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Full text of "Child labor : hearings before the Subcommittee on International Operations and Human Rights of the Committee on International Relations, House of Representatives, One Hundred Fourth Congress, second session, June 11 and July 15, 1996"

CHILD LABOR 



Y 4. IN 8/16; C 43 

I Child Labor/ Hearings, 104th Congre... 'TIVT/^a 



BEFORE THE 

SUBCOMMITTEE ON 
INTERNATIONAL OPERATIONS AND HUMAN RIGHTS 

OF THE 

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FOURTH CONGRESS 

SECOND SESSION 



JUNE 11 AND JULY 15, 1996 



Printed for the use of the Committee on International Relations 



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U.S. GOVERNMENT PRINTING OFFICE 






27-319 CC WASHINGTON : 1996 



For sale by the U.S. Government Printing Office 
Superintendent of Documents, Congres.sional Sales Office, Washington, DC 20402 
ISBN 0-16-053692-8 



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CHILD LABOR 



Y 4, IN 8/16: C 43 

Child Labor/ Hearings, 104th Congre. . . »T"|VT/^Q 



BEFORE THE 

SUBCOMMITTEE ON 
INTERNATIONAL OPERATIONS AND HUMAN RIGHTS 

OF THE 

COMMITTEE ON 

INTERNATIONAL RELATIONS 

HOUSE OP REPRESENTATIVES 

ONE HUNDRED FOURTH CONGRESS 
SECOND SESSION 



JUNE 11 AND JULY 15, 1996 



Printed for the use of the Committee on International Relations 



ONT DOCUivfENTC 
rCH PUBLIC LES .'J 
7C0 Boylstou Sire : • 
Boston, MA 02117 



SflSwBl/iio 



JAN J 6 m? 



U.S. GOVERNMENT PRINTING OFFICE 
27-319 CC WASHINGTON : 1996 






For sale by the U.S. Government Printing Office 
Superintendent of Documents, Congressional Sales Office. Washington, DC 20402 
ISBN 0-16-053692-8 



f 



COMMITTEE ON INTERNATIONAL RELATIONS 
BENJAMIN A. GILMAN, New York, Chairman 



WILLIAM F. GOODLING, Pennsylvania 

JAMES A. LEACH, Iowa 

TOBY ROTH, Wisconsin 

HENRY J. HYDE, Illinois 

DOUG BEREUTER, Nebraska 

CHRISTOPHER H. SMITH, New Jersey 

DAN BURTON. Indiana 

JAN MEYERS, Kansas 

ELTON GALLEGLY, California 

ILEANA ROS-LEHTINEN, Florida 

CASS BALLENGER, North Carolina 

DANA ROHRABACHER, California 

DONALD A. MANZULLO, Illinois 

EDWARD R. ROYCE, California 

PETER T. KING, New York 

JAY KIM, California 

SAM BROWNBACK, Kansas 

DAVID FUNDERBURK, North Carolina 

STEVEN J. CHABOT, Ohio 

MARSHALL "MARK" SANFORD, South 

Carolina 
MATT SALMON, Arizona 
AMO HOUGHTON, New York 
TOM CAMPBELL, California 

Richard J. Garon, Chief of Staff 
Michael H. Van Dusen, Democratic Chief of Staff 



LEE H. HAMILTON, Indiana 

SAM GEJDENSON, Connecticut 

TOM LANTOS, California 

ROBERT G. TORRICELLI, New Jersey 

HOWARD L. BERMAN, California 

GARY L. ACKERMAN, New York 

HARRY JOHNSTON, Florida 

ENI F.H. FALEOMAVAEGA, American 

Samoa 
MATTHEW G. MARTINEZ, California 
DONALD M. PAYNE, New Jersey 
ROBERT E. ANDREWS, New Jersey 
ROBERT MENENDEZ. New Jersey 
SHERROD BROWN, Ohio 
CYNTHIA A. MCKINNEY, Georgia 
ALCEE L. HASTINGS, Florida 
ALBERT RUSSELL WYNN. Maryland 
JAMES P. MORAN, Virginia 
VICTOR O. FRAZER, Virgin Islands (Ind.) 
CHARLIE ROSE, North Carolina 
PAT DANNER, Missouri 
EARL HILLIARD, Alabama 



Subcommittee on International Operations and Human Rights 



CHRISTOPHER H. 
BENJAMIN A. GILMAN, New York 
WILLIAM F. GOODLING, Pennsylvania 
HENRY J. HYDE. Illinois 
PETER T. KING, New York 
DAVID FUNDERBURK, North Carolina 
MATT SALMON, Arizona 
EDWARD R. ROYCE, California 



SMITH. New Jersey, Chairman 
TOM LANTOS. California 
CYNTHIA A. MCKINNEY, Georgia 
JAMES P. MORAN, Virginia 
HOWARD L. BERMAN, California 
ENI F.H. FALEOMAVAEGA, American 

Samoa 
DONALD M. PAYNE, New Jersey 
GROVER Joseph REES, Subcommittee Staff Director and Chief Counsel 

Robert R. King, Democratic ^riifef^onaJ^t^-Mem^-*y(^.^yt^'\i::l\fO*l> 
Douglas C. Anderson, Professihkaj s((f(f^erii^ef.^. .'^ - Ct^Pflfi 
Stephanie E. Schmidt. Staff JtaoeidtS J •- 1. , i 

(II) Viii0^i*iio''-'^'>^ 



CONTENTS 



WITNESSES 



Tuesday, June 11, 1996: Page 
Hon. Constance A. Morella, a Representative in Congress from the State 

of Maryland 8 

Hon. George Miller, a Representative in Congress from the State of 

California 11 

Ms. Maria Echaveste, Wage and Hour Administrator, U.S. Department 

of Labor 17 

Ms. Sonia A. Rosen, Director, International Child Labor Studies, U.S. 

Department of Labor 21 

Mr. Robert P. Hall III, Vice President and International Trade Counsel, 

National Retail Federation 23 

Mr. Harry G. Kamberis, Director of Program Development, Asian Amer- 
ican Free Labor Institute, AFL-CIO 25 

Ms. Wendy Diaz, child laborer 29 

Mr. Jesus Canahuati, Vice President, Honduran Apparel Manufacturers 

Association 31 

Mr. Charles Kemaghan, Executive Director, National Labor Committee ... 33 

Mr. Craig Kielburger, founder, Free the Children 36 

Monday, July 15, 1996: 

Hon. Robert B. Reich, Secretary, U.S. Department of Labor 59 

Mrs. Kathie Lee Gifford, television host 69 

Ms. Francoise Remington, Executive Director, Forgotten Children 72 

Mr. Anthony G. Freeman, Director, Washington Branch, International 

Labor Organization 75 

APPENDIX 

Prepared statements: 

Hon. Constance A. Morella (June 11, 1996) 89 

Hon. George Miller (June 11, 1996) 92 

Ms. Maria Echaveste (June 11, 1996) 95 

Mr. Robert P. Hall III (June 11, 1996) 103 

Mr. Harry G. Kamberis (June 11, 1996) 107 

Ms. Wendy Diaz (June 11, 1996) 119 

Mr. Jesus Canahuati (June 11, 1996) 121 

Mr. Craig Kielburger (June 11, 1996) 127 

Hon. Robert B. Reich (July 15, 1996) 129 

Mrs. Kathie Lee Gifford (July 15, 1996) 136 

Ms. Francoise Remington (July 15, 1996) 139 

Mr. Anthony G. Freeman (July 15, 1996) 148 

Additional material submitted for the record: 

Statement submitted by Hon. James P. Moran (June 11, 1996) 160 

Statement submitted by Charles Marciante, President, New Jersey State 

AFL-CIO (June 11, 1996) 163 

Letter to U.S. Chamber of Commerce from Hon. George Miller 168 

Materials submitted by Jesus Canahuati, Vice President, Honduran Ap- 
parel Manufacturers Association • 170 

Letter to Hon. George Miller from The Walt Disney Company and addi- 
tional materials siabmitted by Hon. James P. Moran 244 

Letter to Chairman Smith from the Embassy of El Salvador 248 

Letter to Chairman Smith from the Embassy of Honduras 253 

Statement submitted by Hon. Barney Frank, a Representative in Con- 
gress from the State of Massachusetts (June 11, 1996) 266 

(III) 



IV 

Page 

Additional material submitted for the record — Continued 

Letter to Chairman Smith submitted by Andrew Fois, Assistant Attorney 

General, U.S. Department of Justice 268 

Letter to Chairman Smith and additional materials submitted by Nike, 

Inc 272 

Letter to Chairman Smith and additional materials submitted by U.S. 

Council for International Business 280 

Letters to Chairman Smith and Chairman Oilman submitted by 

Consultores Financieros Internacionales, S.A 291 

Questions submitted by Hon. Matt Salmon and responses thereto (June 

11, 1996) 293 

Statement submitted by Hon. James P. Moran (July 15, 1996) 295 



CHILD LABOR 



TUESDAY, JUNE 11, 1996 

House of Representatives, 
Committee on International Relations, 
Subcommittee on International Operations and Human 

Rights, 
Washington, DC. 

The subcommittee met, pursuant to notice, at 2:10 p.m., in room 
2172, Rayburn House Office Building, Washington, DC, Hon. 
Christopher H. Smith (chairman of the subcommittee) presiding. 

Mr. Smith. The subcommittee will come to order. Good after- 
noon. 

Child labor, a practice that is all too common in many parts of 
the world, is nevertheless almost universally recognized as an evil. 
This practice, at least in its cruelest forms, has been outlawed by 
virtually every country in the world. It also contravenes inter- 
national law as reflected in numerous international agreements 
and standards. 

The Minimum Age Convention of the International Labor Orga- 
nization was adopted in 1973. It states first that, and I quote, "The 
minimum age for admission to employment shall not be less than 
the age of completion of compulsory schooling." 

The Convention further provides that the minimum age in any 
case shall not be less than 15 years, or 14 years in a country whose 
economic and educational facilities are insufficiently developed. The 
Convention also prohibits hazardous work for children under the 
age of 18. 

The ILO Forced Labor Convention has been in effect since 1930. 
It prohibits most forms of forced or compulsory labor, including all 
forced labor for people under the age of 18. In 1959, the ILO Con- 
vention concerning the abolition of forced labor reaffirmed and 
strengthened this commitment. 

Many forms of child labor are also prohibited by the United Na- 
tions Convention on the Rights of the Child. The 187 signatories 
to that Convention have recognized, and I quote, "The right of the 
child to be protected from economic exploitation and from perform- 
ing any work that is likely to be hazardous or to interfere with the 
child's education or to be harmful to the child's health or physical, 
mental, spiritual, moral or social development." 

I would just note parenthetically that in 1989, I was President 
Bush's congressional delegate to the United Nations and gave the 
speech on behalf of the United States in favor of the Convention 
on the Rights of the Child. 

(1) 



Thus, on paper, it would appear that this evil has been banished 
from the face of the earth. I emphasize on paper. In the words of 
the ILO, "Few human rights abuses are so unanimously con- 
demned while being so widely practiced as child labor." 

It is estimated that there are between 100,000,000 and 
200,000,000 working children in the world today, 95 percent of 
whom live in developing countries. Some work on family farms to 
survive. Others work in factories or in the informal economy in jobs 
such as peddlers or messengers. 

In some countries, it is common for children to be sold into debt 
bondage or to work in hazardous industrial environments. Still oth- 
ers are duplicitously recruited into lives of prostitution and sex 
slavery. Given their vast numbers, it is difficult to generalize about 
their economic and social circumstances. 

The exploitation of children is made possible largely by the 
things that make it reprehensible. Children are vulnerable and 
largely dependent on adults for sustenance and protection. They 
are more easily intimidated and less likely to organize than adult 
laborers. 

Many are too young to have genuinely chosen the back breaking 
work that fills their days. Furthermore, the long hours of work 
keep many child laborers from obtaining the basic education that 
represents their only hope of a future escape from that toil. 

While statistics indicate the scope of the problem, the nature of 
the problem is most clearly visible in the faces of the children 
themselves. During recent weeks, the unpleasant details of several 
high profile cases have been brought to the attention of the Amer- 
ican public. 

An article in this month's edition of Life magazine includes pic- 
tures of children making carpet, surgical instruments, and soccer 
balls in India and Pakistan. The oldest of these children is a 12- 
year-old boy, whose face was branded with a hot iron by his master 
and one of whose eyes was deliberately blinded. The youngest is a 
3 -year-old child, a girl. 

Even more widespread attention has been given to the case of a 
factory in Honduras that produced a line of clothes that was mar- 
keted by Wal-Mart under the label endorsed by Kathie Lee Gifford, 
Two of our witnesses today are from Honduras and will testify 
about working conditions in that factory and in others. 

Kathie Lee Gifford herself was invited to testify, but was unable 
to do so because of a scheduling conflict. However, the subcommit- 
tee may hold a future hearing to receive her testimony and that of 
other witnesses who were unable to be present today. 

It is important to stress, however, that the goal of this hearing 
is not to point the finger at any one country or any one company 
or industry, nor should we begin by assuming that any minimum 
working age or wages or working conditions that would not be ac- 
ceptable in the United States are per se violations of human rights. 

Reality is that most other countries have standards of living far 
below that which we enjoy in the United States. Therefore, U.S. 
companies may credibly state that their investment in foreign man- 
ufacture represents the best hope for the responsible economic 
empowerment of the people in these countries. 



However, such economic empowerment need not and must not in- 
volve the exploitation of children. At the very least, we, the Amer- 
ican people, have the right — and I believe we have the moral obli- 
gation — to learn the facts about the methods of production that go 
into the manufacture of the products that we buy. 

I would also note parenthetically here, I was just reminded by 
the stenographer who noted that we have had hearings here time 
and again on the use of the loagai system in China where many 
of the manufactured products that end up in our stores are being 
produced and then sold and distributed throughout the United 
States. That practice is already against the law, yet we have not 
had enforcement of the Smoot-Hawley Act to bring down the sale 
of those products in the United States. 

The problem is not limited to products that are imported into the 
United States. Although export manufacturing is the area that has 
received the most attention in the news media, the Department of 
Labor estimates that less than 5 percent of child laborers are in- 
volved in export industries. 

Furthermore, in those industries, large enterprises use child 
labor much less frequently than small- and medium-sized busi- 
nesses, especially those that operate in neighborhoods and in 
homes. 

While a boycott of one company or country or even a legal prohi- 
bition of imports produced with child labor may be indeed impor- 
tant, we may need to consider additional measures. As with any 
other human rights violation, we must make the elimination of 
child labor an important goal of U.S. foreign policy, including, but 
not limited to, our foreign aid policy. 

At this stage, however, neither this subcommittee nor anyone 
else has all the answers about child labor. We do not know its full 
extent, and we have not yet arrived at a consensus about what 
policies will lead to its speedy abolition, or even about where to 
draw the line between practices that can perhaps be tolerated for 
the time being and those that we must not allow to happen. 

We look forward to hearing from the witnesses that will be ap- 
pearing today and appreciate the very strong interest that has been 
expressed by members on both sides of the aisle. 

At this point, I would like to yield to my good friend from Vir- 
ginia, who would like to make an opening statement. 

Mr. MORAN. Thank you very much. Chairman Smith. 

I want to begin by tnanking you for holding this hearing. Believe 
it or not, this is the first time that a House committee has held a 
hearing devoted to the worldwide problem of child labor. We have 
had hearings by the human rights task force, the caucus, but this 
is the first time that an authorizing committee has held such a 
hearing, and it is long overdue. Thank you. 

Many Americans have been startled to learn recently that many 
of the products that they are purchasing, often bearing the names 
of celebrities that they admire and trust, have been manufactured 
by children under unspeakably oppressive labor conditions. 

Celebrities have been quick to point out their ignorance and thus 
their lack of responsibility for the problem. They seem to deny or 
to downplay the use of child labor and portray themselves as vic- 
tims of an attack by the media. 



Kathie Lee Gifford is only one of the most recent examples of 
this phenomenon. I have seen her talk about the viciousness of the 
media instead of accepting some personal responsibility for having 
made millions off the exploitation of helpless children. 

What a wonderful opportunity that would have been for someone 
of such visibility and universal trust through the country to accept 
that kind of personal accountability and turn it into an opportunity 
to show the kind of leadership that would have made a lifetime dif- 
ference in the lives of hundreds of thousands, if not millions, of ex- 
ploited children. Instead, she chose to put her resources into hiring 
publicity agents to shift the blame. 

The Gap, The Limited, Nike, all kinds of companies that we pur- 
chase products from, and I know in the area I represent here in 
the Washington metropolitan area that many of my colleagues pur- 
chase products. This is one of the more affluent areas. We are 
complicit in maintaining this system of exploitation when we do 
not ask questions, when we do not insist upon adequate answers. 

Those firms that I just mentioned — ^The Gap, The Limited, 
Nike — very recently have realized that the out sourcing that they 
have been doing for the manufacturing of their products is in fact 
producing cheap prices for such products only by exploiting chil- 
dren, young women, people who have no control over the situation. 

As a result, they realize they have some complicity in this, and 
they have decided to make a difference. They do not consider them- 
selves to be victims, rightfully so. Mrs. Gifford is not a victim ei- 
ther. 

Let me share with you a few of the real victims. Shadab is a 9- 
year-old boy. Since he was 6, he has spent 12 hours a day, 6 days 
a week, squatting in semi-darkness on the damp ground polishing 
metal in a brass factory. The air in the factory is visibly thick with 
metal dust. The temperature is 120 degrees. The bare floor is damp 
with acid that sloshes from big vats onto the ground. 

Silgi is a 3-year-old girl, about the same age as my daughter. I 
know you have young children, Chris. She sits on a mud floor in 
a filthy dress stitching soccer balls bound for Los Angeles with nee- 
dles that are bigger than her fingers. Her stitching is adequate, but 
her hands are so small that she cannot handle the scissors to cut 
the string, so she has to get assistance from a fellow employee, her 
sister. 

Anwar is a 9-year-old boy. He started weaving carpets at the age 
of 6 or 7. He was told repeatedly that he could not stop working 
until he had earned enough money to repay an alleged family debt. 
He was never told who in his family had borrowed or how much 
money they had borrowed. 

Whenever he made an error in his work, he was fined, and his 
debt was increased. When he was too slow, he was beaten with a 
stick. Once he tried to run away, but he was caught by the local 
police, who forcibly returned him to the carpet looms. They obvi- 
ously are paid off. 

Pervasive corruption exists in all of these countries that have the 
most serious problems. In order to take a break, he would injure 
himself by cutting his own hand. 

Forced labor is illegal in most parts of the world, yet it is on the 
increase in Asia and Africa and Latin America. The reason is sim- 



pie. Exploiting children is both easy and profitable. Employers pre- 
fer child laborers because they are easy to control. 

One toy manufacturer in Thailand told reporters as long as we 
give them enough meals, at least one a day, we can control them 
very easily. They have nowhere to go. 

A Moroccan carpet manufacturer said he prefers to get them 
when they are about 7. Their hands are nimbler, and their eyes are 
better, too. They are faster when they are small. Unfortunately, 
many of them are dying before the age of 12 because of how ex- 
ploited the conditions are. 

These are not isolated examples. Some argue that child labor is 
natural in poverty-ridden countries and that eventually, through 
investment and growth, child labor will die a natural death. 

Our acceptance of child labor as a natural consequence of ex- 
treme poverty has led to its worldwide increase. To turn a blind 
eye to those that make a profit from buying and selling children 
is to condone it. We as consumers are all complicit if we do not ask 
the right questions and demand satisfactory answers. We all have 
a greater responsibility than passing the buck and assigning 
blame. 

In addition to fulfilling our personal responsibility, we also have 
a national responsibility. That is why we are having this hearing. 
We would require that any country receiving U.S. foreign assist- 
ance certify that it has enacted and is enforcing effective child 
labor laws. The State Department should be responsible for audit- 
ing and, when necessary, revoking that certification. That is why 
I and about 40 bipartisan co-sponsors of my bill have introduced 
this Working Children's Human Rights Act. 

The enforcement of child labor laws will not put an end to cheap, 
exploitative labor conditions nor significantly raise the price of the 
products we purchase. It will, though, create more job opportunities 
for parents and appropriate breadwinners around the world that 
become compensated participants instead of pawns in the 
globalization of our economy. 

Most of us have been blessed by the accident of birth. Such good 
fortune ought not relieve us of some personal and collective respon- 
sibility to those who have not been so blessed. 

I thank you again, Mr. Chairman, for taking the first step by 
holding this hearing, and I hope that we can form a strong biparti- 
san coalition to combat this abhorrent denial of the most basic 
human rights of children. 

Thank you, Mr. Chairman. 

Mr. Smith, Thank you very much for your very strong words, Mr. 
Moran — it was an excellent statement — and for your good work on 
behalf of children who are exploited by their employers. 

I would like to yield to my good friend, Mr. Salmon. 

Mr. Salmon. Thank you, Mr. Chairman. I compliment you as 
well on establishing this hearing in the first place. I think it is a 
very, very important issue, as I think most Americans would agree. 

Mr. Moran, I read your editorial piece this morning. I think that 
there are some very, very good insights there. You obviously care 
very much about children, and I know that through everything I 
have heard, you are a terrific father as well. I compliment you. 



Also being a father of four children, I am going to say the obvi- 
ous. I think everybody out there would agree that there is probably 
nothing more nauseating, troublesome or saddening than the ex- 
ploitation of a little childl be it sexual abuse, physical abuse, verbal 
abuse or the kinds of abuse where children are exploited by being 
forced to participate in the kind of labor that has been described. 

If we as adults do not stand up for children, then who will? Chil- 
dren obviously do not have the wherewithal to advocate for them- 
selves, so we as adults and we as Members of Congress have a re- 
sponsibility to stand for them. 

I would also ask along the lines of fairness and equity that while 
we go through this process, it is very easy sometimes to try to find 
scapegoats. Let us get to the bottom of the real problem. Let us 
find out who the culprits are. Let us try to fix the problem. 

In the process, let's not make more victims alon^ the way. Let 
us make sure that our approach is balanced, that it is fair, that we 
get the views of all sides. We must be careful not to wrongly accuse 
some of the businesses of such outrageous abuses when they should 
not be accused. If the shoe fits, then wear it. They need to pay the 
price. 

There are businesses out there that are trying to do a good serv- 
ice not only for their stockholders, but also for humanity. We have 
to be very, very careful that we do not — excuse the word — throw 
out the baby with the bath water. 

Let us shut down those who are exploiting children. Let us do 
everything we can, both nationally and internationally, to find the 
culprits, those that really are forcing these children to work for a 
pittance and putting them in the kind of conditions that Mr. Moran 
just described. 

Let us go afler them with a vengeance, and let's make sure that 
we eradicate this kind of a scourge from our society, but let's not 
destroy legitimate business and the Americans that they employ in 
the process. Let us make sure that our approach is fair and bal- 
anced and not sensationalistic such as we have seen in the Na- 
tional Enquirer and maybe even some of the national media outlets 
that should be a little bit more responsible lately. 

I am not talking about this issue. I am talking about all issues. 
When we find an issue that we all hate and condemn, we imme- 
diately try to find a culprit. Let us just make sure that we are fair 
in the process and that we nail the real culprits. 

Thank you, Mr. Chairman. 

Mr. Smith. Thank you very much, Mr. Salmon. 

My friend from New Jersey, Mr. Payne. 

Mr. Payne. Thank you very much, Mr. Chairman. 

Let me also commend you for calling this very important hear- 
ing. As has been indicated by my colleague, Mr. Moran, this is the 
first time that a standing committee in this House has seen fit to 
call a hearing of this magnitude. I would like to commend you for 
that. 

Let me also commend Representative Moran for his strong state- 
ment and his commitment to the eradication of this injustice, wher- 
ever it is. 

Without deemphasizing the importance of bonded labor in India, 
Bangladesh, El Salvador and Honduras and other parts of the 



world, I would like to speak about a problem that is very similar, 
but somewhat different. It is related to the problem of slave labor, 
which is even one step worse, which is being practiced in the 
Sudan and Mauritania. 

In one specific case, Alang Jack, a 6-year-old girl, was taken cap- 
tive by Arabs in the Sudan who raided her village in 1995. She was 
a victim of slave branding, which they still do, so that the person 
can be identified by the owner. She was a victim of the slave 
branding endorsed by some of the Sudanese Arabs who revived 
slavery after more than 100 vears that it has been dormant. 

This is just one incident, but in the Sudan and Mauritania chil- 
dren are captured, bought, sold, exchanged for camels and herded, 
branded and bred. Sometimes they are captured and forced to work 
in unsafe and unsanitary conditions. 

In 1996, Human Rights Watch Africa reported that in Mauri- 
tania, routine punishment for the slightest fault includes beatings, 
denial of food and prolonged exposure to the sun with hands and 
feet tied behind them together. 

To the east in the Sudan, slavery is a result of a 12-year civil 
war, which is still being raised between the north and south. I had 
the opportunity to visit some refugee sites in southern Sudan and 
stayed in villages for several days. Arab militants, armed by the 
government, raid villages, mostly those of the Dinka tribe, shoot 
the men and enslave the women and children. 

Gaspar Biro, a United Nations human rights monitor, reported 
that abducted children are often sent to camps that become 
present-day slave markets. These children become property of their 
masters and are forced to work long hours — they make up a great 
percentage of the informal sector of agriculture and basket weav- 
ing. 

That is why I have supported the H.R. 3294, the Working Chil- 
dren Human Rights Act. This resolution will work to increase mini- 
mum wages for children and halt child exploitation and prostitu- 
tion widely practiced in many parts of the world. Children should 
have happy and safe childhoods without having to worry about 
being enslaved. 

Let me also say that I think we are going after the illegitimate 
culprits, those who are exploiting this. I have not heard yet anyone 
talking about illegitimate corporations. I think we know that there 
are illegitimate corporations. I do not know why we would even 
have to allude to the fact that we would be singling out anyone 
that was obeying the law. 

I do not understand about sensationalism and balance. What bal- 
ance do you need if a child is being enslaved, if a child is being ex- 
ploited? There is no balance. The balance is that we need to cut it 
out. It has to stop. The fact is that we have so much capital flight 
and that there is no more loyalty to a company or country. It is 
wherever you can get the work done more cheaply. 

We are going after the bad guys. We are not looking to hurt the 
good guys. We want to separate the bad guys from the good guys. 
We are going after the illegitimate people. We have no problem 
with people who are good corporate citizens. We are going after the 
corporate cheats, the corporate bad boys. Let me put it that way. 



8 

Let me just once again commend the Chairman for calling this 
important meeting. I look forward to hearing the testimony from 
our witnesses. 

Mr. Smith. Thank you very much, Mr. Payne. 

We are joined on the panel by Congresswoman Marcy Kaptur. As 
a matter of fact, incidentally, both Marcy and I testified earlier on 
the human rights abuses going on in Cnina before the Ways and 
Means Committee, again trying to say that when we have leverage, 
there is an ability to use that leverage in the advancement of pro- 
tection of basic human rights. She made a most eloquent statement 
there. 

Would you like to make a statement here? 

Ms. Kaptur. Mr. Chairman, I just want to thank you very much 
for allowing me to sit in on the hearings today. 

I do not have a formal statement to make at this point, but want- 
ed to commend you very much for holding this in-depth set of hear- 
ings and our colleagues who are here to testify to listen to them. 

I also appreciate your willingness to work with us to invite Mr. 
Charles Kernaghan, who will oe testifjdng later today, who was 
kind enough at one point to bring workers into my district, yoimg 
workers from Honduras and the Dominican Republic, who met with 
several of our church leaders in our own home community. 

We got to hear their personal, very compelling stories, and then 
we went to some of the stores in our community and literally 
bought the products that they had been paid pennies for and 
watched their faces as they saw the difference between what they 
earned and what we paid for these goods here on shelves all over 
this country. 

I respect your leadership on this and look forward to the testi- 
mony. 

Mr. Smith. Thank you veiy much, Ms. Kaptur. 

I would like to invite to the witness table our two distinguished 
Members of Congress, George Miller, Congressman Miller, a Demo- 
crat from California, and Constance Morella, Connie Morella, a Re- 
publican from Maryland, who have long been active in this strug- 
gle. 

As a matter of fact, Mr. Miller recently convened a hearing him- 
self by I believe it is the Democratic Policy Committee focusing on 
this issue and bringing more light and scrutiny to it, which it cer- 
tainly deserves. I want to thank you for doing that. 

Ms. Morella, if you would want to begin? 

STATEMENT OF CONSTANCE A. MORELLA, A REPRESENTA- 
TIVE IN CONGRESS FROM THE STATE OF MARYLAND 

Ms. Morella. Thank you, Mr. Chairman. 

Indeed, this is a timely hearing, and your convening of today's 
panels on child labor and U.S. imports is further testimony to your 
strong support for the rights of children around the world. You 
have demonstrated this, of course, repeatedly in your support for 
a number of foreign assistance programs focusing on children's 
health and education. 

I also want the members of this subcommittee to know that I 
value the fact that I could hear their opening statements, which in- 
dicate their commitment to this very important issue. 



The recent discovery that Wal-Mart merchandise carried under 
Kathie Lee Gifford's Hne was being produced by Honduran children 
earning less than 35 cents an hour has riveted national attention 
on the subject of child labor and exploitative working conditions 
throughout the developing world; with the exception of updated 
technology, these working environments would be difficult to dis- 
tinguishTrom those described by Charles Dickens more than a cen- 
tury ago. 

The problems and circumstances of child labor vary greatly 
throughout the world. In Central America, assembly industries 
with Tabor forces almost entirely comprised of women and girls 
commonly pay low wages with few, if any, benefits and actively dis- 
courage union organizing and activity. Sexual harassment and 
abuse are commonplace. Workers may be exposed to unsafe or toxic 
levels of chemicals and other dangerous substances endangering 
their health and ultimately their ability to support their families. 
Pregnant women and girls may be required to stand working for 
hours at a time without a break. Restroom visits may be restricted 
and monitored. For the most part, workplace rules are enforced al- 
most entirely by men. 

In South Asia, debt peonage and forced child labor are common- 
place. In many cases, debt peonage dates back so far that it is no 
longer known what the original debt was or who incurred it; it may 
be difficult to determine the exact amount allegedly owed. Many 
children are forced into the carpet weaving industry where they 
work long hours to pay off their family's debt, receiving little, if 
any, food, free time or medical care. They are subjected to physical 
and mental abuse. Local law enforcement officials commonly return 
escaping children to their employers rather than to their families 
or to the appropriate authorities. 

In Thailand and Burma, many girls are either enslaved directly, 
or made available through debt peonage arrangements to work in 
the sex industry. Young girls, many barely even teenagers, if not 
younger, are exploited as objects and compelled to service clients 
under the most abject circumstances for many hours each day, 
every day of the week, without rest or time off. Again, food and 
medical care and especially reproductive medical care are scarce. 
Not only does the sex industry rob women and girls of their innate 
dignity as human beings, and girls of their childhood, but it is also 
a leading source of HIV/AIDS, a problem which is exploding 
throughout Asia. 

Although not the specific topic of this hearing, I feel it is impor- 
tant in this discussion of the exploitation of children around the 
world that we also address the increasingly common situation of 
boys being recruited into various insurgencies. This is not a new 
problem, but the current extent of it and the increasing number of 
very young boys carrying arms is disturbing, to say the least. We 
learned something of'^this problem in the debate over Renamo in 
Mozambique in the 1980's. We got firsthand experience with the 
problem in Somalia, but in Liberia we are confronted by a situation 
of the direst proportions with literal armies of young boys, most 
younger than 14 and some as young as 9, roaming the streets of 
Monrovia armed with automatic weapons and high on drugs. I fear 
that we may already have lost this generation of Liberian boys. 



10 

What is to be done? First of all, nations must enforce their laws 
pertaining to child labor, workers' rights, and workplace safety; 

freater resources must be devoted to health and education for chil- 
ren; nations must be held to international standards which they 
have endorsed. For example, the Beijing World Conference on 
Women adopted a Programme of Action calling for the elimination 
of economic exploitation and the protection of young girls at work, 
including enforcement of the Convention on the Rights of the Child, 
a minimum working age, social security insurance and health care. 
In El Salvador, the government plans to be devoting about 50 per- 
cent of its budget to health and education by the end of the cen- 
tury. The human rights procurator has highlighted four areas for 
special attention, two of which are the rights of children and the 
rights of women. The recent agreement on socioeconomic issues be- 
tween the Government of Guatemala and the URNG gorillas com- 
mits that country to a similar course. 

Second, the right of workers to organize and bargain collectively 
must be respected and protected. Without the ability to press for 
higher wages, jobs will continue to be lost to the developing world, 
or U.S. wages will fall in order to be competitive with developing 
world labor costs. 

Third, we should adopt a carrot and stick approach for our for- 
eign assistance. We should continue and expand our administration 
of justice programs, making sure that one of their areas of con- 
centration includes labor rights and enforcement of labor law. We 
should continue to support programs which teach workers to orga- 
nize and press for their rights within a democratic framework. On 
the side of the stick, I am a co-sponsor of my colleague, Jim 
Moran's, legislation, the Working Children's Human Rights Act, 
which is intended to improve compliance with labor laws by deny- 
ing U.S. foreign assistance. 

Finally, all of us, as consumers, and U.S. companies, have a re- 
sponsibility to see that the products which we buy are produced or 
manufactured under circumstances which respect the rights and 
dignity of the workers. From the debate I have heard on the sub- 
ject, I know that it is difficult to draft legislation that would hold 
U.S. companies directly accountable for the foreign workplace con- 
ditions under which tneir products are manufactured, but I feel 
that we need to look at some way of ensuring that minimum stand- 
ards are met. I would add, however, that regardless of the law, de- 
cency and corporate responsibility dictate that companies should be 
assuring the safety and fairness of the workplaces where their 
products are produced. 

Mr. Chairman and members of the subcommittee, it has been 
said many times, and regardless of one's opinion of who may be 
saying it most recently, the fact remains that it does take a village, 
in this case a global village, to raise a child. We all have a role to 
play. 

Again, I thank you for the opportunity to appear before you and 
look forward to working with you and the subcommittee in your ef- 
forts and those of my colleagues to address this issue. 

Thank you, Mr. Chairman. 

[The prepared statement of Ms. Morella appears in the appen- 
dix.] 



11 

Mr. Smith. Connie, thank you for your very fine statement. It 
was comprehensive, as usual. We appreciate your good words. 
Mr. Miller. 

STATEMENT OF GEORGE MILLER, A REPRESENTATIVE IN 
CONGRESS FROM THE STATE OF CALIFORNIA 

Mr. Miller. Thank you, Mr. Chairman, and thank you for hold- 
ing this hearing and for your continued interest and the interest 
of the members of this committee in this most serious problem. 

My testimony today focuses on those who are responsible for on- 
going child labor exploitation. As you know, on April 29, I chaired, 
along with Mr. Moran, a hearing of the Democratic Policy Commit- 
tee on child labor, ecolabeling and the ability of consumers to 
change the way companies make their products. 

It was at that hearing that the now well known allegations made 
by the National Labor Committee and Wendy Diaz about the use 
of sweatshops to produce the Wal-Mart/Kathie Lee GiflFord clothing 
line were first aired publicly. 

That hearing and those allegations have already sparked the 
broadest public discussion in a decade on sweatshops and the con- 
ditions under which men, women and especially children work both 
here in America and in developing nations. 

Later this week, we will release a report of that hearing. Three 
things become clear from that hearing and our investigation. The 
first is that the exploitation of children for economic gain is not ac- 
cidental. It is, in fact, intentional and integral to a system of eco- 
nomic greed associated with the production of many of these goods 
intended for sale in the United States and elsewhere. 

Second, it is clear that those who benefit most from the exploi- 
tation of children, the celebrities, the designers, the holder of intel- 
lectual properties, the retailers and the manufacturers, have con- 
structed a system of deniability to cover their involvement. 

Third, it is those at the top who must start to take responsibility 
for how their goods are produced. This is a problem that requires 
change at the top. To do any less with the knowledge that we have 
todav on the extent of this problem is to become a co-exploiter of 
children. 

The celebrities and the companies can no longer say that they do 
not know. The ongoing conspiracy of silence throughout much of 
the apparel trade, sporting goods and other industries must come 
to an end. 

Much of the current system under which clothing and other prod- 
ucts are manufactured, both domestically and overseas, is predi- 
cated on cheap, unorganized, underage and exploited labor. In the 
global marketplace, wages and working conditions are being sac- 
rificed in the mad rush to the bottom nne. Many of our laws and 
international trade agreements protect that systematic abuse of 
workers. Consumers who are deeply concerned about the conditions 
under which products are made, and all of the evidence is that mil- 
lions of those consumers do, in fact, care and are concerned, must 
have a reliable system for determining whether abused labor was 
used, just as we know if an electrical product is safe and we know 
the true contents of a box of cereal. 



12 

The government can help in eHminating this exploitation by pro- 
hibiting the importation of products made bv child labor, by prohib- 
iting foreign assistance to countries that allow the systematic use 
of child labor, and by including language in trade agreements that 
would make systematic violations of workers' rights an unfair trade 
practice. 

The problem is that today our trade agreements are more inter- 
ested in facilitating trade than in protecting the workers. Several 
of the initiatives that I have mentioned have been sponsored by 
Mr. Moran and others. I think we need to do more. 

Americans are willing to boycott stores and to change their pur- 
chasing habits when they know about how products are made and 
if those products are made in sweatshops. All of the consumer sur- 
veys tell us this. 

Consumers rarely are able to tell what products have been man- 
ufactured with exploited labor. We know if products are flame re- 
tardant, made of cotton or synthetics, made in the United States 
or abroad, made by union workers. We even know if tuna is dol- 
phin safe. What we do not know is whether or not children were 
exploited in the making of the product. 

As Sydney Schanberg put it in his powerful article in this 
month's Life magazine discussing soccer balls made by children in 
Pakistan, and I quote, "The words handmade are printed on every 
ball. Not printed is any explanation of whose hands made them." 

I have proposed that manufacturers affix a label to products 
manufactured in industries where child and exploited labor has 
been a persistent problem, a label that would tell the consumer 
that no child or exploited labor was used in the manufacture of 
that project. 

I am asking celebrities and companies in apparel and in other in- 
dustries to adopt the concept behind this labor voluntarily, to open 
their plants to random inspection from independent monitors, to 
place directly on their products an informative labor-related label. 

Celebrities like Andre Agassi, Jaclyn Smith, Kathy Ireland, 
Kathie Lee Gifford, Michael Jordan and others should be happy to 
see this label on products bearing their name, and consumers 
should demand to see any such label before paying $100 or more 
for a pair of sneakers made by children paid only pennies an hour. 

The Gap recently adopted independent monitoring because of 
public pressure and embarrassment over its operations in El Sal- 
vador. Mrs. Gifford has now called on Wal-Mart stores to adopt 
independent monitoring after suffering the enormous media atten- 
tion over her clothing line. We salute these efforts, and we also 
await Wal-Mart's answer. 

Others must follow suit like Michael Jordan, who has stated that 
he does not know how his brand of sneakers for which Nike pays 
him $20,000,000 a year is made. Unless and until people like Mi- 
chael Jordan and others take responsibility for how the products 
that bear their names are made, child labor and severe exploitation 
will continue. The decision to act is theirs to make, but they cannot 
avoid the responsibility. 

Government rules and regulations alone are not going to end the 
practice of using children to make children's clothing. It is time to 
unleash the full power of the marketplace by working with manu- 



13 

facturers, retailers, consumers, labor and others to implement a 
labor label so that consumers can decide for themselves which 
products they favor. 

If a retailer or manufacturer states that they are against sweat- 
shop conditions, then they should be willing to put it in writing di- 
rectly on the products which consumers use every day and which 
every consumer can see every day. If they are not interested, we 
should not patronize their products. 

Let me close by saying that the campaign you see targeting ce- 
lebrities and large companies is not about finding scapegoats or 
jumping on the bandwagons. It is about assigning responsibility — 
responsibility where it is due and responsibility by those who can 
in fact effect the change. 

Only when these profitable entities and these individuals take 
responsibility will we be able to significantly reduce the child labor 
exploitation that you spoke of, Mr. Chairman, in your opening re- 
marks. 

Thank you very much for the time and the opportunity to ad- 
dress you and the other members of this committee. Again, thank 
you so very much for focusing attention on this problem. 

[The prepared statement of Mr. Miller appears in the appendix.] 

Mr. Smith. Mr. Miller, thank you for your very strong statement 
and for your good work on behalf of the world's kids with regard 
to this exploitation. 

Just let me ask you. What has been the response from the indus- 
tries, the textile industry and others — you started to give some in- 
dication of that in your testimony — to this truth-in-labeling sugges- 
tion that you have proposed? 

Mr. Miller. We sent out a questionnaire essentially to everyone 
who was mentioned in the hearing that Mr. Moran and I held, 
whether they were mentioned positively or negatively. We tried to 
establish some benchmarks both about their practices and what 
they would be willing to accept. 

There is the full range, as I mentioned. Some of them have al- 
ready adopted independent monitoring. Some have taken steps, 
some several years ago, about denying in their contractual relation- 
ships with their contractors the use of exploited labor, non-compli- 
ance with domestic laws in the country in which those products are 
made or assembled. 

Interestingly enough, though, they are not quite ready to support 
the affixing of a label to that product. Interestingly enough, they 
then all close by saying that this is a problem which cannot be fully 
monitored. 

I obviously reject that. We are continuing a number of discus- 
sions with a number of retailers and some associations and a num- 
ber of manufacturers. That will be part of the report that we issue. 

It is very clear that there are parties to this problem and that 
they have the very real ability because of their financial capabili- 
ties within the marketplaces to effect change from the top. We will 
see where this goes. Otherwise, I am afraid that we are just going 
to simply be treated to one horror story after another periodically. 

As I said, this is a system built on denial. People always say 
well, we got rid of that subcontractor. We got rid of this subcontrac- 



14 

tor. What they did not do is put in place a system to systematically 
get rid of those individuals who would exploit children. 

Mr. Smith. Has the flagship of U.S. industry, the U.S. Chamber 
of Commerce, indicated how it feels? 

Mr. Miller. Not to my knowledge. I do not know that we have 
received a response from them or whether we initiated with the 
Chamber yet on that. ^ 

I would be glad to supply that for you, Mr. Chairman, but I do 
not know. 

Mr. Smith. I appreciate that. It will be made a part of the record. 

Do any of the members of the subcommittee or Ms. Kaptur have 
any questions? 

Mr. MORAN. Just one thing, Mr. Chairman. It is so easy to raise 
people's names and the names of companies that are part of the 
problem. This might be a good opportunity to mention two or three 
companies that are part of the solution. 

Are there any firms that you have been impressed with that 
have really taken the lead, Greorge? 

Mr. Miller. There is one case. My personal example was when 
we found a very, very exploitative situation when I was Chairman 
of the Natural Resources Committee in the Northern Mariana Is- 
lands where we had exploited labor from people brought from 
China to the Northern Marianas to assemble products to get the 
benefit of Made in the USA label. That was sold as Made in the 
USA, but it was absolutely contrary to all the labor, wage and hour 
laws of this country. 

When I contacted the president of Levi Strauss, in 24 hours he 
said we are out of there. We do not do business with felons. We 
do not do business with people who exploit people. We are in the 
process of now realigning how we do business with others. 

The Gap was mentioned. Last summer there was quite a con- 
troversy over their practices in El Salvador. They, I believe, were 
the first to agree to independent monitoring. We now see Kathie 
Lee Gifford calling on her retailer, Wal-Mart, to provide for inde- 
pendent monitoring. 

There are others. There are others who do have worker rights 
conditions in their contracts with manufacturers or subcontractors. 
I think in fact, though, the enforcement of those contracts is open 
to serious question. 

Almost at every level, whether they are celebrities, some design- 
ers, some retailers, some manufacturers, a very limited number of 
people have started to step forward. I think when they see the fire 
storm that someone like Kathie Lee Gifford, who was completely 
caught unaware, went through, they will now understand that this 
is a problem you better get out in front of and start deciding you 
are marketing your name. 

We are in the business where the only product we really have 
is our name. In fact, they sold their name, and now they better 
take good care of it. 

Ms. MoRELLA. To not exploit children is good business, and that 
is the thing that we are going to have to press forward with. I 



^Ab of the date of publication of this transcript, the U.S. Chamber of Commerce had not re- 
sponded to Mr. Millers May 7, 1996, letter. 



15 

think the people have a right to know. I think they are outraged 
by this wherever they see or hear about it. Businesses will begin 
to realize that with the help of this Congress and others. 

Ms. Kaftur. Mr. Chairman. 

Mr. Smith. Ms. Kaptur. 

Ms. Kaptur. Can I just ask one question? These witnesses are 
just so capable. 

What I wondered about is if you are the CEO of any one of these 
companies, whether it is The Gap or Levi Strauss or even Wal- 
Mart, how is it possible that you do not know where your goods are 
coming from and that you in your world travels would not nave me- 
andered through some of these contract shops? 

How is it possible that people at the top could be so blind to who 
are actually producing the goods? How is this possible? 

Mr. Miller. Congresswoman Kaptur, you may remember at one 
time I think it was in the late 1980's they did a survey of the CEO 
of the Fortune 500 companies, and there were, I think, a majority 
of them that could not name all the products their companies 
made. 

This one I think they would just as soon not know. That is why, 
given the nature of this trade and how it has built up especially 
in the apparel trade, but now almost in all of this, you are both 
very familiar when you talk about where you testified this morning 
on China. 

You have a whole series of contractual relationships that are 
really there to camouflage what is really taking place, whether it 
is the official Chinese family, the government, the army, the prison 
system or somebody exploiting people, and yet we have companies 
that do business with that, American companies or otherwise. They 
hide behind that. They say well, I contracted with Joe. He did not 
tell me that Sam was doing this. 

It is like when they denied the AK-47's coming into the United 
States in San Francisco. They were relatives of the official family 
essentially who are participating in those companies. 

These are contracts of convenience, and that is why I say this is 
not that these people are surprised. They have created a system of 
deniability. That is why I think you have to go to the top. You have 
to go to those people who have invested hundreds of millions of dol- 
lars in creating a brand name that is wholesome and accepted by 
the American public and say you owe it to us to rid your establish- 
ment or your line or your name of the products made by exploited 
children. 

This cannot be up to each and every consumer to try to ferret 
out what we have not been able to ferret out in China or India or 
Pakistan or the Northern Mariana Islands or in some cases in 
Manhattan. 

