Update on Hermosa/Chi Fung (El Salvador)
October 10, 2006
Click here to view a detailed update concerning the case of workers formerly employed by the Hermosa Manufacturing facility in Apopa, El Salvador, a supplier of university logo goods prior to its closure in May 2005.
Unfortunately, I must report that there has not been meaningful progress with respect to any of the key issues involved in this case, which include non-payment by Hermosa of legally mandated terminal compensation and back wages and illegal blacklisting of the concerned workers by another supplier of university logo goods located near Hermosa, known as Chi Fung. Indeed, given the considerable amount of attention this case has received in the seventeen months since the closure, the lack of substantial progress on any of the key issues reflects very poorly on the compliance efforts of the licensees involved, which include adidas, Nike, VF Corporation, and Russell Athletic.
The update summarizes developments in the following areas: non-payment of legally mandated compensation by Hermosa; failure to remit employee pension and health care deductions to appropriate agencies by Hermosa; blacklisting of former Hermosa workers by Chi Fung; and follow-through on actions promised by licensees with respect to access to health care and job placement.
For additional information, I would encourage you to review the FLA’s recently published reports on the Hermosa case on the FLA’s website.