Union busting at Kohl’s supplier in the Philippines

Workers at a Kohl’s supplier in the biggest export zone in the Philippines are complaining of management interference in the exercise of their freedom of association. The newly formed workers union at Daegyoung Apparel Inc. is calling on Kohl’s to remediate the violations of their supplier in line with their code of conduct.

The workers of Daegyoung formed a union in April with the aim of resolving workplace grievances such as low pay, lack of benefits, precarious work and violation of labor standards. As soon as management learned of the formation of the union, supervisors and line leaders started talking to workers to withdraw support from the union or desist from enlisting with the union.

Workers were threatened that the company will shutdown if the union pushes through. At the start, management personnel blatantly asked workers to sign anti-union statements at the production lines. Management personnel also openly held a town hall meeting in the factory canteen and repeated the threat of a factory closure. Later, workers were asked to go in pairs to management offices where they were subjected to anti-union propaganda.

In response to management’s union busting maneuvers, the union filed for preventive mediation with the Labor Department. Nothing was resolved in the first hearing. Another hearing is set this week.

The union has also filed a petition for certification elections and in the proceedings, management submitted it opposition and offered separation pay to workers—moves which evidently tie in with the company’s union busting scheme.

Korean-owned Daegyoung employs some 1,000 workers, mostly women. Workers estimate that around 80% of the production is earmarked for Kohl’s. The factory is located in the Cavite Economic Zone in the industrial town of Rosario, Cavite.

Tension at Cavite ecozone picketline

There was an hours-long standoff inside the Cavite economic zone in the town of Rosario yesterday as protesting workers stopped a container truck loaded with machines from leaving a dispute-bound factory. The tense situation ended only when the truck left early last night without its container load.

Workers of the garments factory Faremo International Inc. slammed its Korean owners for attempting to spirit away computerized sewing machines. They also condemned the industrial relations (IR) head of the Philippine Economic Zone Authority for conniving with management.

“We caught Faremo violating an agreement that it will not take out machines from the factory. Runaway shop is an unfair labor practice and illegal. Faremo closed down its organized factory to bust the union and is relocating to an unorganized plant whether in the Philippines or abroad,” averred Jessel Autida, president of the Faremo workers union.

Faremo is the biggest garments factory at the Cavite ecozone that shutdown last October 27 allegedly due to lack of orders, a claim that has been debunked by the admission of one of its clients that purchases have in fact been increased. Autida clarified that Faremo workers are not on strike and want to work but have been locked out. He explained that they are maintaining a 24/7 picket at the factory to guard against machines being taken out of Faremo.

Faremo is owned by the Korean multinational Hansoll and supplies to global garments brands Gap, JC Penney and Kohl’s. Faremo workers have been on the picketline for more than a month now. According to Autida, the union at Faremo was formed last year in a bid by workers to improve pay, benefits and working conditions and stop mistreatment like verbal abuse.

Autida also denounced PEZA IR official Allan Datahan and the PEZA police for threatening the protesting workers with criminal charges and dispersal using a firetruck for preventing the shipment of machines out of the factory.

He explained that “We are not scared with Datahan’s threats and we stood our ground for we are on the side of reason and law. It is Datahan and his PEZA police minions that are in breach of the DOLE-PNP-PEZA guidelines of 2011 that ban police, security guards and military from intervening in labor disputes.”

Meanwhile the militant Partido Manggagawa (PM) for the suspension of Datahan for his role in the tense standoff at the Faremo factory. “Once more Datahan, who is a public official, has been caught conniving with foreign investors who are trying to transgress our labor laws,” insisted Dennis Sequena, PM-Cavite coordinator.

December 16, 2016

Unionists harassed at big Cavite garments factory

Press Release

July 10, 2015

Workers who are building a labor union at the biggest garments factory at the Cavite economic zone in the town of Rosario are complaining of harassment and interference by management. One worker of Faremo International Inc. has already filed a formal complaint for harassment, unfair labor practice and illegal suspension.

“Despite alleged reforms initiated by the Department of Labor and Employment in the wake of the International Labor Organization High Level Mission in 2009 to investigate extra judicial killings of unionists and violations of the freedom of association, union busting and management interference in the workers right to organize is a reality in the Cavite ecozone and beyond,” asserted Rene Magtubo, Partido Manggagawa (PM) national chair.

PM organizers are assisting the Faremo workers in the exercise of their right to unionize. The workers started forming a union in May this year and by late June management had reacted by harassing active unionists and intimidating other workers against joining. More than a dozen workers were interrogated individually in management offices, asked to stop the unionization effort and offered money in return for “voluntary resignation.” Some four workers were forced in this way to resign.

Faremo worker Edwin Semeca was subjected three times to this “modus operandi” by management and after his third interrogation—in which he was virtually detained about eight hours in the company showroom and later in the human resource office—he decided to file a complaint last July 2. After the complaint reached management, he was then suspended for seven days for absence without leave. His complaint is due to be heard on Monday, July 13, at the DOLE office in Imus.

Faremo, with some 1,500 workers, mostly female and of which 800 are regular, is the largest garments manufacturer at the Cavite ecozone. It is a subsidiary of the Korean multinational Hansoll Textile Ltd. which operates other factories in Indonesia, Vietnam, Cambodia, Guatemala and Nicaragua. Faremo produces apparel for famous American brands Gap, JC Penney and Kohl’s.

Apart from harassing active unionists, Semeca also stated that “Since June regular workers and contractual workers who are being regularized, are asked not to join the union and sign papers pledging to refuse unionization. This intimidation continues to this day. Also we also have reliable information that management is preparing to offer separation to a big number of workers to stop the unionization dead in its tracks.”

Magtubo challenged the DOLE to act immediately on union busting case at Faremo and called on the labor movement for solidarity. “The union at Faremo—and the dream of better life for workers—is a David fighting a Korean multinational Goliath. The Faremo workers want to form a union so as to improve their low pay and have a voice in the workplace but the greed for profit conflicts with labor’s inherent rights,” he insisted.