Abuses in Textile Maquilas and Hotels

Last Friday we posted that Northern Triangle and U.S. governments are proposing more neoliberal economic policies in order to create jobs and thereby address the emigration crisis and high levels of violence. Their plan, in part, is to attract more textile maquilas, agro-industries, manufacturing, and tourism. We think it’s a bad idea and will result in even greater inequalities and more emigration.

Over the past couple of days we came across a couple new articles that demonstrate why more sub-poverty minimum wage jobs in textiles, manufacturing, and tourism won’t address the serious issues that El Salvador and other Northern Triangle face.

Gangs and Maquilas

On Monday, the Inter Press Service (IPS) reported that employees of LD El Salvador, a Korean textile maquila that operates in San Marcos, just south of San Salvador, is using gangs and death threats to break up an employee union. One employee told IPS “They would call me on the phone and tell me to quit the union, to stop being a trouble-maker.” Another employee says, “they told me they were homeboys (gang members) and that if I didn’t quit the union my body would show up hanging from one of the trees outside the company.”

These are probably not empty threats. In January 2014 Juan Carlos Sánchez Luna, a member of SITS from the LD El Salvador maquila was assassinated. He began receiving threats at the end of 2013 after he participated in a press conference denouncing threats made against organizers at the LD El Salvador maquila. Less than a month later was gunned down in what officials classified as a “common crime.

Of the 780 employees at LD El Salvador, 155 used to belong to the Salvadoran Textile Industry Union (SITS, in Spanish). Since the threats began the number of union members has dropped to 60.

LD El Salvador is not the only company using gangs to prevent their workers from organizing. The IPS article references a report published in January 2015 by the Center for Global Worker’s Rights and the Worker Rights Consortium titled Unholy Alliances: How Employers in El Salvador’s Garment Industry Collude with a Corrupt Labor Federation, Company Unions, and Violent Gangs to Suppress Worker’s Rights. The report contains several accounts of maquilas using gangs to threaten and intimidate workers, and documents many other abuses.

As we pointed out last week, there is nothing in the Northern Alliance Plan that will protect workers rights and ensure that the very employers that are supposed to be part of the “solution” aren’t abusing workers and colluding with criminal organizations.

Tourism and Hotels

On Sunday, the Center for the Study and Support of Labor (CEAL, in Spanish) wrote an update on two hotels in Acajutla, Sonsonate. Both have long histories of abusing worker’s rights and the environment. The two hotels are the Vernaneros Hotel and Resort and the Decameron Salinas Hotel. Both tourism facilities have long histories of abusing workers rights and the environment.

Over the past several years, Vernaneros has faced several legal issues regarding the violations of El Salvador’s labor laws and the destruction of a valuable coral reef. In 2013, the Ministry of Labor found that Vernaneros owner Larry Alberto Zedán owed his workers $17,000 in compensation for not paying overtime, holidays, and overtime and other wages. Inspectors found that employees “worked most of the day, and in some cases 60 hours a week, but did not receive the minimum wage, did not have written contracts, and that [the hotel] operated informally with total disregard for labor standards.”

As a result of the abuses group of workers formed the Food, Restaurant, Hotel and Tourism Industry Union (SITIGHRA) with employees of The Decameron Hotel and other facilities. After they formed the union representatives wrote to the owners of several hotels and asked for a meeting. Larry Zedán responded by firing the 15 of his employees who had joined the union.

The Verdaderos has also received a lot of attention over the years for their destruction of a large reef off the coast from their resort. They destroyed the reef by installing a seawall to make their beach more pleasant for their guests. The reef, located in a region called Los Cóbanos, was the only place between Mexico and South America on the Pacific side, where coral grew.

The Decameron Hotel has its own share of labor disputes. In September 2013, the Decameron fired 145 workers for supporting the SITIGHR union, the same union that the Verdaderos employees had been fired for joining. One worker told Contrapunto in 2013 that they formed the union because “a lot of the bosses and supervisors treated us really poorly.”

These are just a couple of real examples in the news this week of what the globalized race to the bottom looks like. El Salvador needs solutions – economic inequality, emigration, and violence are all serious problems. But selling off the labor force and environment to the lowest bidder won’t resolve anything.

Related to these issues:

With regard to tourism, we came across a short peice on Cancun and what tourism development has done to local Mayan populations and environment. This is relevant for a lot of reasons, including that developers in El Salvador have proposed turning the Jiquilisco Bay into the “Cancun of Central America. Here is a link:

Our friends at CISPES are hosting an event in the DC area this week – Estela Ramirez, the General Secretary of the Salvadoran garment workers’ will be in DC this week to talk about their work. This will be a good opportunity to hear from on-the-ground organizers.

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