Ms. MORELLA. I think to answer your question with one phrase, 
it is possible, but not probable, that they do not know. 

Mr. Smith. I yield myself such time as it may consume. The po- 
tential to succeed with the labeling and trying to shut down these 
exploiters of children I think is enhanced because many of these 
sweatshops are actually in open countries. Maybe not democratic 
countries, but countries where we have greater access. 



16 

Sitting at the witness table where you are now, a year ago we 
heard from six survivors of the loagai, the gulag system in China. 
Part of the problem there is having access to the gulag. Frank Wolf 
from Virginia and I actually got into one of those prison camps and 
brought out the products. They shut it down eventually. That was 
one. 

Our MOU that we have with the Chinese is not worth the paper 
it is printed on, regrettably. I think there is greater potential for 
success here simply because in Central and South America and 
many of the other Asian countries we do have access to those coun- 
tries, unlike the PRC. 

Mr. Miller. As you pointed out, Mr. Chairman, it is the leverage 
of the American marketplace. We sometimes sell cheap. We some- 
times sell cheap when it comes to American principles and stand- 
ards and values in this country with respect to trade. 

Mr. Smith. Mr. Payne. 

Mr. Payne. Yes. I just have a question. 

Incidentally, the average wage about 15 years ago or 20 years 
ago, the average CEO's salary to the median wage at a company 
was 40 times higher than the average wage. Currently it has gone 
up to about 190 times the average wage of an American worker. 
We probably do not have enough zeros to figure out the proportion 
to a CEO's salary and these workers. 

My question is there are some organizations — environmental, 
wildlife organizations — that have products which a portion of the 
proceeds go towards saving the environment or protecting wildlife, 
but these products are being made with child labor. 

Have either of you looked into these organizations, and have you 
had any response from any of them? 

Ms. MORELLA. No, I have not, but I know that there is a large 
group of businesses with social responsibility, and what they do is 
they herald the fact that they are contributing, as you mentioned, 
part of their proceeds for various groups or organizations that are 
performing things that are of public benefit, including groups that 
will assist children. 

I would certainly think if they are under that label, and there 
is a whole list of them, that they would not be exploiting children. 
For that to be called to the public's attention would totally dev- 
astate their credo. 

Mr. Miller. I have not specifically, but that was part of the most 
recent controversy we have been going through. 

The early defense was I give money to children. If you get money 
by exploiting children, it is just not a defense that anyone is going 
to accept that you give money to help children. That is a non-start- 
er. 

I have not seen the specific situation that you talked about. Con- 
gressman. 

Mr. Payne. All right. Thank you very much. 

Mr. Smith. I want to thank our distinguished witnesses. If you 
would like to join us, depending on your time, you are more than 
welcome to do so. 

Mr. Miller. Thank you. 

Ms. MoRELLA. Thank you very much. 



17 

Mr. Smith. I would like to ask our second panel if they would 
make their way to the witness table. 

Maria Echaveste is the administrator of the U.S. Department of 
Labor's Wage and Hour Division. She is responsible for the man- 
agement and policy direction of programs related to a variety of 
Federal wage and employment standards, including those related 
to child labor. 

Ms. Echaveste received a Bachelor of Arts from Stanford Univer- 
sity and her J.D. from the University of California at Berkeley. 

She is joined by Sonia A. Rosen, who is the director of the U.S. 
Department of Labor's International Child Labor Studies. In this 
capacity, she is responsible for the research and publication of 
three major government reports on the commercial exploitation of 
children. 

Prior to joining the Labor Department, she was the director of 
Amnesty International USA, Midwest Regional Office. Ms. Rosen is 
a graduate of Union College and the University of Minnesota Law 
School. 

Ms. Echaveste, if you would begin. 

STATEMENT OF MARIA ECHAVESTE, WAGE AND HOUR 
ADMINISTRATOR, U.S. DEPARTMENT OF LABOR 

Ms. Echaveste. Thank you, and good afternoon. Thank you, Mr. 
Chairman, and members of the subcommittee for inviting the De- 
partment of Labor to participate in this important hearing. 

I have a brief oral statement, and I would like to request that 
my full statement be entered into the record. 

Mr. Smith. Without objection, it will be made so. 

Ms. Echaveste. Thank you. 

Clearly, as the Chairman and the members of the committee, as 
well as Congressman Miller and Congresswoman Morella, have 
stated, if we are to be measured by how children in the world are 
treated, we have a very long way to go, and we will have much to 
answer for. Child poverty, child slavery and the commercial sexual 
exploitation of children and the abuse of children in work are all 
problems that must be solved. 

Rather than repeat the litany of abuses that continue to exist, I 
would like to focus on two items; first, to describe for you some of 
the actions undertaken by the Department of Labor aimed at elimi- 
nating international child labor abuses, and second to describe the 
Department's efforts to eliminate sweatshops in this country. 

The second item, I think, has lessons that may be instructive 
with respect to some of the issues that you are grappling with in 
terms of what are strategies for truly and fundamentally changing 
the current situation. 

First, the Department's Bureau of International Labor Affairs 
has published two major cong^essionally mandated reports. This 
two volume set "By the Sweat and Toil of Children" describes the 
abysmal conditions and exploitation of children working in certain 
manufacturing, mining and commercial agricultural and fishery in- 
dustries, as well as the exploitation of child slaves in service indus- 
tries. 

It is important to recognize that reports such as these are critical 
to fundamentally reject the view of many that these problems do 



18 

not exist. Therefore, we are embarked in a third congressionally 
mandated report. 

Just as the Labor Department is working to protect workers in 
the United States and in the U.S. garment industry against exploi- 
tation, we also wish to protect children from abusive situations in 
the international economy. 

One of the Labor Department's goals is to further the consensus 
in the global community that the economic exploitation of children 
is simply unacceptable. We have made progress over the last few 
years, but obviously much remains to be done. 

As I noted, reports such as the two that we have completed and 
the third that we are embarking upon is to document the existence 
of this problem. It is important that bodies such as this one give 
their imprimatur to the validity of that documentation. 

With all due respect to international organizations, non-govern- 
mental organizations and human rights groups, unless there is a 
consensus from all the leadership that there is a problem, we can- 
not begin to find solutions. 

The third congressionally mandated study is a more specific 
study. We have been directed to examine the codes of conduct of 
the top 20 U.S. garment importers related to the use of exploitative 
child labor. 

Additionally, we will look at efforts of U.S. companies and non- 
governmental agencies aimed at eliminating the use of abusive and 
exploitative child labor in the production of goods imported into the 
United States and to review international and U.S. laws that might 
be used to encourage the elimination of child labor exploitation. 

We can also support consumer initiatives, such as the Rugmark 
labeling program, which offers information to consumers to help 
them avoid purchasing carpets made with child labor. I would like 
to come back to this point as we discuss the idea of labeling. 

Now let me talk about the nexus between our effort at the De- 
partment to eradicate sweatshops domestically and child labor 
internationally. At Wage and Hour, we have made enforcement of 
labor laws in the garment industry a top priority, but we recognize 
that with limited resources, which will disappear, it appears we 
cannot change unless we have the full participation of the industry. 

That is to say that we will never have enough investigators on 
the streets. It is not possible unless the industry and all segments 
of the garment industry in the United States — retailers, manufac- 
turers, end contractors — make an investment in answering the 
question that Congresswoman Kaptur raised of how can they not 
know how these goods are made. Until the industry realizes that 
they can be part of the solution, we will not change. 

We have developed a multi-faceted strategy of enforcement, edu- 
cation and recognition. We believe that we must continue to enforce 
and identify manufacturers who work with contractors who break 
the law. 

As part of that effort, we released approximately a month ago the 
first time ever, a manufacturers enforcement report; a national list- 
ing of all the manufacturers who were found to have worked with 
contractors who violated the law. We will be issuing that report pe- 
riodically and on a regular basis. 



19 

It is not a bad guy list. I want to stress that. These are manufac- 
turers who work consistently with contractors who break the law. 
The trick, we believe, is if a manufacturer consistently appears on 
the list, then the question that the consumer and the public should 
have is what are they doing to avoid being on the list. 

Second, we engage in education. We have had two retailer sum- 
mits where we have educated the retail industry about this prob- 
lem and asked their participation in addressing these problems. 

Last, we have sought to recognize companies who try to take an 
extra step. We have found that retailers and manufacturers who 
put systems in place to monitor their suppliers are more likely to 
find out about problems sooner before they become egregious, 
quickly address them and thereby assure that they are protecting 
themselves from the type of notoriety and public media attention 
that so often happens in this industry. 

We created the trendsetter list, which we released in December, 
which identified companies that we believe have developed compli- 
ance programs to protect themselves and to assure their customers 
that they are selling goods that are made in compliance with labor 
laws. For consumers who want to know, they can know whether 
the goods are being made in compliance. 

I do want to stress that I have had conversations with counsel 
for a major retailer who indicated that as a result of our pressure, 
they had begun to undertake investigations of their suppliers and 
found it difficult in that they had found at least nine levels of sub- 
contracting. It is not easy. I want to make the record clear. It is 
not simply waving a wand and saying you will know, but if you put 
your mind to it, you can. 

Reference has been made to Kathie Lee Gifford, and while the 
Department does not opine upon the particulars of the case related 
to Honduras, we can speak with some authority with respect to the 
case of about 3 weeks ago where a sweatshop in New York City 
was found to be making goods that carried the Kathie Lee Gifford 
label. 

As a result of that case, the Secretary, with Mrs. Gififord's assist- 
ance, is calling for a fashion industry forum in mid July, on July 
16, here in Washington. The purpose is to educate the industry, 
from the celebrities who put their names on the line, to those major 
retailers and manufacturers, about the problems; and, more impor- 
tantly, about the solutions such as monitoring, such as more strin- 
gent contract provisions, to show that in fact, as the companies 
that are on our trendsetter list have said to us, it makes good busi- 
ness sense to obey the law. You get a better quality product, you 
have a better quality work force, and overall the consumer is satis- 
fied. 

We are also looking at ideas such as labeling and other possible 
legislation. With respect to labeling, we simply want to point out 
that any such effort must be carefully weighed against the dangers 
of fi-auQulent labels. That is to say a label is only worthwhile if 
there is truth behind it. 

One of the things that we certainly look forward to in working 
with either this committee and other Members of Congress is how 
to set up a verification system so that if we were to embark upon 
a labeling program, it truly would mean something. Obviously in 



20 

an industry where contractors break the law at levels of 55 percent 
not paying overtime and 43 percent not paying minimum wage, 
they would very likely break the law in labeling. 

With that, I would like to conclude by statmg that we need to 
combat child labor by making certain the world knows where it is 
happening, and we ought to forcefully remind governments that 
law enforcement and education are the best solutions to the prob- 
lem and ultimately that partnerships with the industries that prof- 
it by child labor and exploitation of workers must be part of the 
solution. 

Thank you. 

[The prepared statement of Ms. Echaveste appears in the appen- 
dix.] 

Mr. Smith. Thank you very much. Let me just ask you a couple 
of questions. 

For those of you that are here, there is a vote going on on the 
floor. We want to keep the hearing going, so when Mr. Salmon gets 
back he will chair while I go and vote. Other members will be re- 
turning shortly to continue the questioning. 

Retailer summits. You mentioned two of those. What is the dif- 
ference between that and this fashion industry summit that you 
mentioned on July 16? 

Ms. Echaveste. I believe our first efforts were very much along 
the lines of — ^how shall I say — inviting the industry to learn and be 
educated. The first one took place before El Monte, California, 
where we found a year ago the Thai slaves. 

At that meeting, the general view was on the part of the retailers 
that it was not tneir problem. It was the manufacturers' problem 
and, more importantly, that it was really a very small problem. 

Our second effort after El Monte changed because clearly we had 
the data to show that the problem exists. This effort really focuses 
on, in a way, the people who have the most leverage. Frankly, as 
Congressman Miller said, those people who put their name on the 
line nave the most to lose. 

There are many individuals who have seen what happened to 
Mrs. Gifford and are very concerned about protecting themselves. 
I do think that it presents an opportunity that however the cir- 
cumstances were in Honduras or the New York sweatshop, it pre- 
sents an opportunity because it galvanizes public opinion, and that 
is what we need to change the industry. 

Mr. Smith. One of the six goals you list in your testimony is to 
look closely at the international financial institutions such as the 
World Bank and at how they might combat the exploitation of chil- 
dren. 

As I know you are aware, the World Bank Articles of Agreement 
do not in any way condition World Bank lending on respect for 
human rights. Indeed, human rights activist Francoise Remington 
and her organization. Forgotten Children, have documented ways 
in which the World Bank projects have generated child labor, yet 
we pour billions of dollars into that and other multi-lateral lending 
institutions. 

Do you think that our support for these kinds of organizations 
should be conditioned on taking steps to protect human rights in 
general and exploiting children in particular? 



21 

Ms. ECHAVESTE. I am going to defer to my colleague, Ms. Rosen, 
to answer that question. 

STATEMENT OF SONIA A. ROSEN, DIRECTOR, INTERNATIONAL 
CHILD LABOR STUDIES, U.S. DEPARTMENT OF LABOR 

Ms. Rosen. I think one of the things that we are calling for in 
discussions and increased discussions with the World Bank and 
international financial institutions is to learn more about the situa- 
tion and what impact current policies may have and how they 
could use their considerable weight and wealth and expertise to 
guide their policies to help children. 

Mr. Smith. According to your estimates, probably less than 5 
percent of child labor worldwide is engaged in the manufacture of 
products that are then ultimately exported. 

In those areas where there is no explicit link, that is to say 
where the produce of child labor is not coming to our shores, what 
would you recommend to Congress and the executive branch that 
the Federal Government do to try to stem this exploitation? 

Ms. EcHAVESTE. Let me add a point, and then I will have Ms. 
Rosen comment. 

I think clearly the bulk of the problem is in domestic production\ 
for those countries, but we have an opportunity with respect to \. 
those industries that involve international markets, so it is really V 
a multi-pronged strategy. By calling attention at the marketplace | 
level, you create pressure upon countries to deal with their labor / 
situation, which then creates a positive pressure. y 

As Ms. Rosen will indicate, the diplomatic rules of sovereign na- 
tions and how you pressure countries is one that I am ill equipped 
to answer. 

Ms. Rosen. Obviously, we hope and pray that the work that is 
done here in the United States has a ripple effect on children who 
are working in other sectors. 

The answers that we are beginning to look at have much to do 
with encouraging us and other countries to enforce existing child 
labor laws, as well as to put additional resources into the establish- 
ment of universal primary education for children so that as the 
children grow up, they grow out of the system of child labor and 
do not repeat this cycle. 

Mr. Salmon [presiding]. I have another question from the Chair- 
man. Is the use of child labor simply an effect of poverty, or is it 
more accurate to say child labor is one of the causes of poverty? 

Ms. Rosen. I think it is obvious that many of the children you 
find exploited around the world come from impoverished families. 
There is no doubt about that. There are other causes. Employers 
and other middlemen who use children, perpetuate the cycle. 

I think what is important to note is that while a great percent- 
age of children who are exploited in the workplace are very, very 
poor and come from very, very poor families, by using them and ex- 
ploiting them in the workplace, in no way do you break that cycle 
of poverty. 

Ms. EcHAVESTE. I would just simply like to add that trying to de- 
termine whether, as so many say, children need to work in other 
countries in order to survive has the effect of perpetuating the 



22 

cycle — lack of education, lack of skills, lack of opportunities to 
break out of that cycle of poverty. 

I think that all our information shows that having a child work 
is not going to make the family break out of that poverty class. 
That is a very important point. 

Mr. Salmon. Thank you very much. We appreciate your testi- 
mony. 

We will go ahead and dismiss you then and call in Panel III. I 
think that is the final panel of the day. Thank you so much for 
sharing your time with us today. 

On Panel III we have several people. Harry G. Kamberis is the 
director of the Asian American Free Labor Institute in Washington, 
DC, where he is over the programs that address child labor issues 
throughout Asia and the Near East. Prior to his position in Wash- 
ington, Mr. Kamberis served as the director for the Philippine and 
Korean offices of the Free Labor Institute. Mr. Kamberis is a grad- 
uate of American University School of International Service. 

Robert P. Hall III, is the vice-president and international trade 
counsel for the National Retail Federation. His duties with the 
Federation include serving as the retail industry's principal strate- 
gist and spokesman on a variety of issues, including international 
labor rights. Prior to joining the Federation, he held the post of leg- 
islative counsel to Senator Sam Nunn, serving as chief legal advi- 
sor. Mr. Hall received his B.A. and J.D. from the University of 
Georgia. 

Charles Kemaghan is the executive director of the National 
Labor Committee. Mr, Kemaghan has led numerous labor delega- 
tions on fact finding missions to Central America and the Carib- 
bean. He has also written several research reports on international 
labor rights. Before coming to the National Labor Committee, Mr. 
Kemaghan taught at the Henry VanArsdale Labor College in New 
York. 

Wendy Diaz is a 15-year-old orphan fi-om Honduras. She began 
working in the garment industry when she was only 13. While 
working at Global Fashions, she personally experienced and wit- 
nessed the exploitation of child labor. 

Jesus Canahuati is the vice-president of Honduran Apparel Man- 
ufacturers Association. He is also the director of a non-profit orga- 
nization that provides services to orphanages, alcohol rehabilitation 
and retirement homes. He received a degree in industrial engineer- 
ing from the Georgia Institute of Technology. 

Craig Kielburger is our final panelist, a 13-year-old eighth grader 
and founder of Free the Children. Upon learning about the death 
of a young boy who had been sold into child labor, Mr. Kielburger 
formed Free the Children to help eliminate the problem of child 
labor. Mr. Kielburger has traveled the world raising awareness 
about the exploitation of children. Through his efforts, Mr. 
Kielburger has been able to convince both the Ontario Federation 
of Labor and the Canadian Government to take affirmative steps 
to help eradicate child labor. 

With that, I think we will just go ahead and start over on the 
furthest end. Mr. Hall, would you like to go ahead and start? 



23 

STATEMENT OF ROBERT P. HALL HI, VICE-PRESroENT AND 
INTERNATIONAL TRADE COUNSEL, NATIONAL RETAIL FED- 
ERATION 

Mr. Hall. Mr. Chairman and members of the committee, I am 
Robert Hall, vice-president and international trade counsel of the 
National Retail Federation, the world's largest retail trade associa- 
tion. 

The NRF represents the entire spectrum of retailing from depart- 
ment stores to mass merchants to discounters to specialty stores to 
small, independent stores. Our members represent an industry 
which generated over $2,300,000,000,000 in sales last year and em- 
ployed 20,000,000 people or one in five working Americans. We also 
represent all 50 state retail associations and 34 national retail as- 
sociations. 

I thank the committee for allowing me to testify today on a mat- 
ter of extreme importance to American families and tne retailers 
who serve them — the perception of the prevalence of apparel sweat- 
shops generally and those that use child labor specifically. 

Mr. Chairman, the nation's retailers abhor the use of child labor, 
forced labor or exploitative labor wherever it may occur, in the 
United States or internationally, yet I encourage you and members 
of your panel to proceed with caution as you contemplate what 
types of action Congress or the Administration can take to curb the 
abuses that have been outlined in recent weeks by Mr. Kemaghan 
of the National Labor Committee and Ms. Diaz. 

A quick fix remedy or a band-aid approach such as a labeling 
program may make American consumers feel good about their pur- 
chases, yet recent history has shown that labeling programs do lit- 
tle to help the plight or those in need of protection, the workers 
themselves. 

The retail industry goes to extraordinary lengths working with 
our suppliers and contractors to ensure that the products on our 
shelves are produced in accordance with all applicable laws. This 
is not something we take lightly. As retailers, we rely on our rep- 
utations and the goodwill we have created with our customers to 
ensure success in the marketplace. If that goodwill is ever breached 
with our customers, it is hard to recapture. 

Therefore, it is in our interest to ensure that the goods we sell 
are produced safely and legally. A reputation gained from decades 
of good faith efforts to comply with all laws can go down the drain 
with one widely distributed press story. That is why it is so crucial 
that Mr. Kemaghan or anyone else churning out press releases or 
press statements use extreme care when launching public relations 
attacks insulting the names of reputable American retail compa- 
nies without first checking the facts. 

Let us take the announcement made by Mr. Kernaghan last 
month. In three out of the four cases, as of tne day of his press con- 
ference with Cong^-essmen Miller and Moran, Mr. Kernaghan had 
not spoken with anyone — anyone — at the companies he named as 
recipients of garments produced at a factory in Honduras. v^ 

I challenge Mr. Kemaghan here today to provide private notic^\ 
to companies when he uncovers a problem and to allow responsible \ j 
time for corrective action before making public his concerns or com- j 
plaints. J 



24 

Without consultation and communication, retailers and apparel 
manufacturers are reduced to correcting false impressions created 
by Mr. Kemaghan and other labor activists through third party 
media moderators or through congressional panel dialog. While 
that may make for good theater and use up a lot of press ink, it 
does nothing to address the real problems of child labor or exploita- 
tive labor. 

Mr. Chairman, the nation's retailers share the concerns you have 
expressed with regard to the rights of workers in the apparel in- 
dustry whether they live and work in California, New Jersey, New 
York, Arizona, El Salvador, Taiwan or Honduras. However, two 
central questions remain. Who is best positioned to ensure the 
rights of these workers, and who has a legal obligation to do so? 

In the case of working conditions here in the United States, both 
the Federal Government and the various State governments have 
an obligation to enforce the laws to the fullest extent possible. The 
clothing manufacturers are the next lines of defense. They have a 
legal obligation to comply with all applicable laws. As we have dis- 
cussed with Secretary Robert Reich and his staff for several 
months now, the American retail industry is committed to combat- 
ing any abuses of our domestic labor laws. 

Next week in New York, the Federation is sponsoring a compli- 
ance seminar to further educate our domestic suppliers of their 
legal obligations and to underscore our industry's commitment to 
selling products that are made safely and legally. Similar seminars 
will be conducted later this year in California and in Texas. 

Our commitment extends to the international front as well. U.S. 
retailers are working with foreign suppliers and the national and 
local governments of those countries to ensure they live by and en- 
force their own sovereign laws. 

The international manufacturers again represent the first lines 
of defense and are charged with obeying all of the laws of the coun- 
tries where they are doing business. As retailers, we insist in our 
contracts that the use of child labor or exploitative labor will not 
be tolerated. We make unannounced inspection visits to ensure 
that our products are being made by our contractors in safe and 
legal environments where workers' rights are protected. 

However, the retail industry is active on several other levels as 
well to combat the potential use of child labor or exploitative labor. 
As an industry, we are developing model guidelines and an indus- 
try handbook as a means of standardizing industry practices. 

Here in Washington and in capitols all over the globe, senior ex- 
ecutives from the retail industry are meeting with both government 
and industry officials from our trading partner nations to empha- 
size our strong concerns about child labor. I might add I did that 
in Guatemala m February. 

We are working with other U.S. -based companies through the 
U.S. Council for International Business to participate as employers 
at the International Labor Organization in Geneva where tomorrow 
Secretary Reich and other labor ministers, along with business and 
union representatives, will meet to discuss the global nature of this 
problem. 

What they will undoubtedly find, as we have, is that this prob- 
lem is a very complicated one and one for which overnight solutions 



25 

do not exist. We urge the committee to move with great care on 
this very sensitive issue. 

I thank the committee for its attention to these issues and assure 
you that American retailers are willing to play an appropriate role 
as we all struggle to address the problem of child labor. 

[The prepared statement of Mr. Hall appears in the appendix.] 

Mr. Smith [Presiding]. Mr. Hall, thank you very much for your 
testimony. 

I would like to ask Mr. Kamberis if he would speak. 

STATEMENT OF HARRY G. KAMBERIS, DIRECTOR OF PRO- 
GRAM DEVELOPMENT, ASIAN AMERICAN FREE LABOR IN- 
STITUTE, AFL-CIO 

Mr. Kamberis. Thank you, Mr. Chairman, and members of the 
subcommittee. On behalf of the American Federation of Labor Con- 
gress of Industrial Organizations, I want to thank you for the op- 
portunity to participate in these important hearings. 

I would like to briefly summarize my written statement and pro- 
vide you with some observations based on my personal experience 
as a representative for the Asian American Free Labor Institute in 
the Philippines for 4 years. 

There are approximately 100,000,000 child workers in Asia 
today, more than any other continent. These are children who labor 
full-time, some of them in the export industries. We consider this 
a low estimate since China is excluded because no reliable figures 
for that country exist. 

While the subject of this presentation is child labor, the AFL- 
CIO sees no substantive difference between the exploitation of a 
child garment worker aged 14 or 13 and that of his or her co-work- 
er aged 16 or 17 who is being equally exploited, abused, sexually 
harassed and denied basic human and labor rights. 

Exploited children become trapped in a lifetime of exploitation as 
teenagers and ultimately as adults because they never acquire the 
skills necessary to improve their economic condition. The same con- 
ditions that allow the recruitment of children as laborers allow also 
for the recruitment of children into the sex industries in Asia. 

The mix of reasons for the prevalence of child labor in a given 
country in Asia vary. One thing is clear. Those who suggest that 
child labor is a result of poverty are wron^. Poverty is not a reason 
for child labor. It is an excuse to justify its existence and absolve 
governments of their responsibility to enforce human and labor 
rights. Indeed, the struggle for the prevention and elimination of 
child labor is a struggle for personal liberties, human rights and 
representative democracy. '^ 

Most countries in Asia have adequate child protection laws that 
in theory at least ban child labor and provide for compulsory edu- 
cation. However, in countries with widespread and growing indus- 
trial child labor, the political will to enforce these laws is lacking. 

Industrialization, rapid urbanization and now the global market- 
place have increased the number of industrial child workers and 
placed them in increasingly exploited circumstances. In more open 
societies in Asia, efforts to address child labor have been more ef- 
fective because concerned citizens and their representative organi- . 
zations have the freedom to address the problem. / 



26 

The AAFLI, one of the AFLr-CIO's four institutes, has been fight- 
ing for and promoting human and labor rights in Asia for over 25 
years. Our child labor programs in Asia are primarily aimed at 
building coalitions within countries for the prevention and elimi- 
nation of child workers and to rehabilitate former child workers. 

We work with trade unions, human and labor rights organiza- 
tions, civic advocacy groups and other national and international 
non-governmental organizations, as well as government agencies, 
to promote the formulation and implementation of public policies 
aimed at enforcing internationally accepted labor rights and stand- 
ards. 

My personal experience in the Philippines has convinced me that 
/ child labor programs, to succeed, must include interventions in 
'I multiple areas simultaneously. By the time a child has been 
I trapped behind high compound walls, surrounded by armed guards, 
\ chained to work stations or locked in cells at night to prevent es- 
\ cape, it is often too late. 

Child labor is more than a labor standards or industrial relations 
issue. Inspecting regularly every workplace is not a viable option. 
There will never be enough qualified inspectors. In the Philippines, 
for example, there are only about 300 inspectors for about 350,000 
registered workplaces. 

The successful prevention and elimination of child labor requires 
the cooperative efforts of labor, government, employers, commu- 
nities and, on occasion, international pressures. 

In the Philippines, AAFLI, with funding from the AFL-CIO and 
/-the U.S. Grovernment, is working with the Trade Union Congress 
' of the Philippines and the Kamalayan Development Foundation, a 
child advocacy group, to address child labor problems through 
media, direct actions and coalition building. The KDF has made ef- 
fective use of the media to raise national consciousness by encour- 
aging TV and radio talk shows to interview former child workers. 

The KDF also cooperates with the government on rescue oper- 
ations. These operations, conducted by Philippine Government au- 
thorities based on information provided by the KDF, have resulted 
in the rescue of children as young as 12 years old from industrial 
plants, agribusinesses and prostitution dens in and around Manila. 

The conditions under which these children worked were horren- 
dous. Many labored up to 16 hours a day, 7 days a week. Some of 
these had never been paid. Others were required to use their sala- 
ries to buy meals and lodging, which was often the factory floor, 
leaving them with no money. In some cases, children were locked 
in cells at night to prevent their escape. Others were prevented by 
armed guards from leaving their compounds. 

Children in agribusinesses were fed what was called twice dead 
meat. This is meat from animals they were tending that died for 
unknown reasons, but were then butchered for food for the chil- 
dren. 

Children rescued from a chlorine manufacturing facility had seri- 
ous respiratory ailments and suffered from chemical burns on their 
bodies because they worked with no protective clothing or gear. 

Rescue operations, however, are only one element of the program 
to prevent and eliminate child labor. Once the children are freed 
and in the custody of the government's social service system, KDF 



27 

community organizers, led by KDFs highly dedicated executive di- 
rector, Alex Apit, visits the villages from where the rescued chil- 
dren are recruited. 

With the cooperation of community and church groups, the KDF 
holds informational programs for community members to inform 
them about the conditions under which their children labored. Par- 
ents of rescued children are g^ven reality briefings. Only after these 
briefings are rescued children reunited with their parents and 
placed in local schools. 

These efforts are having real life impacts in the Philippines. 
Some communities have run labor recruiters out of their areas, 
while others have reported to the authorities the activities of re- 
cruiters, which has led to their arrest and at least on one occasion 
a conviction. 

Unfortunately, business associations in the Philippines have not 
yet seen it to be in their own self-interest to become actively in- 
volved. Without their cooperation to allow unannounced inspections 
of their workplaces, a major element of a complete child labor 
elimination program is missing. Meanwhile, because of cutbacks in 
foreign assistance, AAFLI will be forced to terminate its support to 
the KDF as of this coming October. 

Quickly, some of our other experiences in Asia. India, with the 
world's largest population of child laborers, has the South Asian 
Coalition on Child Servitude; the Asian American Free Labor Insti- 
tute has supported some of their activities. 

Due to the efforts of SACCS, India was the first country to estab- 
lish Rug^ark, a labeling and workplace inspection verification pro- 
gram for child labor for handmade carpets. The Rugmark program 
is noteworthy not only as a model program for other industries, but 
also because it includes the all-important child workers' rehabilita- 
tion component. 

To the AFL-CIO, Rugmark demonstrates that business and 
NGrO's can work together to eliminate child labor in a cost-effective 
and political palatable manner. 

In Pakistan, child worker estimates range from 2,000,000 to 
19,000,000. There again, AAFLI is trying to assist in the establish- 
ment of the Rug^Tfiark program for products that are being exported 
from Pakistan, particularly handmade carpets. 

Prior to the murder of Iqbal Masih, a child rights activist there, 
the carpet manufacturers were not interested in hearing from us. 
Following his murder, exports of carpets to North America and Eu- 
rope plummeted because of consumer reaction. This caused the em- 
ployers there, the carpet manufacturers and the Pakistani (govern- 
ment, to now become interested in pursuing the Rugmark program. 

In Nepal, there was serious child labor in the carpet industry. 
With the establishment of the Rugmark program in Nepal, child 
workers in that industry have plummeted. The number of child 
workers has plummeted. AAFLI is now also carrying on a similar 
inspection verification program in the Nepalese garment industry. 

My point, Mr. Chairman, is that labeling programs do work. 

In Bangladesh, there was an agreement with the Bangladesh 
Garment Manufacturers Association. Prior to the agreement, there 
were some 50,000 to 200,000 child workers in the garment indus- 
try. Those numbers plummeted after the garment manufacturers 



28 

felt threatened because of adverse media exposure in the United 
States and the introduction of the Harkin-Brown bill. International 
pressure also works. 

Based on our experiences, we believe that a labeling program is 
an effective tool. International pressure is an effective tool. How- 
ever, because the conditions and forms of child labor vary from 
country to country and from sector to sector, there are no easy so- 
lutions. Certainly simply firing child workers is not a solution. 

Manufacturers and retailers who had economic gain from using 
child labor are culpable and must be held accountable for past and 
present business practices. Business codjs^ are a very important 
element in the effort to combat child labor. We applaud the Clinton 
administration and particularly the Department of Labor that is 
encouraging the support for a model code of conduct. 

However, we view this code of conduct only as a starting point. 
We believe that the code must be accepted by the business commu- 
nity as a very real commitment with stipulated responsibilities and 
that a process of independent verification and monitoring is nec- 
essary to ensure compliance. 

Simply signing a memorandum of agreement or posting a cor- 
porate code of conduct in a supplier's factory has, in our experience, 
not been effective, particularly abroad where the vast majority of 
the work force may be functionally illiterate and cannot even read 
what the code of conduct says. 

However, beyond codes of conduct we believe that rehabilitation 
programs are necessary. These are cost-effective and feasible. For 
example, with the Rugmark program, the carpet manufacturers 
pay 1 percent of the cost of the manufacture of the carpet into the 
s^program, which funds rehabilitation programs for child workers, 
provides them with basic literacy training. 

Many of these children, as they become adults, under the labor 
laws of those countries return to the same industry as adults and 
work and are more effective and more productive producers of car- 
pets and certainly more productive citizens in their society. 

Governments, however, have the ultimate responsibility to pre- 
vent child labor and to rehabilitate and educate former child work- 
ers. Our government should continue to support UNICEF and ILO 
programs that make possible education and rehabilitation pro- 
grams for child workers, although these programs must be care- 
fully monitored to ensure they do not become local government 
smoke screens. 

Congress should also make certain that adequate funding is con- 
tinued to the National Endowment for Democracy and the U.S. 
Agency for International Development, which have enabled AAFLI 
and other American NGO's to address child labor issues. 

American consumers need to voice more loudly their concerns. 
Consumers can exert great influence on business practices by 
choosing what they buy. 

Finally, we believe that international pressure and the threat of 
C credible trade sanctions works. We have seen that international ac- 
\ tion works. The GSP case against Pakistan is prompting the gov- 
\f rnment finally to address child labor in the carpet industry by be- 
coming an active promoter of the Rugmark program. 



29 

The introduction of the Harkin-Brown bill forced the Bangladesh 
Government and the garment manufacturers to action and to pay 
more than lip service in dealing with the pervasive use of child 
labor in the garment industries in Bangladesn. 

We urge the Congress to enact such legislation. We also urge the 
Administration to use the tools it has at hand to pressure countries 
to enforce their own laws and abide by internationally accepted 
labor standards. 

Thank you, Mr. Chairman. 

[The prepared statement of Mr. Kamberis appears in the appen- 
dix.] 

Mr. Smith. Thank you very much for that very comprehensive 
statement. 

I would like to announce the subcommittee will take a brief 10 
minute recess, and then we will hear from Wendy Diaz. 

[Recess.] 

Mr, Smith. The subcommittee will resume its hearing. 

I would like to invite testimony of Wendy Diaz, a 15-year-old or- 
phan from Honduras. As was pointed out earlier, she began work- 
ing in the garment industry when she was 13 and has been getting 
quite a bit of focus on the comments that she has made, which I 
uiink have helped all of us gain a deeper understanding over what 
is truly going on and how children are being exploited. 

I would like to welcome Wendy to make her statement. 

STATEMENT OF WENDY DIAZ, CHILD LABORER (THROUGH 

INTERPRETER) 

Ms. Diaz. My name is Wendy Diaz. I am Honduran. I am 15 
years old, and I began to work in the Global Fashion factory when 
I was 13. Last year, until December I worked on the Kathie Lee 
pants. 

In Global Fashion, there are many minors like me. Some are 13, 
14, 15 years old. Working on the Kathie Lee pants, they obligated 
us to work from 8 in the morning until 7 or until 9 at night. On 
Saturdays, we would work until 12 or until 5 or all night until 6:30 
in the morning. This happened frequently with the Kathie Lee 
pants. The companaros in the packing department almost always 
had to work these shifts. 

Working those hours, I used to earn 240 lempiras, which is 
$21.78. My base wage was 334 lempiras an hour, which is 31 cents. 
Nobody can survive on that wage. 

The treatment in Global Fashion is very bad. The Koreans would 
insult us, scream at us that we have to work very fast. Sometimes 
they throw the clothes in your face. They would hurt us or push 
us, and they would oblige us to work more quickly every day. If one 
day you make the production goal of 850 pieces, then the next day 
they would raise it even more. 

The plant is very hot. It seems almost like an oven, and they do 
not permit us to go to the bathroom more than twice. It is loclced. 
They do not permit us to talk at work. If they see us talking, then 
they punish us. The punishment that they give us is an 8-day sus- 
pension without a wage. 

They even maltreat the pregnant women quite a lot. They send 
them to the pressing department where they keep them working on 



30 

their feet for 12 or 13 hours. They cannot stand working on their 
feet for so long in the great heat, so they have to resign. When they 
resign, they do not give them their benefits, the breastfeeding ben- 
efits, the maternity benefit, nor do they pay their vacations as they 
should completely. 

Sometimes the Koreans touch the young women in a playful 
form. They touch their legs or their buttocks. They think that it is 
playing, but I do not believe that it is that. 

Many of us would like to go to night school, but we cannot. We 
do not have medical insurance, nor do they pay our sick days. We 
also have to pay for our medicines. 

North Americans from U.S. companies a number of times have 
visited the company, Global Fashion, but they have never spoken 
with the workers. The majority of the workers at Global Fashion, 
most of us are young, 16 or 17 years old, up to 23 at the most. Very 
few are older, I suppose because the Koreans do not like to hire 
older people because they do not accept the maltreatment. 

The majority of us are afraid. Once when we tried to organize, 
the boss brought us together in a meeting and told us that anybody 
who tried to organize would be fired immediately. They said that 
they would not allow any organization inside the plant. 

The company hired spies to tell them everything that we talked 
about in our meetings. When we had a group of 40 of us who want- 
ed to organize, they fired people and they harassed people until 
they obligated them to resign. Of the 40 of us who were in the 
group, there are only five or six who are left working. 

When we have to leave work at 9 at night, we leave in groups 
almost running because it is dangerous. It is very dark, and there 
is a lot of crime. 

We minors need to work because we need to support our families. 
I have little brothers, and I have to help support them because I 
do not have a father. My father died, and our mother abandoned 
us. We need the work, but we want it under better conditions. We 
want our rights to be respected. We want a better wage and better 
conditions. 

I feel very happy because I wanted to meet with Kathie Lee. I 
met with her. I wanted to meet with her because I wanted to ex- 
plain personally what was happening. She promised me that she 
was going to help us and that she was going to talk with Wal-Mart 
and work with Wal-Mart to return the work to our plant, but with 
better conditions and also permitting a monitoring group inside the 
plant. 

This is my testimony. Thank you. 

[The prepared statement of Ms. Diaz appears in the appendix.] 

Mr. Smith. Ms. Diaz, thank you very, very much for your testi- 
mony and for your willingness to come and appear before the sub- 
committee. We do appreciate it. We will be asking you some ques- 
tions momentarily. 

I would like to invite Jesus Canahuati, the vice-president of the 
Honduran Apparel Manufacturers Association, to present his testi- 
mony at this point. 



31 

STATEMENT OF JESUS CANAHUATI, VICE-PRESIDENT, 
HONDURAN APPAREL MANUFACTURERS ASSOCIATION 

Mr. Canahuati. Mr. Chairman, Chairman Smith, I want to 
thank you for inviting me to appear today before the committee. 

I am here today as a representative of the Honduran Apparel 
Manufacturers Association. We represent 170 apparel assembly 
plants in Honduras which employ over 70,000 workers. As you can 
imagine, this is a significant work force in a country with a popu- 
lation of 5,500,000. ft should be noted that all apparel and related 
export plants operating in Honduras must be members of our orga- 
nization. 

I am here today to present the facts to you about the apparel as- 
sembly industry in our country. The industry is new in Honduras. 
Ninety-five percent of the plants have been built since 1989. As 
with anything new, you correct your early mistakes and improve 
over time. 

We believe that in this short 7-year period, our industn^ has 
grown into a shining success story of which we are proud. Tne in- 
dustry provides $200,000,000 annually for the Honduran economy, 
over half of which is for salaries. Honduras is the fastest growing 
apparel export industry in Central America. The apparel industry 
in Honduras provides vocational education and training and is 
thereby creating a career for its workers. 

In Honduras, we have one of the most advanced labor codes in 
Latin America. The legal, social and economic benefits of this law 
have ensured social stability in Honduras in spite of the fact that 
the rest of Central America has suffered much political and social 
unrest. 

The labor code in Honduras provides the workers with guaran- 
tees such as protection against unjustified dismissal, regulated 
working schedules, paid vacations — for example, 15 paid vacation 
days after 3 years tenure plus 12 paid holidays — overtime pay re- 
quirements, health and safety regulations, severance pay — the 
workers receive 1 month for every year worked — workmen's com- 
pensation, collective bargaining rights, the right to organize and a 
100-day guaranteed and paid pregnancy leave with assurance of re- 
turning to the same job. 

Another very significant law implemented in Honduras in recent 
years is the law wnich requires every Honduran employer, whether 
government or private sector, to pay every worker 14 months' pay 
for a 12-month work year. 

Furthermore, current child laws guarantee specific labor rights 
for minors between 14 and 17 years old. Minors of this age must 
receive written permission from parents and the labor department 
in order to work. Under newly passed legislation, young people will 
have stronger protections under our law. 

In the Honduran Apparel Manufacturers Association, we strongly 
believe in protecting the rights of our young people and in following 
the international age standards for workers. To our knowledge, 
there are no minors under the age of 14 years old working in Hon- 
duran assembly plants. Of course, there may be cases where fal- 
sified documents were presented in order to obtain employment. 

Mr. Chairman, I would like to talk for a moment about the work- 
ing conditions and benefits of Honduran apparel assembly plants. 



32 

We have brought with us some enlarged color photos of the pl£ints 
which I manage. I do not believe that you will be able to see the 
pictures from here, but I will be happy to submit them for the 
record. 

As I stated earlier, 95 percent of our assembly export plants are 
about 5 years old. These are modern, comfortable and well 
equipped plants. Virtually every plant has either a medical clinic, 
a nurse or a doctor available for consultation. Both the consultation 
and prescribed medicines are free to all workers. In many of the 
plants, we provide free health care for the children aged one to 
eight of our workers. 

Certain benefits are mandatory throughout the industry, and 
other benefits vary from plant to plant. Other benefits include 
mandatory free dinner for all workers who work after 5 p.m. Fur- 
thermore, many plants give a free breakfast to the workers and 
subsidized lunch. 

As a new initiative, many plants are now implementing modem 
day care facilities. Many plants also provide transportation for the 
workers who live further away from the plant. An overwhelming 
majority of the plants also provide air conditioning. 

Mr. Chairman, I feel obliged to answer a recent outrageous alle- 
gation against our industry in the media. I can state clearly that 
our members are strongly opposed to providing any kind of contra- 
ceptive to our women workers. We have not done so in the past, 
and we will never do so. It is insulting that I have to respond to 
this. In a survey done this month by our social security administra- 
tion, it was determined that out of 29,000 apparel women workers, 
21 percent of them are currently pregnant. 

What we do provide by law to all our workers, including our 

f>lant managers, are certain mandatory vaccinations, such as ma- 
aria and tetanus. 

Finally, Mr. Chairman, I would like to state the general policy 
on wages for our workers. It is important to keep this issue within 
the context of other salaries in Honduras, which is an under-devel- 
oped economy. You simply cannot compare Honduran salaries with 
U.S. salaries. 

For example, a Honduran Congressman earns approximately 
$15,000 per year. An average apparel factory manager with a col- 
lege degpree earns approximately the same amount. 

Our apparel plant workers are paid according to what she or he 
produces, but no person is paid less than the mandatory minimum 
wage. The average worker at the apparel plants earn in take home 
pay two times the Honduran minimum wage. This is an average 
salary and does not include benefits such as health care, food and 
transportation, which are paid by the employer. The faster workers 
who produce more clothing woula receive three times the minimum 
wage. 

Mr. Chairman, in summary, I want to tell you that our associa- 
tion is working every day to make our apparel assembly industry 
the best in Latin America. We are always exploring new and better 
ideas to implement in our plants. 

Of course, we take all allegations of misconduct seriously, and we 
are working to investigate and punish anyone involved in abusive 
or incorrect actions. In fact, since 1992, the government has taken 



33 

action to expel from Honduras foreigners who were found to be vio- 
lating workers' or minors' rights. 

The Honduran Apparel Manufacturers Association is in the proc- 
ess of setting up a mediation committee in order to investigate any 
grievances by our workers. We feel it is in our interest to treat our 
workers the best we can. 

Our entire industry issues an invitation to all of the Members of 
Congp'ess and your staff to visit our assembly plants. In fact, we 
urge you to come at your earliest convenience. In the last 2 years, 
20 congressional staff members have visited seven different Hon- 
duran apparel plants. 

Thank you again for your invitation to testify. My delegation 
from Honduras and I look forward to meeting with you and many 
of your colleagues this week. 

Thank you. 

[The prepared statement of Mr. Canahuati appears in the appen- 
dix.] 

Mr. Smith. Mr. Canahuati, thank you very much for your testi- 
mony. 

I would like to now ask Mr. Charles Kernaghan if he would 
make his presentation. 

STATEMENT OF CHARLES KERNAGHAN, EXECUTIVE 
DIRECTOR, NATIONAL LABOR COMMITTEE 

Mr. Kernaghan. Thank you, Mr. Chairman. 

Just to put some of this into perspective, I think it is important 
to note that approximately one-half of all the apparel purchased in 
the United States last year, over $190,000,000,000 worth of ap- 
parel, was composed of imports made offshore. 

In Central Ajnerica and the Caribbean alone, there are 500,000, 
mostly young women, producing apparel exclusively for sale in the 
United States. In Honduras, which has a population of about 2 per- 
cent of the United States, Honduras exports to the United States 
twice as much apparel as the United States exports to four coun- 
tries in Europe — Italy, Germany, the United Kingdom and France 
combined. 

Honduras has 65,000 to 70,000 maquiladora workers or assembly 
workers. We estimate that about 13 percent of those workers are 
between 12 and 15 years of age. In fact, if you go to the free trade 
zones in Honduras or to the factories, you will see used school 
buses from the United States are used to transport the workers to 
work. 

If you are out in front of the zones in the morning and you see 
the used school buses from the United States pull up with the Eng- 
lish writing still on them and out come hundreds of kids, you think 
you are at a junior high school. You are not. You are at factories 
where workers are going in frequently to work 12- to 14-hour shifts 
producing goods for export to the United States. 

You heard from Wendy Diaz about the Global Fashion plant and 
some of the conditions in that factory. Of course, they were making 
this Kathie Lee garment right here, these pants. Not only was it 
Kathie Lee. They were also making this jacket by Eddie Bauer, 
which Eddie Bauer said they were not making in Honduras, but I 



34 

understand recently they have seen the fact that they are produc- 
ing there. They were able to finally trace this jacket. 

