Indonesian Garment Workers win Union Recognition

The agreement also clearly recognizes SBGTS, the factory-based subsidiary of GSBI, as representing their members in the Mulia factory, and provides compensation measures for five former employees who had been dismissed in 2007 because of their union membership, and who had continued their struggle for the Right to Freedom of Association.

GSBI and the CCC appreciate the role recently played by one of the foreign buyers at the factory, Tommy Hilfiger. The company's pressure on the factory management over the last few months has been crucial in bringing about the agreement.

At the same time, we regret that it has taken more than two years since our initial contact with the Tommy Hilfiger corporation in February 2008 before the company decided to take effective measures to bring the gross labour-rights violations at this supplier to an end.

The other main foreign buyer at the Mulia factory, Polo Ralph Lauren, has consistently refused any communication on the labour-rights violations, a policy that is in line with their conservative practices when it comes to corporate social responsibility. Although Polo Ralph Lauren actively promotes charities and philanthropic programmes, it refuses to mainstream ethical trading principles in its day-to-day operations.

Because of the slow and lengthy process of this case, 14 former Mulia employees and union members were forced by economic hardship to stop the fight for their rights at an earlier stage and opt for a financial settlement with the factory. Unfortunately none of the irregularly dismissed union members have been reinstated in their former positions.

The new agreement doesn't cover all concerns that the union originally raised, such as pregnancy leave for female workers, failing to offer safe transportation for female workers after night shifts as per Indonesian law, non-compliance with laws on health and pension benefits, and inadequate safety equipment and keeping workers on precarious contracts.

However, with the union now firmly established at the factory, hopes are high that these issues will be resolved through regular social dialogue between the union and factory management.