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.

USAID and SolucionES to Invest $42 Million in Gang Prevention Programs

The US Agency for International Development (USAID) announced that it will contribute $20 million to SolucionES, a public-private partnership led by the Foundation of Businesses for Economic Development (FEPADE, in Spanish). The program’s goal is to decrease youth violence and crime in El Salvador.

The program, which was first reported by the Miami Herald and elsalvador.com, will begin this month with a focus on youth development and in 50 communities across five municipalities. SolucionES has identified San Martin and Cuidad Arce as the first two municipalities where they will start.

The program will last five years and an alliance of Salvadoran businesses and non-governmental organizations will match the USAID funds with $22 million they will raise from “foundations, businesses, municipalities, and civil society.”

A USAID press release announcing the project focused as much on the funding and organizations involved as the projects themselves. It describes SolucionES as a new and innovative focus on prevention of youth crime and violence in Salvadoran communities through a partnership between the private organizations and municipal governments.

The Alliance of NGOs includes the National Foundation for Development (FUNDE, in Spanish), the Salvadoran Foundation for Health and Development (FUSAL, in Spanish), Glasswing International, the Salvadoran Foundation for Economic and Social Development (FUSADES, in Spanish), and FEPADE. All five organizations have strong ties to the Salvadoran business community and the right-wing ARENA party.

The Alliance will work alongside local government to provide workshops on prevention of violence, youth leadership, entrepreneurship training, and extracurricular clubs. The program will also work with businesses on violence prevention programs for their employees, and finance studies that will inform policy makers on effective strategies for crime prevention.

The USAID contribution is part of the Partnership for Growth initiative that has identified security (i.e. crime and violence) as one of the two main barriers to economic growth. The other barrier identified is low production of tradable goods.

Partnership for Growth and SolucionES are not the only ones to link economic growth to security issues. Last year, leaders of El Salvador’s gangs signed a truce to reduce violence. In doing so, they said that economic disparities and lack of jobs are main factors that drive youth to gangs in the first place. In order for the truce to hold, gang leaders called for support programs by the government for ex-gang members.

In an interview published yesterday in La Pagina, Viejo Lin, the leader of the Mara 18, said, “if we want our brothers to stop robbing and extorting, you have to create the right conditions.  The conditions that permit them to get dignified jobs.” Later in the interview he says, “our companions are not asking for thousands of dollars a month, they ask for a job that lets them work based on their strengths. It’s a right.”

USAID and SolucionES are steering clear of rehabilitation of gang members, focusing entirely on prevention – keeping youth from joining gangs.

A statement made by Haydée Díaz, the Director of the Strengthening Education Program for USAID said that “this initiative [SolucionES] is not related to the truce between the gangs, and the objective is not to eradicate the gang problem, but to prevent it.” Voices staff spoke with a USAID official who said the same thing – this is not about working with gang members, it is about preventing violence among youth not already involved in gangs.

Prevention is certainly important and a $42 million investment in youth, depending how the programs are implemented, can yield real benefits. It seems shortsighted, however, to believe that a prevention-only program will dramatically decrease rates of crime and violence in El Salvador. There will still be roughly 50,000 gang members in El Salvador who are marginalized and unable to participate in the formal economy, which will leave them few options other than crime and violence.

Gang prevention projects are pretty safe. All involved can feel good about investing in youth and sho that they are committed to helping El Salvador. Businesses look good for giving back to the communities. NGOs and their benefactors look like good, productive citizens. Politicians get to say they are taking action without worrying about looking like they are giving into the gangs. And USAID gets to report back to the American taxpayers that their money is being used to address one of the two barriers to economic development in El Salvador.

With less than a year before the 2014 presidential elections in El Salvador, these appearances matter. But we’ll see if prevention-only will actually improve the security situation.