It is not just Global Fashion. You can go down the road to a place 
called Selin Baracoa where minors 14 and 15 years old are em- 
ployed in that factory, another Korean-owned maquiladora, produc- 
ing clothing on the Jaclyn Smith line for K-Mart. It is the same sit- 
uation, frequently working from 7 in the morning until 9 at night. 
There are always armed guards at these factories. They are prohib- 
ited from going to night school if they must work the overtime. 

Other factories I could mention would be Paulsen Garments 
where this McKids shirt was made. This factory has frequently 
hired children. The Orion plant in the Galaxy Industrial Park had 
a lot of minors working in it. They made this Gitano shirt. In fact, 
I was there in 1995 when the workers went in at 7:30 on Saturday 
morning and worked 23 hours straight, coming out at 6 on Sunday 
morning. 

It is not by any means just Honduras, and there is no reason to 
target any country singly like that. Of course, there are minors in 
El Salvador working. There are minors in Guatemala working. 
There are children working in Bangladesh and India and Pakistan, 
everything that you heard today. 

In fact, in Guatemala last year a Wall Street Journal correspond- 
ent was there and came upon a plant called Sam Lucas where 
clothing was being made for Wal-Mart for children. 

In El Salvador in a place called Gabo in the San Marcos free 
trade zone, children's clothing was being made by minors. This is 
a school code label by Dayton-Hudson. Fourteen- and 15-year-olds 
were making this children's clothing. They also were making this 
Pebble Beach shirt, which is a Marshall's label. It is a problem that 
goes well beyond Kathie Lee Gifford. 

Of course, in the plant right next door called Mandarin, we found 
Eddie Bauer again. T-shirts were being made by 14- and 15-year- 
olds who were sometimes working straight from 7 in the morning 
until 4 the next day and then sleeping on the ground next to their 
sewing machines. 

This plant also produced for J.C. Penney and for The Gap until 
The Gap laid down the law with Mandarin and brought in inde- 
pendent human rights monitors working with us so that Mandarin 
now, this factory in El Salvador, The Gap becomes the first com- 
pany we know of anywhere in the world which has said to its con- 
tractor we have nothing to fear. The Gap has nothing to fear. We 
want to respect workers' rights. We do not want children working. 
We do not want to violate human rights. They opened the factory 
to independent human rights observers and monitors compliance. 
I think the U.S. people are not interested in purchasing products 
made by children, by exploited women, by people paid starvation 
wages, by people working in illegal sweatshops. This has been 
proven over and over again. 

As Wendy said, last week we had the opportunity to meet with 
Mrs. Gifford and her lawyers and her public relation handlers. It 
was very interesting because Mrs. Gifford asked Wendy her story, 
and Wendy told Mrs. Gifford the story of what it was like to work 
in that factory. 



35 

By the time Wendy had finished, Mrs. Gifford apologized to 
Wendy and said Wendy, I want you to understand. Believe me, I 
did not know this was happening. I did not know what was going 
on. She said I am sorry, and I want to give you my word that this 
will never happen again. I want to work with you, and I want to 
work with other people that you work with to clean up these fac- 
tories. If I cannot, I am getting out of the industry. 

This is what she told us, and then she went on to Wal-Mart and 
said to Wal-Mart I want you to return to Honduras. I want my 
clothing line back in that factory, but I want that factory cleaned 
up, and I want independent human rights monitors to have access 
to the factory. I want to pay the workers a living wage, something 
incredible for Mrs. Gifford to say. 

We are waiting on Wal-Mart now to see what response there is, 
but surely if companies wanted to end these sweatshop conditions 
or child labor, one area they could do immediately would be to open 
their factories to independent monitors. If they have nothing to be 
afraid of, then independent human rights organizations on the 
ground in those countries should have access to the plants. 

Of course, all the other excellent things that were said today 
about the 'No Sweat' label, this would be a real breakthrough. We 
could finally purchase clothing and products that we knew were 
not made by children or not made by exploited women or made in 
sweatshops and Congressman Moran's law to make countries im- 
plement their child Tabor laws if they are to continue to receive 
U.S. funding. ^ 

There is a bigger problem, to conclude, with the fact that the re- 
tailers and multi-nationals search the world searching for misery. 
They will tell you themselves that where there is the greatest un- 
employment, you are always going to find the lowest wages. 

The Wal-Marts and the K-Marts and Nikes and the mass indus- 
tries, they trot the world looking for the lowest wages, whether 
that is in Honduras at 31 cents an hour or Nicaragua at 24 cents 
an hour, whether that is El Salvador at 56 cents an hour, whether 
that is Sri Lanka at 18 cents an hour or Vietnam at 11 cents an 
hour or China at 11 cents. They have these Third World countries 
competing against each other. Who will accept the lowest wages? 
Who will nave the lowest wages, the most miserable working condi- 
tions? The multi-nationals that go into Honduras do not even pay 
taxes. Wal-Mart, a $97,000,000,000 retailer, produces clothing in 
Honduras without paying one single cent in tEixes. 

It is a system that now is coming back to the United States 
again. Everybody is beginning to recognize it. The growth of the 
sweatshops offshore comes back to the United States, We see it in 
New York and Los Angeles and Boston. We see the retailers telling 
U.S. manufacturers that they have to meet the same prices that 
they are paying offshore in these Third World countries, one of the 
reasons we lost 99,000 apparel jobs last year. 

I think that Mrs. Giflford's statement, for example, about the 
independent monitoring was very brave. She has taken on one of 
the biggest retailers in the world, the biggest retailer in the world. 
It will be very interesting to see what Wal-Mart does. 

We are calling upon Walt Disney, for example, which pays work- 
ers in Haiti who make Walt Disney garments 28 cents an hour, 



36 

which is truly a starvation wage. It is not said lightly. You cannot 
live in Haiti on 28 cents an hour. We are asking Walt Disney to 
work with its contractors to pay 58 cents an hour. That is what the 
workers are asking for. It is not such a tremendous jump. 
"^ If retailers and manufacturers begin to be paid a living wage in 
these countries, sweatshops would be a thing of the past, and so 
would child labor because they could hire their parents. They do 
not need these 14-year-olds working in Honduras. If they paid a 
living wage, they could hire their parents, and the kids could go 
back to school where they belong. It is nonsense to think that com- 
panies have to hire children. 

About the laws in Honduras. I was very interested in the com- 
ments. I have an internal report here from USAID, the Agency for 
International Development, January, 1993. To quote, "In Honduras 
where the maquiladora plants work in industrial plant settings, 
guards in the private sector parks routinely prohibit entry to union 
organizers and even to labor inspectors. In both Honduras and 
Guatemala, it is widely believed in reported labor circles that at- 
tempts to organize unions in non-union plants will result in dismis- 
sal if discovered." 

The report goes on. "In any event, with high rates of unemploy- 
ment, labor inspection all but absent and without unions to protest 
in-plant infractions, other worker rights dealing with maximum 
hours, health, safety, women and child labor, etc., have little or no 
chance of effective enforcement." 
> The team was repeatedly told that this was, in fact, the case that 
/ was being widely violated. The report goes on to say that Honduras 
/ has 99 labor inspectors for the entire country. As pointed out else- 
I where, they are most often barred, quite illegally, from entering the 
\ industrial parks in which the maquiladoras operate. 
\ I have been there with cameras. Right in front of film cameras, 
the armed guards in the Delba free trade zone prohibited a labor 
inspector from entering the zone. This is common practice. 

Until these laws are implemented in a place like Honduras or El 
Salvador or Guatemala, the laws will be worth the paper they are 
written on and not much more. 

Mr. Smith. Thank you very much for that passionate statement. 

I would like to ask Mr. Craig Kielburger, a 13-year-old eighth 
gprader and founder of Free the Children, if he would make his 
presentation at this point. 

STATEMENT OF CRAIG KIELBURGER, FOUNDER, FREE THE 

CHILDREN 

Mr. Kielburger. Thank you, Mr. Chairman, members of the 
committee, ladies and gentlemen and fellow youth. 

I am here today to represent children, for child labor affects chil- 
dren the most. It is the children who are being exploited, the chil- 
dren who are being abused, and the children whose most basic 
rights are not being fulfilled. 

I personally believe that children should speak out for their 
rights and that children should be heard when speaking out on the 
issue of child labor and that children have a special role to play in 
the solution to this problem. 



37 

I recently returned from a 7-week trip through Asia where I met 
working and street children. I was able to speak to them. I wanted 
to better understand their reality and to ask them what they want- 
ed to make sure that we were not simply imposing our western cul- 
[ture on these people. 

I could tell you stories that would shock you, stories of these chil- 
dren. I have met children as young as 4 years old working dawn 
till dusk 7 days a week making bricks, children working up to 14 
hours a day loading explosive chemicals into fireworks tubes, chil- 
dren working in dangerous glass and metal factories, children 
physically, verbally and sexually abused. 

There are many stories which I will never forget, stories of these 
children. One child, Nagashar, who worked in a carpet factory as 
a bonded laborer, had scars which went all over his body — his 
hands, his legs, his arms, his feet, even on his throat, his voice 
box — where he had been branded with red hot irons when he 
helped his youngest brother and one of his friends escape from 
I bondage. 

Another young boy who worked as a bonded laborer in a carpet 
factory had scars which went down the top of his skull where he 
had been hit with a metal rod when he made a mistake. 

One 8-year-old girl named Munianal worked in a recycling plant 
separating used syringes and needles, taking them apart piece by 
piece for their plastics. She wore no gloves and no shoes. At one 
point, we even saw her step on the pile of needles to get to her 
workplace on the other side. No one had ever told her of AIDS. She 
simply did not know the dangers of where she worked. 

These are all working children, but they are still children. When 
speaking about the issue of child labor or the exploitation of chil- 
dren, we are not simply talking about facts or statistics because we 
are talking about real children, real children with real lives, real 
hopes, real dreams, real hardships, real suffering and real abuse. 

Some of you may say child labor is necessary for Third World de- 
velopment. Studies by UNICEFV the-ItO and~()lher~non-govern- 
mental organizations point out that child labor is actually keeping 
Third World countr ies poor._Factories prefer_tg_Jiire children be- 
cause they --are__easnyintim2a^^ organize trade 

unions and are cheap laborrofreir~wofkTng"tor bne-half to one-third 
of the wage that an adult relative would be earning. The utmost 
basics of it is that a child at work means an adult out of work. 

Mr. Kailash Satyarthi, who won the Robert Kennedy Award for 
his humanitarian work and who leads a coalition for over 150 orga- 
nizations working on the issue of child labor, would tell you that 
in India there are 50,000,000 child laborers, while there are 
55,000,000 unemployed able-bodied adults. 

As consumers, we all bear part of the responsibility for what is 
happening. Is it right that thousands of children in Pakistan work 
12 to 16 hours a day sewing those famous brand name soccer balls, 
which they will never get to play with because the soccer balls are 
shipped to North America for your children, your grandchildren or 
for me? "^^^^ 

It is simply a question of greed and exploitation, exploitation of ^ 
the most weak and underprivileged. These greedy people include j j 
companies going into Third World countries and contracting out to 1/ 



38 

the cheapest factory that will produce the goods at their standards. 
This only encourages factory owners to seek out the cheapest 
labor — children. Poverty is no excuse for exploitation. Poverty is no 
excuse for child abuse. 

We have formed an organization called Free the Children, a 
youth group dedicated to eliminating child labor and the exploi- 
tation of children. Most of our members are between 10 and 15 
years of age. We have chapters coast to coast across Canada, and 
we are rapidly expanding into the United States with chapters in 
Washington, San Francisco, Idaho, Iowa, Maryland. 

We are receiving calls daily from young people all across the 
world who want to get involved, who want to help their peers, 
which are now the children of the world. 

You do not need a lot of committee meetings to realize something 
is wrong when children are being exploited. We may be young, but 
we know that something has to be done to help these children. 
Children have to be taken out of the factories and replaced with 
adult relatives, adults who can fight for their rights and receive a 
just; wage and safe working conditions. 

-^ulti-national corporations must be willing to pay adults a just 
^age so that their children in turn will not have to work to help 
supplement the family's income. As for those corporations who go 
into countries for cheap labor, they must be willing to give some- 
thing back. They must be willing to fund the education and reha- 
bilitation of child workers. 

Our Free the Children office has received hundreds of calls from 
consumers all across North America, consumers all across the 
world, who are saying that they do not want to buy products made 
by the exploitation of children. That is why a labeling system with 
independent monitoring which clearly identifies products made 
without the exploitation of children is a necessity. 

Another solution is to make importers accountable to make sure 
that the products which they import into North America are not 
made from the sweat and toil of children because consumers have 
the right to know who is making the products which they are buy- 
ing. 

In May 1995, UNICEF set an example by including a 'no child 
labor' clause in its buying policy based on the United Nations Con- 
vention on the Rights of the Child. 

I have been told that the United States has already passed a 
Tariff Act in 1930, and Section 307 prohibits the importation of 
products made by prisoners or indentured labor from coming into 
the United States. If this is true, then why are soccer balls, clothes 
and carpets made by children in bondage and slavery still coming 
into the United States? Why are they not banned under this law? 

Child labor, however, should not be used as an excuse to stop 
trading with a developing country. We are advocating selective 
buying, not a boycott of all products, which would hurt these chil- 
dren even more. 

I personally cannot understand why anyone would not live up to 
the laws to protect the world's children. Maybe companies, sports 
and television personalities and maybe consumers until recently 
could have said that they did not know that child labor or the ex- 



39 

ploitation of children existed, but they do now. They have been 
educated, and knowledge implies responsibility. 

You and I — everyone here today — has now been educated, and 
thus we must now do something to help the world's childrerL It 
simply comes-. down to- a que s tion -o£^ poli tical will. Why a re some 
governments that are seriously fac ed withTtheTssue of chTIH Tabor 
on avefageTgpepding 30 percent mor e of their national budget on 
the military than on primary^je3ucation2-Ar:e_the world^leaders 
truly concerned about helping these-.children? Where^isThie social 
conscience of multi-national corporations? 

There are many pictures which I could have brought to show you 
today. Hundreds. I personally brought only one. This is a picture 
of children in Calcutta, 250 children marched down the streets of 
Calcutta with banners chanting "We want freedom. We want an 
education. Children should not work in hazardous industries. 
Never again." 

Today, we are all here to pass on that message to be their voice. 
You are such a powerful nation. You do have the power in your 
words and in your actions and in your policies to give these chil- 
dren hope for a better life. What will you do to help these children? 

Thank you. 

[The prepared statement of Mr. Kielburger appears in the appen- 
dix.] 

Mr. Smith. Mr. Kielburger, thank you very much for your very 
eloquent statement and for your commitment at such a young age. 
To have such an empathy with people of your own age is truly re- 
markable. I think you personally have a very great future ahead 
of you if you stay with this. 

You asked a question about political will, and I think that is a 
very apt question. I know I have been in Congress for 16 years try- 
ing to get previous administrations and the current administration 
to enforce the Smoot-Hawley Act, the law that you referred to, the 
1930's legislation, as it relates to slave labor made goods. 

We have had customs officials, including Commissioner VonRob, 
a previous customs official, who wanted to do just that and ran into 
a buzz saw of opposition from our own State Department and from 
other interests who were opposed to that. 

That relates also to the former Soviet Union because they, too, 
used to make items in the gulag that found their way into this 
country, and I was aghast myself at the lack of responsiveness in 
previous years, and we are finding it again right now vis-a-vis the 
People's Republic of China and, of course, regarding this issue as 
it relates to children who are indentured servants, and most likely 
fit into the definition of slave labor under Smoot-Hawley. 

It is a very good question, and we have run into opposition over 
the years. I suspect we will run into it again. It is a matter of polit- 
ical will, and I think it is matter of empathy. 

Do you care enough to say, "What if these were my kids?" My 
wife and I have four children, and with human rights questions I 
always ask, "What if they were mine?" Whether we are in Country 
X, Y or Z, we are being exploited. That certainly helps my resolve 
and my focus as to what we ought to be doing to try to help these 
kids. 

I thank you for your statement. 



40 

I would like to open it up with this panel for some questions, and 
then yield to my distinguished colleagues for any questions they 
might have. 

Wendy, you mentioned earlier that you needed to work to sur- 
vive. You made a strong plea that conditions be made better. 

We heard from Mr. Canahuati who made the statement that all 
apparel and related export plants operating in Honduras must be 
members of his association. If vou could, Jesus, bring us up to date 
on whether or not Global Fashion was a part of that Association, 
whether or not the Association took action against them or others 
and what kind of actions were they? For instance, in a given year, 
how often have you levied penalties? I do not know what the pen- 
alties are. You can tell us. 

You also made the point, and Wendy might want to touch on 
this, that children of this age, talking about 14 to 17, must receive 
written permission from the parents and the labor department in 
order to work. 

Wendy, if you could respond whether or not you got the written 
permission from your parents or guardian? 

Mr. Canahuati. 

Mr. Canahuati. Yes. Global Fashion is a member of our Associa- 
tion. We have a list of penalties that have been filed in the labor 
ministry. It is a big list. For the record, I could submit that later 
on. 

Mr. Smith. I would appreciate that because that would help flesh 
out the kind of things that you and your Association are doing. 

Mr. Canahuati. OK. 

Mr. Smith. In terms of enforcement, I think the mention was 
made earlier of 99 inspectors. I think that is government inspec- 
tors. How lax or how vigorous is the enforcement? 

I would invite other members of the panel to respond, but before 
that, Wendy, if you could respond to whether or not you had per- 
mission from your parents to work? 

Ms. Diaz. When I was ten, my father died. Two months later, my 
mother abandoned us. I had three little brothers younger than me, 
and I had to do something to help them. 

I decided that the best thing to do would be to look for work and 
to see if I could find it. I went and traveled to San Pedro Sula and 
went to an aunt. I presented myself at Global Fashion, and they 
accepted me. 

According to what they say, minors, young workers, should only 
work 6 hours and get paid for 8, but there they demand that we 
work all the overtime hours. If we do not work the overtime, then 
they punish us. 

Maybe one feels tired or is sick, but they do not give you permis- 
sion to leave. Because you need the 2 weeks' pay, you stay. You 
force yourself because maybe you are sick because you need the 
work. 

Mr. Smith. Mr. Canahuati, how does your Association respond to 
those kinds of charges? 

Mr. Canahuati. Yes. Minors under the age of 15 — 14 and 15 
years old — are allowed only to work 6 hours a day. 

On the specific case that Ms. Wendy Diaz is presenting here, the 
Government of Honduras is very aware of the impact of this situa- 



41 

tion. They are doing an investigation that is ongoing. When we 
have the answers, we are going to submit them to you. 

Mr. Smith. Would other panehsts Hke to respond to any of the 
previous questions? 

Mr. Kamberis. Yes. Regarding enforcement, one of the things in 
our experience in Asia is that by and large the labor laws and the 
child protection laws are quite adequate. Even by American stand- 
ards, they are quite adequate. 

The problem is in the enforcement of those laws. In the enforce- 
ment of those laws, of course, the underlying problem there is polit- 
ical will. How do you get governments to enforce their human labor 
rights laws? '^- 

On that basis, we try to develop programs that link child labor 
to the human rights issue overall because actually child labor, at 
least in our experience, is only a symptom of the overall problem 
of enforcement of rule of law and good governance. It involves i^ 
sues of corruption. It involves issues of ignorance of the law. 

Because we are the AFL-CIO, of course, we try to emphasize 
that trade unions are an excellent mechanism for monitoring in the 
workplace these laws. Our experience is where there are free trade 
unions that are allowed to freely operate and organize and have 
collective bargaining agreements, in those workplaces where these 
unions exist there is no child labor. 

We can say that pretty emphatically. There is no child labor 
where there are free trade unions operating and where they have 
been organized in the workplaces. That is true whether they are 
domestic industries producing for domestic consumption or whether 
they are industries producing for export. 

Mr. Hall. Mr. Chairman, Robert Hall from the National Retail 
Federation. 

I would also add that we have worked very closely with several 
of the governments, both El Salvador and also Guatemala, and we 
are happy to work with the Hondurans as well, to encourage the 
manufacturers there to insist that there be better enforcement 
from the government. We also are conveying that directly to am- 
bassadors here in Washington. We are doing that in other coun- 
tries as well. 

I know the American Apparel Manufacturers Association has 
been working with several countries along with us to stress en- 
forcement as being the real key to solving the problem here, at 
least identifying the nature of the problem and then working at 
ways to address it. 

Mr. Smith. Thank you, Mr. Hall. Mr. Hall, in your testimony you 
warn against the voluntary labeling system calling it a band-aid so- 
lution. Even if it does not fix the bottom line or the root causes of 
child labor, is it not at least a small advancement in bringing some 
light and scrutiny to this? 

I think most manufacturers would want to have that label in 
place, especially if there are some suspicions about the origin or the 
means by which those products are produced. Why not? 

Mr. Hall. Several retailers asked me last fall, Mr. Chairman, to 
study the labeling issue, and I began doing that. Part of my study- 
ing carried me to Greneva to meet with the ILO and others there^ 



42 

I met with employers. I met with union activists. I met with offi- 
cials at the ILO. 

The Rugmark case, which has been mentioned here several times 
by a number of individuals, is probably the shining example of the 
best case scenario for labeling, but I would have to note that in the 
Rugmark situation, I spoke with Indian officials and others from 
the country of India, and they earned and told me that counterfeit 
labels were sold on the floors and in the factories and in the buying 
houses. I have one example of a stack of counterfeit labels being 
sold for the equivalent of one U.S. dollar. 

Clearly, with any kind of labeling program like Rugmark or an- 
other of the labeling programs, you would have to have auditing 
and other prog^'ams that could be sound as well. 

The other thing to point out here, though, is there is a draft ILO 
report that I have on hand today that talks about NGO's and also 
some of the other groups on the outside. There may be some prob- 
lems there with their reliability because their ability to be unbi- 
ased may be compromised as well. 

There are significant problems, particularly in developing coun- 
tries, on the labeling issue. Germany and Switzerland have led the 
way here in insisting on the Rugmark, but even at that level there 
are some problems. 

Mr. KlELBURGER. Could I make a brief comment about the state- 
ment? 

Mr. Smith. Sure. 

Mr. KlELBURGER. You mentioned about Rugmark a bit and how 
they can be counterfeit, the labels. I have met with many people 
who have worked on the Rugmark. I personally have not, so I am 
not the best person to discuss about this, but in regards to counter- 
feiting of the labels, there is a certain design with the threading 
which makes it very, very difficult to counterfeit. It also comes with 
a permit stating the type of rug, the number, the identification, 
and can be completely checked up in the Rugmark computers if 
anyone would like to check out. 

As for some other allegations that come up, you cannot truly find 
the working conditions. Rugmark does surprise checks. Rugmark 
also included clauses. Rugmark also does quota checks, i.e., so 
many people working so long, so much product is produced, is it all 
feasible, does it all work out. They actually have designed a com- 
puter program which can do this. 

Rugmark, as you mentioned, is the shining example. Perhaps 
others have not worked as well. Let us move from Rugmark. I 
know that importers do want Rugmark because I personally met 
with some Canadian importers since I am from Canada. 
\ They are saying yes, we want Rugmark. We want to take it on, 
the reason being that consumers are coming up to them and asking 
them how can you prove to us that this product is not made by 
child labor or the suffering of children. We want to know. These 
importers are actually telling this to us. They want Rugmark be- 
cause they have no choice. They want to bring it on. 

Mr. Hall. Just one thing I might say. The Oriental Rug Import- 
ers Group out of New York has met with the Rugmark officials 
here in the United States as well. Until they are satisfied that the 



43 

labeling program is one that is free of any sort of counterfeiting, 
they are not going to permit it here in the United States. 

Mr. Smith. Mr. Kamberis, your testimony states it is difficult to 
get reliable statistics on child labor in the People's Republic of 
China. Are you aware of credible reports of this problem existing 
in the PRC? 

Mr. Kamberis. Yes, we are. We do support programs with trade 
union activists based in Hong Kong and in Taiwan. As you know, 
Han Dong Fang, we support his activities. 

There is credible reporting from South China that there is a 
growing problem with child labor as these industries pull people 
out of the rural areas in central and western China to the indus- 
trial zones of southern China. We do not have really a total picture, 
only anecdotal evidence. 

Mr. Smith. Just let me ask about restrictions on foreign assist- 
ance, and you might want to begin in answering this. Would that 
be advisable, or would a more targeted approach be the way to go 
if it were decided that is what we should do? 

We always find ourselves in a Catch-22. Child survival pro- 
grams, other basic humanitarian assistance, food assistance are all 
things that are desperately needed by impoverished nations, and 
yet how do we get the attention of the capitol, of the government, 
in order to make some changes and reforms? 

We recently, as part of an attempt to influence the behavior of 
Turkey, conditioned ESF funds and held harmless the other funds 
like child survival and other important humanitarian programs. 

What would be your feeling on that? 

Mr. Kamberis. Most of our activities in this regard are funded 
by the U.S. Agency for International Development. Of course, they 
have their strategic objectives. In these strategic objectives, they 
earmark funding. 

One of the issues that we have tried to discuss with them is stis-^ 
tained economic development. We believe that those kinds of pro- 
grams should have as an underlying principle that sustainable eco- 
nomic development be equitable and address these labor rights is- 
sues of which child rights is one part of that. 

Also, in the democracy programs there are sustainable democ- 
racy objectives. We believe that there should be more emphasis on 
labor rights and standards and an international application of 
labor rights and standards. 

We try to craft programs that meet both the agency's objectives, 
as well as our own interest in this field. 

Mr. Smith. Let me just ask Wendy Diaz one final question, and 
then I will yield to my good friend, Mr. Moran, from Virginia. 

You testified that the bathrooms are locked and only twice daily 
were people allowed to use the bathrooms. How many children 
were employed at Global Fashions? It would seem to me that these 
horrendous conditions would lead to kids getting sick or perhaps 
having accidents. 

You mentioned how some of the women were touched. Does that 
also apply to the children? Were they abused in any way, shape or 
form with physical touch? 



44 

Ms. Diaz. Yes. The bathrooms are kept locked. They bring us to- 
gether in a meeting, and they tell us that we can only go twice a 
day. If we are able to go more than that, it is because we sneak. 

Also, there are a lot of minors. The majority of workers are very 
young. It is not important to them whether they are girls or young 
women or adults for touching them. 

It does not matter to them if you are sick. They do not give you 
permission. They do not give you sick days. The only thing tnat 
matters to them is that you work quickly so that the export will 
go out. 

Mr. Smith. Mr. Moran. 

Mr. Moran. Thank you, Mr. Chairman. 

First of all, I want to submit for the record some documents from 
the Walt Disney company because they have been mentioned in 
this context. One is a compliance certificate. I want to share this 
with you, Chris. It is an agreement that has to be signed between 
those who are licensed to produce the manufactured product. The 
Disney company does not do it themselves. They sell the license. 

Those licensees are required to sign a form that certifies that 
they do not use child labor, that the employees are provided with 
a safe and healthy workplace, that their presence is voluntary and 
that there is no corporal punishment or other forms of mental or 
physical coercion as a form of discipline of employees used, that the 
manufacturers comply with all applicable wage and hour laws and 
that they comply with all environmental laws. 

Mr. Chairman, that might be useful. It looks like the kind of 
form that we would like to see generally signed, whether it is a li- 
censee or a direct manufacturer, particularly in this out sourcing. 

Mr. Smith. Without objection, it will be made a part of the 
record. 

Mr. Moran. Thank you, Mr. Chairman. 

There is also a letter here from the ambassador of the United 
States to Haiti, Ambassador Swing, who at the request of the Walt 
Disney company inspected the conditions in the Haitian assembly 
sector and found that there was consistent compliance, that fac- 
tories were adequately lit and ventilated, warm but not oppres- 
sively hot. 

The conditions appeared to meet international standards. It talks 
about the fact that the health benefits varied a g^eat deal among 
manufacturers, but some of them were quite good. 

I think this might be useful to submit as well, Mr. Chairman. 
Thank you, Mr. Chairman. 

The conaitions that we are uncovering here I know exist. I do not 
know how pervasive they are, how typical they are. We are told 
that there are 100,000,000 to 200,000,000 children employed in un- 
acceptable conditions around the world. Obviously that is a pretty 
round, wide figure. The existence of child labor is substantial and 
is increasing, as best as I can determine, because it is profitable. 

What we want to find out, and I trust that I am speaking con- 
sistently with the Chairman's point of view — I am quite confident 
I am really — is we are trying to figure out how to act constructively 
here, how to prevent it, not to lay blame other than where it will 
produce a constructive reaction, but to figure out what we can do 
about it, particularly in situations where we are complicit by not 



45 

asking questions or demanding compliance where we might be able 
to do so. 

I would like to ask Mr. Hall if the Retail Federation has consid- 
ered endorsing a bill such as we have suggested that would require 
some type of certification? This seems to be what you and those 
who you represent want. As you have said in your testimony, thev 
do not want products made by child labor. Would you endorse sucn 
a bill, Mr. Hall. 

Mr. Hall. Congressman Moran, it is too early for us to tell. Our 
sense is certainly we would endorse some sort of certification. We 
would prefer to see that either industry or government led within 
the host country wherever the products are being made, not as a 
separate independent monitoring group that would be the United 
States and other groups of a multi-level that are involved. 

We can certainly study your legislation and prepare an answer 
and give you a full analysis. I am nappy to do that. 

Mr. Moran. We discussed that when we met earlier. 

Mr. Hall. Right. 

Mr. Moran. 1 am sure you have enough people that can study 
it. We are looking forward to seeing your conclusion. 

Mr. Hall. I will get back with you. 

Mr. Moran. Thank you, Mr. Hall. 

Now, Mr. Canahuati. Is that close enough? 

Mr. Canahuatl Very close. 

Mr. Moran. Thank you. Mr. Canahuati represents the Honduran 
Apparel Manufacturers. We seem to have a disconnect here be- 
tween what you are telling us. All the conditions that do not exist 
in the Honduras was pretty much your testimony, all the situa- 
tions, the conditions that you require compliance with. We have a 
disconnect with the witness who is actually working in those 
plants. 

Now, you have said that the government is going to study the sit- 
uation in the plant where Ms. Diaz is employed, but this informa- 
tion has now been available for quite some time. I do not know how 
much time or how many people it takes to send somebody out to 
look at the situation in this assembly plant and to come back with 
the information. 

I have to conclude, sir, that that is a dodge. You have had a lot 
of time to check out this plant. You are dealing with a major trade 
relationship with the United States. This has been as visible an 
issue as any issue affecting Honduras. 

The Ambassador is aware. Your entire Embassy is aware. I sus- 
pect your government is aware. It seems to me that you ought to 
give a more credible answer to this committee as to what you are 
going to do about the situation. 

This is the only situation we are currently familiar with. We 
have a real-life example. The reason why Ms. Diaz was brought be- 
fore us is that we had a big, blown up photograph. When Mr. 
Kemaghan used that, we were told, and I guess this is Mrs. Gif- 
ford's group — maybe it was her or somebody in the company — said 
oh, no, they are not people employed. There is the photograph we 
are referring to. Oh, no. Those women are not employed at our 
plant. That must have been a school picture or something, they 
said. 



46 

Then it turns out that the people who presented the photog^raph 
went back and got one of the members who clearly is in that photo 
and who has just told us, unless you want to tell us that she is 
lying. She has described all the conditions, so that dodge did not 
work. 

Now, you have told us all this long list of wonderful things that 
the Honduran Government is requiring. The only evidence we see 
completely contradicts that. Your response is, well, we are going to 
do an investigation. Can you give us a little more credible re- 
sponse? 

Mr. Canahuati. Yes. 

Mr. MoRAN. Good. 

Mr. Canahuati. Maybe I did not say it right. We will not do an 
investigation. 

Mr. MoRAN. You will not do an investigation? 

Mr. Canahuati. Our government will do the investigation, and 
it is already doing the investigation. 

I am not putting less credibility on what Ms. Wendy Diaz said. 
I came here to show the general picture of our industry. Because 
of what she has presented, our government has taken this veiy, 
very seriously and is taking steps on investigating that specific 
plant. Moreover, they are investigating the 170 plants. 

We will have findings on that. We do not have them yet. That 
is why I am not presenting them yet. 

Mr. MoRAN. It has been weeks since it was first announced. I 
know it has gone to the highest levels of the government. Can you 
at least verify that what we have heard is the case? Has anybody 
looked into this plant, this particular plant? 

It seems to me that is the first thing you would do. Somebody 
in authority would say get over there and see if these conditions 
exist. Is that not the first reaction? Is that not what you would do? 

Mr. Canahuati. Yes, but we do not have the final findings fi-om 
the government. We will have them pretty soon, I g^ess. 

Mr. MoRAN. You guess pretty soon. That is not an acceptable re- 
sponse. I mean, it is OK if that is what you want to leave it with. 
It is just disappointing because you have known. It does not take 
much to at least check out this. 

The problem is, and I think that you are representing the prob- 
lem, we have laws on the books in Latin America, in Asia, in Afri- 
ca. Countries will say look what we have. Look at this manual. Go 
take a week and read this manual. See how extensive it is. We 
have everything down here in this manual. 

That does not mean bananas when it comes to what is the reality 
of the workplace. That is the problem. These manuals, this nice 
rhetoric and stuff, has less and less credibility as we look into this. 

The problem is that there is no enforcement. It is not taken seri- 
ously enough that people are going out and looking into the plants, 
you know, at least to look at this one. This has been international 
news. It cannot be that far removed that somebody in the govern- 
ment could walk over or drive over and walk into the building — 
it is not a big deal — and to maybe unlock the bathrooms to show 
a little progress. It has not been done, and that is what is dis- 
appointing. 



47 , 

I think that is the problem that we have across the board here^ 
The governments say one thing and allow people to do another. 
That is why we need some type of certification with an inter- 
national monitoring capability that would have some credibility. 

The natural reaction is I would do the same thing if I was rep- 
resenting the Retail Federation. I would say let's do it within the 
country. We would do that if we thought it would be done, but 
there is a disincentive to do it, to clamp down. V 

In some SOtnTtrie^T^ike India and Pakistan and a lot of others^ 
there are payoffs to the police. The police are going to do whatever^ 
the person with the most money to hand out is going to ask them 
to do. They are certainly complicit. Well, more than complicit. They 
are a major part of the problem when they go and track these kids 
down and bring them back to the plant instead of turning in the 
people who are violating the law. 

Mr. Hall. 

Mr. Hall. Congressman, just a point. I understand and share 
your concern about the enforcement of laws by our various trading 
partners, but I think it really cannot go unnoticed here, and I think 
we ought to make a strong plea as well that here in the United 
States our own Department of Labor, our own INS and other divi- 
sions should enforce their laws as well. 

I had the privilege, and use that word advisedly here, but I also, 
quite frankly, had a very eye-opening experience when I traveled 
to El Monte, California, last August where the U.S. Department of 
Labor, the INS and the California Department of Labor monitored 
for 2 years slavelike conditions in this country before raiding that 
place and opening up a horrific situation. 

While we are passing out blame, we need to talk about enforce- 
ment both here in the United States and also internationally be- 
cause I do not think it is quite fair to level it all on our trading 
partners. 

Mr. MORAN. That is a good point. That is the kind of thing 
maybe the subcommittee would think about sending a little letter 
to the INS. Why did it take you 2 years before clamping down and 
doing something about it? 

Mr. Smith. It would not be the first time we have disagreed with 
the INS, believe me. 

Mr. MORAN. That is a very good point. That is a point well taken, 
although I think you would have to agree that generally labor laws 
are reasonably well enforced. In fact, I doubt that you would be 
anxious for us to enforce them to a much greater degree. 

Mr. Hall. That is not the case at all. That is not the case at all. 
Congressman. We have urged very strongly the Labor Department 
to enforce them to the full extent of the law. 

Mr. MoRAN. All right. 

Mr. Hall. That is simply not the case. 

Mr. MORAN. So you would be in favor of hiring more monitors? 

Mr. Hall. Absolutely. As a matter of fact, the Retail Federation 
in California went on record and sponsored legislation to up by sev- 
eral million dollars the enforcement budget of the California De- 
partment of Labor. 



48 

Mr. MORAN. Very good. That is appropriate. I am glad to hear 
that. It is encouraging. We ought to find out why it takes 2 years. 
There is no excuse for that. 

Nevertheless, I think that there is some justification for us con- 
cluding that what a government may tell us is not necessarily con- 
sistent with the facts. Until we can see some evidence to the con- 
trary, we have to assume that the situations that have been ex- 
posed in this hearing and in other forums are reflective of a condi- 
tion that needs to be addressed. 

The other thing I wanted to ask about is that Honduras, Guate- 
mala and El Salvador all have a pretty much consistent level of 
poverty, pretty bad poverty, pervasive poverty. Honduras and Gua- 
temala have significantly worse child conditions than does El Sal- 
vador from the information we can see. Now, why is that? 

You are representing the Honduras Apparel Manufacturers. I do 
not know who, unless Mr. Kamberis. He is an Asian American 
labor. Maybe Mr. Kernaghan. Can you shed some light on that? 
How does El Salvador do a better job than two other countries who 
have an equally problematic situation? 

Mr. Kernaghan. We do not see a great difference. The wages are 
slightly higher in El Salvador because the living standard is that 
much higher. The 56 cents an hour wages in El Salvador provide 
about 18 percent of the cost of living. The 31 cent wages in Hon- 
duras provide maybe about a third of what it would cost to survive. 

We did a survey in Honduras, and 100 percent of the workers 
surveyed in their homes by the Committee for the Defense of 
Human Rights away from the factory told us they would be fired 
by the company. One hundred percent of the maquiladora workers 
would be fired by the company if the company even suspected them 
of desiring to form a union. 

We see similar cases in Guatemala and in El Salvador. It is pret- 
ty much the same. 

I want to comment just briefly on the laws in Honduras. For ex- 
ample, there is a law that factories with more than 20 employees 
have to have a child care center for workers' children 3 years old 
or younger. They do not have it, but it is on the books. 

The factory, Global Fashion, could provide health care to the 
workers and their children. Free health care. It would cost the com- 
/ pany three cents an hour to join the government program to pro- 
vide health care to the women and their children. Free medicine, 
doctor consults and hospitalization. 

Well, Global Fashion and Wal-Mart chose not to pay the three 
cents an hour, so the workers have no health care. We could go on 
about these conditions. 

If I could just make one statement about Walt Disney since it did 
come up, we never said Disney used child labor because in Haiti 
they do not use child labor in the maquiladoras. They use adults. 

In August when we were there, Walt Disney was paying wages 
well below the minimum wage; not Walt Disney, but tne contrac- 
tors were. We found shops paying 11 cents an hour that were pro- 
ducing Disney garments. That is no longer the case. Now the four 
Disney subcontractors in Haiti are paying 28 cents an hour. What 
we are saying about the 28 cents an hour is that that is a starva- 
tion wage. You cannot live on it. 



49 

As far as other rights go, there are not any in the factories. The 
workers are frequently screamed at and yelled at, very similar to 
Honduras or El Salvador. Again, they are anti-union. You would be 
fired within 1 second if you ever even mentioned that. 

Also, with Honduras we are very proud of the fact that we have\ 
put U.S. companies back into Honduras. When Liz Claiborne pulled \ 
out of Honduras, it was the National Labor Committee that worked I 
with Liz Claiborne to have Liz Claiborne go back into the country. 
We are not interested in taking jobs away from Honduras or El 
Salvador or Guatemala. / 

We did the same thing with El Salvador when The Gap pulled/^ 
out. We pressured The Gap to return to El Salvador, and we are' 
doing the same thing with Wal-Mart right now. 

Wendy is under attack in Honduras for being unpatriotic when 
she is in this country fighting for Wal-Mart to return. Wal-Mart 
blacklisted Global Fashion. They said we will never deal with that 
company again. They sent an unannounced inspector on April 1 
into the factory. The inspector from Wal-Mart certified 100 percent 
what we were saying and blacklisted the factory. 

Fifteen-year-old Wendy has turned that around, so now Wal- 
Mart is going to recertify Global Fashion and help improve the con- 
ditions. Meanwhile, she is helping return the largest retailer in the 
world to Honduras, and she is under attack in Honduras as being 
unpatriotic and harming the country. 

I would say right now Honduras is under review for its trade 
benefits program for continued tariff benefits. We support in- 
creased tariff benefits for Honduras, We do not want Honduras to 
lose its tariff breaks. We will argue with the U.S. trade representa- 
tive over that. 

In November, 1995, the U.S. trade representative had a delega- 
tion in Honduras. By chance, they made a visit to a factory called 
Honlin in the San Miguel free trade zone. To their great embar- 
rassment, half the people in the plant were kids. This was the U.S. 
trade representative official delegation in November, 1995. 

There are huge problems there, but we do not think the compa- 
nies should leave, and we do not think the U.S. Government should 
withdraw aid to Honduras or take away tariff benefits. There are 
other ways to work on this. 

Mr. MORAN. I am sure Mr. Canahuati is going to rectify this situ- 
ation and make sure that Ms. Diaz is appreciated for bringing in 
more industry to her company than perhaps some of your col- 
leagues ever will in their lifetimes and make sure that she is not 
punished. I am sure that you are going to tend to that, Mr. 
Canahuati. 

Let me just try to end on a somewhat positive note. Bangladesh. 
I understand that Bangladesh has been working with the U.S. EmA 
bassv and non-governmental organizations to provide schooling for/ 
chilaren. They provide them half day if they will go to schools. / 

I think this may be a model. It is a very poor country, and it is 
a lot of initiative that they are showing. Let me just ask a very 
simple question. Is it working as we would hope it would? 

Mr. Kamberis. Yes, sir, m part. When the negotiations first 
started for the memorandum of understanding with the Ban- 
gladesh Garment Manufacturers Employers Association, AAFLI 



50 

was involved in the process. We pulled out of the process because 
we felt that without independent verification of the enforcement of 
the MOU that there would be problems. In fact, our predictions are 
true. 

Although there was an initial wave of enthusiasm and there was 
some support for this memorandum of understanding, what hap- 
pened was that the manufacturers quickly began firing all the child 
workers without their first being registered as part of the program 
so that they could be put in schools that the manufacturers them- 
selves were going to pay for. 

They fired the children because it was an economic burden to 
them. For each child that they had in their factory, they would 
have to pay a stipend for the child to go to a school. Since that 
time, also they have been rehiring child workers. We are beginning 
to get evidence that they are rehiring child workers. 

One of the problems in Bangladesh is that there is an extremely 
strong anti-union sentiment among the Bangladesh garment manu- 
facturers that has prevented the formation of independent trade 
unions in that industry that could serve as a monitoring mecha- 
nism. 

In addition, they have refused any kind of an unannounced type 
of inspection program. With the ILO and the UNICEF and them, 
it is an announced program of visits. If you announce you are com- 
ing 3 days in advance, you as a manufacturer can certainly get rid 
ofyour child laborers. 
v'^e believe that one of the conditions for having an effective anti- 

( child labor program is to have built in a mechanism that allows for 
unannpuiicfidjactory-inspecti on s . 

Ifisastart. I want to put a little positive on this. 

Mr. MORAN. Yes. 

Mr. Kamberis. It is a start. It is an idea that manufacturers are 
willing and can sit together with NGO's and try to craft some kind 
of an understanding. This is why we support enforced codes of con- 
duct, but there has to be that inspection mechanism built in. 

Mr. Mohan. I thought we were going to leave on a more positive 
note than that. 

I do want to say that our objective here with the committee is 
not to unionize these plants. I think that manufacturers are even- 
tually going to come to the realization that unless they take initia- 
tive on their own to provide at least minimally acceptable condi- 
tions, they will be unionized. 

You know, this is what invariably happens. It is what happened 
in the United States. It was a reaction to intolerable conditions. We 
have a lot of intolerable conditions around the world that we are 
sustaining because we are the buyers of these products. We have 
some right and, even more, some responsibility to influence the 
production. 

These manufacturers who are not complying with what would 
reasonably be considered acceptable working conditions not only 
are going to wind up being punished by losing their profit because 
we will not trade with them and the U.S. manufacturers and retail- 
ers will not use their product, but, if they continue, undoubtedly 
the workers are going to realize their only recourse is to be union- 



51 

ized and to engage in some confrontation. These are inevitable 
things. The dynamics just continue to happen around the world. 

What we are trying to do is to develop a constructive response, 
some minimal conditions that ought to be met if the United States 
is going to continue to be a major purchaser of many of these prod- 
ucts. 

Let me just conclude. I know you have something very worth- 
while to say, but I think I am holding up the Chairman. This has 
been a long hearing. I am going to end at the same place I began 
by thanking the Chairman for having this hearing, I think it nas 
been very informative. It has been appropriate, and I hope it might 
lead to some constructive legislation. 

Thank you, Mr. Chairman. 

Mr. Smith. Thank you very much, Mr. Moran. 

Before we conclude, I without objection will include a number of 
letters we have received from the ambassadors of El Salvador, from 
Honduras and other interested parties so that the record is as com- 
plete as possible. 

[Materials submitted for the record appear in the appendix.] 

There was a letter or a press release that we got from Honduras 
which made this statement. "Ms. Diaz has alleged serious viola- 
tions of Honduras labor laws which, if proven, will result in heavy 
penalties against her former employer," said Ambassador Flores. 

He added that Honduras has expelled two Korean companies in 
the past 2 years for labor law violations. 

Mr. Canahuati, if you could perhaps enlighten us on what those 
Korean companies did that was so egregious that led to their expul- 
sion from Honduras? 

Mr. Canahuati. I do not have the specific cases, but we have all 
of the documents. You asked me at the beginning to submit that 
for the record. Along with that, we are going to submit additional 
complaints that have been filed and the resolutions in favor of the 
employee or in favor of the employer and the ones that have not 
been resolved. I am going to send all documents on that. 

Mr. KlELBURGER. If I can make just one quick comment? 

Mr. Smith. Let me just finish, and then I will yield. 

Mr. KlELBURGER. OK 

Mr. Smith. I think it is important that that be done because it 
was not until I saw that press release that I was aware of those 
two companies. 

I think what we have striven to do in a bipartisan way is to get 
to the truth, to strip away all hyperbole and get to the facts. 

Mr. Canahuati. OK. 

Mr. Smith. If indeed these cases in any way parallel what Ms. 
Diaz has gone through, that provides additional hope for all of us 
that Honduras is really doing all that it can do. 

