Factory: Jerzees Choloma, Jerzees de Honduras, Jerzees Nuevo Dia
Key Buyers: Russell
Last Updated: 2009
Case Summary
A set of ground-breaking agreements were reached on November 14, 2009 between Russell Athletic/Fruit of the Loom and the union representing Jerzees de Honduras (JDH) workers and, separately, between the company and the WRC to address labor rights issues in the company’s operations in Honduras. The agreements were the culmination of WRC investigation and remediation efforts spanning a twenty-six month period.
The WRC’s work at the Jerzees Choloma (JCH) and JDH factories was initiated in September 2007, pursuant to allegations that the both facilities – which are located nearby each other in the city of Choloma, Honduras – had dismissed large numbers of workers in retaliation for their decision to form unions. The WRC found that the dismissals were unlawful. Ultimately, following the engagement of WRC affiliate universities, Russell agreed to provide offers of reinstatement and back pay totaling roughly $150,000 to 145 dismissed workers. The Jerzees Choloma facility was closed several months later in March 2008. The WRC did not find persuasive evidence that the closure was motivated by anti-union animus – and, mitigating the impact of the closure, per a WRC recommendation, all JCH workers were offered the opportunity to transfer to JDH. In October 2008, Russell announced plans to close the JDH facility, leaving its 1,200 workers without employment. In this instance, the WRC found that the company’s decision to close the JDH factory – which was announced days after an impasse was reached in collective bargaining with the union – was motivated, at least in significant part, by anti-union animus – a serious violation of workers’ rights to freedom of association. The WRC also documented additional violations of workers’ associational rights, including the company’s imposition, in its remaining plants in that country, of an employer-dominated scheme of worker representation, in the form of “collective pacts” and a so-called “delegate system” (often referred to as “solidarista” organizations).
Very substantial efforts were made by WRC affiliate universities – including students, faculty, and administrators – and range of other organizations in the U.S., Canada, Europe, and Central America to persuade the company to undertake corrective action. Through the November 2009 agreements, Russell Athletic/Fruit of the Loom committed, in accordance with longstanding WRC recommendations, to rehire and compensate JDH’s 1,200 dismissed workers, open a new unionized factory in Honduras, and take concrete steps to respect and recognize its workers’ rights to freedom of association at the company’s seven other existing Honduran plants. Certain aspects of these agreements are particularly noteworthy, as they include measures to protect freedom of association that are, to our knowledge, unprecedented in agreements of this type in Central America. These include: (a) union access to, and joint union-management freedom of association trainings in, all of the company’s unorganized plants in Honduras, (b) employer neutrality regarding future organizing efforts, and (c) mechanisms for third-party dispute resolution. Importantly, the company also has agreed to phase-out existing “solidarista” employee representation systems at its non-union plants to ensure that these do not obstruct workers’ exercise of freedom of association. Russell Athletic/Fruit of the Loom is Honduras’ largest private employer. It is a subsidiary of Berkshire Hathaway. The WRC will closely monitor implementation of the agreements going forward.
Read More:
- Second Progress Report on Russell Accords – August 16, 2011
- Russell and Union Sign Collective Bargaining Agreement – May 20, 2011
- Update on Implementation of Nike Agreement – September 29, 2010
- WRC Issues Progress report on Implementation of Russell Agreements – February 17, 2010
- Informe sobre la implementación de los acuerdos de remediación – February 17, 2010
- WRC Statement on Agreement – November 17, 2009
- Russell/Union Agreement – November 14, 2009
- WRC/Russell Memorandum of Understanding – November 14, 2009
- Update on Russell Athletic/Jerzees de Honduras – September 10, 2009
- Two New WRC Reports Concerning Russell Athletic – June 19, 2009
- Findings and Recommendations: WRC Analysis of Russell “Collective Pacts” – June 19, 2009
- Findings and Recommendations: WRC Report on Russell Worker Interviews – June 19, 2009
- Additional Remediation Recommendations re Russell Case – June 1, 2009
- Russell’s Letter Dated May 1 – May 18, 2009
- Russell Now Claims Death Threats Never Happened – May 14, 2009
- Update: Russell Athletic – May 8, 2009
- New WRC Finding on Russell Case – April 2, 2009
- Russell Says Workers in Honduras Don’t Want to Exercise Their Associational Rights – March 17, 2009
- Russell Letter of March 4 – March 5, 2009
- NY Times, BusinessWeek, and Chronicle Stories on Russell Case – February 24, 2009
- Letters from Jerzees de Honduras Union – February 23, 2009
- FLA Acknowledges Depth of Evidence Against Russell; But Russell Still Refuses Adequate Remediation – February 17, 2009
- Irresponsible Posting on Russell Website – February 12, 2009
- WRC Memo to Affiliate Universities: FLA Report on Russell Case – January 29, 2009
- WRC Update: Jerzees de Honduras – January 28, 2009
- WRC Update: Jerzees de Honduras – January 16, 2009
- Brief Update: Jerzees de Honduras/Russell Athletic – December 9, 2008
- WRC Findings and Recommendations Report re Jerzees de Honduras – November 7, 2008
- Hallazgos y Recomendaciones re Jerzees de Honduras – November 7, 2008
- WRC Response to Russell Memo Concerning Factory Closure Announcement – October 21, 2008
- WRC Memo to Universities: Crisis re Russell Factory in Honduras – October 10, 2008
- WRC Update on Remediation at Russell Athletic Facilities in Honduras – January 30, 2008
- WRC Update on Russell Athletic – October 26, 2007
- WRC Memo to Russell Athletic re Remediation Steps – October 24, 2007
- WRC Memo to Russell Athletic re Jerzees de Honduras – October 22, 2007
- WRC Findings and Recommendations Report re Jerzees de Choloma – October 3, 2007
- Hallazgos y Recomendaciones re Jerzees de Choloma – October 3, 2007
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