin personnel. The IMGES met with all of the factory's personnel to answer questions and clear up doubts. At the same time, the company and representatives of ATEMISA expressed their desire to cooperate in the maintenance of a good working climate at the factory. So far, the working environment at Mandarin is more relaxed.

4. Compliance with point 2 of the March 22 resolution:

Point 2 of the Resolution called for the rehiring of those people who had lost their jobs at Mandarin in 1995 and the first three months of 1996, a period which included the year of the labor conflicts at Mandarin which led to the massive departure of workers, most as a result of terminations and the instability of those times. It was also decided to include the months leading up to the signing of the Resolution.

The signed agreement stated that the return of these people would be carried out in response to production needs manifested by the company, and that all of those who left the company during the stipulated time period would have an equal opportunity to return, regardless of their having participated in SETMI or not.

IMGES reached an agreement with Mandarin regarding the process for rehiring. This was finally approved in November 1996, and called for the sending of telegrams to all of the workers who left Mandarin, notifying them that if they wished to return to work at the factory that they should come in to register their names, and that they would be called later, according to their order of arrival and Mandarin's production needs.

The company stated that it did not have adequate records and was not able to produce a complete list of all of the people who would be included under this point of the Resolution. It was then decided that there would be a change from the use of telegrams to the placing of paid announcements in various communications media. The announcement appeared in the two most widely circulated newspapers and were broadcast by the country's biggest radio stations.

Close to 200 people went to Mandarin to express their interest in returning to work and to provide their personal information. All of them have been duly signed up, and on the basis of their order of arrival a list was developed which would be used for the recalls, which in fact began in the last week of January 1997. The IMGES is participating directly in the process of rehiring and in monitoring the compliance with this point. The process is being carried out in an orderly and transparent manner and all of the parties involved have expressed their satisfaction. To date a total of 31 people have been rehired including three are former leaders of SETMI and an additional 28 have also joined the work force at the factory. Before the end of April 38 more will be rehired.

This entire process has been followed closely by the Monitoring Group.

It is worth noting that several of the people who approached the factory to express their interest in returning were working in other factories located in the same free trade zone. According to them, the treatment and working conditions at Mandarin are now better that what they have in other neighboring factories. This reflects two issues, the first being that Mandarin has come to be an attractive place for workers due to clear improvements in working conditions, which shows the advances which have been achieved. The second issue is that the experience has, unfortunately, still not been adopted by Salvadoran maquila factory owners, even those who saw the Mandarin situation and process close up. There are still those who dock pay excessively, do not grant necessary leaves for medical visits, demand overtime hours, etc.

In El Salvador, as in other countries focusing on maquila sector, there is little concern for working conditions and respect for workers' rights in those factories. Neither the government nor the businesses guarantee respect for national laws and the codes established by the firms for which the maquilas do production work. Nevertheless, it is to be hoped that publication of information about the experience and the achievements of independent monitoring in El Salvador will contribute to a raising of consciousness about the importance of respecting workers' rights, not only for the workers but also for the creation of a productive atmosphere in the factories and for the good image of international companies.

5. Compliance with point 3 of the resolution:

Point three of the resolution refers to the reestablishment of harmonious and productive labor relations at the factory and to the oversight of compliance with relevant labor laws. This point gives the IMGES a role that goes beyond what is set forth in points one and two, and allows the institutionalization of monitoring within the factory.

At Mandarin, the initiative to achieve compliance with these rules came from the international community which was worried about working conditions; by the Gap company, for which Mandarin did production work; and by organizations in Salvadoran civil society that work for human and labor rights. The guidelines for this process were set up as a result of the events of 1995 and the pressure which came to bear on the Mandarin case. Unfortunately, other businesses did not feel called to seek out preventative mechanisms for labor conflicts, despite their knowledge about the Mandarin situation.

Since its inception, accompanying the follow-up on points 1 and 2, the IMGES has carried out actions to ensure compliance with the third point. Meetings have been held with the representatives of ATEMISA, the former union, SETMI, and with all of the personnel at Mandarin to hear their evaluation of the working environment at the factory. There have also been direct interviews and surveys of the work force. In fact, on the basis of this work, the action plans for the IMGES' future work will be reevaluated.

The first survey which was done at the factory produced some positive results for the business, showing that the working environment has improved notably. The workers surveyed did not report cases of abuse or mistreatment by the administration, and stated that they have been included in the Social Security health system and receive their respective benefits. At the same time, they expressed satisfaction with the work of a clinic at the factory and the establishment of a buying cooperative for basic goods. They also expressed that the physical facilities are clean and spacious, although there is still need for better ventilation.

The results of this survey were later used to negotiate some of the conditions for hiring personnel. Among these agreements were the elimination of the requirement of a pregnancy test for women. In the majority of Salvadoran maquila factories, this test is a basic prerequisite for obtaining work, so that this agreement by Mandarin represents an unprecedented step in the country.

Nevertheless, starting with the first survey there was a perception of fear that the workers' jobs would be threatened, whether it be as a result of involvement in labor problems such as the earlier problems that ended in the departure of hundreds of workers or as a result of a possible factory closure caused by a lack of production orders. This probably influenced in the creation of a climate that was not favorable for the reincorporation of members of the former union, SETMI. While it is true that the company does not formally place obstacles to the freedom to organize, there is a climate of mistrust on this issue.

The second survey confirmed this fear. It was done at the end of February 1997, at which point the first cases of rehiring of those people who had left the factory during the 1995 problems had already taken place. The results of the survey indicate that the people still feel some fear of answering, even some questions about their working conditions at the factory. While one can say that there is an acceptance of the working climate, it cannot be said that the situation is sufficiently open to permit people to express their fear, much less to permit full compliance with the freedom to organize.

The IMGES believes that the Mandarin experience has turned out to be very positive, for which reason it would not be appropriate to limit it only to that business. In 1997, therefore, the IMGES also plans to publicize its work broadly, to develop in more depth the independent monitoring model, and to promote it actively as an alternative for preventing conflicts in the "maquila" sector.

For future work, some lines of action have been defined with relation to continuing to follow up on still-pending points of the March 22 resolution, further work to deepen relationships with the Mandarin workers, verification of compliance with relevant rules, the proposal of measures which would help improve working conditions at the factory, as well as assistance and cooperation to prevent and solve problems which might arise. The company, the representatives of ATEMISA and the ex-SETMI union, along with the IMGES, have signed a new document in which we express the desire to continue forward with the established goals. The document is attached to this report.

6. News about the IMGES

During its first year of operation, IMGES was coordinated by Centra, through its representative, Mark Anner. Starting on March 22, 1997 --as part of the normal process of annual rotation-- the group is now being coordinated by IDHUCA, represented by Benjamin Cuéllar. Further, we would like to inform you that the group has the full-time technical assistance of Salvadoran sociologist, Carolina Quinteros.

Moreover, IMGES would like to thank for their financial cooperation the Canadian International Center for Human Rights and Democratic Development, and the Communications, Energy and Paperworkers Union of Canadian. Also, we are thankful to Business for Social Responsibility for facilitating our access to some funding the beginning of the year.

Finally, the IMGES, aware of the importance of its work, believes it necessary to publicize its work. We believe that independent monitoring has led to important advances in satisfactory resolution of labor conflicts and that it can offer a viable alternative for the prevention of conflicts in the "maquila" sector.

We look forward to receiving your comments and questions!

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