We have major violations of every law under the books in our 
own country. We never want to paint a caricature of what is going 
on in any given country. Otherwise you lose credibility, and you do 
an injustice to that country. 

I think it would be very helpful if you could provide that to us. 

Mr. Canahuati. OK. 

Mr. KlELBURGER. I just wanted to make one quick comment. We 
have been speaking quite a bit about products that are produced 



52 

for export. Just to remind people, children are also working domes- 
tic^ and agriculture and on the streets in the sex trade. 
/^"Just to dwell a quick second on the question of education, you 
/ mentioned to leave it off on a positive note. Just to show the value 
of education, one state in the southern part of India, Karola, made 
education a priority, put all children in primary education, and 88 
percent of children are in secondary education. 

Now there is less than 3 percent child labor. It has the highest 
literacy rate in all of India, and their economy has greatly im- 
proved. We have members of our organization from the southern 
part of India from Karola, and they can testify to this. 

There is a change coming about. Unfortunately, it is agonizingly 
slow. It is a complex change. It is a very complex problem, but that 
cannot be used as an excuse to not take action. 

Mr. Smith. Thank you, Mr, Kielburger. That was a very good 
statement because it is true that if enforcement of compulsory edu- 
cation were widespread, it would certainly bring down the exploi- 
tation of children. As those children move into adulthood and are 
more employable and can provide more in terms of what they can 
contribute to their economy and to themselves and their families. 
It would help break that cycle of poverty. 

That is part of the message that we need to convey globally as 
well. Enforce your compulsory education laws. 

I would also like to inform members of the panel that we have 
some questions Mr. Salmon has asked be answered for the record. 
If you would like to, please take a copy and respond to the sub- 
committee. 

Without any further ado, I do want to thank you for your fine 
testimony. It has been very helpful and enlightening. 

The subcommittee is adjourned. 

[Whereupon, at 5:24 p.m. the subcommittee was adjourned, to re- 
convene subject to the call of the chair.] 



CHILD LABOR 



MONDAY, JULY 15, 1996 

House of Representatives, 
Committee on International Relations, 
Subcommittee on International Operations and Human 

Rights, 
Washington, DC. 

The subcommittee met, pursuant to call, at 2:40 p.m. in room 
2172, Raybum House Office Building, Hon. Christopher H. Smith 
(chairman of the subcommittee) presiding. 

Mr. Smith. The subcommittee will come to order. Good after- 
noon, ladies and gentlemen. 

This hearing on the problem of international child labor is the 
continuation of a hearing convened last month. At that hearing, ex- 
pert witnesses from the U.S. Department of Labor, as well as from 
labor, business, and human rights organizations, testified about the 
nature and scope of this terrible problem and about possible solu- 
tions. We also heard from Wendy Diaz, a 15-year-old girl who testi- 
fied that she herself had been subjected to child labor in violation 
of international standards. 

Today, in addition to the Secretary of Labor Robert Reich, we 
will hear from four distinguished witnesses whose schedules pre- 
cluded their participation at last month's hearing. Thank you for 
taking the time and effort to provide your insights and counsel to 
our subcommittee. 

According to the ILO, the International Labor Organization, be- 
tween 100 to 200 million children around the world are being 
robbed of their childhood for the profit of others. In our inquiry, 
this subcommittee has encountered heartbreaking images of some 
of them: A 3-year-old girl forced to stitch soccer balls for hours on 
end; children walking barefoot amidst piles of used syringes, re- 
moving hypodermic needles in preparation for recycling; boys and 
girls removed from their homes by abusive masters as human col- 
lateral for loans that can never be repaid. 

Many of us in this room are parents. Imagine your own children 
in those circumstances, and you can begin to imagine the human 
misery caused by this exploitation. 

Even in its less overtly abusive forms, the full-time employment 
of young children denies them the opportunity for basic education, 
their primary hope of escape from their poverty. It reduces the de- 
mand for the labor of adult wage-earners, often in areas where 
there are high rates of adult unemployment. In addition, it allows 
those who use child workers to profit at the expense of those com- 

(53) 



54 

petitors who have chosen not to exploit this vulnerable source of 
cheap labor. 

We must work to make more than a media event out of the at- 
tention currently focused on this problem. We have an opportunity 
and an obligation to make permanent progress in the protection of 
children around the world. As I have said before, this problem is 
vast and complex. It will defy a quick solution. But if those who 
exploit children listen only to our dollars and cents, then let us 
be^n speaking — loud and clear — in a language they understand. 

On Friday, I introduced the International Child Labor Elimi- 
nation Act, H.R. 3812. This legislation enjoys broad, bipartisan co- 
sponsorship. Among the cosponsors are three members of this sub- 
committee: Cong^ressmen Henry Hyde, Tom Lantos, and Jim 
Moran. Other original cosponsors of the legislation include Con- 
gresswoman Ileana Ros-Lehtinen of Florida and Congressman Joe 
Kennedy of Massachusetts. This legislation will turn our conscien- 
tious concern into an engine for international human rights reform, 
using all the tools at the disposal of the Government of the United 
States. 

First, it will ban the import of products made by child labor. Sec- 
ond, it will prohibit foreign aid, other than humanitarian aid, to 
countries that do not have or do not enforce child labor laws. Third, 
it will prohibit loans from the U.S. bilateral lending agencies to 
businesses or projects that use child labor, and will direct our rep- 
resentatives to the World Bank and other multilateral institutions 
to oppose the provision of funds to industries that use child labor. 

Last but not least, it will provide needed funding, $50 million 
over 5 years, to the International Program on the Elimination of 
Child Labor (IPEC) of the International Labor Organization. So far, 
the United States has contributed only $3.6 million to this pro- 
gram. Grermany, the largest contributor, has donated $65 million. 
Even Spain, whose economy and national budget are far smaller 
than those of the United States, has contributed $12.5 million, al- 
most four times the amount we have provided. I was shocked and 
disappointed to learn that the United States is not paying its fair 
share to this comprehensive and promising effort to end child labor. 
Indeed, the Administration's budget request does not even suggest 
that Congress authorize these funds. Obviously, it is not enough to 
make a contribution to an international program. We must do far 
more. But it is a beginning, and it is long overdue. 

Just last Tuesday, Pope John Paul II discussed the plight of chil- 
dren in various part of the world, and challenged governments "to 
intervene strongly ... against those who harm and scandalize the 
most defenseless among us." In his words, governments must act 
"with all the force of law" to stop the exploitation of children. This 
is exactly what we intend to do. In its abusive and coercive forms, 
child labor is an evil that must be fought as an enemy. It is time 
to join the battle and to fight for these forgotten children. When 
the International Child Labor Elimination Act becomes law, coun- 
tries and companies will no longer be able to profit by neglecting 
the internationally recognized human rights of the most vulnerable 
people on Earth. 

I am pleased to welcome our witnesses who will be testifying 
today. We are honored to be joined by the Secretary of Labor, Mr. 



55 

Robert Reich, Anthony Freeman of the ILO and Francoise Rem- 
ington of the human rights organization, Forgotten Children, are 
among those who have been working to find solutions to the child 
labor problem. 

We are also pleased to be joined by Kathie Lee Gifford. In addi- 
tion to her careers as a television host, a singer, and a mother, 
Mrs. GifFord has long been noted for her efforts on behalf of chil- 
dren's charities. When it was revealed that the Wal-Mart clothing 
line bearing her name may have been produced in part by under- 
age Honduran laborers, Mrs. Gifford was as shocked, dismayed, 
and angered as anyone. The attention focused on Mrs. Gifford as 
a result was, in my opinion, harsh and often unfair. Undeterred, 
she spoke out and set in motion the establishment of a program of 
independent third party monitors of plant conditions. Under the 
auspices of Cardinal O'Connor, Mrs. Gifford met with Wendy Diaz, 
the 15-year-old girl who testified before our subcommittee, and 
with child labor advocates. 

Mrs. Gifford has become a strong and determined advocate for 
working children. Her willingness to go beyond merely defending 
herself and to confront this issue directly, to be a catalyst for 
meaningful reform, has helped to focus our Nation's and the 
world's attention on the child labor problem in a way that it almost 
certainly would not have been otherwise. For that, all human 
rights advocates, and especially exploited kids, should be grateful. 

I would remind members, and members know this, that when we 
began this hearing in June, very few from the media were here to 
cover that. That nas changed in a very demonstrable way today. 
All of us who care about human rights, all human rights advocates, 
especially those who want to help exploited children, are grateful 
for the work she has done. 

Mr. Smith. I would like to yield to my very good friend, the dis- 
tingfuished gentleman from California, the very distinguished rank- 
ing member of this subcommittee, Mr. Lantos. 

Mr. Lantos. Thank you, Mr. Chairman. Let me commend you for 
holding this hearing. Let me commend you for the legislation that 
you introduced that I am pleased and proud to be an original co- 
author of, and let me try to put this hearing in some kind of per- 
spective. 

Several years ago, when I had the privilege of chairing the Over- 
sight Subcommittee that deals with the Department of Labor, we 
had a series of hearings on child labor in the United States. While 
today our focus will be on international child labor abuses, I think 
it is extremely important that we do not view this issue as an issue 
which is present outside the boundaries of the United States. 

One of the most moving moments of my congressional career was 
to have as a witness a wonderful lady whose only son was killed 
when he was illegally employed as an underage worker trying to 
deliver Domino's Pizza in less than 30 minutes on a slippery and 
dangerous road, and he was killed in the process. 

Every year here in the United States there are countless in- 
stances of children being illegally employed in a wide variety of in- 
dustries. As we focus our attention on international abuses, it is ex- 
tremely important to say publicly it is our crime as well; it is a 
major crime of this society. I am very pleased to be able to com- 



56 

mend our most distinguished Secretary of Labor, who has been in 
the forefront of fighting child labor abuses here in the United 
States, as indeed he has abroad. 

Let me also say, Mr. Chairman, that while the examples you 
gave are potent and colorful and important, as one who has almost 
a dozen and a half grandchildren, I cannot help but comment on 
the most outrageous child labor abuses that we find internation- 
ally, namely the forcing of children into child prostitution. It is a 
nightmare to see a child lose his or her eyesight working on a deli- 
cate carpet. It is a nightmare to see a child working under the most 
dangerous and outrageous and preposterous working conditions in 
mines and factories and in fields. But there is really nothing com- 
parable to children being forced into prostitution and whole tourist 
industries in a number of countries, some of them friendly to the 
United States, being predicated on child prostitution as the major 
attraction of the tourist industry. 

I think it is important for us to place this issue much higher on 
the national agenda than it has been for a long time, and I want 
to join you in commending Kathie Lee Gifford for becoming a 
spokesperson for this very important cause. It clearly is mandatory 
in a society that honors celebrities to have celebrities on your side, 
and I am pleased and delighted that both her husband, Frank, and 
Kathie Lee Gifford are on our side in this battle. 

This Administration and this Secretary of State have led the way 
internationally to fight child labor abuses. I am delighted that Sec- 
retary Reich is here with us, and I want to pledge to him my un- 
ceasing effort to work with you, Mr. Secretary, to eradicate this 
monstrosity both in this country and abroad. 

Thank you, Mr. Chairman. 

Mr. Smith. Thank you very much, Mr. Lantos. 

Mr. Smith. Mr. Moran. 

Mr. Moran. Thank you very much. Chairman Smith. 

I want to begin by discussing a comment that was made in an 
article in today's Washington Post. It is a comment by Bud 
Konheim, who is Nicole Miller's spokesman. Mr. Konheim says that 
eventually we will run out of people like Kathie Lee to bust. 

If we are here to bust anyone, it is certainly not Mrs. Gifford. 
She is virtually the only celebrity figure who is acting responsibly 
and working to help eliminate the problem of child exploitation. I 
say that not just because of the impassioned defense on the part 
of her husband, although I must say many of us would be well 
served to have a spouse who defended us as passionately and effec- 
tively as Mr. Gifford. 

But the fact is that his comments have been echoed by the very 
people who originally accused Mrs. Gifford, the people in the inter- 
national labor community, who have made it clear that she has 
moved from being perceived as part of the problem to clearly being 
part of the solution. 

We are not here to bust anyone, we are here to advance impor- 
tant legislation. But there are those who continue to arrogantly 
turn a blind eye toward child exploitation. Celebrities like Michael 
Jordan and Jaclyn Smith have passed the buck to Nike and K- 
Mart. They pretend they are victims of attacks by the media. It is 
clear that there are some very real victims in this issue. 



57 

I think it is important that we focus on some of those real vic- 
tims. Nine-year-old Shadab is a real victim. Since he was 6 years 
old, he spent 12 hours a day, 6 days a week squatting in the 
semidarkness on damp ground polishing metal in a brass factory. 
The air in the factory is visibly thick with metal dust. The tem- 
perature is 120 degrees, no air conditioning, no fans. The bare floor 
is damp with acid that sloshes from big vats onto the ground. 

Three-year-old Silgi is a real victim. She sits today on a mud 
floor in a filthy dress, stitching soccer balls bound for Los Angeles, 
with needles actually longer than her fingers. Her stitching is ade- 
quate, but her hands are so small that she can't manage the scis- 
sors that she needs to cut the thread, and so she has to get assist- 
ance from a fellow employee, her 6-year-old sister. 

Nine-year-old Anwar is another real victim. He started weaving 
carpets at the age of 6 or 7. He was told repeatedly he couldn't stop 
working until he earned enough money to repay an alleged family 
debt. He was never told who in his family had borrowed or how 
much money they had borrowed. Whenever he made an error in his 
work, he was fined, and his debt was increased. When he was too 
slow, he was beaten with a stick. Once he ran away, but he was 
caught by the police, who forcibly returned him to the carpet looms. 
In order to get a break, he had to injure himself severely by cutting 
his own hand. 

Forced labor is illegal in most parts of the world. Yet it is on the 
increase in Asia and Africa and in Latin America. The reason is 
simple: Exploiting children is both easy and profitable. \ 

Most U.S. manufacturers genuinely do not want to exploit chii\; 
dren, but U.S. bu siness esth at do no t use^hildlabor are at a com-j] 
petitive disadvantage. We a s'consumernire" really at fauTTBfecause 
we continue to demand cheap, handmade products without consid- 
ering or asking whose hands made those products. 

Unfortunately, there are those willing to turn a blind eye toward 
this sort of abuse. We need to take direct action against those indi- 
viduals that tolerate and even condone the buying and selling of 
children as commodities. 

One Moroccan carpet manufacturer said he prefers to get them 
when they are about 7. Their hands are nimbler, and their eyes are 
better, too. They are faster when they are small. 

Over the weekend Pakistani authorities rescued 50 slave labor- 
ers from a factory in Karachi. They caught four of their employers. 
Pakistan is to be commended for taking action against these mod- 
ern-day slave drivers. Let us hope justice is swift, certain and se- 
vere, so others will be deterred. 

Mr. Chairman, I really want to commend you for your non- 
partisan leadership on this issue. When I offered the Working Chil- 
dren's Human Rights Act, I knew that the chances were very 
small, particularly being a Member of the minority party in this 
Congress, and I knew there were a lot of things on the table. But 
you have taken the most important provisions of my bill, you have 
put it into this bill that we are having a hearing on today. I 
shouldn't be surprised, because you have consistently shown a 
truly sincere, determined commitment toward addressing the most 
severe human rights problems in this country, as has Mr. Lantos. 



58 

The exploitation of children is not a partisan issue. It should 
never be, and we cannot let this issue fall prey to partisan postur- 
ing. There are very few legislative days left this year, but this is 
one issue that has, in fact, been embraced by both the Democratic 
and the Republican leadership. There is no reason why Congress 
cannot take the first step toward combatting child labor by passing 
this legislation immediately. I greatly thank you for taking the ini- 
tiative and showing the leadership that you have. 

We have heard that by depriving children of an opportunity to 
< work, we are condemning them to a life of poverty. On the con- 
trary, enforcing child labor laws will create more job opportunities 
for parents and appropriate breadwinners around the world to be- 
come compensated participants, rather than pawns in the 
globalization of our economy. Most of us have been blessed by the 
- accident of birth, but such good fortune ought not relieve us of 
some personal collective responsibility to those who have not been 
so blessed. 

I appreciate the hearing, Mr. Chairman. 

Mr. Smith. Thank you very much, Mr. Moran, for your kind com- 
ments and work on behalf of exploited children and your legisla- 
tion. 

Mr. Smith, I would like to introduce and recognize Bob 
Underwood, the delegate from Guam. 

Mr. Underwood. Thank you very much, Mr. Chairman. 

I don't have a prepared statement other than to congratulate you 
and the work of the committee on this very important issue. It does 
seem very significant to me that when we deal with issues of this 
nature, that there are people in the world who continue to place 
profit above principle, and yet we have in our midst certainly the 
work of Kathie Lee Gififord on this issue, which has been directed 
toward exactly the opposite, and that is putting herself and reputa- 
tion on the line and putting principle above profit. 

Unfortunately, the world is full of people who are willing to rob 
children of their childhood and adults of their dignity in the pur- 
suit of profit and in the pursuit of cheap consumer goods. 

I just would like to put in one brief comment about our own indi- 
vidual participation as consumers in this process. There is one se- 
ries of commercial outlets in a sense which the U.S. Government 
does run, and that is the commissary and exchanges of the Depart- 
ment of Defense, which totals over $9 billion of total sales annu- 
ally. It is one of those, as a member of the MWR panel and a mem- 
ber of the National Security Committee, I am looking into that 
issue as well in conjunction with your own fine efforts. 

Thank you, Mr. Chairman. 

Mr. Smith. Thank you very much. 

Mr. Smith. Mr. Secretary, Robert Reich, welcome to the Sub- 
committee on International Operations and Human Rights. 

Prior to being appointed to his current post by President Clinton, 
Secretary Reich was on the faculty of Harvard University's John F. 
Kennedy School of Government. He served as Solicitor General in 
the Ford administration and headed the policy planning staff of the 
Federal Trade Commission in the Carter administration. 



59 

Mr. Secretary, welcome to the subcommittee. Please proceed as 
you would like. Your full statement will be made a part of the 
record. 

STATEMENT OF HON. ROBERT B. REICH, SECRETARY, U.S. 
DEPARTMENT OF LABOR 

Secretary REICH. Thank you very much, Mr. Chairman. Con- 
gressman Lantos, members of the subcommittee, with vour permis- 
sion I would like to provide the committee with my formal state- 
ment and give you a brief summary, and then answer any ques- 
tions you may have. 

'Let me just say a few things. The problem, or should we say 
scourge, of child labor around the world does appear to be growing. 
The International Labor Organization estimates that at least 87 
million, probably more like 100 or 150 million, young children are 
Working full time, some of them in intolerable conditions. 

The U.S. Department of Labor over the past 2 years has chron- 
icled in reports to Congress some of what we have discovered, some 
of the data that had been made available to us, about child labor 
around the world, and it is truly disturbing. Some of it is despica- 
ble. 

We do know that there are very young children working full 
time, for example, in glass factories in India, where the tempera- 
tures hover around 80 or 90 degrees constantly. They are there 6 
or 7 days, all day, every day. 

We know, for example, that there are other children in brick fac- 
tories in Bangladesh and India, again 6 or 7 days, every day. Some 
of these young children are sold into slavery, into bondage. 

We know that there are children sold into prostitution, and this 
problem, again, appears to be growing. 

I do not want to give you the impression that there is any easy 
or quick solution that is capable of being legislated by the United 
States. There are many things we are doing, many things that we 
can do. 

We also, Mr. Chairman, members of the committee, have a prob- 
lem in the United States, and. Congressman Lantos, you referred 
to the problem. It is not just child labor. We don't have a child 
labor problem nearly as extensive, as serious, as awful as we find 
in poor nations around the world. But we do have what might be 
termed a sweatshop problem. 

Almost a year ago in El Monte, California, we discovered a group 
of workers who were virtually enslaved in their compound, here in 
the United States of America. There was barbed wire around that 
compound. They were told that they dare not leave under penalty 
of death. I am pleased, if we use the ironic word "pleased," to say 
that the owner of that sweatshop is now behind bars. But since 
then we have documented many other sweatshop conditions. 

And before then we documented many other sweatshop condi- 
tions. Just last week, on Thursday, I walked up Seventh Avenue 
in New York City with some investigators from the Department of 
Labor, and we randomly went into cutting and sewing shops in the 
garment industry, and one out of three that we saw was violating 
the laws, minimum wage, overtime, unsanitary conditions, unsafe 
conditions. It is not that different from what we saw at the turn 



60 

of the century in the 1890's, 1900, in 1910; in 1911, the great Tri- 
angle Shirtwaist factory fire that focused pubHc attention on this 
outrage. 

And, Mr. Chairman, let me return to the word "focus" with re- 
gard to public attention. You used it. Kathie Lee Gififord has helped 
focus public attention. The outrage at El Monte, California almost 
a year ago focused public attention; when we find soccer balls made 
by young children from Pakistan, young children who are working 
6, 7 days a week, soccer balls that our own children are using. A 
few weeks ago you helped us kick off, as it were, to use the term, 
a campaign against that kind of importation. 

But the focusing of public opinion is critical here. There is no 
way we can deal with the problem of sweatshops in the United 
States or child labor around the world without an informed and 
concerned public. And- there is no_ w^y we c an solve this problem 
without responsible corporations backed by that informed and con- 
cerned public. 

Now, tomorrow we are going to have a meeting of the major re- 
tailers and major manufacturers in the garment industry, and we 
are going to look at the progress we have made over the past year 
in combatting sweatshops here in the United States. Before we can 
point a finger of blame at foreigners, we have to make sure our 
own backyard is clean. 

We are going to look at the progress we have made. It is not just 
a government responsibility, because you know as well as I do that 
with 800 inspectors, even including State inspectors, 1,500 total 
Federal and State inspectors, there is no way we can police per- 
fectly against sweatshops or child labor here in the United States. 
We need the industry with whom the sweatshops are contracting 
to be actively engaged as well. 

You see, Mr. Chairman, members of the committee, we can follow 
where those particular labels go. We can find a sweatshop, and we 
can see exactly where the invoices lead. And when we have found 
where the invoices lead, we have published the names of the major 
manufacturers and major retailers on whose shelves those sweat- 
shop garments have found their way. And the public is concerned. 
And many of those retailers and manufacturers are changing their 
ways. They are beginning to police and monitor and inspect against 
sweatshops here in the United States. Some of them are doing it 
with regard to their foreign production as well, and I salute them. 
We need to encourage more of it. 

Now, what else can we do as a nation? First of all, as Justice 
Brandeis said, sunlight is the best disinfectant. We will continue 
to report on what we find internationally with regard to child 
labor. We are now working on a report looking at the 20 major im- 
porters of garments, garments into the United States, and looking 
at their codes of conduct and their patterns of employment around 
the world. What are they doing about the scourge of the employ- 
ment of very young children around the world? We will report to 
Congress in October. 

Second, the International Labor Organization, International Pro- 
gram for the Elimination of Child Labor to which you referred, is 
helping move these young children from the factory to the school. 
If we just close the factories, there is a danger these young children 



61 

will find themselves in an even worse market, into prostitution or 
worse. We must help these nations educate these young people, 
and that is what we are doing through this international program, 
the elimination of child labor. 

Third, Mr. Chairman, the International Labor Organization can 
also take an active role. At my request a few weeks ago the Inter- 
national Labor Organization, headquartered in Geneva, spent a 
day with ministers of labor from all over the world, including many 
developing nations. We focused on what those nations can do to en- 
force their own laws better and more strictly; because, as you said, 
child labor, the employment of very young children, slave labor, 
bonded labor, these things are already prohibited by the laws of 
most of these nations. 

What can they do to more effectively enforce the laws? What can 
the International Labor Organization do to help them more effec- 
tively enforce the laws? We focused on that; we have launched sev- 
eral projects. 

Our support for labeling initiatives also may be another pathwav. 
You are aware undoubtedly of the Rugmark initiative. That little 
mark that appears on carpets coming from South Asia has become 
a standard for consumers who are concerned about child labor in 
the carpet industry. Consumers who do not want to purchase rugs 
made by young children in South Asia know they can look for that 
mark. There is a third party that is hired to police the industry 
and award that mark only to carpet manufacturers that are not 
using young children. 

Similar labeling programs might be appropriate here. We talked 
a few weeks ago about the soccer ball industry and the monitoring 
program they already have for quality. Why can't they monitor also 
to make sure that no children are being used and put a label on 
so consumers can know there are not children being used in the 
production of soccer balls? 

We need to explore and are exploring other labeling alternatives 

International trade. We are pressing for a working party or 
trade and labor standards in the World Trade Organization. W^ 
are making a bit of progress. It is slow going. To be perfectly can-j 
did with you, most other nations are not with us on this, but it 
seems to me we cannot talk about trade without talking abouj 
labor standards at the same time. 

We use existing trade laws and are using existing trade laws, 
such as the Generalized System of Preferences, to assure that we 
are not now subsidizing the import of products made by child labor. V 
In fact, quite recently the Administration announced that due to M 
child labor violations, certain products from Pakistan, including 1/ 
sporting goods, carpets, and surgical instruments would no longer /' 
receive GSP tariff preferences. 

And we will continue to work with you, Mr. Chairman, members 
of the committee, we would like to work with you, on your legisla- 
tion. It seems to me that is very important. It is the right direction 
to go in. 

In conclusion, let me just say again that there are no easy an- 
swers to the problem of child labor around the world or the scourge 
of sweatshops in the United States. Industry has a major role to 
play. Consumers have a major role to play. We will continue, with 



62 

regard to our laws in the United States, to enforce them vigorously, 
and we have enforced them vigorously. We have enforced them to 
the extent that we have traced the invoices and published names. 
And if we have embarrassed some members of the industry, I am 
f sorry, but maybe that is necessary in order to get their cooperation. 

I salute you, Mr. Chairman. Let me congratulate you and this 
subcommittee for your continued concern about this issue, the ex- 
ploitation of children. Let me thank you for your support, the sup- 
port you have given to us in our efforts to eliminate not only child 
labor, but also sweatshop labor from the United States. I can as- 
sure you that as Secretary of Labor, we will continue to do what- 
ever we can to eliminate this disgrace, and we will continue to do 
whatever we can to work with celebrities and others who put the 
spotlight of public opinion where it belongs, on this problem. 

Thank you. 

[The prepared statement of Secretary Reich appears in the ap- 
pendix.] 

Mr. Smith. Thank you very much, Mr. Secretary, for your very 
eloquent remarks. I know personally you have a very strong com- 
mitment to this issue, and it has been an honor to work with you, 
having joined you at the Foul Ball campaign over at the Depart- 
ment of Labor recently. 

Two of my children are here, Michael and Elyse. We have four 
children. They all play soccer. My wife, Marie, is here as well. I re- 
member when I first discovered that the balls being made in Paki- 
stan were being made with child labor. I immediately at the next 
game looked at the balls and, sure enough, every one of them was 
made in Pakistan. 

For those soccer balls to be enjoyed by U.S. children, they ought 
to be made by adults, not by kids. We need to red card these balls, 
as was pointed out repeatedly during the course of that hearing. 

I thought that was a very good effort, and many of the other 
things you are doing are right on the mark. 

Let me ask you about the Child Sex Abuse and Prevention Act, 
which was passed previously with broad bipartisan support. What 
are we doing to enforce that? Mr. Lantos spoke about the extreme 
tragedy of children caught up in childhood prostitution, who are 
wasted and often dead before their 21st birthday because of that 
cruel exploitation which is often fed by dollars coming from abroad, 
including from the United States. 

Secretary REICH. Mr. Chairman, with regard to our abilities here 
in the United States, what the Department of Labor can do is con- 
tinue to focus public attention, to reveal the extent of the problem, 
reveal what is going on. Our power right now is limited to getting 
the facts and making those facts public in terms of outside of the 
United States. I am not talking about inside the United States, I 
am talking about outside the United States. 

Inside the United States again we have an active enforcement ef- 
fort with regard to child labor and sweatshop labor. The Depart- 
ment of Justice enforces and will continue to enforce as vigorously 
as it can the provisions of that particular statute. 

Mr. Smith. Perhaps Justice could also provide some information 
on that. I am sure there have been crackdowns on those kinds of 
sex tours, which I find absolutely an abomination, and the legisla- 



63 

tion certainly is there to crack down on those who would prey on 
children in that way. 

With regard to tne World Bank and other multilateral lending 
institutions, testimony previously submitted to our subcommittee 
by your Department emphasized the need to look at these institu- 
tions. Our legislation directs our representative on the World Bank 
to cast votes against those kinds of projects where child exploi- 
tation by way of child labor is likely. It seems to me that, at a min- 
imum, U.S. taxpayer dollars being used in that way in a developing 
country ought to be tied to human rights conditions. Right now the 
World Bank has no such conditions. 

What would be the Administration's view on conditioning our 
funds so there is a very strong human rights component to the 
money that we lend or give for lending? 

Secretary Reich. There should be a very strong human rights 
component. We should not be subsidizing the employment of very 
young children. We should not be subsidizing child exploitation in 
any way, nor slave labor nor bonded labor. These are consider- 
ations that ought to be of concern to international lending institu- 
tions, and our representatives have already expressed those kinds 
of concerns. / 

Again, let me underscore one thing that I said before that I want 
to make sure is in the record: Simply stopping this production, sim- 
ply closing these factories, may have the unintended consequence 
of forcing these children into an underground economy in which 
they are treated even more abominably. We must make sure that 
these children are in school. Education for these young children is 
the answer. It is the answer for many of these developing nations. 
It is not good for them to have entire segments of their population 
subjected to forced labor, slave labor, bonded labor, or even to 
young children who are working 12 or 14 hours a day every day. 

But the International Labor Organization, development institu- 
tions, international lending institutions, all play a part in building 
the schools and helping them move from the factory to the school. 
We can help them to do that and are beginning to. 

Mr. Smith, I know you bring a tremendous amount of commit- 
ment and energy to this issue, but I also know both in Congress 
and the executive branch, one person's commitment doesn't always 
translate into policy. We know the work 0MB does when budgets 
are submitted to it. I have been here 16 years and seen this many, 
many times. 

Many of us were chagrined to discover that the International 
Program for the Elimination of Child Labor, which last year got a 
$1.5 million allotment, was cut down to $1 million in the Adminis- 
tration's request. We need to beef that up. Hopefully some adminis- 
tration action coupled with congressional action can do that. We 
have checked with the ILO, and they suggested that $35 million 
over 5 years is required to meet the objectives of the ILO. 

All of us in the House, Senate and executive branch need to put 
our money where our mouths are. Our bill would provide $10 mil- 
lion each year over 5 years for a $50 million total. 

Would you perhaps give us some insights as to where we are 
going with funding, why it was cut, and whether or not we can 
ratchet that up? 



64 

Secretary Reich. We would like tx) work with you in finding addi- 
tional sources of funding for this extremely important program. But 
as you know, every dollar that we devote to this is a dollar that 
comes out of another very important priority, so that the struggle 
we have, and it is the same struggle that the House Budget Com- 
mittee has, is to come up with a budget that reflects all of the pri- 
orities. If we can find additional funding, we would like to try to 
do that. We are very desirous of working with you to that end. 

Let me mention, by way of passing, that we have asked for in- 
creased funding for our inspectors against sweatshops in the Unit- 
ed States. The Administration asked for increased funding, but we 
are not getting increased funding. In fact, in 1996, we had a cut 
in funding for the inspectors that go out to prevent sweatshop em- 
ployment in America. 

Again, we are very interested in working with you and other 
committees here in the House to increase overall funding so that 
there is not child labor abroad, and there is also not sweatshop pro- 
duction, abusing workers right here in our own backyard. 

Mr. Smith. I thank you. This is an area where we need to have 
increased cooperation between us. I thank you for your fine an- 
swers. 

Mr. Lantos. 

Mr. Lantos. Thank you, Mr. Chairman. 

Before raising my questions with the Secretary, I want to com- 
mend my colleague. Congressman Moran, for a particularly elo- 
quent and powerful statement with which I fully associate myself. 

Mr. Secretary, I would like to broaden the discussion a little bit. 
We are living in a period of public apathy, cynicism, and mistrust 
of government and public institutions, where it takes some over- 
arching issues for our partisan differences to fade into insignifi- 
cance, so we can take some action and in the process restore public 
confidence in the governmental process. 

We recently had this tragic wave of setting on fire places of wor- 
ship, and the American people, irrespective of faith or political com- 
mitment, were outraged and supported the Administration's effort 
to deal with this horrendous series of events. 

In a few days the Oljmipics will open, and we still remember the 
terrorist attack at the Munich Olympics a generation ago; and, of 
course, in Atlanta the most complex preparations are underway to 
prevent international terrorism, again with full and broad and bi- 
partisan support of the American people. 

May I suggest that the Administration, with your leadership and 
with the President's personal involvement, place this issue, the 
fight against the exploitation of children across the globe, very hi^h 
on the agenda and invite former Senator Dole to join the Adminis- 
tration in seeing to it that this is pushed througn both the House 
and the Senate. It is not a Democratic issue, and it is not a Repub- 
lican issue. It is an issue behind which the American people can 
unite, and in the process of doing something good, we will have the 
additional benefit of beginning to restore public confidence in the 
actions of public bodies. 

Before asking you to comment on this very serious and specific 
suggestion, I would like to raise another issue which relates to the 
question of unilateralism versus multilateralism. Many of our 



65 

friends and allies, some of them powerful democratic nations in Eu- 
rope, are highly critical of us when we take punitive actions in the 
trade field agamst countries such as Iran that support terrorist ac- 
tivities. And they are responding to our actions here in this body 
by legal arguments involving extraterritoriality. When members of 
the European Parliament met with some of us here in this room 
a few days ago, I pointed out to them that the legal issue of 
extraterritoriality fades into insignificance in the face of inter- 
national terrorism, something which has arrived on our own 
shores, at the World Trade Center, and something which has im- 
pacted on our own military in Saudi Arabia. 

Here we have another issue. Clearly we would like to have our 
friends and allies in the international community join us in fight- 
ing child labor, child prostitution, child abuse globally. But if they 
don't, are we prepared to go unilaterally, as I hope we are, because 
I think it is absurd to set as our yardstick the lowest common de- 
nominator, that we can't move until everybody else moves. 

I would like to ask you, if I may, to deal with both of these is- 
sues, the question of raising the visibility of child labor internation- 
ally, to the highest level, to the level of the President. I support his 
program on school uniforms, but with all due respect, this is a 
much more important issue than school uniforms. This is the issue 
of child exploitation and child prostitution on a grand scale. 

I would be grateful if you would deal with the issue of 
unilateralism and multilateral action. 

My final item that I would be grateful if you would comment on 
is the role of the American labor movement as you see it in this 
effort. The American labor movement has been in the forefront of 
fighting for decent and humane working conditions, both here and 
abroad. This is not just an issue involving children. There is slave 
labor, prison labor, in China and elsewhere, and products are com- 
ing in from China and elsewhere produced under wholly unaccept- 
able slave labor conditions. 

I would like to ask you to tell us what your Department is doing 
to work with the American labor movement to deal with this issue, 
of which international child labor is merely a subset. 

Secretaiy Reich. Congressman, several points: First on visibility, 
I went to Geneva last month, to the International Labor Organiza- 
tion, at the request of the President, to make the issue oi inter- 
national child labor more visible, to make sure that the nations of 
the world not only faced this scourge, but also agreed to do some- 
thing about it. 

The Department of Labor for the last 3 years has been research- 
ing, gathering data, investigating, making public our findings 
around the world, because it is such an important issue, and be- 
cause visibility is so critical. The only way we are going to begin 
to deal with this scourge is if it is visible and if people understand 
its dimensions. 

Now, here is where you come in. Here is where Kathie Lee Gif- 
ford comes in. Here is where, sadly, revelations like slave labor in 
El Monte, California, come in. Something can be quite visible for 
a week or 2 weeks or 3 weeks, but then other things crowd it out. 
The Olympics are coming up shortly, and while many people may 
be terribly troubled right now about child labor, or sweatshop labor 



66 

dn the United States for that matter, will they be troubled 2 weeks 
from now? A month from now? Six months from now? 

It seems to me it is our responsibility, and the responsibility of 
all of us, and celebrities, and those concerned about this issue to 
keep this issue alive, to make sure that people cannot forget about 
the scourge of child labor, cannot forget that the goods that we are 
buying are made by children who are working 7 or 6 days a week 
all day long, cannot forget about sweatshops in our midst here in 
the United States. And we are going to do everything we can to 
.make sure that people get the information they need and that it 
maintains the visibility it now has. 

Now, as to your point about multilateralism and unilateralism, 
it seems to me that it is very important where possible to get a 
multilateral approach. It is a much more powerful approach. Al- 
though we are obviously a major trading Nation, the more that 
other trading nations join with us, the more pressure is going to 
be brought to bear. That is why the International Labor Organiza- 
tion is such an important vehicle, why we have already made some 
progress. 

We have asked the ILO to consider a new convention, specifically 

dealing with the exploitation of very young children. There is no 

ILO international treaty directly on that subject right now. The 

ILO is now accepting our invitation, considering the development 

/of that international treaty obligation. 

/ I would like to try to exhaust all the areas we have through 
i international lending, through international treaties, through var- 
\ ious other international forums that we have, because it seems to 
hie those multilateral approaches are very, very powerful. 

The opinions of mankind speaking together are so much more el- 
oquent than the unilateralist opinions of one nation, particularly 
when that one nation also has problems itself People say, who are 
you to cast a stone? You have sweatshops. You are exploiting peo- 
ple. You must mend your own ways. 

Finally, your point about the labor movement. We are working 
very closely with American labor unions, such as UNITE, the gar- 
ment workers union, to eliminate sweatshops from these shores 
and also to identify other nations that have major problems. I 
would like to commend UNITE and other unions that have offered 
us so much help in that regard. 

Mr. Lantos. Thank you very much. 

Mr. Smith. Mr. Moran. 

Mr. Moran. Mr. Secretary, I met recently with the National Re- 
tail Federation. I was prepared to give them hell over this issue, 
but their response was, we like your bill; we want more laws, and 
even regulations, in this area. But more importantly than that, we 
want those laws and regulations that do exist to be enforced, en- 
forced much better than they are today. 

Now, we have talked about the sweatshops that we have uncov- 
ered, and you eloquently addressed that problem. But isn't the 
f principal reason we have that problem that these people have no 
egal resource, because they are illegal themselves? Haven't we 
found that most of the people in these sweatshops, in fact, are ille- 
gal immigrants, and, if so, how do we handle that? Do we deport 
tliem? If we don't deport them, there is little question but that they 



67 

are going to find their way back into other forms of labor that do 
not meet acceptable American standards because they still have no 
recourse to our judicial system. 

Would you address that? 

Secretary Reich. Yes, Congressman. Many of the individuals 
working in sweatshops in the United States, if not the majority, 
are indeed undocumented aliens; but not all by any means. I have 
personally met with a number of sweatshop workers who had not 
been paid for weeks or months, or never paid — their sweatshop 
simply closed up without paying them — who were subjected to un- 
speakable conditions, who were American citizens. It is true they 
had language difficulties, they were recent immigrants, but they 
were legal immigrants to these shores. Because of their language 
difficulties, they were easily exploited. That is point No. 1. 

Point No. 2, employers in this country who are unscrupulous, 
there are a few unscrupulous employers, particularly in the cutting 
and sewing end of the garment industry, they are willing to take 
the risk of being penalized for being found to be employers of un- 
documented aliens for the sake of employing people who will not 
complain; as you said, because they know their people will not com- 
plain. They are too frightened to complain about these kinds of 
unhealthy, unsanitary, illegal conditions. 

One way to reduce the magnet of undocumented aliens to our 
shores is to ensure that sweatshops are eliminated, because the 
sweatshops are becoming a magnet. People are coming here ille- 
gally because of jobs, and those jobs increasingly are jobs in sweat- 
shop production. 

So if we are able to enforce the laws and get major retailers and 
manufacturers to help us enforce the laws vigorously, then we can 
reduce that magnet. 

Mr. MoRAN. Mr. Secretary, it seemed to me the retail manufac- 
turers had a point. When the Department of Labor finds abuses 
where employers are clearly exploiting employees because they are 
illegal, they know they have no recourse, do you work with INS to 
deport people? Is there that kind of coordination? Because it is un- 
fair to the retail manufacturers as well, and certainly to the labor- 
ers, particularly in industries like the textile industry, to have to 
compete with sweatshops or with child labor, and they shouldn't 
have to. But I am not sure that we are enforcing every law in every 
way that we could to be on their side, to try to do our part to pre- 
vent this. 

Secretary Reich. Remember, the President is vigorously cracking 
down on undocumented aliens in the United States. We are doing 
our part. But let me just say that we rely upon these workers to 
notify us of abuses. If they thought that we were immediately going 
to turn them over to the INS, we would not know nearly what we 
now know. We would not be able to target our resources nearly as 
well. 

We want to go after the magnet, which is the sweatshop, because 
even if we were — and we do cooperate obviously — but even if we 
were to send every one of these workers back, as long as that mag- 
net remains, new workers will come to fill their spots. We have got 
to go after the magnet of sweatshop production. 



68 

Let me say one more thing, Congressman. Some major retailers 
and major manufacturers are doing an excellent job. They are mon- 
itoring, policing, regularly inspecting to root out sweatshops. In 
fact, a recent survey we did, a random survey in Southern Califor- 
nia, found that halt of the cutting and sewing shops are now being 
regularly monitored by major retailers or major manufacturers. 
That is tremendous improvement over what we had just a couple 
of years ago. And those monitored shops have a fraction of the legal 
violations and the seriousness of the illegal violations of the non- 
monitored shops. 

What I say to those retailers and manufacturers who do not want 
to monitor, who say to us it is your responsibility, it is not ours. 
I say to them, you are the same people who often say get govern- 
ment off our backs. You are the same people who say government 
cannot do it all. If you were sincere about giving all the responsibil- 
ity for policing against sweatshops to our inspectors, would you be 
up on the Hill lobbying for more resources to do the inspections in 
the Department of Labor? That is usually where the conversation 
ends. 

Mr. MoRAN. I understand that. I think the self-policing is com- 
mendable. But the answer, though, is that you are not coordinating 
with INS. You don't deport any of these people. And the problem 
is that they can't find any legal labor, so they are going to migfrate 
into some form of unregulated labor just to support themselves and 
their families, and a new sweatshop will be developed. 

I understand you are in a conundrum, but I think personally you 
are going to have to coordinate with INS when you discover these 
sweatshop conditions. The people, when they are illegal, they have 
no choice but to go into unregulated labor really. 

But we will continue that another time. I think we need to get 
on with the hearing. Thank you, Mr. Secretary. 

Mr. Smith. Mr. Underwood. 

Mr. Underwood. I have no questions. 

Mr. Smith. Mr. Secretary, before inviting our next panel, let me 
thank you for your testimony. 

Mr. Lantos brought up the issue of g^lag or slave labor, particu- 
larly as it relates to the People's Republic of China. I have been 
in one of those slave labor camps in Beijing a couple of years ago 
and saw shoes and socks being made for export. The MOU, the 
memorandum of understanding, that was negotiated under the pre- 
vious administration and is often touted as proof we are trying to 
do something, I respectfully submit, is not worth the paper it is 
printed on. 

There has been in practice no enforcement of that MOU. The 
products that are coming onto our shores, ending up on our 
shelves, despite the efforts made by human rights and religious 
freedom activists, is unconscionable. 

You made a very good point about loss of attention. Very quickly 
our focus shifts — out of sight, out of mind — and the next thing you 
know we don't care. Just as in China, many of us were outraged 
at the Tiananmen Square massacre and all of the human rights 
abuses there. Those abuses continue to this day, and those goods 
continue to be made and exported. 



69 

I urge you, please enforce the law. The laws are on the books. 
We need vigorous enforcement of the MOU and the underlying 
Smoot-Hawley Act upon which it is based. 

I would like to ask our next panel, if they would come to the wit- 
ness table. 

Our first panelist will be Kathie Lee Gifford, a cohost of the syn- 
dicated morning television program "Live with Regis and Kathie 
Lee." In addition to her extensive television and singing careers, 
Mrs. Gifford is the mother of two children and has supported nu- 
merous children's charities, including the Cody Foundation, which 
provides shelter and care to HIV-positive and crack-addicted chil- 
dren. 

As I said in my opening statement, we are all very indebted to 
her for the good work she has done for bringing light and scrutiny 
to this issue. As you pointed out, Mr. Secretary, the greatest dis- 
infectant is light. I think Kathie Lee Gifford has done that very 
well. 

Francoise Remington is the founder and director of Forgotten 
Children, a nonprofit organization working with child laborers in 
South India. Ms. Remington previously directed the India Program 
of the American Adoption Agency and is the parent of three chil- 
dren adopted from India. She has traveled extensively in South 
Asia and has published many articles on child labor. She holds a 
Master's de^ee in International Relations and Economics from 
Johns Hopkins University and a Doctorate from the University of 
Paris. 

Anthony G. Freeman is the director of the Washington Branch 
of the International Labor Organization. Before joining the ILO, he 
was Deputy Assistant Secretary of State for Democracy, Human 
Rights, and Labor, and a U.S. delegate to the ILO's annual Inter- 
national Labor Conference. Mr. Freeman received a BA from Rut- 
gers University and Master's degrees from Princeton University's 
Woodrow Wilson School in Public Affairs and Politics. 

I want to say to all three of our panelists, welcome, and we look 
forward tovour testimony. 

Mrs. Gifn)rd. 

STATEMENT OF KATHIE LEE GIFFORD, TELEVISION HOST 

Mrs. Gifford. Thank you, Mr. Chairman. 

Mr. Chairman and all members of the committee, I would like 
to thank you very much for your invitation to appear here today. 

Mr. Smith. Would you bring the microphone a little closer, 
please? 

Mrs. Gifford. Yes. Usually I don't have trouble being heard. 

I want to thank you for your invitation to be here today; espe- 
cially thank you for your willingness to accommodate my schedule. 
Regis is lost without me, and so I appreciate it very much. 

I believe this committee has the means to formulate a real and 
very important change as to how garments are made for the Amer- 
ican consumer, and I am very, very grateful to be even a small part 
of that process. 

Mr. Chairman and members of the committee, I would be very 
less than candid with you if I did not tell you that just some 2 
months ago I was little more than an entertainer, and very happy 



70 

being one. I associated my name with a line of clothing so that a 
portion of the dollars raised could go toward helping AIDS babies 
and crack-addicted babies in New York. 

That fund-raising effort worked beyond my wildest dreams. 
Today Cody's House and Cassidy's Place have become national 
models for now to bring sunlight into the lives of children who have 
been seared by pain in our own country. Other charities have also 
benefited from this effort. 

And so it was nothing less than an assault on my very soul when 
a witness before Congress suggested that I was using the sweat of 
children to help other children. I would submit to this committee 
that it was in that single instant that I was introduced to the un- 
forgiving and often unfair cauldron of public policy. 

Today I am still very far from an expert on this subject, although 
in the last several months I have learned far more about the gar- 
ment industry than I ever thought possible. 

This is what I have come to believe; that every one of us, from 
the entertainer, the sports figure, whomever, who lends their name 
to the consumer in the store that buys the products, has an obliga- 
tion to know how and why a garment was made. 

This consumer has learned from people like young Ms. Wendy 
Diaz that we are now morally compelled to ask, each of us, what 
can we do to protect labor rights in factories around the world and 
right here in America? 

Fortunately, there are those seeking to identify and penalize 
abusers. Wal-Mart, which distributes my fashions, has prevented 
some 100 factories in 16 different countries from working on their 
garments, our garments, because of violations they discovered. And 
Wal-Mart is stepping up their oversight in coordination with my 
own plans for on site mspections. 

I have discovered that this is not a problem that has cropped up 
overnight. Experts tell me that it is pervasive in the garment in- 
dustry, and our report suggests that the sweatshop never really left 
us. 

I am also discovering that there is no one overnight solution to 
the problem, but we are beginning to create a framework for solu- 
tions, as the Secretary said. For starters, working with Wal-Mart, 
I plan to implement a plan whereby any Kathie Lee fashion will 
be done in factories willing to submit to surprise inspections by an 
independent Inspector General team. Their mission will be to en- 
sure that safe and responsible working conditions are met. Fac- 
tories that refuse inspection or ignore warnings will be dropped as 
a manufacturer. 

Yet taking work out of the factories that abuse their employees 
puts those employees, as we know, on unemployment, if it exists, 
which in many of these countries, of course, it doesn't. 

I would ask this committee, what real power does the retailer or 
a talk show host have when the only means to get the factory in 
compliance is moving the work elsewhere? 

Ironically, the factory in Honduras where Ms. Diaz worked con- 
tinues to employ what we believe is about 1,000 workers, even 
after Wal-Mart pulled their work that carries my name. And, inter- 
estingly, just this past Friday, in the desire to return work to the 
Global Fashions plant in Honduras, which I had promised Ms. Diaz 



71 

I would try to do when we met, we were turned away at the door. 
They said we were denied access to inspect the plant. 

So as much as we would like to take work back there, and help 
that area, and encourage those people, and right some of the 
wrongs that have been done, when we are denied access into the 
factory because they don't want us to see what is going on, we can't 
in good conscience take work back there. 

So other manufacturers, we were discovering, didn't seem to have 
a problem with these reports that the dreadful conditions do exist, 
and punitive actions don't seem to faze some of the owners of this 
particular factory, 

I have also discovered that implementing an Inspector Greneral 
program is not at all as simple as I had hoped it might be. It is 
not as simple as just hiring a team of investigators. Local laws are 
often muddy, and following the trail of subcontractors, where much 
of the abuse takes place, is difficult at best. 

In addition, employees are often wary of independent inspectors, 
so decisions have to be made that identify responsible, local human 
rights organizations where there is only one agenda, creating an 
environment where one can work in dignity. 

So while an inspector general program is a responsible start, we 
recognize that it is not a panacea to any problem. It may, in fact, 
just be the beginning of the beginning of solving the problem. 

So allies, any friend we can nave and find in this, is nothing less 
than critical in our fight. That is why I would welcome, Mr. Chair- 
man, your proposal that would bring the full weight of the Amer- 
ican uovernment to bear on international child labor violations. I 
will help you in any way I can with that, sir. 

Mr. Chairman and members of the committee, I would also not 
be so presumptuous just to comment on the specifics of your legis- 
lation, but there are things that I believe I do understand about 
it, and please let me know if I am wrong about this. A 

No. 1, the proposal would allow the U.S. Labor Department t^s 
create an accreditation process to monitor working conditions over- \ 
seas, which would be of enormous value in stopping this practice. \ 
It becomes obvious to me that while my fashions can create an ' 
oversight program on our own, it can easily be dismissed by fac- 
tories who are indifferent to the issue if they have other paying 
customers lining up to work in that very same factory. / 

In addition, this proposal becomes a potent weapon because it 
elevates the problem from just one factory in one city in one nation 
to an issue where entire governments must get involved or then 
risk damage to their own economies. Much the way the Human 
Rights Watch list has added muscle to our intolerance of abuses 
abroad, I would hope that this legislation would ensure that child 
labor becomes equally repugnant to everyone. 

I would welcome an opportunity to work with the Chairman and 
members of this committee if you believe that my support can in 
any way enable you to not only pass this legislation, but enforce 
it as well, sir. 

In the last 2 months I have met people from all walks of life and, 
happily, both sides of the political aisle who are seeking to solve 
this problem together. From Wendy Diaz and Archbishop Cardinal 
O'Connor — who was very helpful to us, and I am very, very grateful 



72 

to him — to Jay Mazur of UNITE, New York Governor George 
Pataki and Attorney General Dennis Vacco, I find a common 
thread of decency that they all share to end the practice of sweat- 
shops and child labor abuse. 

Tomorrow I look forward to attending this summit on the issue 
convened by Labor Secretary Robert Reich. It is my hope that this 
hearing and tomorrow's summit will ensure this issue is dealt with 
in a meaningful way, and we can really make some progress. 

Mr. Chairman, I am an entertainer who had a simple idea, to 
create fashion wear with my name on it in the hopes of raising 
money for children. In hindsight, I would conclude that an expla- 
nation of quantum physics is easier to do. This much is clear to me: 
I have learned that each one of us, whether we are in Congress, 
in corporate America, in a television studio, or in a shopping mall, 
has a moral imperative, and we need to address this issue. I don't 
have many answers as yet, but I certainly am learning to ask the 
right questions, and I welcome any question you might have of me. 

Mr. Smith. Mrs. Gifford, thank you very much for your outstand- 
ing testimony. Many of us on this panel find that human rights 
work, and I am sure Ms. Remington and Mr. Freeman feel the 
same way, is very oft^en lonely work. You have helped to bring the 
light to it that is so necessary, and I think it is mobilizing public 
opinion. 

The key now is to keep it sustained through the Olympics and 
through the elections. And whether or not this legislation passes 
this year, I know I and Mr. Lantos and Mr. Moran and Mr. Hyde 
and others are in this for the long haul, as I know you are. 

I want to thank you for your good work in getting this critical 
mass together to make this a reality, because very often we are out 
there whistling in the wind, and very few people listen. You have 
helped to mobilize public opinion. Thank you very much. 

[The prepared statement of Mrs. Gifford appears in the appen- 
dix.] 

Mr. SNflTH, Mrs. Remington, please proceed. 

STATEMENT OF FRANCOISE REMINGTON, EXECUTIVE 
DIRECTOR, FORGOTTEN CHILDREN 

Ms. Remington. Mr. Chairman Mr. Ranking Member, members 
of the subcommittee, thank you for the opportunity to appear be- 
fore you. My name is Francoise Remington. I am the founder and 
executive director of Forgotten Children, a 501(c)(3) nonprofit orga- 
nization based in my home in Arlington, Virginia. I and my hus- 
band are the adoptive parents of three orphan children from India, 
two of whom come from Mother Teresa. I have personally wit- 
nessed many examples of child labor in India. 

The growth in child labor worldwide is the result of globalization, 
and we all bear some responsibility for its growth. Child labor is 
clearly within the jurisdiction of the U.S. (Jongress, especially in 
circumstances where the American taxpayers or consumers contrib- 
ute to its growth. 

I appear before you to advocate that the World Bank, which is 
sustained in part by U.S. taxpayer funds and which contributes di- 
rectly to increases of child labor, no longer deny its responsibility 
and participate in a solution. Either by legislative mandate or by 



73 

congressional request, the Bank should incorporate a child labor 
policy in its financed projects. 

In 1988, I first witnessed child labor in the match factories of 
Sivakasi, Tamil Nadu. As my network of Indian child welfare activ- 
ists grew, my first visit was followed by others. I ultimately visited 
the lock factories of Aligarh, Uttar Pradesh where more than 
10,000 children daily toil in terrible conditions. 

In Manali, Himachal Pradesh, I visited a Buddhist Lama, Lama 
Gondup, who operates a school for children who cut stones manu- 
ally for road construction. As they work, the children breathe the 
polluted air caused by passing trucks, buses, and boiling tar. While 
agreement does not exist for the exact number of children working 
at cutting stones at roadside or quarrying, according to the 1991 
census of India, there are over 23,000. Local activists give a larger 
number. For example, in the State of Kerala alone, which has the 
lowest number of working children, 20,000 children work in stone 
quarries. 

In spite of this sad reality, without any child labor provisions, 
the World Bank is financing a project, INPA9995, with an IBRD 
loan of U.S. $95 million for the construction of 800 kilometers of 
major roads in Haryana State. No one can deny that roads must 
be improved in India, but it is certain that children will be working 
on road construction activities as a result of this project. 

In January 1994, I accompanied Dr. M.K. Patra, director of the 
Asian Workers Development Institute in Rourkela, Orissa, on a 
tour of the dumping yard of the Rourkela Steel Plant. Dr. Patra ob- 
served: "There are no working children in the plant. It is in the 
dumping yard that you will find the working children. That place 
is like hell. Accidents occur there often, mainly bad bums. And, 
most of the children there suffer from respiratory disease." 

He was right; the place is a living hell. Children, estimated to 
be about 300 in number, ranging from ages 8 to 15, hold iron hooks 
or hammers to pick up burning pieces of molten steel. The children 
work from 4 a.m. to 5 p.m. outdoors in the burning sun and among 
the acrid smoke. Many of the children come from tribal families 
who have been displaced as a result of modernization. The plant 
management denied any responsibility for the working children; 
they are not employees. 

With more time. Dr. Patra would have shown me mines in Orissa 
where the same facts are replayed: Childen working in mining ac- 
tivities; officially the management can rest in peace, there are no 
children working in the mines. Yet, in Orissa alone, the number of 
children working in exploited situations is estimated by UNICEF 
to be well over 600,000. In Cuttack City, it is estimated to be over 
33,000, among whom 3,600 children are engaged in mining and 
quarrying. Furthermore, just in Cuttack, approximately 1,500 chil- 
dren are construction workers. Most of them work at least 8 hours 
a day. 

Before turning to the role and responsibility of the World Bank 
regarding child labor, I would tell you that my personal experiences 
in India could be replicated in other developing countries from 
South to Central America, from Africa to Asia. p, ' 

In spite of these facts, the World Bank is currently financing two ) 
important projects in Orissa in which child labor will be stimu- 



lated: First, the India-Orissa Water Resources Consolidation ^ 
Project which has given a loan of U.S. $290.9 million to the Gov- 
ernment of India from IDA Credit; and second, the Coal Sector En- 
vironmental and Social Mitigation Project, which is granting U.S. 
$500 million to India Coal to open 33 mines in Orissa, Bihar, 
Madya Pradesh and Maharashtra and an IDA credit of U.S. $50 
million for financing environmental and social impact action pro- 
grams. In both cases, legitimate development needs are met, but 
should it be at the expense of child labor? 

Little hands will be working in the construction of the Naraj bar- 
rage (dam), near Cuttack, which will require 130,000 cubic meters 
of earthwork and 320,000 cubic meters of concrete. 

Tribal children will no doubt be found working in the backyard 
of the new mines of India Coal, which is going to displace 10,445 
persons, many of whom are tribal people. Resettlement is provided 
in the package deal. India Coal will proviae employment for 18 per- 
cent of displaced persons, and the remaining 82 percent, 7,549 per- 
sons, will be entitled to assistance for self-employment with the 
help of five NGO's selected by India Coal. The four States where 
the mines will be located are known for their large numbers of 
working children. The maiority of working children are to be found 
among the "migrant families at construction sites, brick kilns and 
mines." 

Not only do World Bank-financed projects contribute to the 

Bowth of child labor, but often the industries which rely on child 
\x>r are gfiven as examples of success in a World Bank's discussion 
paper. The fact that India has become the largest exporter of cut 
and polished small diamonds is described as a success story be- 
cause "India's large pool of low-cost artisans gives it a strong com- 
petitive advantage in this industry." No field study was made to 
verify who were these artisans: About 13,600 children below the 
age of 14 years old work in the gem polishing and diamond-cutting 
\ industries. One expert has observed: "The influx of child labor into 
\ the industry is a relatively recent phenomenon that has occurred 
because the international demand for gems has risen sharply. 
When the demand for gems was not very nigh, child labor was not 
widely prevalent." 

In the same World Bank paper, the authors praised Bangladesh's 
successful exports of garments and the fact that "about 90 percent 
of workers are female." However, according to Pharis Harvey, there 
are about 300,000 children working for the Bangladesh Garment 
Manufacturers. These females, often girls 8 years of age or less, 
work like slaves. 

On March 27, 1996, I wrote to the Inspection Panel of the World 
Bank to predict that child labor will take place in the India-Orissa 
Water Resources Consolidation Project. On May 10, 1996, I was in- 
vited to attend an informal meeting at the Bank. I was informed 
that the Bank was aware of the child labor problem and that, prob- 
ably in 2 years, a policy on child labor could be included in World 
Bank projects. I also received a letter from the Bank's Office of 
South Asia External Affairs, informing me that "project execution, 
however, is the responsibility of government agencies." 

The World Bank, the leading global development organization, is 
in a state of denial about its responsibilities in this area. The Bank 



75 

does not even comply with Article 32 of the U.N. Convention of the 
Rights of the Child. 

A policy against child labor in World Bank-financed projects is 
urgently needed as well as an independent monitoring system es- 
tablished by community-based NGO's to ensure that no children 
are being exploited in World Bank-financed projects. Such a policy 
will set an example and will impose pressure on governments 
which rely on exploited children for foreign exchange and cheap 
labor. 

The facts are clear. It will take a worldwide effort to fight child 
labor. Without your interest and intervention, the problem will not 
go away. Why should American taxpayers participate in the silent 
dehumanization of globalization? Why should American taxpayers 
contribute to the financing of projects in which children are ex- 
ploited? By whatever legislative means you seek to employ, please 
take steps to prevent the World Bank from contributing to a grow- 
ing global problem. 

Mr. Chairman, I applaud these hearings and your leadership as 
well as that of your subcommittee members. Thank you for giving 
me this opportunity to be a voice of the voiceless, exploited chil- 
dren. 

Mr. Smith, Thank you very much for your testimony and for 
your good work on behalf of the kids. 

[The prepared statement of Ms. Remington appears in the appen- 
dix.] 

Mr. Smith. Mr. Freeman. 

STATEMENT OF ANTHONY G. FREEMAN, DIRECTOR, WASfflNG- 
TON BRANCH, INTERNATIONAL LABOR ORGANIZATION 

Mr. Freeman. Thank you, Mr. Chairman. 

Mr. Chairman, Mr. Lantos, Mr. Moran, distinguished members of 
this committee, I welcome this opportunity to testify on a major 
problem facing humanity, which is only beginning to get the center 
stage attention it deserves. 

The fact is that hundreds of millions of children around the globe 
from the ages of 4 and up are forced to work — often under inhu- 
mane conditions, harmful to their health and safety, their develop- 
ment, and their very lives. 

My name is Tony Freeman. I represent the ILO in the United 
States. The office of the ILO is the Secretariat of that organization. 
The organization is an intergovernmental agency, headquartered in 
Geneva, Switzerland. It was created in 1919 by the Treaty of Ver- 
sailles at the end of the First World War to address economic and 
social causes of war by establishing minimum international labor, 
social and human rights standards. In 1946, we became part of the 
U.N. System. 

The tripartite structure of the ILO is a unique characteristic of 
the organization which shapes our philosophy and our modus ope- 
randi. We perform our mission by working not only through our 
174 member States' governments, but also with the trade unions 
and the employer associations of all of our member States. 

You have asked me to describe the work of the ILO in the field 
of child labor, particularly the strategies which our 4-year-old 



X 



V 



76 

International Program on the Elimination of Child Labor, or IPEC, 
has achieved in terms of concrete reform. 

I have submitted a paper on this subject, which I ask be included 
in your record. I would merely like to use my time here to empha- 
size the salient points and put it somewhat into context. 

Basically we have two tracks on which we work to deal with the 
child labor problem. We have a standards track, which is the set- 
ting and promotion of standards, or conventions; and the monitor- 
ing and critiquing of performance by member States which ratify 
these standards. Second, we have a technical assistance or tech- 
nical cooperation track, which basically in terms of child labor is 
the IPEC program. 

With regard to the first track, which is really one of the oldest 
and one of the most important features or functions of our organi- 
zation, the ILO sets conventions and recommendations, which are 
international standards. Each member State is required to submit 
all conventions and recommendations adopted by the ILO Con- 
ference to the competent national authorities for a decision as to 
the action to be taken. Once ratified, conventions become treaties 
in international law. They create binding obligations on the part of 
the ratifying State to put their provisions into effect. 

The ILO also has a unique system among U.N. agencies in terms 
of monitoring and critiquing compliance on the part of the member 
States with the conventions of the ILO which they ratify. The proc- 
ess is voluntary on the part of the member States, and the ILO 
works through moral suasion, not compulsion. But governments 
will go to extraordinary lengths to avpid__cpndemnation by their 
peers and by world public opinion. 

Over time, and especially if it is accompanied by reinforcing par- 
allel pressures and developments, including the offer of effective as- 
sistance, the process can help to create a new dynamic among the 
public and also the ruling elites of countries which are noncompli- 
ant with the treaties which they ratify. 

A few months after our foundation, the ILO issued its first con- 
vention on child labor. We have a number of conventions which 
deal with this issue on a sectoral basis. Our most important one 
is No. 138, adopted in 1973. It applies to all sectors of economic ac- 
tivity. By ratifying it, members commit themselves to pursuing a 
national policy designed to ensure the effective abolition of child 
labor and to raise progressively the minimum age for admission of 
employment to a level consistent with the fullest physical and men- 
tal development of the young persons. 

The convention provides that the minimum age should not be 
less than the age of completion of compulsory schooling and, in any 
case, not less than 15 years, although there are flexibility provi- 
sions for developing countries of 14 years in general, and there is 
a provision for light work from age 12. 

As I say, when governments ratify this convention and/or the 
other child labor conventions, then they subject themselves to ex- 
amination each year by our supervisory committees. We have hear- 
ings like this in which governments are called to testify, and they 
are reviewed and cross-examined, not only by other governments, 
but by workers and employers of the world. 



77 

In addition to our child labor conventions, we also have two con- 
ventions on forced labor, which in the last 10 years we have begun 
to be able to use to try to get better performance on the part of 
ratifying States with respect to the issue of child labor. 

Secretary Reich, who was here earlier, spoke very eloquently 
about the conference that was held last month in Greneva, in which 
something like 30 Ministers of State from around the world dis- 
cussed a paper done by our office, which is entitled "Child Labor, 
What Is to Be Done." We have also submitted that for the record 
here. 

In this conference, which Secretary Reich called for and played 
a leading part in the discussion thereof, the Ministers endorsed a 
decision of the ILO to now move ahead and begin discussing, draft- 
ing and negotiating in 1998, with a view to adopting the following 
year, 1999, a new international standard which is geared specifi- 
cally to banning the most intolerable forms of child labor; that is, 
both those that are contrary to fundamental labor rights, such as 
child slavery, forced labor, bonded labor, exploitation of children for 
prostitution or other illegal sexual practices, the use of children in 
drug trafficking or the production of pornography; and work which, 
because of its nature or the condition in which it is used or per- 
formed, exposes children to particularly gp^ave hazards to their 
safety or health or prevents them from attending school normally. 

Our second track is the IPEC track, the technical assistance 
track. In our testimony, you will see that the first State to provide 
extra budgetary funding to the ILO to get this program started in 
1992 was the Federal Republic of Grermany. Today there are nine 
donor countries which have provided or committed a total of $85 
million, including the United States, which has committed a total 
of $3.6 million. Approximately 25 countries are in various stages of 
receiving IPEC assistance. 

The basic aim of the program is to work toward the ph ased elimi- 
nation of child_labor by strengthening national capacity to address 
the problem and by pfdnioting a worldwide movement against it.-^ 

Child labor is a vast, complex problem. Therefore, IPEC aims at 
getting a commitment at the highest levels of the participating gov- 
ernment to undertake what we call a country-owned program based 
on a broad alliance in that country, including employers and work- 
ers' organizations; NGO's; other relevant parts of the society, such 
as universities, the media, local communities, doctors, teachers, 
any element of society that relates to the problem in its most com- 
prehensive way. 

To accomplish this, IPEC assists in carrying out a situational 
analysis to find out the magnitude and nature of child labor prob- 
lems. I should stress that existing statistics are very poor as to the 
number of child laborers around the world. We can only guess- 
timate or estimate them at the present time. So the program calls 
for a census or survey in each of the countries in which we are par- 
ticipating. 

We also help the concerned parties devise national policies to ad- 
dress specific child labor problems. We strengthen existing organi- 
zations, setting up institutional mechanisms aimed at building 
partnerships and creating a sense of in-country ownership. 



78 

We need to_<u'eate^wamiess_of _th^^ of child labor, both 

nationwide and at the community and worlcpTace^vels, and, there- 
fore, we develop what we call finely-tuned demon stration projects 
aimed at showing that you can get kids out of work and can put 
them in a school. Then we try to replicate the successful projects 
and try to get the governments to digest the lessons learned and 
agree to mainstream them into national policies. 

There are two projects I want to very briefly mention, Mr. Chair- 
man, which are nnanced by the U.S. contribution, and I think you 
would be interested in. The first is the Bangladesh program, and 
the second is a project in northern and northeastern Thailand to 
prevent child labor and forced child prostitution. 

The Bangladesh project is described in our paper. I would just 
state here the project has encountered considerable difficulty in 
getting off the ground owing to extreme political instability in that 
country for the first 6 months of this year in which all industry 
was basically closed down. 

It is a very interesting project because it demonstrates what can 
be accomplished_j£-the United States ^ an d^ the ILO work together. 
It probably would not have gotten off the ground had it not been 
for the active and forceful participation of the U.S. Ambassador in 
Dhaka, Mr, David Merrill, and the project is being closely followed 
by human rights groups, NGO's and trade unions in the United 
States. 

The second project works to keep girls out of prostitution and to 
give them education in northern and northeastern Thailand. These 
are very young girls who are targets of the traffic in child prostitu- 
tion. We have a Daughters' Education Program which carries out 
a comprehensive program aimed at raising awareness among the 
parents of these chiloren, the communities, and the children them- 
selves of the dangers which they face. Vocational skills^training is 
combined with jion forma l education to demonstrate alternative 
ways of meeting^i^tamilyVecanomic mean&J?he Ministry of Edu- 
cation is involved in getting the children into schools. 

Mr. Chairman, you have mentioned the needs of the program. 
We have many more countries that would like to enter the program 
now and participate in our systems than we have the funding to 
provide. For example, there are 10 countries in Africa that are 
waiting to join the program. 

We welcome very much, Mr. Chairman, your comments that you 
made earlier and the provisions in your proposed legislation which 
call for beefing up the U.S. contribution to the program. 

In ending I would say, sir, that one of the strongest testimonies 
to this program has been the steady increase in support from the 
donor countries and the growing number of requests we have re- 
ceived from developing countries seeking help. The countries that 
have asked for help have recognized and admitted publicly that 
they do have a problem, and that they do want to solve it. Tbey 
know thatJPECwill show themJ ioyiU^audevelop-thB-abilityJbp elimi- 
nate at least the mosT abiisive"'1orms of child labor so they can 
begin to prevent the tragic destruction of their most precious na- 
tional asset, their children. 

Sir, I thank you very much for this opportunity to begin this dia- 
log and to discuss our program. 



79 

Mr. Smith. Thank you very much. Your full statement will be 
made a part of the record. It does contain considerable detail about 
the work of the ILO. I am grateful for that. 

[The prepared statement of Mr, Freeman appears in the appen- 
dix.! 

Mr, Smith. Just let me ask you, Mrs. Gifford, the first question. 
You mentioned very recently that you attempted to enter the global 
fashion plant in Honduras, if I heard you correctly, but were 
turned away. Could you describe those circumstances in more de- 
tail and what you think the message is that is being sent by that 
rebuff? 

Mrs. Gifford. I wasn't personally, I want you to know that. But 
I had made the plea to Wal-Mart on behalf of Ms. Diaz that if pos- 
sible, could we please return work to that plant. They said, basi- 
cally their standards have to be met or they cannot take the work 
back there. I certainly respect that. So they said they would go in 
and look and make sure; maybe they cleaned up their act since the 
initial allegation. 

Basically, I will find out many more details, sir, for you as soon 
as I can, but I just got this memo this morning that on Friday 
members of the Wal-Mart watchdog team went to the Global fac- 
tory, Global Fashions factory, and were denied access, was the way 
it was put to me, turned away, 

I had heard from other people they have armed guards there or 
some sort of thing, so I guess they use some sort of threat about 
it, not going inside, 

Mr, Smith, One aspect of Wendy Diaz's testimony that somewhat 
surprised me was her appeal that the work not be taken from Hon- 
duras. Several of our witnesses have alluded to the fact. Secretary 
Reich spoke about it as well, that the best choice among many com- 
peting options is sometimes work, or at least some limited work. 
It may be necessary to keep the work there as opposed to abandon- 
ing people to other m.ore unsatisfactory types of enterprises, like 
prostitution. 

That struck me, and if I heard you correctly in your testimony, 
she likewise made an appeal to you, that the work not be lost. 

Mrs, Gifford, I think she realized she would no longer be wel- 
come there after she became almost sort of a national, inter- 
national symbol of child labor abuse. So I think she was making 
that appeal on the behalf of her friends and her family members 
who work there, I certainly could understand her concern for them. 

That is the position we are put in. We want to do business prop- 
erly, and yet when the manufacturer wants to do business prop- 
erly, but when the person actually doing the manufacturing doesn't 
work with you and clean up the act that they have got going there 
that we find offensive, we don't have much recourse except to take 
the work elsewhere. Then the cost to human life is incalculable at 
that point. 

Mr. Smith. I have found that human rights workers, including 
all three of you at the witness table and many of those who do in- 
country work on a day-to-day basis, very often internalize the 
maxim, "there, but for the grace of God, go I." That is the way I 
feel on behalf of my own family, whether it be regarding childhood 
vaccination programs or oral rehydration or human rights work. As 



80 

I think somebody said earlier, you know, the accident of birth puts 
us here in a place that is blessed with much. 

How do you describe your own commitment to this? It seems that 
there is a sense of anger that this exploitation occurs, and as you 
are speaking out, you grow more bold by the day, as all of us do, 
I think, when we discover more of what is happening in these var- 
ious countries. 

Mrs. GiFFORD. Well, I was very moved by Mr. Lantos' words and 
Mr. Moran's regarding the abuses around the world. I leaned over 
to my husband and I said, "That is Cody's age." We have a 6-year- 
old son and almost 3-year-old little girl. I think that is why it was 
so important for me to meet Ms. Diaz and put a human face on the 
suffering. 

As a parent — I was a child activist and advocate many, many 
years before I became a parent myself But since I became a par- 
ent, I am more compelled than ever, because I want to leave this 
planet for my children a very different place. Yet I grew up in a 
wonderful country, and was afforded great opportunity, and felt 
that I was denied nothing if I worked hard enough at it. 

For these young children it is not even a question of how hard 
they work. They are denied a childhood. They are denied the basic 
right to be a kid, to play with a ball, to bounce a jack, to be safe, 
and I am appalled by that. I know some people have perceived my 
tears to be tears of weakness, but I am moved with compassion for 
those who are never given a chance to have the kind of childhood 
that my children have. And that is why my husband and I started 
these homes. 

We started these homes for AIDS and crack babies because the 
first time I held an AIDS baby in my arm, I held in my other arm 
my first son, who was 3 montns old at the time, and tnat changed 
my life and changed my husband's life as well. And we thought of 
the injustice of it. Why should, as you say, our child be bom into 
privilege and health and prosperity and joy, the joy of being a child 
and being loved and being cared for, and this child, in my other 
arm, being born into nothing but suffering? 

So we thought if there is any way that we can, for whatever time 
these children are on this Earth, make this place a loving place for 
them to be, then that is what we have devoted ourselves to doing. 
That is why when all of these allegations came forward at the time 
when we were just about to open the second home we had built 
from ground up, after 3 years, $5.5 million, it was a time of joy for 
us. We wanted it to be a national model for other cities where 
AIDS and crack are a problem. To be able to take our blueprints 
even and build a home, name it after someone else's child in their 
city, and leave a legacy of love instead of a fat trust account. Show 
your children by your example what you think is important and 
that your parents cared enough to put their money where their 
moutn was. 

So it was a great time of joy for us and a time of expectancy. But 
we could have never expected what would happen in these very 
halls. At the time I was so stunned, I felt like I had been hit by 
a truck, because we didn't want all kinds of applause or accolades 
for what we were doing, but we certainly didn't feel we should be 
crucified for trying to do the right thing as well. 



81 

But I got over that so quickly, sir, when I realized that I am not 
the victim at all in any of this. I still go home to a beautiful home 
and a loving husband and two healthy children. The victims are 
those who are exploited on a daily, hourly basis, in factories around 
this world. And the saddest of tnose victims are the children who 
have been denied a childhood. 

Mr. Smith. There is an old adage: No good turn goes unpunished. 
I really do think, and I said this earlier and will reiterate it, that 
by your advocacy and boldness, you have brought this human 
rights issue front and center, made it a front-burner issue. As I am 
sure Mrs. Remington and Mr. Freeman know, we toil in the human 
rights vineyard day in and day out, and no attention is paid to it. 
I think you have lifted the potential for so many children all over 
the world as never before, and we will not let this issue die. I really 
appreciate the good work you have done and your willingness to be 
a lightning rod. 

And as to your critics, well, there are critics everywhere. Light 
a candle, and there are people who will always curse the darkness. 

Mrs. GiFFORD. Get in line. 

Mr. Smith. That is right. I think you have done yeoman's work. 
Anyone who has watched what you have done, how you have taken 
all of the barks and criticisms, and turned them gently but boldly 
and with a great deal of aplomb, should agree. I think you have 
really done a magnificent job on behalf of the world's kids who are 
suffering in these sweatshops, and that includes, of course, those 
in our own country, 

I would like to ask a question of Mrs. Remington. You have been 
very critical of the World Bank, and I joined in that criticism. We 
have a line item in our legislation with regard to the World Bank 
and other multilateral institutions. By our contributions to the 
West Bank over the past 3 years, we have effectively given $400 
million in U.S. taxpayers' funds to the regime of the People's Re- 
public of China in the form of interest-free International Develop- 
ment Association credits. What would be your advice to this com- 
mittee, to the Congress, and to the executive branch, relative to 
reigning in these abuses, perpetrated by the World Bank because 
of its lack of human rights criteria? 

Ms. Remington. I think, Mr. Chairman, you have the power to 
put pressure on the World Bank to assume its role as a leader, 
which it is refusing to do.^My Indian friends are going to take pic- 
tures where the children are going to be working in the project. 
The Bank does need to have a child labor policy to comply with the 
U.N. Convention of Children's Rights. The Bank cannot deny it. It 
is a shame that Bank officials deny having anything to do with it. 

Mr. Smith. Mr. Freeman, if I could ask you briefly about the 
International Program for the Elimination of Child Labor, which 
has gotten a very hefty donation from the Republic of Germany, 
some $65 million worth. I am just wondering what prompted that 
great expression of generosity by the German Government and by 
the Spanish Government, which has provided over $12 million. 

You were very kind in your comments thanking the United 
States for its contribution, and it was very diplomatic the way you 
expressed it. But for this country, which has significant assets and 
resources, to be coming in with a $3.6 million donation certainly 



82 

pales, especially since, as you know, the United States historically 
provides roughly a quarter to a third of the contributions to inter- 
national organizations within the U.N. Bureaucracy. I mean, we 
are generous in other areas. We ought to be more generous in this 
area. 

What could be done if we beefed up our contribution, as this leg- 
islation which Mr. Lantos, Mr. Hyde, Mr. Moran and I have intro- 
duced would do, to a $10 million per year commitment each year 
over 5 years? What could be done? 

Mr. Freeman. First, about Germany, there are very well orga- 
nized consumer organizations in Germany which put pressure on 
the government. There is great interest in the child labor problem 
in Grermany. 

As I said in my testimony, the amount of funding we have pales 
in terms of the needs that we foresee. We have something like 25 
countries that are participating in the program now. There are 
more countries that are asking for programs. We have something 
like several hundred demonstration projects in the participating 
countries. But more is needed in terms of demonstrating and rais- 
ing awareness in countries. 

We need to train labor inspectors, for example. We need to put 
new child labor units in central government organizations that 
don't exist. We specifically need to address the horrendous problem 
of child labor in Africa, which we have not even begun to address. 
We also need funding for statistical analysis, which as I said, is 
very scarce and done on the basis of estimations and projections, 
rather than a true knowledge of what the full extent and dimen- 
sions and nature of the problem is. 

Mr. Smith. Thank you very much. 

Mr. Lantos. 

Mr. Lantos. Thank you very much, Mr. Chairman. 

I wanted to commend all three of our witnesses. Each in her and 
his way has made a significant contribution to this dialog. 

Mrs. Gifford, you used the word "cauldron of public policy." I 
think that is a good phrase. 

I must say I could not be happier than I am welcoming you into 
the arena. Being in the field of human rights is very often lonely, 
but it is always an extremely rewarding enterprise. 

I hope you don't mind if I use in the light of the coming Olympics 
some athletic analogies. But there are very few touchdowns in this 
field, and many fumbles, many fumbles. 

Mrs. Gifford. We don't say the word "fumble" in our household, 
sir. 

[Laughter.l 

Mr. Lantos. I have used that term deliberately. There are very 
few touchdowns and many fumbles, and it is a marathon. It is not 
a 100-yard dash, it is a very long and painful marathon. 

Let me just say to you that as you moved from personal success 
and professional success to reaching beyond yourself and engaging 
in this incredibly praiseworthy philantnropy toward children who 
need that philanthropy so badly, you took a giant step. But the 
step you have now taken of being part of the public arena is an 
even more important step, because this is the arena where we in- 



83 

variably are subjected to ridicule, abuse, denunciation, and it takes 
many, many attempts to succeed just in our own Congress. 

Many of us felt for years that passing a Family and Medical 
Leave Act is a minimum civilized condition for men and women 
who have sick children or parents or spouses not to have to choose 
between giving up a job or taking care of their loved ones. And 
after many frustrations and failures, we finally succeeded. 

Some years ago I held hearings on the glass ceiling that women 
are up against in many Japanese-owned corporations, where the 
dominant male culture is so strong and so overbearing that the 
most qualified women can only go so high. And we had at the wit- 
ness table key executives of some of the best known corporations 
in this world trying to defend a nondefensible policy. 

So as you move into the field of fighting for children who so des- 
perately need all of our efforts, let me welcome you as a comrade 
in arms. We look forward to having you with us for the long pull. 
Thank you very much. 

Mr. Smith. Mr. Moran. 

Mr. Moran. Thank you very much, Chris and Tom, and our 
three witnesses, for what you have done and will do in the future. 

Mrs. Gifford, when we first had those hearings, and your name 
became associated with these textile products, our assumption was 
that you had lent your name purely for selfish profit. We now come 
to realize that the profit was actually going to a home for crack- 
addicted and AIDS-afFected children. So regardless of what was re- 
vealed, your motivation should not have been brought into ques- 
tion. We didn't realize that at the time. 

But I know that it is impolitic to suggest anything that might 
come close to spirituality on some of these issues, but God does 
seem to work in strange ways sometimes. And when we are talking 
about over 100 million chilaren around the world that are living in 
unconscionable conditions, and your articulation of those conditions 
and the unfairness of it is so much more evocative than any state- 
ment that any of us could have made, we thank you for that. I 
know it is going to get the kind of visibility that it needs. That will 
be played tonight, and it will sink into the minds of a lot of people. 

But as a result of this experience you have had, and we 
wouldn't — the initial reaction — we wouldn't want to wish on our 
worst enemy. I know the abusive treatment you got in some of the 
media, particularly in New York, but as a result of that experience 
and your visible leadership, it is going to change the lives of mil- 
lions of children in a way that, as effective as the Cody House is, 
you could never have imagined. So I don't know why Grod chose you 
for this mission, I am sorry it has been so difficult, but the reality 
is you are going to change a worldwide situation that would prob- 
ably have taken much, much longer if we had not had someone 
with as much sensitivity and visibility and communicative skills as 
you have. 

So I am sorry you have gone through what you have gone 
through, but there is something in me that realizes that this could 
not — there must have been some purpose for why this has hap- 
pened to you, and this is sort of the way things change in the 
world. 



84 

I would like to ask you, from your perspective, how can we enlist 
more people who are celebrities, in a visible role, so they really can 
influence people? How do we go about influencing them so they can 
become part of the solution, in the way you have oecome? 

Mrs. GiFFORD. I am, frankly, surprised that each individual we 
invited to tomorrow's summit did not respond immediately and en- 
thusiastically, even if they only did it because they don't want to 
go through what I went through. Even if that was their only moti- 
vation was to be a part of it, at least let's appear we care about 
these abuses and put on a good show, and it will die, and every- 
body will leave us alone. I was stunned, frankly, that several of the 
people did not give us the courtesy of a response. 

So I think there is an attitude out there that this will just go 
away. We just maybe ignore it. And I think that is why I was prob- 
ably the right person to "pick on" back then, because when I see 
something that is wrong, I can't ignore it. 

My grandfather came to these shores when he was 5 years old, 
a Russian Jew, and everything that he believed in and passed on 
to my father — and my mother was the daughter of immigrants. Ev- 
erything they passed on from both sides of my parents is in me. 
It is what made America the great Nation that it is, or at least 
wants to be. And I want to be a part of this great Nation. 

And it has not been fun, as I say, the last few months. But for 
just a short time did it hurt real badly. And then right after that, 
once I saw what was out there and got educated to the abuses, my 
own pain seemed very, very selfish and insignificant to me, as it 
did to my husband. And we don't run away. He never ran away 
from a big guy on the football field, and he was out for a year with 
a concussion to prove it. But he did come back as comeback player 
of the year, and I want that in the record, sir. 

But we are fighters in our family, and I would rather be on the 
side of what is righteous. And you were talking about the spiritual 
aspects of things. Many times in our culture we want to ignore the 
spiritual aspect of things. But to me that is the essence of what I 
am as a person. And when I met with Archbishop Cardinal O'Con- 
nor, and I was so grateful for his hospitality, I met with Jay Mazur 
and Mr. Kemigan of the National Labor Committee, and Wendy, 
and it was a very, very fruitful meeting. It was very emotional for 
me, but I was, for me, tough. 

Afterwards the Archbisnop sent me a note privately and said, 
**Would you mind meeting with me privately when everyone else 
has left?" Of course, I was happy to do so. He sat there with me, 
and I certainly don't say this in a way to offend anyone present, 
but he is a man of great spiritual import, and his words do not 
come lightly. And he took my hand and he said, "Kathie, remember 
something. He said, "Our Lord did not change the world through 
his miracles. Our Lord changed the world through his suffering." 

And that meant a great deal to me, not that I would ever suffer 
in the same way. But he said, if your suffering in this part of the 
world can be a blessing, can turn out to be a blessing in people's 
lives, and abuse can be stopped, and exploitation can have the light 
shined on it, then it is a privilege that you were used this way. 

And everything changed for me after I met Ms. Diaz and spoke 
with the Archbisnop, and I saw it as a great, great privilege. 



85 

I just want to let you all know that I encourage you in your great 
work, and that I am honored to be a partner with you in that work. 
I will even g^ve you my home telephone number. Frank won't usu- 
ally let me do that with men. 

Mr. MORAN. Don't do that. Do not do that on the record. 

Mrs. GiFFORD. Later. And Frank joins me. We are a team, as you 
saw when he went down to that sweatshop in New York City, 
thinking that it wouldn't bring too much attention if he went, only 
to be mobbed by about 150 television crews there. People said we 
did it because we were trying to turn a bad situation into a good 
one, put spin control on it, and I was deeply offended by even the 
term. 

When we found out that people had been exploited and abused 
working on a project that had my name attached to it, Frank and 
I equally felt incensed and outraged by that, not that we had hired 
these people, because we hadn't. It took 2 days for Wal-Mart to find 
out who had hired these people. And they were illegal immigrants, 
Mr. Moran. They are right. So many of them didn't even show up 
to be paid, because they were afraid that they would be deported 
or they would get in trouble or they wouldn't work again if they 
came. 

And yet we felt like it was the moral and right thing to do, not 
to pay their salary, because we had not hired them, but to at least 
give them food enough to eat that night and to take care of their 
children. And that is why I get so angry. 

Now my anger has got focus, and that is a good thing. It is called 
righteous anger, and you get angry at the right place, and I am 
angry at these people that we have determined are more like cock- 
roaches than human beings. They only live in the darkness, and 
they live off the suffering of others, and it is obscene, and I would 
be proud to be a part of whatever work you do to make sure it 
comes to an end. 

Mr. Moran. Well, thank you very much. 

Evil in this world is really best characterized as the exploitation 
of other people for selfish purposes, and that is really what this 
issue is all about, and particularly when one exploits children, it 
is unconscionable. And when the history of the effort to stop child 
labor is written, you will go down as one of the MVP's. 

Let me ask Ms. Remington, I noticed you adopted some of these 
children. I remember in reading that article in Life magazine, the 
one with the volcano on the cover, but it had a very compelling 
story about child labor inside — very well done — particularly in 
Pakistan and India. 

My wife and I wanted to adopt one of those children, particularly 
the one, the little boy who at 2 or 3 years old kept crying for his 
mother and the foreman branded his face and took his eye out and 
so now his face is disfigured for life. 

How does one go about adopting these children? Because our sus- 
picion is that they don't get to their parents, they are rescued, and 
they are so young they don't even know where they live. They can't 
tell people where they came from because oftentimes the people 
who take them, of course, take them out of their environment so 
that they are wholly helpless. 



86 

I noticed your organization is actually in my district. Can you 
briefly tell us how one goes about adopting these children and 
whether it can be done? Because oftentimes it is very difficult to 
adopt children. Can you do that briefly? 

Ms. Remington. Yes, adoption is very difficult. It used to be easi- 
er. I am going to talk mainly about India because that is what I 
know. Mother Teresa used to place many children here in the Unit- 
ed States, and when abortion became legal she stopped placing 
children in the United States. 

Legally, the way it worked is, the Government of India has 
granted some orphanages the permission to place children over- 
seas. Then you have to find an adoption agency here, which is reg- 
istered witn the Grovernment of India, and then work through 
them. But corruption — and it is also why I left the field; I used to 
place children myself — is always there. The Government of India, 
I think rightly so, has added another bureaucratic layer to make 
sure that children are not stolen or kidnapped. Therefore, it takes 
at least 2 years now to adopt a child from India, and many people 
don't have the courage to wait that long. 

Mr. MORAN. That is disappointing and frustrating but not sur- 
prising, 

Mr, Freeman, Chairman Smith has put $10 million a year into 
this bill. Do you think that that is approximately the amount of 
money we need, or is it too little, or sufficient? I doubt it is too 
much. Would you comment about that, the sufficiency of the dollar 
amount in this legislation? 

Mr. Freeman, I think you need to look at the amounts of money 
specifically in relationship to timeframes and the numbers of coun- 
tries you are dealing with. Fifty million dollars is enough, for ex- 
^, ample, to begin a 5-year program, which you need to do over time, 
/ for example, with the African countries. Our approach is to work 
,' with the donor governments to determine what their priorities are, 
\ specifically what aspects of the problem, what particular regional 
areas they wish to work with. 

The chairman asked earlier about Spain, which I didn't answer, 
Spain wants to see its funding used basically in Central America 
and in Latin America. The United States has a more universal ap- 
proach, as does Germany, Fifty million dollars is enough for us to 
get working in the 10 African countries, I would say, for 5 years. 
We need funding beyond that, but we need to go in stages, and we 
need to organize ourselves to deal with the funding as it comes on. 

Mr, MoRAN, It is going to be difficult even to get the $10 million. 
I hope you understand the constraints that we are under. And it 
is $50 million over 5 years, and it would take some time to get it 
started up, I hope we can keep the money available until we spend 
it. And I think that is in the authorization, 

Mr. Freeman, I would just say, it is sorely needed, sir, and God 
speed. 

Mr. Moran, Thanks very much, Mr, Freeman, 

You have all been here a long time, I think we ought to conclude 
this hearing. But, again, we want to thank you. Mr, Freeman and 
Ms, Remington, it is tough to compete with a celebrity, particularly 
such an articulate one as Mrs. Gifford, but you have done very 



87 

well. As Gandhi said, "Our life is our message," and your life has 
been your message, and for the organizations that you represent. 

And, again, Mrs. Gifford, I know we say this from the bottom of 
our hearts and all the people in the human rights, particularly the 
child labor effort: You are making a real difference, and we sin- 
cerely thank you for that. 

Mrs. Gifford, Mv pleasure. 

Mr. Smith. I don t think there are any further questions. I would 
like to thank our very distinguished witnesses for your fine testi- 
mony today. Mrs. Gifford, you mentioned Cardinal O'Connor. He is 
a man who has often been criticized, ridiculed, and vilified, particu- 
larly by the New York media. I know him personally, and it means 
something for him to utter such words of praise for you. Whenever 
I hear praise, I always consider the source, and he is a source of 
impeccable credentials. I don't think we can add to it. 

But all of us would agree that you are an ambassador for the ex- 
ploited working kids of this world, and your message is being re- 
ceived very well on Capitol Hill and, I believe, in all the capitals 
of the world. Please press on. It helps all of us in the work. 

Thank you very much, and this hearing is adjourned. 

Mrs. Gifford. Thank you, Mr. Chairman. 

[Whereupon, at 4:50 p.m., the subcommittee was adjourned, to 
reconvene subject to the call of the chair.] 



89 

APPENDIX 



CONSTANCE A. MORELLA /^ coMMimE on satNce 



WASHINGTON OFFICE: 




Congre£(fi; of t^e Winitth Btatti 



CMSmiCT OFFICE: 

51 MoNfioc STRtET ^0U6t Ol ^tpttitnt&tiiiti coNcnEssioNAL caucus fon women s 



ISSUES 



Suite 507 
RocKViLLE. MD 20850 

(3011 424-3501 
Fax; 13011 424-6992 

STATEMENT OF THE HONORABLE CONSTANCE A. MORELLA 

COMMITTEE ON INTERNATIONAL RELATIONS 

SUBCOMMITTEE ON INTERNATIONAL OPERATIONS AND HUMAN RIGHTS 

OVERSIOHT HEARING ON CHILD LABOR AND U.S. IMPORTS 

JUNE 11, 1996 

Mr. Chairman, this is indeed a timely hearing, and your convening of 
today's panels on child labor and U.S. imports is further testimony to your 
strong support for the rights of children around the world, which you have 
demonstrated repeatedly in your support for a number of foreign assistance 
programs focussing on children's health and education. 

The recent discovery that Wal-Mart merchandise carried under Kathie 
Lee Gif ford's line was being produced by Honduran children earning less 
than 35 cents an hour has riveted national attention on the subject of 
child labor and exploitative working conditions throughout the developing 
world; with the exception of updated technology, these working environments 
would be difficult to distinguish from those described by Charles Dickens 
more than a century ago. 

The problems and circumstances of child labor vary greatly throughout 
the world. In Central America, assembly industries, with labor forces 
almost entirely comprised of women and girls, commonly pay low wages with 
few if any benefits and actively discourage union organizing and activity. 
Sexual harassment and abuse are commonplace. Workers may be exposed to 
unsafe or toxic levels of chemicals and other dangerous substances, 
endangering their health and ultimately their ability to support their 
families. Pregnant women and girls may be required to stand working for 
hours at a time without a break, restroom visits may be restricted and 
monitored. For the most part, workplace rules are enforced almost entirely 
by men . 

In South Asia, debt peonage and forced child labor are commonplace. 
In many cases, debt peonage dates back so far that it is no longer known 
what the original debt was or who incurred it; it may be difficult to 
determine the exact amount allegedly owed. Many children are forced into 
the carpet -weaving industry, where they work long hours to pay off their 
family's debt, receiving little if any food, free time, or medical care. 
They are subjected to physical and mental abuse. Local law enforcement 
officials commonly return escaping children to their employers rather than 
to their families or the appropriate authorities. 

In Thailand and Burma, many girls are either enslaved directly, or 
made available through debt peonage arrangements, to work in the sex 
industry. Young girls, many barely even teenagers, if not younger, are 
exploited as objects and compelled to service clients under the most abject 
circumstances, for many hours each day, every day of the week, without rest 
or time off. Again, food and medical care, and especially reproductive 



90 



medical care, are scarce. Not only does the sex industry rob women and 
girls of their innate dignity as human beings, and girls of their 
childhood, but it is also a leading source of HIV/AIDS, a problem which is 
exploding throughout Asia. 

Although not the specific topic of this hearing, I feel in this 
discussion of the exploitation of children around the world that we also 
address the increasingly common situation of boys being recruited into 
various insurgencencies . This is not a new problem, but the current extent 
of it, and the increasingly number of very young 

boys carrying arms, is disturbing to say the least. We learned something 
of this problem in the debate over RENAMO and Mozambique in the 1980s, and 
we got firsthand experience with the problem in Somalia, but in Liberia we 
are confronted by a situation of the direst proportions, with literal 
armies of young boys, most younger than 14 and some as young as nine, 
roaming the streets of Monrovia armed with automatice weapons and high on 
drugs. I fear that we may already have lost this generation of Liberian 
boys . 

So what is to be done? First of all, nations must enforce their laws 
pertaining to child labor, workers' rights, and workplace safety; greater 
resources must be devoted to health and education for children; nations 
must be held to international standards which they have endorsed. For 
example, the Beijing World Conference on Women adopted a programme of 
action calling for the elimination of economic exploitation and the 
protection of young girls at work, including enforcement of the Convention 
on the Rights of the Child, a minimum working age, social security 
insurance, and health care. In El Salvador, the government plans to be 
devoting about 50 percent of its budget to health and education by the end 
of the century, and the human rights procurator has highlighted four areas 
for special attention, two of which are the rights of children and the 
rights of women. The recent agreement on socioeconomic issues between the 
government of Guatemala and the URNG guerrillas commits that country to a 
similar course. 

Secondly, the right of workers to organize and bargain collectively 
must be respected and protected. Without the ability to press for higher 
wages, jobs will continue to be lost to the developing world, or U.S. wages 
will fall in order to be competitive with developing world labor costs. 

Thirdly, we should adopt a carrot -and-stick approach for our foreign 
assistance. We should continue and expand our administration of justice 
programs, making sure that one of their areas of concentration includes 
labor rights and enforcement of labor law. We should continue to support 
programs which teach workers to organize and press for their rights within 
a democratic framework. On the side of the stick, I am a cosponsor of my 
colleague Jim Moran's legislation, the Working Children's Rights Act, which 
is intended to improve compliance with labor laws by denying U.S. foreign 
assistance. 



91 



Finally, all of us, as consumers, and U.S. companies, have a 
responsibility to see that the products which we buy or produce are 
manufactured under circumstances which respect the rights and dignity of 
the workers. From the debate which I have heard on the subject, I know 
that it is difficult to draft legislation which would hold U.S. companies 
directly accountable for the foreign workplace conditions under which their 
products are manufactured, but I feel that we need to look at some way of 
ensuring that minimum standards are met. I would add, however, that 
regardless of the law, decency and corporate responsibility dictate that 
companies should be assuring the safety and fairness of the workplaces 
where their products are produced. 

Mr. Chairman, it has been said many times, and regardless of one's 
opinion of who may be saying most recently, the fact remains that it does 
take a village, in this case a global village, to raise a child. We all 
have a role to play. Thank you again for this opportunity to appear before 
you today; I look forward to working with you in your efforts and those of 
my colleagues to address this issue. 



92 

STATEMENT BY THE 
HONORABLE GEORGE MILLER 

BEFORE THE SUBCOMMITTEE ON 

INTERNATIONAL OPERATIONS AND HUMAN RIGHTS 

June 11, 1996 

Mr. Chairman, thank you for inviting me to testify today and for holding this important 
hearing. My testimony focuses on who is responsible for ongoing child labor exploitation. 

As you know, on April 29 I chaired a hearing by the Democratic Policy Committee on 
child labor, eco-labeling, and the ability of consumers to change the way companies make their 
products. It was at that hearing that the now well-known allegations about the use of sweatshops 
to produce the Wal-Mart/Kathie Lee Gifford clothing line were first aired publicly. 

That hearing and those allegations have already sparked the broadest public discussion in a 
decade on sweatshops and the conditions under which men, women and especially children work, 
both here in America and in developing nations. Later this week, I will release a report on that 
hearing and our investigation of the charges that were made. 

Three things become clear from that hearing and investigation. 

The first is that the exploitation of children for economic gain is not accidental. It is 
in fact intentional and integral to the system of economic greed associated with the production of 
many of these goods intended for sale in the United States and elsewhere. 

Second , it is clear that those who benefit the most from this exploitation of children -- 
the celebrities, the designers, the holders of intellectual properties, the retailers, and the 
manufacturers -- have constructed a system ofdeniability to cover their involvement. 

And third , it is clear that those at the top must start to take responsibility for how 
their goods are produced. To do any less with the knowledge that we have today on the 
extent of this problem is to become co-exploiters of children. The celebrities and companies 
can no longer say they do not know. The ongoing conspiracy of silence throughout much of the 
apparel trade, sporting goods and other industries must come to an end. 

Much of the current system under which clothing and other products are manufactured, 
both domestically and overseas, is predicated on cheap, unorganized, underage and exploited 
labor. In a global marketplace, wages and working conditions are being sacrificed in a mad rush 
to the bottom line. And many of our laws and international trade agreements protect that 
systematic abuse of workers. 

Consumers who care deeply about the conditions under which their products are made — 

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93 



The Hon. George Miller, Page 2, June 11, 1996 

and the evidence is clear that millions do care ~ must have a reliable system for determining 
whether abused labor was used, just as we know that an electrical product is safe and we know 
the true contents of a box of cereal. 

The government can help eliminate this exploitation by prohibiting the importation of 
products made by child labor, by prohibiting foreign assistance to countries that allow systematic 
use of child labor, and by including language in trade agreements that would make systematic 
violations of worker rights unfair trade practices. Today, however, our trade agreements are 
more interested in facilitating trade than in protecting the workers. In fact, while the giant World 
Trade Organization allows a prohibition on prison labor, the same is not true for children. 

Several initiatives deserve to be mentioned. Rep. Moran on this panel, and Reps Barney 
Frank, Lane Evans and Bernard Sanders, all have legislation to accomplish these goals. 

In addition. Labor Secretary Reich should be commended for his role in fighting 
sweatshop labor by developing a list of trend-setter companies who monitor their contractors. 
The Department also publicly discloses which companies sell products made with sweatshop 
labor, and has been aggressively enforcing our wage and hour laws. The Clinton's Administration's 
actions are a marked contrast to those in the 1980s when the Labor Department proposed rolling 
back protections of garment and other workers against unfair home-based labor, a change I 
fought when I chaired the Labor Standards Subcommittee. But we need more than a government- 
sponsored solution if we are to make headway against child and exploited labor. 

Americans are willing to boycott stores that sell products made in sweatshops, 

according to consumer surveys. But consumers rarely are able to tell what products have been 
manufactured with exploited labor. 

Even existing labels can be confusing, as we found last Congress when we disclosed that 
garments manufactured in the Commonwealth of the Northern Marianas contain a "Made in 
U.S.A." label although workers in the CNMI are not working under the same conditions as other 
U.S. workers. 

We know if products are flame retardant, made of cotton or synthetics, made in the United 
States or abroad, or made by union workers. We even know if our tuna is dolphin safe. But what 
we don't know is whether children were exploited to make, for example, the pajama's our 
children sleep in. As Sydney Schanberg put it in his powerful article in this month's issue of Life 
magazine discussing soccer balls made by children in Pakistan, "The words Hand Made are 
printed on every ball; not printed is any explanation of whose hands made them." 

(MORE) 



0-7 rn a Qc 



94 



The Hon. George Miller, Page 3, June 11, 1996 

Parents have a right to know that the toys and clothes they buy for their children are not 
made by exploited children. And men and women who buy designer clothes should know that the 
manufacturer is not hiding behind the good name of celebrities like Kathie Lee Gifford, Michael 
Jordan or others. 

I have proposed that manufacturers affix a label to products manufactured in industries 
where child and exploited labor has been a persistent problem, a label that would tell the 
consumer that no child or exploited labor was used in its manufacture. I am asking celebrities and 
companies in apparel and other industries to adopt the concept behind this label voluntarily, to 
open their plants to random inspections from independent monitors, and to place directly on their 
products an informative labor-related label. 

Celebrities like Andre Agassi, Jaclyn Smith, Kathy Ireland, Kathie Lee Gifford and others 
should be happy to see this label on products bearing their name. And consumers should demand 
to see such a label before paying $100 for a pair of sneakers made by children for pennies an hour. 

The GAP recently adopted independent monitoring because of public pressure and 
embarrassment over its operations in El Salvador. Ms. Gifford has now called on Wal-Mart 
Stores to adopt independent monitoring al^er suffering enormous media attention over her 
clothing line. We salute these efforts and await Wal-Mart's decision. 

Others must follow suit, like Michael Jordan, who has stated that he does not know how 
his brand of sneakers ~ for which Nike pays him $20 million a year — is made. Unless and until 
people like Jordan and others take responsibility for how the products that bear their names are 
made, child labor and severe exploitation will continue. The decision to act is theirs to make, but 
they cannot avoid the responsibility. 

Govenunent rules and regulations alone are not going to end the practice of using children 
to make children's clothing. It is time to unleash the full power of the marketplace by working 
with manufacturers, retailers, consumers, labor, and others to implement a labor label so that 
consumers can decide for themselves which products they favor. If a retailer or manufacturer 
states that they are against sweatshop conditions, they should be willing to put it in writing 
directly on the product for every consumer to see. If they aren't interested, we should not 
patronize their products. 

Let me close by saying that the campaigns you see targeting celebrities and large 
companies are not about finding scapegoats or jumping on bandwagons. They are about 
assigning responsibility where it is due. Only when these profitable entities take 
responsibility will we be able to significantly reduce child labor exploitation. 

Thank you, Mr. Chairman. 



95 



statement of Maria Echaveste 

Wage and Hour Administrator 

U.S. Department of Labor 

before the 

Subcommittee on International Operations and Human Rights 

k of the House Committee on International Relations 

June 11, 1996 

Thank you Mr. Chaimnan and members of the Subcommittee, for 
inviting the Labor Department to participate in this important 
hearing. 

This is an important week to be discussing child labor 
exploitation. The International Labor Organization is holding 
its annual conference this week in Geneva. The focus of the 
Conference is child labor, and how to galvanize the world 
community into an all out effort to eliminate it. Tomorrow, 
Secretary of Labor Robert Reich will speak at a special meeting 
of the world's labor ministers. The only agenda item for this 
meeting is child labor. 

If we are to be measured by how children in the world are 
treated, we still have much to answer for. Child poverty, child 
slavery, the commercial sexual exploitation of children, and the 
abuse of children in work are all problems that must be solved. 

The Department of Labor has been charged by Congress for the past 
three years with the task of looking very carefully at the plight 
of child labor around the world, particularly in the production 
of goods imported into the United States. The Bureau of 
International Labor Affairs (ILAB) has published two major 
Congressionally mandated reports. This two volume set, Bv the 
Sweat and Toil of Children , describes the abysmal conditions and 
exploitation of children working in certain manufacturing, 
mining, and commercial agriculture and fisheries industries, as 
well as the exploitation of child slaves in service industries. 
In addition, proceedings from a joint Labor and State Department 
symposium held last fall on the practice of child prostitution as 
a form of forced labor have been published as a book by ILAB. 

In this testimony, I will define child labor and discuss some of 
its causes, review some of the findings of our reports, and 
finally sketch out some of the actions undertaken by the Labor 
Department aimed at eliminating international child labor abuses. 
For more comprehensive and detailed information, I refer you to 
our three reports. 

First of all, we define international child labor by the 
standards that are established by the International Labor 
Organization (ILO) . ILO Convention 138 on the minimum age for 
employment sets 15 years as the minimum age for work in developed 



96 



countries and 14 years in developing nations — although in no 
case shall the minimum age be less than the age of completion of 
compulsory schooling. Other provisions allow slightly younger 
children to perform "light work" which is not likely to harm 
their health or development, and does not prejudice their 
attendance at school. Convention 138 also prohibits any child 
under the age of 18 from undertaking work that "by its nature or 
the circumstances in which it is carried out is likely to 
jeopardize the health, safety or morals of young persons." 

As you can see, we are not talking about light work after school. 
We are not talking about legitimate apprenticeship opportunities 
for young people combined with education. We are not talking 
about helping out in the family business or on the feunily farm. 

What we are talking about is children under the age of 14 who are 
full-time workers. They are subjected to working conditions 
fraught with safety and health problems. Many are deprived of 
the chance to receive an education, and even those who do go to 
school suffer because their full-time job negatively impacts 
their education. For this, they receive a fraction of the wages 
of an adult — if they are lucky enough to receive any pay at 
all. Some of these children are held in bondage. They are 
literally slaves, literally prisoners. Many of these young lives 
are destroyed before ever reaching adulthood. And in most cases, 
someone is mak'ng a profit by illegally hiring children. 

There are many reasons and rationalizations given for why 
children work- Research shows that many children are hired 
because they are more easily exploited than adults. Employers 
prefer children because they are docile, and willing to work for 
meager wages or simply to survive. 

In some sectors, there is a general acceptance that children are 
uniquely suited for the work. This is best exemplified in the 
carpet and gem industries of South Asia. The argument is that 
nimble fingers can produce a greater number of knots in the 
weaving of carpets and polishing of tiny gems. But evidence 
suggests that child labor in these industries has more to do with 
the recruitment of cheap and malleable labor rather than a need 
for "nimble fingers." 

In many areas where child labor is plentiful, particularly in 
more remote and rural sectors, there are no schools. In the 
event that schooling is available, many families cannot afford 
the cost of materials and uniforms required for school 
attendance. In other situations, parents do not believe that the 
education is worthwhile. Instead of going to school, the 
children work. 

The most common explanation given for the persistence of child 
labor in all parts of the world is poverty. As segments of the 



97 



population get poorer, children are often compelled, or required, 
to work in order to contribute to their family income. Although 
poverty may be one determinant for whether a child works, it does 
not end a life of poverty for a family. Indeed, it may only 
perpetuate the cycle — children do not complete their education, 
nor are they taught skills which enable them to leave an industry 
for higher-wage occupations. The vicious cycle continues to trap 
poor working children. 

Some of the abuses inflicted on children in the workplace are 
truly horrible. For example, children work in unventilated glass 
factories where furnaces reach 14 00-1600 degrees Celsius, as we 
found in India. In Indonesia, boys aged 10-18 work on fishing 
platforms off the coast of Sumatra, where they are held as 
virtual prisoners for up to three months at a time. In many 
countries, young girls are sold into prostitution, often 
trafficked long distances. This is simply intolerable. 

Complex subcontracting arrangements with layers of middlemen 
between the exporter and the primary production unit frequently 
hide or at least disguise the use of child labor. Shoe, garment, 
embroidery, furniture, handicrafts, and sporting goods industries 
often subcontract work to villages, homes, and small workshops. 
Since there is little or no regulation of these smaller work 
sites, many export-oriented enterprises use this system to side- 
step national labor laws. Examples of children working under 
subcontracting arrangements are found in Asia, Africa, and Latin 
America — in short, the world over. 

Sub-contracting arrangements are also commonly found in small- 
scale mining operations. Children work in the mines of Peru, 
Bolivia, Colombia, Brazil, Chile, Cote d'lvoire and Zimbabwe. 
Products of these mines, which include gold, emeralds, diamonds, 
coal, cassiterite, iron, tin, and silver, are sold either 
directly to the domestic market or exported by way of a larger 
mining company. Children generally work alongside their parents, 
and are involved in all aspects of the mining process. Children 
often do the same work as the adults at the mines, but receive 
less pay. 

More children work in agriculture than any other economic sector. 
Indeed, large numbers of children may be found toiling in fields 
and fisheries from daybreak until dusk. Among the items produced 
on plantations that illegally employ children are cocoa, coffee, 
coconuts, cotton, fruit and vegetables, jasmine, palm oil rubber, 
sisal, sugar cane, tea, tobacco, and vanilla. Children also dive 
for fish, work on fishing platforms and boats, and work in 
factories such as shrimp factories that process the fish. 

The gr€>at majority of children working on plantations work as 
part of a family unit. Many plantations pay workers either by 
the weight or the quantity of the product collected. In some 



cases, minimum amounts of a product must be collected in order 
for any compensation to be paid. To ensure that this minimal 
amount is collected, or to maximize earnings, parents use their 
children. 

Children are typically paid one-half to one-third what is paid to 
adults doing comparable work. Children in agriculture also are 
exposed to many safety and health risks, such as poisonous and 
disease-carrying insects and reptiles, dangerous machinery and 
tools, and toxic agrochemicals. 

Forced labor — the enslavement of workers through the threat or 
use of coercion — is found primarily in informal, unregulated or 
illegal sectors, of the economy. Forced child laborers receive 
little or no pay and have no control over their daily lives. 
They are often forced to work beyond their physical capacity and 
under conditions that threaten their health, safety and 
development. In many cases their most basic rights, such as 
freedom of movement and expression, are suppressed. They are 
often subjected to extreme physical and verbal abuse. 

Debt bondage (or bonded labor) is a form of forced labor in which 
children enter into servitude as a result of some initial 
financial transaction. This most frequently occurs when, having 
no other security to offer, parents pledge their own labor or 
that of their child in return for a money advance or credit. 
Landless and near-landless households, as well as migrant 
laborers, are the main victims of bonded labor systems. 
According to the ILO, bonded child laborers are most commonly 
found in agriculture, domestic service, prostitution, and a 
variety of industries, including the manufacture of hand-knotted 
carpets. 

Forced and bonded child workers can be found producing glass, 
carpets, silk, locks, brassware, and charcoal, c[uarrying stones, 
and working in agriculture and fishing. They are also found in 
the informal service sector, particularly the employment of child 
domestic servants and the use of children in the sex industry. 
Millions of children — mostly young girls — are forced to work 
as domestic servants in Asia, Latin America, and Africa. Child 
prostitutes are lured, kidnapped, and even sold by their parents 
to international operators who in turn sell the children to 
brothel owners. 

Children who are sold, induced, tricked, or enticed into 
prostitution are too young to fully comprehend or consent to the 
acts that they are forced to perform. These children are in some 
cases taken far from their homes — sometimes to other countries 
— and held as virtual slaves, forcibly confined and abused into 
submission. They are exposed to severe health risks, including 
HIV infection and AIDS, other sexually transmitted diseases, and 
drug addiction, as well as sustained physical and psychological 



99 



abuse. Estimates of the numbers of child prostitutes vary 
widely, however it is generally accepted that the number of 
children being forced or sold into the sex industry is 
substantial and growing. The United States now has a law making 
it a crime to travel abroad for the purpose of engaging in sex 
with a minor. This law, the "Child Sex Abuse Prevention Act" is 
an important contribution toward the international effort to stop 
foreigners from engaging in what is known as the "sex tourism" 
industry . 

Just as the Labor Department is working to protect workers in the 
United States and in the United States garment industry against 
exploitation, we also wish to protect children from abusive 
situations in the international economy. No country, no matter 
how poor that country is, needs to exploit its youngest citizens. 
No country, no matter how poor it is, needs to turn its children 
into slaves. These are young children whose lives should 
represent promise for the future — not a disgrace upon 
countries, upon products, upon the world. 

One of the Labor Department ' s goals is to further the consensus 
in the global community that the economic exploitation of 
children is simply unacceptable. We have made progress over the 
last few years and there are many things we can do to ensure this 
progress continues. 

First, we document the existence of international child labor, 
thereby gaining a better understanding of the problem. The child 
labor problem was much less known two or three years ago. It was 
understood only within a small circle of international 
organizations and non-governmental and human rights groups. The 
ILAB reports have helped to change this. The political 
leadership in countries throughout the world is now aware and 
ever more accountable. 

This year, ILAB is preparing a third Congressionally mandated 
study on child labor. We have been directed to examine the codes 
of conduct of top 20 U.S. garment importers related to the use of 
exploitative child labor. Additionally, we will look at efforts 
of U.S. companies and nongovernmental agencies aimed at 
eliminating the use of abusive and exploitative child labor in 
the production of goods imported into the United States, and 
review international and U.S. laws that might be used to 
encourage the elimination of child labor exploitation. 

Second, we can support consumer initiatives such as the RUGMARK 
labelling program which offers information to consumers to help 
them avoid purchasing carpets made with child labor. 



100 



On this point, let me briefly talk about the nexus between our 
work to eradicate sweatshops in the U.S. garment industry, the 
use of child labor in factories overseas which export garments to 
the U.S., and what we are doing to combat it. 

The Department of Labor has made wage and hour enforcement in the 
U.S. garment industry a top priority. We are committed to taking 
meaningful — and innovative — steps to developing and 
implementing strategies to bring long-term solutions to the 
problems confronting garment workers. To this end, the 
Department's Wage and Hour Division has developed a multi-faceted 
strategy of enforcement, education, and recognition to eradicate 
sweatshops in the U.S. Wage and Hour is involving retailers and 
manufacturers to increase compliance in all tiers of the industry 
and achieve long-term improvement. Wage and Hour has a policy of 
identifying retailers who buy goods made in violation and 
educating and enlisting their assistance to help eradicate the 
sweatshop problem. Sweatshops are an ugly stain on American 
fashion and it is up to all of us to remove it. 

Secretary Reich has noted that the shortfall of resources to 
ensure comprehensive enforcement of labor standards is a fact of 
life. We also know that American companies want to protect their 
good names, and consumers, by and large, would rather not 
purchase goods made by exploited child workers. 

Our current efforts, therefore, have sought to enlist the help of 
our businesses and our consumers in ensuring that minimum 
standards are observed in the production of garments sold in our 
country — U.S. labor laws in the case of domestically produced 
items, and ILO standards in the case of imported items. 

Given our limited domestic enforcement resources, we have 
enlisted the retailers and producers of garments in a program we 
call "trendsetters." These companies agree to participate in a 
compliance program to help assure that their garments are not 
produced in the United States under illegal conditions. We then 
provide this information to the public. 

Consumers will respond to such a campaign — and if they do — 
manufacturers will. Child labor will no longer be profitable if 
the exploiters have a hard time selling their products. 

Third, we need to be vigilant in enforcing provisions of U.S. 
trade law that are designed to ensure that beneficiaries of 
certain preferential trade programs respect internationally 
recognized worker rights, including a minimum age for the 
employment of children. Such programs should not reward those who 
produce products made with the sweat and toil of children. We 
■are talking about children brutally and shamelessly exploited for 
quick profit. 



101 



The Administration recently announced the removal of certain 
trade benefits for Pakistan under our Generalized System of 
Preferences (GSP) law which grants duty free entry for certain 
products from developing nations. The products removed were 
surgical instruments, sporting goods, and certain hand-knotted 
rugs — all documented in our reports as made with exploited 
child labor. 

Fourth, we can continue to support international assistance 
through the ILO for countries that need it. Congress has 
appropriated funds for the ILO's International Program for the 
Elimination of Child Labor (IPEC) . These funds are administered 
by ILAB. The financial support offered to the ILO has been 
instrumental in expanding the ILO's capacity to serve needy 
children and their families worldwide. ILO programs financed by 
ILAB include: a program in Thailand to help children at risk of 
being exploited in the sex industry; a program in Bangladesh to 
remove children from the garment sector and to give them an 
education; a program in Brazil to remove children from the 
hazards of producing footwear for the world market; a program in 
the Philippines to undertake the first national statistical 
survey on the incidence of child labor, and a regional program in 
Africa to respond to the needs of children in the commercial 
plantation sector. I am pleased to note that in the FY 1996 
budget, Congress provided additional funding to the Labor 
Department to support child labor programs of the ILO. 

Fifth, we must look closely at how the international financial 
institutions, such as the World Bank, might best contribute to 
combatting the root causes of child labor exploitation. 

Sixth, we need to continue to take the lead in bringing this 
issue to international organizations such as the ILO, the 
Organization on Economic Cooperation and Development (OECD) and 
the World Trade Organization (WTO) . The international trade 
community must meet this challenge squarely or risk undermining 
the consensus for open trade. 

While the six items I just listed will help in addressing this 
problem, we must recognize that the surest way to end the 
exploitation of children is for countries to enforce the existing 
laws against it — virtually every country has them — , and 
provide free and universal education to children. We know those 
are the policies that eliminate child labor. We learned that in 
our country at the beginning of this century. Many children 
around the world don't have access to free primary education — 
even though it would cost most governments relatively little to 
provide it for them. In most countries, this is not 
fundamentally an issue of resources, but of political commitment. 
Children don't have the power so they don't get the education 
that would begin to give it to them. 



102 



In conclusion, we need to combat child labor by making certain 
the world knows where it is happening, we ought to forcefully 
remind governments that law enforcement and education are the 
best solutions to the problem, and where necessary offer the 
assistance to help. We also ought to support consumer and 
private sector initiatives such as RUGMARK. 

Thank you. 



103 

> 

National Retail Federation 



Testimony of 

Robert Hall 

Vice President and International Trade Counsel 

National Retail Federation 



Before the 

HOUSE Committee on International Relations 

Subcommittee on International Operations and Human Rights 

June 11, 1996 



National Retail Federation 

325 7th Street, NW 

Suite 1000 

Washington, DC 20004 

202-783-7971 



ne World's Largeat Retail Ttade Association 

♦ 

liberty Place. 325 7lh Street NW. Suite 1000 

washlneton. DC 20004 

202 783 7971 FSx: 202.737.2849 



104 



TESTIMO^fY OF Robert Hall 

Vice President and International Trade Counsel 

National Retail Federation 



Before the 

House Committee on International Relations 

Subcommittee on International Operations and Human Rights 

June 11, 1996 



Mr. Chairman and members of the Committee, I am Robert Hall, Vice 
President and International Trade Counsel of the National Retail Federation, the 
world's largest retail trade association. The National Retail Federation (NRF) 
represents the entire spectrum of today's retail industry, from discounters to mass 
merchants to department stores to specialty stores to small, independent stores. 
Our members represent an industry which generated over $2.3 trillion in sales last 
year and employed 20 million people, one in five working Americans. We also 
represent aU fifty state retail associations and 34 national retail associations. 

I thank the Committee for allowing me to testify today on a matter of 
extreme importance to American families and the retailers who serve them — the 
perception of the prevalence of apparel sweat shops generally and those that use 
child labor specifically. 

Mr. Chairman, the nation's retailers abhor the use of child labor, forced labor 
or exploitative labor wherever it may occur -- here in the United States or 
internationally. Yet, I encourage you and your panel to proceed with caution as you 
contemplate what types of action that Congress or the Administration can take to 
curb the abuses that have been outlined in recent weeks by Mr. Kemaghan of the 
National Labor Committee and Ms. Diaz. A "quick-fix" remedy or band-aid such as 
a labeling program may make American consumers feel good about their purchases 
~ yet, recent history has shown that labeling prograuns do little to help the plight of 
those in need of protection - the workers themselves. 

The retail industry goes to extraordinary lengths working with suppliers and 
contractors, to ensure that the products on our shelves are produced in accordance 
with all applicable laws. This is not something we take lightly. As retailers, we 
rely on our reputations and the good will we have created with our customers to 
ensure success in the marketplace. If that good will is ever breached with our 
customers, it is hard to recapture. Therefore, it is in our interest to ensure that the 
goods we sell are produced safely and legally. A reputation gained from decades of 
good faith efforts to comply with all laws can go down the drain vdth one widely 



105 



distributed press story. That is why it is so crucial that Mr. Kemaghan or anyone 
else churning out press releases or press statements use extreme care when 
launching public relations attacks and sullying the names of reputable American 
retail companies without first checking the facts. 

Let's take a look at the announcements made by Mr. Kemaghan last month. 
In three out of four cases as of the day of his press conference with Congressmen 
Miller and Moran, Mr. Kemaghan had not spoken with anyone at the companies he 
named as recipients of garments produced at a factory in Choloma, Honduras. I 
challenge Mr. Kemaghan today to provide private notice to companies when he 
uncovers a problem and to allow responsible time for corrective action before 
making his concern or complaints public. Without consultations and 
communication, retailers and apparel manufacturers are reduced to correcting false 
impressions created by Mr. Kemaghan and other labor activists through third 
party media moderators or through Congressional panel dialogues. And while that 
may make for good theater and use up a lot of press ink, it does nothing to address 
the real problems of child labor or exploitative labor. 

Mr. Chairman, the nation's retailers share the concerns you have expressed 
with regard to the rights of workers in the apparel industry - whether they hve and 
work in California, New York, New Jersey, El Salvador, Taiwan or Honduras. 
However, two central questions remain - who is best positioned to ensure the rights 
of those workers and who has a legal obligation to do so? 

In the case of working conditions here in the United States, both the federal 
government and the various states' governments have an obligation to enforce the 
laws to the fullest extent possible. Clothing manufacturers are the next lines of 
defense. They have a legal obligation to comply with all applicable laws. As we 
have discussed with Labor Secretary Robert Reich and his staff for several months 
now, the American retail industry is committed to combating any abuses of our 
domestic labor laws. Next week in New York, the Federation is sponsoring a 
comphance seminar to further educate our domestic suppliers of their legal 
obligations and to underscore our industry's commitment to selling products that 
are made safely and legally. Similar seminars will be conducted later this year in 
California and in Texas. 

Our conunitment extends to the international front as well. U.S. retailers 
work with foreign suppliers and the national and local governments of those 
countries to ensure they live by and enforce their own sovereign laws. The 
international manufacturers, again, represent the first lines of defense, and £ire 
charged with obeying all of the laws of the countries where they are doing business. 
As retailers, we insist in our contracts that the use of child labor or exploitative 
labor will not be tolerated and we make unannounced inspection visits to ensure 



106 



that our products are being made by our contractors in safe and legal environments 
where workers' rights are protected. 

However, the retail industry is active on several other levels to combat the 
potential use of child labor or exploitative labor. As an industry, we are developing 
model guidelines and an industry handbook as a means of standardizing industry 
practices. Here in Washington and in capitals all over the globe, senior executives 
from the retail industry are meeting with both government and industry officials 
from our trading partner nations to emphasize our strong concerns about child 
labor. We are working with other U.S. -based companies through the U.S. Council 
for International Business to participate as employers at the International Labor 
Organization (ILO) in Geneva where tomorrow Secretary Reich and other labor 
ministers along with business and union representatives will meet to discuss the 
global nature of this problem. What they will undoubtedly find - as we have - is 
that this problem is a very comphcated one and one for which overnight solutions 
do not exist. We urge the committee to move with great care on this very sensitive 
issue. 

I thank the Committee for its attention to these issues and assure you that 
American retailers are willing to play an appropriate role as we all struggle to 
address the problem of child labor. 



107 



#96-13 



Testimony of Harry Kamberis, Director for Program Development 

of the Asian-American Free Labor Institute, AFL-CIO 

before the 

House Committee on International Relations 

Subcommittee on International Relations and Human Rights 

on the Use of Child Labor in Overseas Production 

June 11, 1996 



Mr. Chairman and members of the Subcommittee: 

On behalf of the AFL-CIO, I want to thank you for the opportunity to participate in 
these important hearings. 

There are approximately 100 million child workers in Asia today - more than any 
other continent. These are children who labor full-time, some of them in export industries. 
We believe this is a low estimate since China is excluded because no reliable figures for that 
country exist. China's ten to fifteen-year-old workers represent some 15% of South and 
South-East Asian children. The exploitation of children for economic gain is a heinous act 
that robs them of their childhood and all too frequently robs them of a productive life as 
adults. Exploited children become trapped in a lifetime of exploitation, as teenagers and 
ultimately as adults because they never acquire the skills necessary to improve their economic 
condition. And, all too frequently we see also a connection between child industrial workers 
and child sex workers. The same conditions that allow the recruitment of children as 
laborers allow also for the recruitment of children into the sex industry. 

We believe that child labor is more than an industrial relations issue. Children do not 
possess any special qualities or skills as workers which adults do not process, nor are child 
workers indispensable in any manufacturing process. This is true from carpet weaving to 
garment manufacturing to making soccer balls. Children are used because they are easily 
exploited. It is no coincidence that in the countries and in the sectors where rampant child 
labor is found, you will find also a large unemployed or underemployed adult workforce and 
a suppressed trade union movement. Those who suggest poverty causes child labor are 
looking for excuses not solutions. To say that poverty causes child labor is a convenient way 
for governments and the imvate sector to avoid taking acticm. While die number of 



108 



unemployed or underemployed adults increases new forms of child labor are springing up 
throughout Asia due to economic development, industrialization, and globalization. One 
need only look at the Indian and Nepali carpet and Bangladesh garment industries or soccer 
ball and surgical tool manufacturing in Pakistan or the dramatic growth of "union free" 
export processing zones to understand in which directions child labor is being drawn. 

The mix of reasons for the prevalence of child labor in a given country in Asia vary. 
One thing is clear. Those who suggest that child labor primarily results from poverty are 
wrong. Poveity is an excuse to justify its existence and absolve governments of their 
responsibility to enforce human and labor rights laws. Indeed, the struggle for the prevention 
and elimination of child labor is part and parcel of the struggle for personal liberties, human 
rights, and rq)resentative democracy. Most countries in Asia have adequate child protection 
laws that, in theory at least, ban child labor and provide for compulsory education. However, 
in countries with widespread and growing industrial child labor, the political will to enforce 
these laws is lacking. This is especially true in closed societies. Whether by design, the lack 
of a civil society and effective grass roots pressures, or tradition, these countries ignore their 
child labor problem. Industrialization, n^id urbanization, and now the global marketplace 
have increased the number of industrial child workers and placed them in increasingly 
exploited circumstances. In more open societies, the Philippines and Sri Lanka for example, 
efforts to address child labor have been more effective because concerned citizens and their 
rq)resentative organizations have the freedom to address the problem. 

In countries where civil society is not as free or developed and citizens do not have 
an effective voice, China and Indonesia for example, globalization and the demand for 
international competitiveness have resulted in an increase in industrial child labor. Citizens 
in these countries are poweriess and are dq)endent on their govemmoits to act 
Unfortunately, government policies in these countries reflect the interests of government 
officials and industrialists (who are often the same persons) who seek comparative advantages 
through a low-wage, docile, and controlled woridbice. The effective enforcement of child 
labor laws would require the effective enforcement of all human and labor rights laws and 
the empowerment of their citizens, measures these governments have demonstrated they are 
not willing to take. Undo' such circumstances there is no effective enforcement of child 



109 



labor laws and the number of children working in industries is increasing. 

Widespread child labor in South Asia persists because of tradition (the caste system), 
authoritarian governments and the lack of effective civil societies. In Pakistan, for example, 
the government launched an all out effort to destroy the Bonded Labor Liberation Front 
(BLLF), a child rights advocacy group, which it claimed was part of an Indian conspiracy to 
undermine the national economy. In India, senior ofticials continue to suggest that the issue 
of child labor is a protectionist trade stratagem developed by Western industrialized nations. 
In Bangladesh, a program to remove child workers firom the garment manufacturing industry 
was initially denounced by the garment manufacturers association as an alien plot to destroy 
the industry. While governments in all three countries continue to seek to hide or excuse the 
problem, urban, industrial child labor is increasing. 

Sri Lanka and the Philippines on the other hand have relatively few child industrial 
workers and there is no evidence that the number of industrial child workers is growing in 
those countries. Both are relatively poor and poverty is widespread. However, both are 
fairly open societies and have established and maintain basic public education systems with 
compulsory attendance. This suggests that despite poverty, more open societies, with more 
democratic, responsive govonment sensitive to the needs of their citizens, societies in which 
citizens are able to voice their concerns and be heard, can more effectively address the 
problem of child labor even as they join the rush for world markets and seek comparative 
advantages. 

As the committee is aware, the issue of child labor has in the past couple of years 
become of greater concern to the American consumer. This is due in part to increased media 
coverage of labor rights abuses in the export industries of developing coimtries. It is due 
also to revelations that labor rights abuses in our own society are growing. The degree to 
which this issue has influenced our public consciousness is demonstrated by the fact that it 
has transformed firom a media driven issue to one in which consumers are now taking the 
kad. The American public is becoming aware that unless we all take action, we are part of 
dK problem. 

The Asian-American Free Labor Institute (AAFU), one of the AFL-CIO's four 
international institutes has been fighting for and promoting human and labor rights in Asia 



no 



for over twenty-five years. Our child labor programs in Asia are primarily aimed at building 
coalitions within countries for the prevention and elimination of child labor and to rehabilitate 
former child workers. We work with trade unions, human and labor rights organizations, 
child advocacy groups, and other national and international non-governmental organizations 
as well as government agencies to promote the formulation and implementation of public 
policies aimed at enforcing internationally accepted labor rights and standards. 
AAFLI's Child Labor Proerams 

AAFLI's experiences in Asia include: 

Tntiin 

India has the world's largest population of child laborers, with an estimated SS 
million children working in both the domestic and export sectors; in industries as diverse as 
carpets, fireworks, bangles, garments, match-making, diamond cutting and glass blowing. In 
India AAFLI has supported that nation's foremost child labor advocate - Kailash Satyarti, 
the driving force behind SACCS, the South Asian Coalition of Child Servitude, a umbrella 
organization of 250 NGOs throughout India. In cooperation with AAFLI, SACCS has 
conducted massive public awareness campaigns over the past few years including the staging 
of "long marches' across the sub-continent and the organization of parliamentary and trade 
union forums. A measure of the success of SACCS' public campaigns is that the former 
government of President Rao announced it would commit $280 nullion towards the 
eradication of child labor and increase educational opportunities of child workers. While 
such fimds fall short of what is truly needed in India, the government's decision demonstrates 
that a combination of domestic and international forces can make a difference. 

Due to the efforts of SACCS, India was the first country where Rugmark, a labeling 
and verification program for child-labor free handmade carpets, was established. While the 
Indian government has been slow to endorse this scheme, the Rugmark program is 
noteworthy not only as a model program for other industries, but also because it includes a 
child worker rehabilitation component. Rugmark also demonstrates that business and NGOs 
can work together to eliminate, in a cost effective and politically palatable manner, child 
labor in a specific sector. 



Ill 



Pakistan 

In Pakistan estimates of child workers range from 2 to 19 million. Efforts to develop 
reliable data have been frustrated by government interference and stiff (often violent) 
employer resistance. The majority of child workers labor in the brick-making, carpet 
weaving, surgical tool and soccer ball manufacturing industries. Until the tragic death of 
Iqbal Masih, a former child carper weaver and activist, in April 1995, AAFLI worked 
closely with the BLLF in Pakistan, a SACCS member, which operates a number of 
rehabilitation centers for child laborers. With AAFLI funding, the BLLF undertook the first 
comprehensive study of child labor in export sector industries, excluding carpets. With 
Iqbal's murder the situation changed completely. The government launched a massive and 
brutal crackdown against the BLLF, which has accused the carpet manufacturers of being 
behind Iqbal's murder. As a result of the government's action all of the BLLF's records, 
including the child labor study were seized. 

Western consumers of Pakistani hand-knotted carpets reacted strongly to the murder 
of Iqbal. Exports of carpets to North American and European markets plummeted and the 
Pakistan carpet industry lost millions of dollars and market share. Faced with this disastrous 
situation the government and carpet manufacturers have begun to push for the establishment 
of a Rugmark label for Pakistan and have agreed to work with domestic NGOs and 
international organizations, including AAFLI. The U.S. Embassy has also played a 
facilitating role. Clearly, the negative international response to child labor in Pakistan has 
been a major force in convincing that government to take action. 
Nepal 

In Nqal, up to three million children work. The vast majority, however, are found 
in the r\iral sector. Due to the successful effort to develop a Rugmark/Nepal label for 
carpets and sustainable welfare programs for former child carpet weavers, child labor in the 
carpet sector, once a serious problem, has been all but eliminated. For example, an AAFLI 
survey of carpet numufacturers early this year found "only" 2,891 children working in 819 
factories. Carpets are a major export product and an important source of foreign exchange 
for Nqxd. The success of the program is the result of the work of a coalition of Nepalese 
carpet manufacturers, local NGOs, and governmental bodies along with international 



112 



organizations, including AAFLI. The coalition developed the Rugmark/Nepal labeling 
program and also coordinates child worker welfare programs. 

AAFLI has helped to devise a comprehensive rehabilitation program for the children 
workers displaced by the Rugmark program. The rehabilitation program directly serves the 
needs of a limited number of former child carpet weavers, providing them with basic non- 
formal education and vocational training. At the same time the program serves as a model to 
be studied by other organizations to develop similar programs. The government of Nepal 
has noted that AAFLI's program is the kind of program it would like other organizations to 
undertake. 

By the end of this month, carpets bearing the Rugmark/Nepal label will be exported 
for the first time to the U.S. In the meantime, AAFLI is continuing to monitor carpet 
manufacturers who have signed on to the Rugmark program. AAFLI is also carrying out a 
similar inspection program with the Nepalese garment industry. The program seems to be 
working and the reason is clear; the industry realizes it is better o^ without child labor. 
Bangladesh 

In Bangladesh, according to the U.S. Department of Labor's (DOL) report on child 
labor, there are anywhere firom 6 to IS million children working, with the vast majority in 
the rural and informal sectors. In the export sector, the garment industry used to have the 
most child labor. However, AAFLI, in cooperation with the ILO, UNICEF, the U.S. 
Embassy and domestic and international NGOs has been working for more than two years to 
eliminate child labor in the garment sector. This sector just a few years ago employed 
between 50,000 to 200,000 child workers. This number has dropped substantially because 
Bangladeshi garment manufacturers took action when they felt their major market, the 
U.S.A., was threatened because of adverse media exposure in the United States and the 
introduction of the Harkin-Brown bill. Only after the Harkin-Brown Bill was introduced did 
the Bangladesh Garment Export Manufacturers Association (BGMEA), began to negotiate 
with the ILO, UNICEF, AAFLI, and others on strategies to eliminate child labor in the 
industry. In order to make sure children would be provided for in a humanitarian way, 
efforts were made to develop a procedure to survey the industry to identify the numbers of 
children working and following their dismissal to place them into rehabilitation and education 



113 



centers. Due to the efforts of U.S. Ambassador Merrill in Bangladesh and pressure from 
the U.S. based Child Labor Coalition, the BGMEA eventually signed a memorandum of 
understanding with UNICEF, the ILO, and domestic NGOs. AAFLI withdrew from the 
process when it became clear that our concerns over independent monitoring could not be 
meet. Nevertheless, at the time, the agreement was hailed as a precedent for the elimination 
of child labor in oth^ industries and in other countries. The real test, however, was whether 
the BGMEA members would abide by the MOU without independent, unannounced 
verification procedures. 

Unfortunately AAFLI's fears now seem well founded. Neither the BGMEA nor its 
members have lived up to their commitments and child labor continues to be a problem in 
the industry although, as I have said, much less than in the past. Moreover, aggressive, 
continuing anti-union actions by the garment manufacturers has prevented the formation of 
independent unions within the industry which can monitor whether child laborers are 
employed. Finally, efforts to establish an effective rehabilitation programs have been 
frustrated by the lack of cooperation from the garment manufacturers despite their agreement 
to support such programs. Without the credible threat of the loss of U.S. markets is seems 
likely that Bangladesh garment manufacturers will not cooperate seriously to eliminate child 
labor fh>m their industry especially since the Bangladesh government has done little to 
enforce its labor laws. 
The Philippines - A Personal Experience 

Unlike many other Asian nations, in the Philippines, where I was AAFLI's 
representative for four years, citizens have the ability to press their government to respond to 
child labor abuses. In a country were freedom of association is accepted and practiced, trade 
unions, communities, child rights advocacy groups and other concerned citizens groups are 
working together to prevent and eliminate child labor. And their efforts generally are 
supported by the government. Let me repeat what I think is key: in workplaces where there 
are free trade unions and free collective bargaining has been conducted, there are no child 
workers. The role fiee, democratic trade unions can play for the elimination of child labor 
cannot be understated. 

Although child labor in the Philippines is not as pervasive nor are the number of child 



114 



workers as numerous as in some other countries in Asia, where child labor has been found, it 
has been just as dehumanizing, vicious, exploitative, and brutal as that found elsewhere. 

My personal experience in the Philippines in designing and implementing programs 
for the elimination of child labor in the industrial sector has convinced me that child labor 
programs, to succeed, must include interventions in multiple areas simultaneously. By the 
time a child has been trapped behind high compound walls surrounded by armed guards, 
chained to workstations or locked in cells at night to prevent escape, it is often too late. 
Child labor is more than a labor standards or industrial relations issue. Inspecting regularly 
every workplace is not a viable option. There will never be enough qualified inspectors. In 
the Philippines for example there are only about 300 inspectors for some 350,000 registered 
workplaces. 

In my view, the successful prevention and elimination of child labor requires the 
cooperative efforts of labor, government, employers, communities, and, on occasion 
international pressures. Obviously, in more open, democratic societies such cooperative 
arrangements are feasible. 

In the Philippines, working with the Trade Union Congress of the Philippines (TUCP) 
and the Kamalayan Development Foundation (KDF), a child advocacy group, and with 
funding from the AFL-CIO and the U.S. government, AAFLI's program seeks to address, 
within ihe limits of its resources, these issues through direct action and coalition building. 

The KDF has made effective use of the media to raise national consciousness by 
encouraging TV and radio talk shows to interview former child workers. The KDF also 
cooperates with the government on rescue operations. These operations, conducted by 
Philippine government authorities based on information provided by KDF have resulted in 
the rescue of children as young as 12 years old from industrial plants, agro-businesses, and 
prostitution dens in and around Manila. The conditions under which these children worked 
were horrendous. Many labored up to 16 hours a day, seven days a week, some cf these 
had never been paid, others were required to use their salary to buy meals and "lodging" 
(often the factory floor) leaving them with no money. In some cases children were locked in 
cells at night to prevent their escape. Others were prevented by armed guards from leaving 
their compounds. Children in agro-businesses were fed "twice dead meat". This is meat 

8 



115 



from animals they were tending that died for unknown reasons but were then butchered for 
food for child workers. Children rescued from a chlorine manufacturing facility had serious 
respiratory ailments and suffered from chemical bums because they worked with no 
protective clothing or gear. 

Rescue operations, however, were only one element of a program to prevent and 
eliminate child labor. Once the children were freed and in the custody of the government's 
social sovices system, KDF community organizers, led by KDF's highly dedicated executive 
director, Alex Apit, visited the villages from where the rescued children were recruited. 
With the cooperation of community and church groups the KDF held a series of 
informational programs for community members to inform them about the conditions under 
which their children labored. Rescued child workers also told their stories. Parents of 
rescued children were given reality briefings by KDF and government social service workers. 
Only after these briefings were rescued children reunited wdth their parents and placed in 
local schools. These efforts are having real life impacts: some communities have run labor 
recruiters out of their areas while others have reported to the authorities the activities of 
recruiters which has led to their arrests and at least in one case a conviction. 

Unfortunately, business associations in the Philippines have not yet seen it to be in 
their own self interest to become more actively involved. Without their cooperation to allow 
unannounced inspections of their worlqilaces a major element of a complete child labor 
elimination program is missing. Another weakness or vulnerability in the program is that 
only weak sanctions have been ^iplied against those who knowingly employee children. 
Employers who have been found guilty of child labor have been lightly punished, if at all. 
In most cases, the employers were simply required to pay wages and benefits due child 
workers in return for charges being dropped. The government argues that greato* 
punishments against employers could result in forcing them out of business thereby 
increasing unemployment. We disagree. Effective use of penalties, as one component only 
of an overall program, will increase the perceived risks to employers and help reduce child 
labor. While efforts have been undertaken by the TUCP to encourage employer groups to 
become more pro-active thoe has been no sign yet that employers have gotten the message. 
Meanwhile, because of cutbacks in foreign assistance, AAFU will be forced to terminate its 



116 



support to the KDF as of this coining October. 
Conclusion 

Based on our experiences, we would like to emphasize the following points with 
regard to the prevention and elimination of child labor in Asia as well as in other regions of 
the world. 

The conditions and forms of child labor vary from country to country (and even 
within countries) and from sector to sector. Any successful comprehensive program must be 
a collaborative effort involving domestic NGOs and trade unions, international organizations 
such as the ILO and UNICEF, government agencies, the business community and, when 
necessary, external pressures by consumers and/or governments. 

In developing programs for the prevention and elimination of child labor we have 
observed that manufacturers join the process only after they had seen their sales plummet or 
were threatened with a boycott. If any message should be conveyed to the business 
community today, it is that by either turning a blind eye or by putting up smokescreens, it 
will not only be creating greater problems for itself later on, but each day that is waits, it is 
condemning more children to exploitation and eventually to unproductive adult lives. In this 
context we would like to stress that the business community we refer to includes the 
manufacturer wherever located, the buyer or the company or personality whose label goes on 
the product, and the retailer, in whose store the item is sold. 

We believe, however, that simply firing child workers is not a solution - 
manufacturers and retailers are culpable and must be held accountable for past and present 
business practices in which they reaped economic benefits through the use of child labor. 

Business codes of conduct are an important element in the effort to combat child labor 
in the export sectors. As such we applaud efforts by the Clinton Administration, and 
particularly the Department of Labor, to encourage the business community to support a 
model code of conduct. However, the current voluntary code is, in our view, only a starting 
point. 

All too often, we think, CEOs view a company code as simply a way to get the 
administration, trade unions, and NGOs off their backs. We believe a code must be accepted 
as a very real commitment with stipulated responsibilities. A process of independent 

10 



117 



verification and monitoring which many companies are loath to allow is necessary to insure 
compliance. Simply signing a memorandum of agreement or posting a corporate code of 
conduct in a supplier's foctory has, in our experience not been effective (particularly when 
the majority of a workforce may be functionally illiterate). 

Corporate codes can often put companies like Nike, Levi, and Reebok, which have 
codes in the spotlight, while other companies, which do not have them, may escape public 
attention. We urge, therefore, that a list be drawn up of those companies buying outside the 
United States which do not have or refuse to implement a code of conduct. 

We do not believe that industry alone can credibly police itself and we believe 
consumers understand this. The question we ask is, can companies which either knowingly 
employed child laborers (or allowed their contractors to) or turned a blind eye to the 
production practices of their buying operations be expected to police themselves effectively 
and honestly? Based on our experience, we have to reply no they cannot. In Bangladesh, 
since the self-congratulatory publicity generated by the BGMEA and its members on the 
occasion of the signing of the MOU, there have been many confirmed reports that BGMEA 
members once again are hiring child laborers. Companies often claim they have their own 
inspectors, but these are frequently no more than the buyer's regular quality control 
personnel and they do not make frequent and unannounced visits. One obvious solution is to 
allow outside organizations to monitor ketones. AAFLI has been conducting such a 
verification campaign in Nq>al with garment manufacturers at their behest. Another way to 
ensure companies adhere to their codes of conduct is to have effective and indqiendent trade 
unions. It is no coincidence that those companies which strongly oppose unannounced 
outside monitoring often employ children and do not allow or actively discourage unions. 
An argument we heard in Bangladesh was that child labor inspectors might notice the often 
flagrant violation of other worker rights. 

Beyond codes of conduct we believe that rehabilitation programs are necessary in any 
attempt to diminate child labor and that employers have a moral obligation to support them. 
If a company can claim that it has become social consciousness, then it can certainly provide 
rehabilitation assistance to former child woilcers who added to its bottom line. Such 
programs can include anything from basic education to medical treatment. 

11 



118 



Governments have the ultimate responsibility to prevent child labor and to rehabilitate 
and educate former child laborers. If a government such as Pakistan's can use a significant 
portion of its national budget on defense spending and can develop a nuclear weapons 
program, then it can certainly provide adequate and equal basic educational opportunities to 
its youngest citizens. If the U.S. government wants to really assist countries eliminate child 
labor then it should continue to support UNICEF and ILX) programs that make possible 
education and rehabilitation programs for child workers although these programs must be 
carefully monitored to insure they do not become local government smokescreens. The 
Congress should also make certain that adequate funding is continued to NED and USAID 
which have enabled AAFLI among others to address child labor issues. 

Another group which needs to voice more loudly its concerns is the American 
consumer. Consumers can exert great influence on business practices by choosing what they 
buy. The evidence is clear - when consumers demand that companies not use exploited 
labor, including child labor, in their production, companies act. However, as long as 
consumers do not question how a product is made or knowingly buy products that could be 
made with child labor, they are helping continue child labor. 

Finally, we believe that international pressure and the threat of credible trade 
sanctions works. We have seen that international action has forced governments and 
industries to comply with international standards and to adhere to and enforce national laws. 
The GSP case against Pakistan is prompting that '-government finally address child labor 
found in the carpet sector by becoming an active promotor of a Rugmark program. The 
introduction of the Harkin-Brown Bill forced the Bangladesh government and the garment 
manufacturers to action and to pay more than lip service in dealing with the pervasive use of 
child work in that sector. We think these experiences demonstrate that legislation to restrict 
the import of products made with child labor would be effective. We urge the Congress to 
enact such legislation. We also urge the Administration to use the tools it has at hand to 
pressure countries to enforce their own laws and abide by internationally accepted labor 
standards. 



12 



119 



TotHmnv or WM4r nn 

bdbra th* rii— ililm m ImIiimHumI RdaOims 

M fiiluiMtliiiiBl Operations aad Hoana Bights 
jBa*ll,199C 

My name is Wendy Diaz. I'm 15 years old, I was bom January 24, 1981. I'm 
from Honduras. I staned worlcing at Global Fashion when I was 13 years old. 

Last year, up to December, I worked on Kathie Lee pants. At Global Fashion 
there arc about 100 minors like me~13, 14, 13 years old-some even 12. On the Kathie 
Lee pants we were forced to work, almost every day, from 8 a.m. to 9 pjn. On Saturday 
we worked to 5 pja. Somedmes they kept us all night long working, until 6:30 a.m. This 
happened a lot with the Kathie Lee pants. For the girls in the packing department, 
working these hours was almost constant Working all these hours I made at most 240 
lempiras a week, which I am told is about $2U6 VS. My base wage is 3J4 lempiras- 
which is 31 U.S. cents. No one can survive on these wages. 

The treatment at Global Fashion is very bad. The supervisors scream at us and 
yell at us to work faster. Sometimes they throw the garment in your face, or grab and 
shove you. They make you work very fast, and if you make the production quota one 
day then they just increase it the next day. 

The plant is hot, like an oven. They keep the bathroom locked, and you need 
permission and can only use it twice a day. We are not allowed to talk at work; for that 
they punish us. 

Even the pregnant women they abuse. They send them to the pressing 
department where they have to work on their feet 12 or 13 hours all day in tremendous 
heat ironing. It is a way to force them to quit, since working like that, their feet swell 
up. When they can't stand it any more they have to leave. This way the company 
doesn't have to pay maternity bencSts. 

Sometimes the managers touch the girls. Pretending it's a joke they touch our 
legs. Many of us would like to go to night school-but we can't, because they constantly 
force us to work overtiine. 

We have no health care, nor docs the company pay sick days, or vacation. 
Gringos from a U.S. company visited the plant several times, but they never spoke with 
the workers. 

Every one in the plant is very young, the majority are 16-17 years old. We 
suppose the Koreans don't want to hire older people because they wouldn't take the 
abuse. 

Most girls in the plant are aftaid. After we met with Charlie and Barbara the 
company threatened us. One girl was 6red and the company said it would fire others. 



120 



The supervisors called us all together, the entire factory, and told us they would 
not accept a union at Global Fashion. Anyone involved would be fired immediately. 
The company hires spies to report on our meetings. Since last November, when a group 
of 40 of us started a meeting, the company threw out all but five of us. 

When we leave work at 9 p.m., it is very dangerous. There is a lot of crime. It is 
pitch dark and there is no transportation. So groups of us stay together and more or less 
run home. 

I'm an orphan. I live in a one room home with 11 people. I have to work to help 
three small brothers. 

Right now we are making clothing for Eddie Bauer and J. Crew. There are still a 
lot of minors in the factory. 



121 



STATEMENT OF MR. JESUS CANAHUATI, VICE-PRESIDENT OF 
THE HONDURAN APPAREL MANUFACTURERS ASSOCIATION 
FOR THE SUB-COMMITTEE ON INTERNATIONAL 
OPERATIONS AND HUMAN RIGHTS OF THE INTERNATIONAL 
RELATIONS COMMITTEE (6/11/96) 



MR. CHAIRMAN. Chairman Smith, I want to diank you for inviting me to 
appedi today b^ore tiie Committee. I am here today as a representative of 
the Honduran Apparel Manu£icturers Association. We represent 170 apparel 
assembly plants in Honduras which employ 70,000 workers. As you can 
imagine, that is a significant w(xk force in a country with a population of five 
and a half miUion people. It should be noted that all apparel and related 
ejqxnt plants operating in Honduras must be members of our Association. 

I am here today to present the facts to you of the apparel assembly industry in 
our country. The industry is new in Honduras. Ninety-Qve percent of the 
plants have been buih since 1989. As widi anything new« you correct your 
eariy mistakes, and improve over time. We beUeve that in tiiis short seven 
year period, our industry has grown into a shining success story of which we 
are proud. The industry provides 200 miUion dollars annually for die 
H(mduran economy — over half of >^ch is for salaries. Honduras is die 
fastest growing apparel export industiy in Central America. The apparel 



122 

industry in Honduras provides vocational education and training, and is 
thereby creating a career path for these workers. 

In Honduras we have one of the most advanced Labor Codes in Latin 
America. The legal, social and economic benefits of this Law have insured 
social stabihty in Honduras in spite of the fact that the rest of Central 
America has suffered much poUtical and social unrest. 
The Labor Code in Honduras provides the worker with guarantees such as; 
~ protection against unjustified dismissal 

- regulated working schedules, paid vacations (for example, 15 paid 
vacation days after 3 years tenure) plus 12 paid holidays 

- overtime pay requirement 

— health and safety regulations 

~ severance pay ~ the worker receives one month for every year 
worked 

— workmen's compensation 
~ collective bargaining rights 

- the right to organize 

— 100 days guaranteed and paid pregnancy leave, with assurance of 
returning to the same job — 

Another very significant law implemented in Honduras in recent years is the 
law which requires every Honduran employer - whether Government or 
private sector ~ to pay every worker 14 months pay for a 12 month work 
year. 



123 



Furthermore, current Child Laws guarantee specific labor rights for minors 
between 14 and 17 years old. Minors of this age must receive written 
permission fi-om parents and the Labor I>epartment in order to woric. Under 
newly passed legislation, young people wiU have stronger protection by our 
laws. 

In the Honduran i^>parel Manufacturers Association we strongly beUeve in 
protecting die rigjits of our young people, and in following the international 
age standards for workers. To our knowledge, diere are no minors under die 
age of 14 working in Honduran assembly plants. Of course there may be 
cases where ^Isified documents were presented in order to obtain 
employment. 

Mr. Chairman, I would like to talk for a moment about the working 
conditicms and benefits of Honduran apparel assembly plants. We have 
brou^t with us some enlarged color photos of the plants which I manage. I 
do not beheve you will be able to see die pictures fi'om here, but I would be 
hai^ to sulnnit them for die recoid. 

As I stated earlier, ninety-five percent of our assembly export plants are 
about five years old. So diese are modem, comfortable and well-equq>ped 
plants. VirtuaUy every plant has either a medical clinic, a nurse or doctor 
available 



124 



for consultation. Both the consuhation and prescribed medicines are free to 
all workers - and in many of the plants, we provide free health care for tlie 
children aged 1-8 of our workers. 

Certain benefits are mandatory throughout the industry and other benefits 
vary from plant to plant. Other benefits include mandatory free dmner for all 
workers who work after 5:00. Furthermore, many plants give a free breakfast 
to the workers, and subsidized lunch. As a new initiative, many plants are 
now implementing modem day-care facihties. Many plants also provide 
transportation for the workers who hve fiirther away from the plant. An 
overwhehning majority of the plants also provide air-conditioning. 

Mr. Chairman, I feel obUged to answer a recent oufrageous allegation against 
our industry in the media. I can state clearly that our members are strongly 
opposed to providing any kind of contraceptive to our women workers. We 
have not done so in the past, and we would never do so. It is insulting that I 
have to respond to this. In a survey done this month by our Social Security 
Adminisfration, it was determined that out of 29,000 apparel women 
workers, 21% of them are currently pregnant. What we do provide by law to 
all of our workers — including our plant managers — are certain mandatory 
vaccinations such as malaria and tetanus. 

Finally. Mr. Chairman, I would like to state the general poUcy on wages for 
our workers. It is important to keep this issue within the context of other 
salaries in Honduras, which is an under-developed economy. You simply 



125 



cannot compare Honduran salaries with United States salaries. For example, 
a Honduran Congressman earns approximately 15,000 dollars per year. An 
average apparel factory manager, with a College Degree earns approximately 
the same amount. Our apparel plant worker is paid according to what he or 
she produces but no person is paid less than the mandatory minimum wage 
The average worker at the apparel plants earns in take-home pay two times 
the Honduran minimum wage. This is the average salary, and does not 
include benefits such as health care, food and transportation which are paid 
by the employer. The faster workers who produce more clothing would 
receive three times the minimum wage. 

Mr. Chairman,- in summary, I want to teU you that our Association is working 
every day to make the apparel assembly industry the best in Latin America. 
We are always e?q)loring new and better ideas to implement in our plants. Of 
course, we take all allegations of misconduct seriously, and we are working 
to investigate and punish anyone involved in abusive or incorrect actions. In 
fact, since 1992, the Government has taken actions to expel fi'om Honduras 
foreigners who were found to be violating workers or minors rights. 

The Honduran Apparel Manufactures Association is in die process of setting 
up a mediation committee in order to investigate any grievances by our 
workers. We feel it is in our interest to treat our woricers the very best we 
can. 



07 OA Ck nc 



126 



Our entire industry issues an invitation to all Members of Congress and your 
staff to visit our assembly plants. In &ct, we urge you to come at your 
earliest convenience. In the last 2 years, 20 congressional staff members 
have visited seven different Honduran apparel plants. 

Thank you again for your invitation to testify, and my delegation from 
Honduras and I look forward to meeting with you and many of your 
colleagues this week. 



127 



us Sub roiiiiniUeu on liUcniutional Relalions and lltimaii Righls 
Washiiigloii, DC 

Juno II. 19% 

Craig Kiulbnrgcr 
Free (lie Clnldrcn 



Mr Channian, Members ol'lhc Coninnllcc, Ladies and Genlleincn 

I uiii pleased to be here today to ropicseiil children- Child labour affects clnldrcn - children arc being exploited and 
denied their basic nghis, children arc being abused - I believe that children must be heard when speaking about child 
labour- I believe that we must be part of the solution 

I locciilly spent seven and u hull' weeks travelling ihrough South Asia to meet wilh working and street children. I 
wanted to belter understand their reality- to ask them what they wanted su that wc would not be imposing our western 
culture on lliem 

I can tell you stories of what I saw- stories which would shock you I met children as young as four years old, working 
in brick kilns making bricks seven days a week from dawn to dusk, children working 14 hours a day loading 
dangerous chemicals into Hrecrackcr tubes, children working in metal and glass factories, children physically and 
verbally abused Some childien I'll never forget- like Nagashar, who worked as a bonded labourer in a car|)ct factory 
He had scars all over his bod) including his voice box where he had been branded with red hot irons for trying to 
esca|>e- Or the nine year old boy with a deep scar that ran across the lop of his head where he was had been hit with a 
metal bar for making a mistake on the job Then there was Munianal, the eight year old girl who worked in a recycling 
plant taking apart used syringes and needles gathered from hospitals and the streets She wore no shoes and no 
protective gear No one had ever told here about AIDS These are the working children 

Not just facts and statistics but real children 

Some of you may say, "Well, these children are poor Don't they have to work to help their families survive? Studies 
by I INICEF, the ILO and other non governmental organizations have shown that child labour is actually keeping 
Third World coiinliics poor, because a child at work means an adult out of work Factory owners prefer to hire 
children because they are cheaper labour, easily intimidated and won't organize trade unions. Kailash Satyarthi, who 
last year won the Robert Kennedy International Award for Human Rights, heads 1 50 non goveminental organizations 
working with child labourers in South Asia Me stresses that India has 50 million child workers, but 55 million adults 
unemployed And because these children are not able to go to school Ihcy remain illiterate, and the cycle of poverty 
continues. Child labour keeps people poor 

As consumers, we bear part of the responsibility Is it fair for children to be sitting on the ground for 1 2 hours a day, 
for (Ksnnies a day sewing famous brand name soccer balls- which they will never get to play with- soccer balls shipped 
to coitiitries like ours for your children, )'0ur grandchildren, or for me? 

It is simply a question of greed and exploitation- exploitation of the most weak and vulnerable- These greedy people 
include companies going into the ihiid world countries contracting out work to the cheapest factories which will 
piixKice goods up to standard 1 his only encourages lactory owners to seek out the cheapest labour- underpaid 
workers and children Poverty is no excuse for exploitation Poverl> is no excuse for child abuse 

We, the children of Norlh Aiiiei ita, have fornie<l an organi/alion called Free the Children Free the Children is a youth 
iiiovemcnt detlicatal to Ihe clmiinalion of child labour and the exploitation of children Most of our members arc 
between 10 and 1 5 years old We now have groups in provinces across Canada and chapters quickly spreading 



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throughout the United States- in Washington, San Francisco, Maryland, Idaho, Iowa, - Calls are coining in from all 
over the world- from young people, ftom children, who want to help. You don't need a lot of conunittee meetings to 
understand that exploiting children in child labour is wrong We may be young, but it is very clear to us that this child 
abuse must stop 

We believe that children must be removed from factories and jobs given to adult members of the family- adults who 
can negotiate for better nghts and working conditions. 

We believe that companies which go into Third World countries for cheap labour must pay their workers a just wage 
so thai children will not have to work to supplement their parents' income These same companies should also be 
willing to put RKXiey back into the country to help in the education and the protection of children. 

We have consumers calling our Free the Children office firom all over North America telling us that they don't want to 
buy products made from the suffenng of children 

That is why a labelling system, with independent monitoring, which clearly identifies items not made by child labour 
is necessary Another solution is to hold importers responsible for making sure that the products they are importing 
into North America have not been made from the exploitation of children. Consumers have a right to know who made 
the products they are buying. 

In May, 1 995, UNICEF set an example with a no child labour clause in its buying policy based on the United Nations 
Convention on the Rights of the Child 

I have been told that the United States already has a Tariff Act passed in 1930. Section 3:07 prohibits 
products being made from prison or indentured labour from coming into the United States. If this is true than why are 
carpets, soccer balls, brick work and other items made l>y children in bonded and slave labour not banned from 
coming into the Umted States under this law? 

Child labour should not be used, however, as an excuse to stop trade with a developmg coimtry. We are advocating 
selective buying not a boycott of all products which would harm children even more. 

I don't know why anyone would oppose laws which protect the children of the world. Maybe companies, sports and 
TV personalities, maybe consumers, might have said until recently, that they didn't know about child labour and the 
exploitation of workers in Third World countnes but now they do- There is no excuse any more- We have all been 
educated. Knowledge implies responsibility You and I, all of us, are now responsible to help these children 

EliminaUng child labour comes down to a question of political will Why are countries with a high incidence of child 
labour spending on average 30% more on the military than on primary education? How serious are world leaders 
about helping these children? Where is the social conscience of multinational corporations? 

I have hundreds of pictures of children which I could have shown you today. 1 have brought only one. When I was in 
Calcutta, I participated in a rally with 250 children who marched through the streets with banners chanting, "We want 
freedom We want an education. " Childeren should not work in hazardous industries- NEVER AGAfN. Today I am 
here to speak for these children, to be their voice. You are an influential nation. You have the power in your words, in 
your actions and in your policy making to give these children hope for a better life. What will you do to help these 
children? 

Craig Kielburger 
Free the Children 
16 Thombank Road 
Thomhill, Ontario 
CANADA L4J 2A2 
Phone: 905-881-0863 
Fax:905-881-1849 



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TESTIMONY OF ROBERT B. REICH 

SECRETARY OF LABOR 

BEFORE THE 

SUBCOMMITTEE ON INTERNATIONAL OPERATIONS 

AND HUMAN RIGHTS 

COMMITTEE ON INTERNATIONAL RELATIONS 

U.S. HOUSE OF REPRESENTATIVES 

JULY 15, 1996 



Mr. Chairman, Congressman Lantos, members of the 
Subcommittee, I am delighted to be with you this afternoon to 
discuss the further steps we can take together to stop abusive 
and exploitative child labor. 

At the outset, let me say that I believe we have made an 
important start in directing international attention to the truly 
desperate circumstances faced by hundreds of millions of children 
worldwide. 

Just a few years ago, the issue of child labor was barely a 
"blip" on the global agenda. No longer. Working together, the 
Administration and Congress have played a major role in bringing 
international child labor out of the shadows and into the 
spotlight, where it can be fought and defeated. Today -- with 
governments, corporations, consumers and workers focused on this 
human tragedy --we have a chance to make significant and 
sustained progress in reducing child labor throughout the world. 

We must not let this opportunity pass by without making the 
most of it. 

Polls show that the American people -- by an overwhelming 
margin --do not want to subsidize abusive and inhumane working 
conditions with their consumer purchases. They don't want their 
hard-earned money going to support sweatshops. And they 
certainly don't want young children kept out of school and 
exploited in order to make the products that are sold in the 
stores where they shop. 

But consumers cannot solve this problem on their own. The 
key to fighting this problem lies in the productive partnership 
we are now endeavoring to create - - a partnership between 



130 



consumers, workers, businesses and governments --a partnership 
aimed at making child labor unprofitable and impractical . 

As you know, the garment industry is one that, both globally 
and domestically, is rife with sweatshop conditions. Tomorrow, 
in an effort to further develop an effective partnership to 
address these problems, the Department of Labor is hosting a 
Fashion Industry Forum. We are bringing industry executives, 
employees, consumers and government officials into the same room 
for what I hope will be a frank discussion of the problems and 
their possible solutions. 

We'll talk about the manufacturers and retailers that are 
doing the right thing and being good corporate citizens by 
ensuring that their contractors and sub-contractors are complying 
with U.S. labor laws and, for imported goods, are adhering to 
basic, internationally-recognized standards. We'll talk about 
helping consumers get the information they need to avoid 
purchasing items made in violation of those standards. And we'll 
talk about the possibility of a labeling program for garments, 
perhaps like the current "Rugmark" system that certifies hand- 
knotted carpets as produced under humane conditions and without 
child labor. We believe labeling programs can be a complement to 
our open trade policies. 

I fully expect that these talks will lead to action. This 
partnership has great potential, and I look forward to reporting 
our progress to you at a later date. 

Before going any further, let me say what our battle against 
child labor is not . 

It is not an effort to impose our own laws, standards or 
values on other nations. It is not an attempt to ensure that no 
child should ever do any work. Obviously, some types of work are 
fully consistent with the positive development of children. 

Rather, we are talking about enforcing the international 
standards that have been subscribed to by virtually every nation 
in the world -- standards that say exploitative child labor is 
not an acceptable solution to poverty, and that all nations 
should pursue policies designed to effectively abolish it. 



131 



The International Labor Organization (ILO) estimates that 
there are at least 100 million children -- and perhaps hundreds 
of millions -- who are employed full-time or nearly full-time, 
worldwide . Many of them are working under the most brutal 
conditions. They are part and parcel of an economic system that 
depends on their exploitation. And in many cases, very little is 
being done to address the problem. 

Certainly, we can begin by focusing on the world's youngest 
workers, those that are being forced to work and those that are 
working under the most inhumane conditions. I'm talking about 
children working in glass factories who are exposed to high heat 
and broken glass with no protective clothing -- and sometimes 
without even shoes on their feet. I'm talking about young girls 
trafficked over long distances and forced into prostitution. I'm 
talking about children working on sugar cane plantations who 
wield machetes and often suffer debilitating wounds. 

Many countries have endorsed international standards which 
say that children this young should not be working, and that 
every country should take steps to ensure that they are not . 
Sure enough, virtually every nation has laws prohibiting this 
from happening. But passing laws and enforcing laws are all-too- 
often separate matters. 

We know that from our own experience here in this country. 
We have only about 800 federal inspectors to enforce all the wage 
and hour laws in more than six million workplaces. Even when you 
add in state inspectors, the total is only about 1,500. Is it 
any wonder that sweatshops are making a comeback in the United 
States? Is it any wonder that we could find slavery existing 
behind barbed wire at a garment factory -- as we did last year in 
El Monte, California? 

We know that without an effective deterrent against those 
employers who would take the low road, the problem of child labor 
will remain and could even grow. Yet, many nations that have 
child labor laws lack an appropriate professional labor law 
inspectorate who can hold the law breakers accountable. 

So what can we do? 

In addition to our Fashion Industry Forum that I mentioned 

3 



132 



earlier, we are moving forward with a number of specific 
initiatives. 

First, we are continuing our efforts to research the problem 
of child labor and publish reports. Our first two reports, Ey 
The Sweat and Toi l of Children, volumes I and II, published in 
1994 and 1995, collected information thac had never been 
collected before. We documented the manufacturing, mining, 
agricultural and fisheries industries where children are found 
working in conditions that violate international standards. And 
although there are other organizations that publish some of this 
type of information, publications coming from the U.S. government 
still have a unique international impact. We are now at work on 
a third study looking at the practices of U.S. garment importers 
with regard to child labor, and the standards they place on their 
contractors and subcontractors in foreign countries to avoid the 
use of child labor. 

These reports were produced by the Department of Labor's 
Bureau of International Labor Affairs -- ILAB. At this point, I 
must advise the Subcommittee that the Appropriations bill for the 
Department of Labor for FY 1997 passed by the House, contains a 
40 percent cut for ILAB. This comes on top of a 25 percent cut 
imposed in the current fiscal year. ILAB could not sustain a 40 
percent cut, and would be forced to eliminate child labor 
activities, and other work related to the objectives of the 
Administration in this area. Given the proposed cuts, the public 
could well lose the expertise and information that ILAB has 
acquired on child labor issues. 

A second thing we can do is to continue to support the ILO's 
International Program for the Elimination of Child Labor -- IPEC. 
I am delighted that Congress has approved these contributions -- 
$2.1 million for FY 1995 and $1.5 million for FY 1996. This 
money has gone toward funding projects like one in Bangladesh 
that is moving 11,000 children out of garment factories and into 
schools . 

Through IPEC, we have also funded projects in Thailand to 
help girls at risk of being forced into prostitution; a program 
in Brazil to help children in the footwear industry; a program in 
the Philippines to complete a national statistical survey of 
child labor, and a program in Africa to help children working in 



133 



plantation agriculture. 

A third thing we have been doing is pressing the child labor 
issue at the International Labor Organization. Last month, I 
attended the annual ministerial meeting of the ILO in Geneva 
where the focus of our discussions was child labor. As a result 
of my request to the Director General of the ILO, a special one- 
day session of labor ministers was held to discuss additional 
approaches that could be taken to reduce exploitative child 
labor. 

One result is a proposal to draft a new ILO convention 
targeted specifically at the abolition of exploitative child 
labor. It is the ILO, after all, that has established the 
international child labor standards. Since 1919, the ILO has 
adopted various child labor conventions, which, in the early 
1970s, were consolidated into ILO Convention 138 on the minimum 
age for employment . 

However, there is a view that ILO Convention 138 does not 
provide sufficient focus on the need to immediately abolish the 
most abusive and exploitative forms of child labor, including 
forced and bonded child labor, and the sexual exploitation of 
children. Thus, we agreed to work towards a new convention by 
1999 that would give added emphasis and, added enforcement 
provisions, to eliminating the most abusive forms of child labor. 

Fourth, while we are working on a new child labor 
convention, we should also be looking at whether we could 
expedite consideration for the United States' own ratification of 
the existing ILO conventions on child labor and forced labor. 
Our position internationally will be enhanced by our ratification 
of additional ILO conventions. Since 1988, we have made 
significant progress in ratifying ILO conventions, on a fully 
cooperative basis with our employer and worker representatives in 
the ILO, and with bipartisan support in the Senate. We would 
like to make more progress. 

Fifth, I have raised the child labor issue in a number of 
bilateral discussions I have had with other labor ministers, and 
I will continue to make sure it is prominent in our international 
agenda. I believe our efforts have contributed to decisions by a 
number of leaders in countries where child labor remains a 



134 I 

I 

problem to make public commitments to seek improvements. For 
example, former Prime Minister Rao of India, Prime Minister 
Bhutto of Pakistan and President Cardoso of Brazil, nations with 
significant child labor problems, have all made public statements 
acknowledging the need for change in those countries . Many 
nations are moving from denial to a search for solutions. 

Sixth, we continue to encourage initiatives by private 
industry to eliminate child labor exploitation. These can 
include efforts by importers to work with exporters to ensure 
that products are not made with child labor, and voluntary 
labeling initiatives by producers that help consumers make 
informed purchasing decisions. An example is the "Rugmark" 
program originally launched in India in the hand-woven carpet 
industry, which has some of the most exploitative child labor 
practices in the world. Some child labor activists in India, 
with the help of the German government, got together and 
established this program, which is being launched in Nepal also. 
Today, most of those child labor-free rugs are going to Europe, 
but it is important that U.S. rug importers also support such an 
effort. 

Together with Chairman Smith, and some other members of 
Congress, we also launched an effort on June 28 to get child 
labor out of the soccer ball industry, where today perhaps a 
quarter of the labor force is under 15. These children hand- 
stitch leather soccer balls, in unhealthy conditions. A large 
portion of the industry is located in Pakistan, and we asked that 
U.S. importers take steps to move those children out of the 
industry and into schools. Two U.S. companies, Reebok and Nike, 
have said they are taking the steps to do just that. We also 
asked that FIFA, the international body that certifies soccer 
balls meet league standards, also require that child labor not be 
used in the production of those balls. Hopefully, very soon we 
will be able to announce that child labor- free soccer balls are 
available to consumers. Soccer balls are also produced in China 
and Indonesia and we need more information on whether child labor 
is a problem in the soccer ball industry in those countries. 

At the recent ILO meetings, I also asked that the ILO 
consider the question of labeling, and make a report within one 
year on how we might use the Rugmark example and apply it to 
other sectors where child labor is a problem. 



135 



Seventh, we are also pressing for the establishment of a 
working party on trade and labor standards in the World Trade 
Organization. It is our view, and we are making progress with 
governments around the world, that the WTO has a responsibility 
to consider what steps can be taken by that institution to 
discourage child labor. 

Eighth, we need to make sure that we use provisions of U.S. 
trade law -- such as Generalized System of Preferences -- that 
are designed to ensure that beneficiaries respect internationally 
recognized worker rights, including a minimum age for the 
employment of children. Such programs should not reward child 
labor exploitation. Although the GSP program is still awaiting 
renewal, the Administration has announced that due to child labor 
violations certain products from Pakistan -- surgical 
instruments, sporting goods and carpets -- will not be .eligible 
to receive GSP tariff preferences. 

Ninth, although we prefer to encourage other countries and 
employers to move children out of work and into school, and avoid 
trade measures, we will continue to work with members of Congress 
interested in pursuing legislation on this issue. 

Tenth, and this is essential, we need to make sure that we 
are doing our best to enforce our labor laws at home. We 
continue to have sweatshops in the garment industry that 
seriously violate our wage and hour laws. If we are to be 
credible internationally, we must be effective at home. Domestic 
enforcement and international enforcement are two sides of the 
same coin in a global economy. 

In conclusion, Mr. Chairman, let me congratulate you and 
this Subcommittee for your continued concern about the 
unacceptable exploitation of children. Let me again thank you 
for the support you have given our efforts, and let me express 
our commitment to work with you and this Subcommittee and the 
Congress to take every possible step to wipe out the scourge of 
abusive child labor. 



136 



Congraasloaal Tastiaony 

Houa* •ubeosBltt** on Intamational Orguxisatiozui 

and Human Rights 

talking points 

Kathla Laa Olfford 

July 15, 1996 

Mr. Chairman, members of the Committee, I would like to thank you for 
your invitation to appear and your willingness to accommodate my 
schedule. I do not take your kindness lightly. 

I believe this Committee has the means to formulate real and 
substantive change as to how garments are made for the American 
consumer. I am grateful that I can be even a small part of that 
process . 

Mr. Chairman I would be less than candid with you if I did not tell 
you that some two months ago I was little more them an entertainer. 
I associated my name with line of clothing so that a portion of the 
dollars raised could go toward helping AIDS and crack addicted 
children in New York. 

That fund raising effort worked beyond my wildest dreams. Today Cody's 
House and Cassidy's Place have become national models for how to bring 
sunlight into the lives of children seared by pain. Other charities 
have also benefited from this effort. 

And so it was nothing less than an assault on my very soul when a 
witness before Congress suggested that I was using the sweat of 
children. . . to help children. I would submit to this Connmittee that it 
was in that single instant that I was introduced to the 
unforgiving. .and often unfair., cauldron of public policy. 

Today, I am still far from an expert .. although in the last several 
months I have learned far more aibout the garment industry than Regis 
will ever know. And for that I am sure he is grateful. 

In all seriousness, this Committee has demonstrated that every one of 
us., from the entertainer who lends her name to the consumer in the 
store., has an obligation to know how and why a garment was made. 

This consumer has learned from people like Wendy Diaz that we are now 
morally compelled to ask, "What can we do to protect leibor rights in 
factories around the world and right here in America?" 

Fortunately, there are those seeking to identify and penalize sdjusers. 
Wal-Mart, which distributes Kathie Lee fashions, has prevented some 
100 factories in 16 countries from working on their garments because 
of violations. And Wal-Mart is stepping up their oversight in 
coordination with my own plans for on site monitoring. 

I have discovered that this is not a problem that has cropped up 
overnight. Experts tell me it is pervasive in the garment industry and 
our reports suggest that the sweat shop never really left us . 

And I am also discovering that there is no one overnight solution to 
the problem but we are beginning to create a framework for solutions . 

For starters, working with Wal-Mart, I plan to implement a plan 
whereby any Kathie Lee fashion wear will be done m factories willing 



137 



to submit to surprise inspections by an independent inspector general 
team. Their mission will be to ensure that safe and responsible 
working conditions are met. Factories that refuse inspection, or 
ignore warnings, will be dropped as manufacturers. 

And yet taking work out of factories that abuse their employees puts 
those employees on unemployment. I would ask this Committee, what "big 
stick" does the retailer or.. the talk show host., have when the only 
means to get the factory in compliance is moving the work elsewhere. 

Ironically, the factory in Honduras where Wendy Diaz was abused 
continues to employ a steady 1,000 people even aftef Wal-Mart pulled 
their work that carries my name . Other manufacturers don ' t seem to 
have a problem with reports that these dreadful conditions exist. 
Punitive actions don't seem to phase the owners of this particular 
factory. 

I have also discovered that implementing an inspector general program 
is not as simple as hiring a team of investigators. Local laws are 
often muddy.. and following the trail of subcontractors, where much of 
the abuse takes place, is difficult at best. In addition, employees 
are often wary of independent inspectors so decisions have to be made 
that identify responsible local human rights organizations where there 
is only one agenda. . creating an environment where one can work in 
dignity. 

So while an inspector general program is a responsible start we 
recognize that it is not a panacea to the problem. It may, in fact, be 
just the beginning. . of the beginning. 

Allies are nothing less than critical in this fight. That is why I 
would welcome Congressman Smith's proposal that would bring the full 
weight of the American government to bear on international child labor 
violations. 

Mr. Chairman, and members of the Committee, I would not be so 
presumptuous as to be able to comment on the specifics of the 
legislation but I do appreciate the following: 

* The proposal that would allow the US Labor Department to create 
an accreditation process to monitor working conditions overseas 
would be of enormous value in stopping this practice. It becomes 
obvious to me that while Kathie Lee Gifford Fashions can create 
an oversight program, it can be easily dismissed by factories 
who are indifferent to the issue if they have other paying 
customers under their roof . 

* Iir addition, this proposal becomes a potent weapon because it 
elevates the problem from just one factory in one city within 
one nation to an issue where entire governments must get 
involved or risk damage to their economy. Much the way the human 
rights watch list added muscle to our intolerance of abuses 
eibroad I would hope that this legislation would ensure that 
child labor becomes equally repugnant to everyone. 

* I would welcome an opportunity to work with the Chairman, and 
members of this Committee, if you believe my support would aid 
in gaining swift approval of this legislation. 

In the last two months I have met people from all walks of life and 



138 



from both sides of the political aisle who are seeking to solve this 
problem. From Wendy Diaz and Archbishop Cardinal O'Connor to Jay Mazur 
of UNITE, New York Governor George Pataki and Attorney General Dennis 
Vacco, I find a common thread of decency that seeks to end the 
practice of sweat shops and child labor. 

And tomorrow I look forward to attending a summit on this issue 
convened by Labor Secretary Robert Reich. It is my hope that this 
hearing and tomorrow's summit will ensure that this issue is dealt 
with in a substantive and meaningful way. 

Mr. Chairman, I am an entertainer who had a simple idea. .create 
fashion wear with my name on it to help raise money for charity. In 
hindsight I would conclude that an explanation of quantum physics is 
far simpler. This much is clear; I have learned that each one of us, 
whether in Congress, in corporate America, in a television studio, or 
in a shopping mall, has, as a moral imperative, the need to address 
this issue. 

I don't have all the answers but I now have the right questions. I 
would welcome yours . 



139 



STATEMENT 

of Francoise Remington 

Before the 

Subcommittee on International Operations and Human Rights 

of the House Committee on International Relations 

United States House of Representatives 

July 15, 1996 

Mr. Chairman, Mr. Ranking Member, Members of the Subcommittee, 
thank you for the opportunity to appear before you. My name is 
Francoise Remington. I am the founder and Executive Director of 
FORGOTTEN CHILOREN, a 501(c) (3) non-profit organization based in my 
home in Arlington, Virginia. I and my husband are the adoptive 
parents of three orphan children from India, two of whom come from 
Mother Teresa. I have personally witnessed many examples of child 
labour in India. 

The growth of child labour worldwide is the result of 
globalization and we all bear some responsibility for its growth. 
Child labour is clearly within the jurisdiction of the United 
States Congress, especially in circumstances where the American 
taxpayers or consumers contribute to its growth. 

I appear before you to advocate that the World Bank, which is 
sustained in part by U.S. taxpayer funds and which contributes 
directly to increases in child labour worldwide, no longer deny its 
responsibility in this regard and participate in a solution. 
Either by legislative mandate or by congressional request, the Bank 
should incorporate a child labour policy in its financed projects. 

I. PERSONAL EXPERIENCES. 

In 1988 I first witnessed child labour in India. This initial 
experience led me to become the founder and executive director of 
a non-profit organization, FORGOTTEN CHILDREN, which is based in 
Arlington, Virginia. We are currently implementing an educational 
and vocational project for 50 working children in Tamil Nadu, South 
India, with the collaboration of Sister Rita Thyveettil, a Roman 
Catholic nun who has been working for the poorest of the poor for 
many years. The project offers basic education to working children 
who receive (jointly with their parents) a dairy (milk) cow to 
compensate for their lost income when the children study. 

In 1988 I saw what, Mr. Henri Tiphagne, an Indian Human Rights 
lawyer, called "the shame of India ^. He arranged a visit for me 
to the Ramji Match Factory Bull Matches in Sachiapuram, Sivakasi, 
Tamil Nadu. Prior to the visit, the social worker who accompanied 
me advised me to hide my camera and to dress like an Indian woman. 
I will never forget the largest room where I saw 50 working little 
girls under 10 years old. They were sitting on the floor in rows 
of five, lining up matches on tiny shelves. The children were paid 
by the number of boxes they had filled by the end of the day. They 



140 



worked from 8:00 a.m. to 5:00 p.m. with a one hour break for lunch. 
I noticed that many little girls had their fingers deformed by 
doing the same gesture all day long. We visited another building 
bearing the sign "Keep out". It was the building were the chemical 
products were kept. There a solitary little boy was mixing a white 
powder. His legs and arms were covered with bandages. 

The number of children in Tamil Nadu who are working in 
exploited situations is estimated to be 1,105,586.^ In the match 
and firework factories, there are about 50,000 between the age of 
7 and 14 years old. The children's main work consists of filling 
boxes and dipping sticks in chemicals. After several years of 
factory work, children suffer from severe neck and back pain, skin 
disease, deformed fingers, poor eyesight.^ The owners of factories 
deliberately choose children over adults because "it is cheaper 
than adult labour and because children, unlike adults, cannot 
question the treatment meted out of them".* The match industry is 
controlled by the Nadar community which controls 70% of the matches 
produced in the non-mechanized sector.' Child Icibour in the 
factory is carefully controlled by the owners who hired contractors 
to awake the children as early as 3:00 a.m. to 5:00 a.m., because 
many children come from as far as 30 kilometers away. The children 
are loaded on buses belonging to the factories . On our way to the 
factory, we saw one of these buses but the social worker asked me 
not look and to lower myself so I would not be noticed. The 
contractors who transport the children are also the ones who "make 
sure that no one in the villages cause troxible, they report 
directly to the factory owners."* More than 50% of matches and 70% 
of firework output of India is made in Tamil Nadu. 

In 1992 Joseph Gathia, the Executive Director of the Centre of 
Concern for Child Labour, arranged a visit to the lock factories of 
Aligarh, Uttar Pradesh, where his organization has established an 
evening school for the working children. I will never forget the 
tiny dark room where five small Muslim boys were working. The 
children, who were between 6 and 12 years old, worked on the bare 
ground for an average of 9 hours a day. They wore no protective 
devices such as masks, glasses or gloves; their bodies and faces 
were covered with dust to such an extend that it was not possible 
to see the white part of their eyes.' The black dust covering the 
children was black emery powder. One little boy silently showed me 
a cut finger with bandage. In the lock factories, there are about 
10,000 children under 14 years of age who daily toil in terrible 
conditions. To evade the provisions of the Factories Act, the lock 
industry has been smartly transformed into a "cottage industry" 
with less than 10 workers on a site' The children are paid 
according to a piece-rate method. After a few years, children 
suffer from asthma, bronchitis, TB, skin diseases, ear and eye 
problems.' It is estimated that 80 percent of India's locks are 
made in Aligarh district." 

In Manali, Himachal Pradesh, I visited a Buddhist Lama, Lama 
Gondup, who operates a school (where working children learn to read 
and to write also receive a daily meal) for children engaged in 



141 



manual road construction activities. As the children work, they 
breath the polluted air caused by passing trucks, buses, and 
boiling tar. Yet, someone with very little money is trying to 
improve the lives of these children." No one agrees on the exact 
number of children working at cutting stones along the roads or 
working in quarries. According to the Census of India (1981), 
there are about 23,532," but local activists give a larger number. 
For example, in the state of Kerala alone, which has the lowest 
number of working children, there about 20,000 children who work in 
stone quarries." 

In spite of this sad reality, without any child labour 
provisions, the World Bank is financing a project (INPA9995) , with 
a IBRD loan of US $95 million for the construction of 800 km of 
major roads in Haryana State." No one can deny that roads must 
be improved in India, but it is certain that children will be 
working on road construction activities as a result of this 
project . 

In January 1994, I accompanied Dr. M.K. Patra, Director of the 
Asian Workers Development Institute in Rourkela, Orissa, on a tour 
of the dumping yard of Rourkela Steel Plant. Dr. Patra observed: 

"The plant is one of the largest and oldest steel plants in 
India built thanks to the financing of international loans. 
The steel plant offered many new jobs to the local tribal 
population: They do not miss the forest, or their old way of 
living. They have bicycles, their children go to school, and 
they have a place to live provided by the plant. The workers 
do not complain. They find their working conditions good. 
There are no working children in the plant .... It is in the 
dumping yard that you will find the working children. That 
place is like hell. Accidents occur there often, mainly bad 
burns. And, most of the children there suffer from 
respiratory disease."" 

He was right; the place looks like a living hell. Children ranging 
from ages 8 to 15, estimated to be 300 by the Asian Workers 
Development Institute, hold iron hooks, or hammer to pick up 
burning pieces. They sell the pieces to subcontractors and are 
paid on a piece-rate basis. The children work from 4:00 a.m. to 
5:00 p.m. They work outdoors in the burning sun and breath the 
acrid smoke from the plant. There is no drinking water or toilets 
near by. Many of the children come from tribal families who have 
been displaced by the effects of modernization. The plant 
management denies any responsibility for the working children; they 
are not employees and they are outside of the plant's boundaries. 
Dr. Patra wished we had enough time to visit the mines in Orissa 
where the same facts are replayed: children are working in the 
backyards of the mines, officially the management can rest in 
peace, there are no children working in the mines. 



142 



Before turning to the role and responsibility of the World 
Bank regarding child labour, I would tell you that my personal 
experiences in India could be replicated in other developing 
countries from South to Central America, from Africa to Asia. 

II. THE WORLD BANK AS ORIGINATOR OF CHILD LABOUR. 

According to the latest estimates from UNICEF and ILO, there 
are about 44 million working children in India. The largest number 
of the world's working children are found in India." In Orissa 
alone, the number of children under 14 years of age who works in 
exploited situations is estimated to be 617,351 by UNICEF. The 
total population of child workers in Cuttack City is 33,443 among 
whom 3600 work in mining and quarrying and 1500 work in 
construction. Most of the children work at least 8 hours a day." 

In spite of these facts, the World Bank is currently financing 
two important projects in Orissa in which child labour will be 
stimulated: 

First, the India-Orissa Water Resources Consolidation 
Project, (8 INDPA470/INPA10529) which gives a loan of US $290.9 
million to the government of India from IDA Credit; and 

Second, the Coal Sector Environmental and Social Mitigation 
Project (ID8INDPA394/INPA09979) which is granting US $500 
million to Coal India to open or upgrade 33 mines in Orissa, 
Bihar, Madya Pradesh and Maharashtra and an IDA credit of US 
$50 million for financing environmental and social impact 
action programs. 

In both cases, legitimate development needs are met but should it 
be at the expenses of child labour? 

Little hands will be working in the construction of the Naraj 
barrage ("dam") .'° The barrage is going to replace old Naraj weir 
which has been damaged by the flood of 1982 . It will be 940 meters 
long and would require 130,00 cubic meters of earthwork and 320,000 
cubic meters of concrete. This will offer a good opportunity to 
destitute working children in Orissa who are known to "indulge in 
stone cutting, brick making, canal digging, road construction"." 

Tribal children will no doubt be found working in the backyard 
of the new mines of Coal India which is going to displace 10,445 
persons (many of whom belong to the oldest tribes of India) ." A 
Resettlement and Rehabilitation Policy and an Indigenous Peoples 
Development Plan are provided in the package deal. India Coal will 
provide employment for 18% of the displaced persons and the 
remaining 82% (7,549 persons) will be entitled to assistance for 
self -employment with the help of five N.G.Os selected by Coal 
India." The four states where the mines are going to be located 
are known for their large numbers of working children. 



143 



Furthermore, the majority of working children are to be found among 
the "migrant families at construction sites, brick-kilns and 
mines" ." 

Not only do some World Bank financed projects contribute to 
the growth of child laibour but industries which rely on child 
labour are given as an example of success stories in a World Bank 
Discussion Paper. The fact that India has become the largest 
exporter of cut and polished small diamonds, is described as a 
success because "India's large pool of low cost artisans gives it 
a strong competitive advantage in this industry". ^^ No field study 
was made to verify who were some of these artisans. There are 
eibout 13,600 children below the age of 14 years old working in the 
gem polishing and diamond- cutting industries.^* One expert has 
observed : 

The influx of child labour into the industry is a relatively 
recent phenomenon that has occurred because the international 
demand for gems has risen sharply. . . . When the demand for 
gems was not very high, child labour was not widely 
prevalent .^^ 

In the same World Bank Discussion Paper, the authors praise 
Bangladesh's successful garment exporting and the fact that "about 
90% workers are female."^' But, according to Pharis Harvey, there 
are about 300,000 children working in the Bangladesh Garment 
Manufacturers.^' These females, often girls 8 years of age or 
less, work like slaves. 

On March 27, 1996 I wrote to the Inspection Panel of the World 
Bank to notify the Panel that child labour will take place in the 
India-Orissa Water Resources Consolidation Project. On May 10, 
1996 I was invited to attend an informal meeting at the Bank. I 
was informed that the Bank was aware of the problem of child labour 
and that, probably in two years, a policy on child labour could be 
included in World Bank projects. I also received a letter from the 
Office of South Asia External Affairs which informed me that 
"project execution, " however, is the responsibility of government 
agencies . " 

The World Bank, the leading global development organization, 
is in a state of denial about its responsibility in this area. The 
Bank does not even comply with article 32 of the UN Convention on 
the Rights of the Child which states that every child has a right 
"to be protected from economic exploitation." In a World Bank 
publication. Jobs. Poverty, and Working Conditions in South Asia ", 
it is observed that "child laibor has to be understood before 
policies can be designed to eliminate it." But studies are a smoke 
screen to shield confrontation of the true facts. Many studies 
have been done in the past years . But how many are needed for the 
World Bank to assume its true global role in human development? 



144 



III. SOLUTION. 

A policy against child labour in World Bank financed projects 
is urgently needed as well as an independent monitoring system 
established by community based non-governmental organizations 
("NGOs") to insure that children are not are being exploited in 
World Bank financed projects or as a consequence of those projects. 
Such a policy would set a global example and put pressure on 
governments which rely on working children for foreign exchange and 
cheap labour. 

The facts are clear. It will take a worldwide effort to fight 
child labour. Without the interest and intervention of the United 
States Congress, the problem will not go away. Why should American 
taxpayers participate in the silent dehumanization of 
globalization? Why should American taxpayers contribute to the 
financing of projects in which children are exploited? By whatever 
legislative means you seek to employ, please take steps to prevent 
the World Bank from contributing to a growing global problem. 

Mr. Chairman, I applaud these hearings and your leadership as 
well as that of your Subcommittee members. Thank you for giving me 
an opportunity to be a voice for the voiceless, the exploited 
children. 



145 



1. Remington, Francoise, "Stories from India, Sivakasi," 
Connection . Winter 1988. 

2. UNICEF- INDIA, Internet Home page. 

3. Gathia, Joseph, and Mahajan, K., Child Lc±>our. An Analytical 
Study . Centre of Concern for Child Labour, New Delhi, 1992, 
p. 27. 

4. Burra, Neera, "Labour Market Analysis and Employment 
Planning, The informalisation of Employment: Child Labour 
in Urban Industries of India, " Working Paper No. 25 . 
International Labour Office, 1988, p. 26. 

5. Singh, Sukumar, Exploited Children in India . Multi Book Agency, 
Calcutta, 1989, p. 94. 

6. Id^, p. 84. 

7. Remington, Francoise, "No Joy for Twilight's Children," 
Indian Express . November 11, 1992. 

8. Burra, Neera, Id., Working Paper No. 25 . I.L.O., p. 16. 

9. Burra, Neera, Id. , p. 28. 

10. Burra, Neera, Born to Work. Child Labour in India . Oxford 
University Press, Delhi, 1995, p. 60. 

11. Remington, Francoise, "Future is Cutting Stones," 
Integration . International Review of Population, Family 
Planning and Maternal and Child Health, Tokyo, Japan, 
June 1992, p. 36. 

12. Singh, Bhagwan and Mahanty, Shukla, Children at Work . 
Problems and Policy Options . B.R. Publishing Corporation, 
Delhi, and Indian Society of Labour Economics, Patna, 
1993, p. 56. 

13. Dash Chandra, Ki shore. Child Labour in the Unorganised 
Sector with Special Reference to the Dumping Yard of 
Rourkela Steel Plant . Department of Lcibour Laws & Personnel 
Management, Asian Workers Development Institute, Sambalpur 
University, Rourkela, Orissa, 1988-90, p. 12. 

14. Project: India-Haryana Highway Upgrading Project, 
INPA9995, World Bank, Pxiblic Information Center. 

15. Remington, Francoise, "The Descent of Innocence," 
India Express Madras . January 19, 1994. 



146 



16. Chatterjee, Amrita, India: The Forgotten Children of the 
Cities. Innocenti Studies, UNICEF, 1992, p. 13. 

17. Singh, Bhagwan and Mahanty, Shukla, Id., p. 204. 

18 . Staff Appraisal Report. India. Orissa Water Resource. 
Consolidation Project . Report No. 14888-IN, Annexes, 20/11/95, 
Document of the World Bank, p. 140. 

19. Sahoo, U.C., Child Labour in Agrarian Society. Rawat 
Publications, Delhi, 1995, p. 142. 

20. Staff Appraisal Report. India Coal Sector Environmental 

and Social Mitigation Project . Report No. 15405-IN, 4/24/96, 
Document of the World Bank, p. 127. 

21. Id. , p. 77. 

22. Burra, Neera, supra note 10, Oxford University Press, Delhi, 
1995, p. 31. 

23. Rhee Whee, Yung and Belot, Therese, Export Catalysts in 
Low- Income Countries. A Review of Eleven Success Stories. 
World Bank Discussion Papers, No. 72, 1990, p. 37. 

24. Burra, Neera, supra note 10, p. 80. 

25. Burra, Neera, supra note 24, p. 12. 

26. World Bank Discussion Paper, supra note 23, p. 12. 

27. Harvey, Pharis, "Child Workers, Place in School," 
Worker Right News , August 1995, No. 12. 

2 8 . Jobs. Poverty, and Working Conditions in South Asia. 

Regional Perspectives on World Development Report 1995, 
The World Bank, p. 10. 



147 



FORGOTTEN CHILDREN 

1031 North Edgewood Street 
Arlington, Virginia 22201, U.S.A. 

Tel: (7031 522- 1294 



BIOGRAPHICAL STATEMENT : FRAHCOISE REMIH6T0N 

Francoise Remington is the founder and executive director of 
FORGOTTEN CHILDREN, a registered 501(c) (3) non-profit organization 
based in Arlington, Virginia, which has for its primary mission 
improvements to the conditions of children living in difficult 
circumstances in the world, mainly through educational projects. 
FORGOTTEN CHILDREN is implementing its first vocational and 
educational project for 50 working children in Tamil Nadu, South 
India, with the collaboration of Sister Rita Thyveettil, a Roman 
Catholic nun from the Congregation of the Sisters of the Cross of 
Chavanod . 

For the past 12 years, Mrs. Remington has been a child rights 
advocate. She has written many articles on child labor which have 
been published in India, Japan and the United States. From 1985 to 
1988, Mrs. Remington directed the India Program for the American 
Adoption Agency, Washington DC. During that time, she travelled 
extensively all over India to visit orphanages and she placed 25 
orphan children in American homes. Also during these years, she 
witnessed children working in factories and established a network 
of Indian and Nepalese activists who are working against child 
Icibour . 

Mrs. Remington has a Masters Degree in International Relations 
and Economics from the Johns Hopkins University, School of Advanced 
International Studies (1985) and a Doctorate in French Literature 
from the University of Paris, Sorbonne (1981) . She has worked as 
a short term consultant for the World Bank. She recently 
participated in an Expert's Seminar on "Children's Rights, Housing 
and Neighborhood" (February 1996) in preparation for the United 
Nations Conference Habitat II. 

Her work for FORGOTTEN CHILDREN is without condensation. 
Professionally, with many years of high school teaching experience, 
Mrs. Remington teaches French at the Washington International 
School. She has dual nationality: French and American citizenship. 
Mrs. Remington and her husband, Michael J. Remington, are the proud 
parents of three adopted children from India, two of whom come from 
Mother Teresa. 



148 



Testimony of 

Anthony G. Freeman 

Director, Washington Branch 

International Labor Office (ILO) 

"Strategies and Achievements of the 
International Program on the Elimination of Child Labor 

(IPEC)" 

Subcommittee on International Operations and Human Rights 

Committee on International Relations 

U.S. House of Representatives 



July 15, 1996 



m 



International Labor Office 

Washington Branch 

1828 L Street, NW, Suite 801 • Washington, DC 20036 

Telephone: (202) 653-7652 • Fax (202) 653-7687 

http://www.un.org/depts/ilowbo • E-mail; ilowbo@aol.com 



149 



Thank you, Mr. Chainnan. Mr. Chairman, Distinguished Members of the House Subcommittee 
on International Operations and Human Rights, ladies and gentlemen. 

My name is Anthony G. Freeman, and I am the Director of the Washington Branch of the 
International Labor Office. The Office is the Secretariat of the International Labor Organization, a 
specialized agency of the United Nations. 

First, I would like to thank you for the opportunity to tell you about the ILO's International 
Program on the Elimination of Child Labor. 

You have asked me to describe the ILO's work in the field of child labor and specifically the 
strategies of the IPEC program that have led to concrete reform. 

I propose to cover the following subjects in these remarks: 

• the ILO and its work; 

• ILO labor standards and child labor; 

• overview of IPEC 

• IPEC strategies 

• IPEC programs and projects that are achieving concrete reform; 

• U.S. support to IPEC 

• the BLO's goals and plans for IPEC's iuture work 

1. The ILO and Its Work 

The ILO's mandate is to advance human rights in the workplace, to improve working 
conditions, and to promote employment. Its "clients" are mainly developing countries and newly 
emerging market economies. 

The ILO is unique in that the representation of the 174 member countries is tripartite. Workers, 
employers and governments meet at every stage of the ELO's work to debate, decide policy, and to 
approve the program and budget. These three constituents also work together in the field to design 
programs and projects, and to cany them out. Tripartism is a vital principle in industrial relations 
around the world, and it is an important element in the success of IPEC. 

International Labor Standards 

Another ILO strength is its core mission, the setting, promotion and adjudication of labor 
standards as set forth in ILO conventions. The ELO's work on labor standards has earned the 
Organization the reputation, as stated by former Secretary of Labor Elizabeth Dole, as "the United 
Nations' most effective advocate of human rights." The ILO's achievements in this field also earned 
the Nobel Peace Prize for the ILO on the Organization's 50th anniversary in 1969. ILO moral 
pressure and persuasion have achieved noticeable improvements in workers' rights and working 
conditions. 



150 



Technical Assistance 

Member states that are unable to meet certain ILO labor standards often ask for help in order 
to bring their laws or practices, or both, into conformity with standards. The ILO provides technical 
assistance through research, analysis and advice on such topics as labor policy and legislation; through 
training, including courses for labor inspectors, small business entrepreneurs, staff of employer and 
worker organizations; and through field projects, such as setting up rural cooperatives. 

On-site assistance to member states has grown to the point that the ILO's technical cooperation 
programs now operate in some 140 countries and territories, and the average annual expenditure is 
$130 million. To better meet the needs of recipient countries, the ILO has decentralized much of its 
work to regional and national ofiBces. There are 44 field offices in recipient and donor countries. The 
ILO also has assigned 14 multidisciplinary teams (MDTs) to field locations. Each team possesses a 
high level of expertise in the areas for which ILO assistance is most fi-equently sought. For example, 
the Central American MDT, based in San Jose, has provided assistance in negotiating and 
consolidating the social clauses of peace agreements, particularly in Guatemala. The ILO's 
fundamental Conventions are being used throughout the subregion as basic elements in the 
establishment of the rule of law and protection of the citizenry. 

2. ILO Labor Standards and Child Labor 

Child labor has been a concern of the ILO since the Organization was founded in 1919 under 
the Treaty of Versailles. Part XIII, Section I of the Treaty, which establishes the ILO and which is 
now the Preamble to the ILO's Constitution, states that improvement of working conditions "is 
urgently required" and included in the examples of such conditions is the protection of children. A 
few months later the first minimum age convention was drafted prohibiting work by children under 
14 years of age in industrial enterprises. 

A number of Minimum Age Conventions followed, applying to specific sectors and occupations. 
Two conventions on forced labor (No. 29 of 1930 and No. 105 of 1957) have been widely ratified 
and continue to be instrumental in the fight against child slavery. 

In more recent times, comprehensive standards were set in the Minimum Age Convention (No. 
138 of 1973) which calls on member states to aim for the effective abolition of child labor. And this 
year, the Governing Body of the ILO approved a plan to develop a convention that will aim to 
eliminate the most flagrant abuses of child labor, including child bondage, forced labor, sexual slavery, 
hazardous working conditions, and the use of children in pornography. 

This new convention probably will be adopted in 1999 and will reinforce and facilitate the ILO's 
ability to deal vwth the most abusive forms of child labor through the ILO's labor standards 
machinery. It will also underscore the highest priority which member states have given to the fight 
against child labor through the ILO. 

It is worth noting that the ILO is conducting a campaign to promote ratification and 



151 



implementation by member states of the ILO's seven core conventions' - those covering freedom of 
association, non-discrimination and the abolition of forced and child labor. 

The ELO's international labor standards efifect change through their ratification by member states 
and implementation in national laws, and through the ILO's supervisory procedures to promote their 
application in law and practice. This process is considered to be the most advanced of all such 
international procedures. It is b.ased on an objective evaluation by independent experts of the manner 
in which obligations are complied with, and on examination of cases by the Organization's Committee 
on the Application of Standards. Regarding the application of the Forced Labor Convention No. 29, 
repeated discussions on the situation of children working under forced labor conditions as stipulated 
in the convention have led to concrete action by IPEC partner countries, such as India, Pakistan and 
Thailand. 

3. Overview of IPEC 

Background 

Until this decade, child labor was viewed in developing countries with a mixture of indifference, 
apathy and even cynicism, partly due to ignorance. Child labor was so widely practiced for 
generations that it was accepted as part of the natural order of things. Therefore, the position was one 
of denial - by governments, by employers and by parents. Even for donor nations, child labor was 
almost nowhere on their list of priorities. As late as the mid-1980's, it was virtually impossible to 
obtain grants for child labor programs. 

In 1989, the body of international law and ILO instruments received added momentum with the 
adoption of the United Nations Convention on the Rights of the Child. 

The ILO and several governments interested in combating child labor began discussions in 1990 
on ways to address the problem. A five-year conunitment of $32.5 million from the German 
Government enabled the ILO to launch its vigorous offensive against child labor in 1992. The United 
States added its support in 1995 with an initial grant of $2. 1 million, followed by an additional $1 .5 
million in 1996. 

IPEC Operations and Funding 

Today, a total of 25 countries receive IPEC assistance. Full-fledged country programs now 
operate in the six countries that joined IPEC in 1992: India, Indonesia, Kenya, Thailand, Brazil, and 
Turkey. The development of programs is underway in the five second-generation countries that joined 
IPEC in 1994 and eariy 1995: Bangladesh, Pakistan, the Philippines, Tanzania, and Nepal. This year. 
Memorandums of Understanding have been signed with eight more countries, and preparatory work 
is underway in at least sue more countries. 



' No. 29 - Forced Labor (1930), No. 87 - Freedom of Association and Protection of the 
Right to Organization (1948), No. 98 - Right to Organize and Collective Bargaining (1949), No. 
100 - Equal Remuneration (1951), No. 105 - Abolition of Forced Labor (1957), No. 1 1 1 - 
Discrimination in Employment and Occupation (1958), and No. 138 - Minimum Age (1973) 



152 



IPEC now receives support from nine donor countries. Total contributions to IPEC - paid-in 
or committed - have reached $80.7 million. The three largest donors are Germany at $65 million, 
Spain with $12.5 million, and the United States with $3.6 million. Negotiations are underway for 
donations from the Netherlands, Italy, Sweden, Switzerland, and the United Kingdom. 

The Challenge 

Child labor is a vast, complex and multi-faceted problem. The efforts and funds to solve it need 
to be commensurate. Thou^ reliable statistics are rare, available information suggests that the 
number of working children remains extremely high. No region of the world today is entirely free of 
child labor. Combining various ofiBcial sources, the ILO estimates that more than 73 million children 
in the lO-to-14 age group were economically active in 1995, representing 13.2% of all children of 
those ages around the world. ILO experts estimate that if all of the working children under 10 and 
between 14 and 15 could be counted, the total number of child workers around the world might well 
be in the hundreds of millions. 

4. IPEC Strategies 

Given the magnitude and complexity of the problem and the available resources, IPEC takes a 
realistic and pragmatic approach and aims to achieve the progressive elimination of child labor: 

• by strengthening national capacities to address child labor problems, and 

• by created a worldwide movement to combat child labor. 

Four years of intensive field experience have shown that child labor problems will be solved 
effectively only if they are "mainstreamed" into national social and economic development policies, 
programs and budgets, and if the program is "owned" by the countries themselves This means that 
long term and short term goals and strategies are translated into visible and explicit components in 
line ministries, government administrations and in civil society, and that a public accountability system 
is set up. IPEC has incorporated three essential strategies that have proven to be very effective steps 
towards concrete reform: 

• First and foremost, IPEC obtains support and commitment at the highest level of the national 
government. India, Pakistan and Brazil are examples of countries where the political leaders 
have signaled the importance of the fight against child labor to the whole country through 
massive information campaigns. 

• Second, IPEC makes a long-term commitment to national partners. It takes about 10 years 
to achieve "mainstreaming" of child labor problems into national social and economic 
development policies, programs and budgets. 

• Third, IPEC takes a comprehensive, multi-dimensional approach. This strategy is illustrated 
by the following approaches that have proven to be essential to achieve a measure of success. 

IPEC's main action priorities are: 

• to support national efforts to combat child labor; 

• to help countries develop & permanent capability to tackle the problem; 

• to give priority to the eradication of the most abusive types of child labor; 

• to tmphasas preventive measures. 



153 



IPEC's two priority target groups are: 

• children working under forced labor conditions and in bondage; 

• children in hazardous working conditions and occupations; 

Within these groups, special attention is given to the most vulnerable: 

• very young working children, those under 12 years of age; 

• girls. 

5. IPKC roiintrv Programs and Projects 

Motivating the parties to the solution 

The ILO brings together its tripartite constituents - government and employers' and workers' 
organizations - as well as NGO's and other relevant partners - to engage in a dialogue on child labor 
problems, to forge ties between them and to facilitate joint action. 

Because no organization can solve this problem on its own, IPEC has motivated many 
implementing agencies to work together and thereby achieve better cooperation between 
governments, non-governmental organizations (NGO's), employers, and workers, and their 
organizations. Mutual trust and respect among them have also increased. 

At the policy level. National Steering Committees (NSC) have proven effective for uniting old 
and new partners and developing consistent policies, strategies and plans of action. In Kenya, for 
example, the NSC was officially mandated by the Government to address child-labor issues nation- 
wide. In the Philippines, the NSC became part of an existing official coordinating body on child labor 
with an expanded mandate to cover all child labor programs. 

This process of building cooperation culminates in a formal commitment of the government to 
cooperation with ILO-IPEC through a Memorandum of Understanding. 

Situation analysis 

Research is essential to determine the nature and magnitude of child labor problems in a country. 
Therefore, the ILO has developed a survey methodology to enable countries to obtain benchmark 
statistics on children's work in general or to produce statistics on specific core variables. It was tested 
in Ghana, Indonesia, India and Senegal, and has been used as a module within an ongoing national 
survey program in the Philippines and Turkey. In Pakistan, it is now being used as a free-standing 
survey. Nepal will attach a child module to a national survey, and other independent surveys will take 
place in Bangladesh, Indonesia and Thailand. A report on findings in the first four countries has been 
published. The ILO Bureau of Statistics is finalizing a manual for statisticians aAd helping statistical 
offices in various countries obtain sound information on child labor. 

Helping concerned parties devise national policies and plans of action 

ILO &cilitated and, in several instances, initiated the process of developing national policies to 
combat child labor by collecting and compiling sound information, and then offering the partners a 
forum for discussion to discuss and review the strengths and weaknesses of existing policies and 
programs. In Bangladesh, Indonesia, Kenya, the Philippines, Tanzania, and Thailand, national 
seminars or conferences have led to the adoption of national plans of action which go beyond a 



154 



statement of intention and set out strategies to combat child labor. A national plan was developed in 
Turkey, a regional conference for Central American countries took place, and a seminar was 
organized for the Arab States. National conferences leading to formulation of national policies have 
taken place in Argentina, Benin, Cameroon, Ecuador, Egypt, Peru, Senegal, Venezuela and 
Zimbabwe. Preparations are underway for Burkina Faso and Uganda. 

Partner organizations regard the development of national policies and programs as extremely 
important because they show the government's commitment to addressing the problem in cooperation 
with all other concerned parties in society. In countries such as Brazil, India, Indonesia, the 
Philippines, and Thailand, the design of a national plan of action also served to focus the attention of 
the ILO-IPEC country program on specific groups of working children who were formerly neglected, 
but who are in dire need because of the exploitative or hazardous nature of their work. 

It would be presumptuous to say that ILO-IPEC has been responsible for the many positive 
changes now taking place or that it has been the sole or main actor in initiating major policy changes 
and reform to improve the lives of working children. However, ILO-IPEC has contributed to, and 
acted as, a catalyst for such changes. 

Raising Awareness 

ILO-IPEC emphasizes the importance of awareness-raising both for prevention and elimination 
of child labor. Most action programs contain an awareness-raising component to mobilize the media 
and/or to work through meetings and visits to homes, schools and the workplace. Partner 
organizations in many countries have noted that society at large, its institutions, employers, parents 
and working children themselves are often unaware of the harmfijl effects of strenuous labor on 
children's future lives as productive adults. It has been acknowledged that if society as a whole 
recognizes that child labor is a problem, the stage has been set to stigmatize and then eradicate the 
most abusive forms of child labor. 

When organizing public-awareness campaigns, media messages must be tailor-made for specific 
target groups. For example, the employers' organizations in Brazil, India, Indonesia, Kenya, Pakistan, 
the Philippines, Thailand, and Turkey, and workers' organizations in Bangladesh, Brazil, India, 
Kenya, and Turkey have effectively raised awareness among their members as an important step to 
address the problem. 

In several countries the child labor units of the ministries of labor have set up a central office 
for the collection and dissemination of information. 

Professional media organizations are the most suitable partners for disseminating information 
to the general public. Radio is a very effective and relatively inexpensive way to reach isolated and 
poor communities in local dialects. Television, film and video are also powerful media in all partner 
countries. 

Promoting protective legislation 

ILO-IPEC has provided expertise to improve national legislation to protect children in Indonesia 
and Nepal. IPEC has also helped draft regulations to facilitate the implementation of national 
legislation covering child labor, for example, in Pakistan. 



155 



Labor inspectorates can be a powerful tool against child labor. Labor inspectors are often the 
only people who can gain access to child workers in hidden workplaces in the formal sector. In niany 
countries joint action between labor inspectors, the media and NGO's has brought intolerable 
situations into the open. The ILO has helped to train labor inspectors and has developed a 
comprehensive training package which was field-tested in Indonesia and Turkey and then adapted for 
use in Pakistan. 

Wherever possible legal aid has been extended to children. 

Limited resources have constrained IPEC's ability to provide advice and assistance with 
legislation, regulation, inspection, enforcement, and judicial action. Much more needs to be done in 
these areas, as well as with social security and health insurance. At present, social security systems 
in most countries do not cover working children adequately, either because the systems are unable 
to provide sufficient coverage or because children are not officially allowed to work. 

Su pporting demonstration projects on prevention and withdrawal 

The first years of IPEC have shown that investment in the prevention of child labor is the most 
cost-effective measure for all actors. Even eradicating only the most abusive forms of child labor - 
which requires measures to "rescue" children fi'om work and to rehabilitate them, requires an 
investment far beyond the resources available to ILO-IPEC. Many action programs therefore have 
been geared towards prevention: firstly, by identifying the geographical areas, social groups and 
conditions that favor child labor, and by finding out the "push" and "pull" factors in industries or 
occupations; and secondly, by intervening at the policy and grass-roots levels.^ 

Preventing and withdrawing children fi-om work, starting with the most hazardous and 
exploitative types of work remains the central aim of ILO-IPEC. The Program encourages partner 
organizations to focus on children who are in immediate danger, and to ensure that measures are 
taken to prevent newcomers fi'om entering the workforce prematurely. 

- Education and poverty alleviation 

The most effective instruments for the elimination of child labor ultimately will be affordable, 
relevant quality education for children up to the age of 1 S and poverty alleviation among population 
groups where child labor is rampant. 

ILO-IPEC is determining priorities for programs in education and training within its available 
resources. It is important to note that Bangladesh, Indonesia, the Philippines and Thailand have 
substantially increased their budgets for education in recent years for the 12 to 15 age group. The 
Ministry of Education in Thailand made special efforts to provide education for girls who risk being 
lured into prostitution and sought ILO-IPEC help with a module on vocational training for the 



^ "Push" refers to &ctors which reduce opportunities for children to go to school, or to 
have a protected period of dependent childhood, or to have secure food and housing, thus forcing 
them into the job market for want of alternatives. "Pull" refers to factors which create 
opportunities and demand for low-paid, unskilled workers which entice children to join the job 
Biaiket. 



156 



secondary school curriculum. 

Experience has shown that pointing out the risks and dangers of working at an early age is a 
necessary and effective preventive strategy. However, this alone will not keep large numbers of 
children out of work. It is not a viable solution to promote schooling when the quality of education 
is poor. Many of the action programs have attempted to provide access to formal schooling and 
vocational training systems and supply non-formal education and pre-vocational skills-training. This 
is a promising area for further investment. With resources from Norway, and in cooperation with 
UNICEF, UNESCO and Education International, ILO-IPEC is currently drawing up an inventory of 
successfiil education programs in 1 3 countries. So far, various "model" strategies have emerged 
which show potential for replication and eventual mainstreaming. 

One effective way to prevent child labor is to introduce a module on child labor into the regular 
primary-school curriculum to inform children about their rights, the dangers of premature work and 
the importance of education. This method has been applied in Thailand and similar programs are 
planned in India and Nepal. 

In India, child labor was prevented by ensuring school enrolment of children between the ages 
of four and six. It was easier to persuade parents with children in this young age group to send them 
to school than to persuade woridng children and their parents that the children should give up earning 
money and go back to school. 

In Indonesia, learning materials geared to the needs of working children were developed and 
integrated into a large government-funded, non-formal education program. The curriculum included 
subjects such as literacy, numeracy, basic bookkeeping, hygiene and "life" skills. Several of the ILO- 
IPEC implementing agencies have started to use these materials and have commented that they are 
well received. This program inspired a similar initiative in Thailand where specific modules on child 
labor are being developed for the Government's non-formal education program. 

Many more lessons have been learned about education through trial and error and are providing 
valuable guidance for other partner countries and for fiiture programs. 

In cases of absolute poverty, it is impossible to eliminate child labor without addressing the 
family's poverty problems at the same time. Although EPEC experience is still limited in this field, it 
has shown that ILO-IPEC must increase its efforts to incorporate special child labor components into 
ongoing or planned programs on structural adjustment, poverty alleviation and employment creation. 
Experience from India and Indonesia suggests that income-generation and poverty alleviation schemes 
should include explicit measures against child labor or must be supplemented, linked to and 
coordinated with other programs aimed at limiting child labor and promoting further schooling for 
children. 

- Health programs 

Setting up both health treatment and prevention action within an integrated program makes 
sense not only from the humane point of view but is also a very effective first step in convincing 
employers and parents of the value of removing children from dangerous work and working 
conditions. Pioneering work in this area has been carried out in Turkey. 



157 



- Incentives 

In India certain incentives were essential to attract children to school. These included providing 
the first school uniform or set of clean clothes, books and school fees. Experience from many action 
programs in Kenya and other African countries suggests that children drop out of school not 
necessarily because their wages are needed but because school fees are not affordable. More strategic 
action will be required to aid efforts to increase the income of poor families and/or to lower school 
fees and related expenses to an affordable level. In Turkey, an implementing agency started by 
financing nutrition and health. At a later stage, the cost of health services was bom by the hospital, 
and the community contributed to providing nutritional supplements. 

It is clear that incentives are often needed to break the vicious circle of children working long 
hours for very low wages. However, incentives such as stipends in IPEC programs must remain short- 
term and need to be borne in the long run by the community, governmental or other agencies. 

- Rehabilitation 

Comprehensive rehabilitation measures for vulnerable ex-child workers are badly needed. They 
include education, training, health services and nutrition, intensive counseling, a safe environment, 
and often legal aid. However, because their cost is prohibitive, IPEC has confined itself to supporting 
only a few model initiatives to demonstrate how rehabilitation measures can be set up effectively. 

- Capacity-building 

Many partner organizations were unfamiliar with specific types of child labor projects with the 
exception of ministries of labor and a few NGO's. Initial awareness-raising and training in child labor 
problems and solutions were necessary, and many implementing agencies also needed training on how 
to develop and manage action programs and how to comply with reporting and administrative 
procedures. IPEC therefore organized inter-regional workshops and produced a training package with 
briefing kit on the design, management and evaluation of child labor projects. 

6. U.S. Support to IPEC 

The United States Congress made a strong commitment to EPEC in the Fiscal Year 1995 
appropriation for the Department of Labor. The legislation provided $2.1 million for IPEC. The 
following year, the Congress appropriated an additional $1.5 million for IPEC. The grants are being 
applied to national projects in Bangladesh, Brazil, the Philippines, and Thailand, and a regional 
workshop for ten African countries. 

The Bangladesh project is already showing results. Its objective is to eliminate child labor in the 
production of garments imported by the United States. The agreement signed between the ILO, the 
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and UNICEF provides 
for all child workers in the ready made garments sector to be removed from garment factories and 
enrolled in schools newly established under the agreement. The children receive a monthly stipend 
while studying and will have the opportunity to take jobs in the industry once they attain legal 
working age. 

The agreement forbids any new hiring of underage employees and retention of children once all 
schools have opened. Monitoring teams make unannounced visits to factories and schools, reporting 
violations to a steering committee for action. 



27-319 96-6 



158 



10 

As of this month, more than 1 12 schools for former child workers have opened, serving nearly 
2,000 children, according to a report from the U.S. Embassy in Dhaka. The project's goal is to open 
some 200 schools, serving 8,000 to 1 1,000 former workers by the end of next month. 

The AFL-CIO's Asian-American Free Labor Institute has encouraged this project and 
demonstrated a parallel commitment by opening three schools for children presently or previously 
employed in the industry and for children of garment workers, according to the report. A number of 
U.S. companies which purchase Bangladesh garments, including Levi Strauss, Wal-Mart, K-Mart, 
Sears, J.C. Penney, and Montgomery Ward now require that the factories they deal with be "child 
labor free." 

Under a framework agreement between IPEC and the Bangladesh Government, EPEC is frinding 
other projects, including a National Steering Committee for child labor programs, and at least 25 
small-scale projects on awareness-raising, technical and vocations! training, informal education, 
welfare services, and data collection. 

In-kind U.S. support for IPEC comes from the U.S. Council for International Business 
(USCIB), which represents U.S. employers in the ILO. The USCIB is playing a leadership role in 
the design of an action program launched last month by the International Organization of Employers. 
This includes creation of a database and dissemination of information on actions by companies and 
organizations in combating child labor and publication of an "employers' best practice" handbook. 

Su pporting the Worldwide Movement 

To help build and sustain the worldwide movement against child labor and to promote action 
at national, regional and international levels, IPEC 

• organizes regional and inter-regional meetings 

• supports networking activities at the sub-regional and global levels 

• cooperates with employers' and workers' international organizations 

• cooperates with international and regional NGO's with extensive experience in child labor 

• works at the country level with UNICEF and other relevant organizations 

• publishes "Children and Work," an international newsletter in English and Spanish in order 
to share ideas and experience and communicate progress and lessons. 

Related to the child labor problem is the growing international debate on the relationship 
between trade and certain ILO core labor standards, including ILO Conventions covering child labor. 
The ILO is studying ways to achieve ratification and implementation of these standards, including a 
country by country investigation of compliance by member states. Secretary of Labor Robert Reich 
announced at the ILO's International Labor Conference last month that the United States has agreed 
to be the first country to be formally reviewed - with the understanding that all ILO members should 
be prepared to demonstrate the same commitment. 

The focus of ILO-IPEC remains children, not international trade. The program makes no 
distinction in its programs between the end markets for the products produced by working children. 
The central issue is to stop the abuse of children, regardless of their sector of activity or the market 
to be supplied. 



159 



11 

Research and other developn;ental work are essential to explore the feasibility of establishing 
progress indicators in developing countries that could serve as a basis for granting trade incentives. 
IPEC field experience has shown that trade sanctions, or the threat of trade sanctions can have 
harmful effects on the children concerned. However, it is believed that positive trade incentives are 
the right strategy to motivate constructive measures to tackle the child labor problem in these 
countries. 

7. ILO-IPEC's Future Goals and Plans 

ILO's overriding goal for IPEC is to facilitate reform that will lead to the mainstreaming of child 
labor measures into national policies, programs and budgets. When this happens, a country is self- 
sufficient and IPEC can withdraw. To achieve this goal, IPEC will: 

• continue to replicate and expand successful projects; 

• prepare to phase out ILO-IPEC in those countries where mainstreaming has been achieved; 

• seek funding to extend the program to countries that have requested help in tackling their 
child labor problems, but where such assistance can not be provided because the funds are not 
yet available; 

• intensify efforts to systematically tackle child labor abuses that have proven problematic, 
because the groups of children are difficult to reach (child bondage, child trafficking and 
exploitative child labor in domestic services and agriculture); 

• give countries policy guidelines and practical tools to address their child labor problems on 
their own. 

The growing support for IPEC since its inception is testimony to the progress it has made in 
demonstrating that there aiS solutions to child labor, they can be implemented, and the political will 
to pursue them can be generated, supported and maintained. 

Thank you, Mr. Chairman. 



160 



ADDITIONAL STATEMENT SUBMITTED IN RESPONSE TO THE QUESTIONS 
POSED BY THE CHAIRMAN AND REPRESENTATIVE MORAN 

The dimension of the problem of child labor is staggering. The total number of child workers 
around the world today is in the hundreds of millions. It is most prevalent in the developing 
regions. In absolute terms, it is Asia, as the most densely populated region of the world, that has 
most child workers (probably over half) But in relative terms, Africa comes first (an average of 
one child out of three is engaged in economic activity). In Latin America, we estimate that an 
average of one out of five children is economically active. 

ILO's experience in assisting member States shows that to achieve sustainable results in the 
elimination of child labor—in addition to a strong political will and commitment—a comprehensive 
and long term strategy is required to bring about the necessary reforms in national policies and 
budgets, as well as changes in social attitudes. 

Accordingly, financial commitments, international and national, need to be comprehensive and 
long term. 

The estimates for additional funding for 1997-2002 given below are based on our present 
knowledge of needs and absorptive capacity in ILO/IPEC partner countries and in those countries 
that have either formally or informally signaled that they would like to become partner countries. 
We expect that there will be about 25 developing countries participating in IPEC by the end of 
1996; we calculate that by 2002 ELO/IPEC will have around 50 partner countries. If a donation 
of $50 million were made available to the ILO for EPEC over a 5-year period, we would propose 
to use it as follows: 

A) $12 million for additional funding for 22 ILO/IPEC partner countries' that have greater 
needs than what can be allocated to them with available funds committed so far by donors. 

B) $26.5 million for additional funding for preparatory activities and start up of 
comprehensive technical cooperation programmes in about 30 new partner countries.^ 

C) $11.5 million for specific research, advocacy and implementation of regional and 
interregional projects (e.g. trafficking of children, child slavery and bondage, mainstreaming of 
child labor issues into social and economic policies, child labor in manufacturing industries, and 
statistical surveys on child labor). 



1 Asia: Bangladesh, India, Indonesia, Nepal, Pakistan, Philippines, Thailand; Africa & Arab States: Kenya, 
Tanzania, Egypt; Latin America: Brazil, Colombia, BoUvia, Chile, Venezuela, Peru, Panama, Guatemala, 

El Salvador, Nicaragua, Costa Rica; Europe: Turkey 

2 Asia: Cambodia, China, Mongolia, Vietnam, Sri Lanka; Africa and Arab States: Benin, Burlcina Faso, 
Cameroon, Senegal, Uganda, Zimbabwe, Ethiopia, South Africa, Mali, Niger, Palestine, Yemen, Lebanon, Morocco, 
Tunisia; Latin America: Argentina, Ecuador, Dominican Republic, Honduras, Paraguay, Haiti. Uruguay, Belize, 
Mexico; Eastern European countries: Kazakhstan 



161 



JAMES P. MORAN 

UniUISTRlCTOF 7IH&1NIA 

AND OVERSIGHT Xi^UlllJl IZIZ) Ul HJt Vl^llUtU .^lUlCZ) washimgton office 

jL)oust of l^rprestcntatibeg 



.ovERNMENT REFORM Congresg o( tf)E HmteD States 



405 CAIKiON HOUSE 

OFFICE BUllClltlO 

WASHirjOIOrj DC JOSTj a^OJ; 

jaiaahington, DC 20515-4608 '202,225 4375 



INTERNATIONAL RELATIONS 

SUBCOMMITTEE ON 

INTERNATIONAL OPERATIONS 

AND HUMAN RIGHTS 



Statement by Rep. James P. Moran 

Before the Subcommittee on International Operations and Human Rights 

June 11, 1996 



Mr. Chairman, I want to begin by thanlcing you for holding this hearing. Believe it 
or not, this is the first time a House Committee has held a hearing devoted to the worldwide 
problem of child labor. It is long overdue. 

Many Americans have been startled to learn recently that many products they 
purchase, often bearing the names of celebrities, have been manufactured by children under 
unspeakably oppressive labor conditions. 

Celebrities have been quick to point out their ignorance, and thus their lack of 
responsibility for the problem. They seem to deny or downplay the use of child labor and 
portray themselves as victims of an attack by the media. 

Mr. Chairman, I'd like to tell you about a few of the real victims. 

Shadab is a nine-year-old boy. Since he was six, he has spent 12 hours a day, six 
days a week, squatting in the semi-darkness on damp ground polishing metal in a brass 
factory. The air in the factory is visibly thick with metal dust. The temperature is 120 
degrees. TTie bare floor is damp with acid that sloshes from big vats onto the ground. 

Silgi is a three-year-old girl. She sits on a mud floor in a filthy dress stitching 
soccer balls bound for Los Angeles. With needles bigger than her fingers, her stitching is 
adequate, but her hands are so small that she cannot handle scissors. She must get 
assistance from a fellow employee - her sister. 

Anwar, another nine-year-old boy, started weaving carpets at the age of six or seven. 
He was told repeatedly that he could not stop working until he earned enough money to 
repay an alleged family debt. He was never told who in his family had borrowed or how 
much money they had borrowed. Whenever he made an error in his work, he was fined 
and his debt increased. When he was too slow, he was beaten with a stick. Once, he tried 
to run away, but he was caught by the local police who forcibly returned him to the carpet 
looms. In order to take a break, he would injure himself by cutting his own hand. 

Forced labor is illegal in most parts of the world, yet it is on the increase in Asia, 
Africa and Latin America. The reason is simple: exploiting children is both easy and 
profitable. 

Employers prefer child laborers because they are easy to control. One toy 
manufacturer in Thailand told reporters "if we give them meals we can control them very 
easily." 



162 



A Moroccan carpet manufacturer said he prefers "to get them when they are about 
seven . . . their hands are nimbler, and their eyes are better too. They are faster when they 
are small." 

Mr. Chairman, these are not isolated cases. 

Some argue that child labor is natural in poverty ridden countries and that eventually, 
through investment and growth, child labor wUl die a natural death. Our acceptance of 
child labor as a natural consequence of extreme pwverty has led to its world-wide increase. 
To turn a blind eye to those that make a profit from buying and selling children is to 
condone it. 

We, as consumers, are all complicit if we do not ask the right questions and demand 
satisfactory answers. We all have a greater responsibility than passing the buck and 
assigning blame. 

In addition to fulfilling our personal responsibility, we also have a national 
responsibility. We should require that any country receiving U.S. foreign assistance certify 
that it has enacted, and is enforcing, effective child labor laws. The State Department 
should be responsible for auditing, and when necessary, revoking the certification. This is 
why I, and about 40 bi-partisan co-sponsors, have introduced the Working Children's 
Human Right's Act. 

The enforcement of child labor laws wUl not put an end to cheap, exploitive labor 
conditions nor significantly raise the price of the products we purchase. It wiU, though, 
create more job opportunities for parents and appropriate breadwinners around the world to 
become compensated participants rather than pawns in the globalization of our economy. 
Most of us have been blessed by the accident of birth but such good fortune ought not 
relieve us of some personal and collective responsibility to those who have not been so 
blessed. 

Thank you again, Mr. Chairman, for taking the first step by holding this hearing. I 
hope we can form a strong bi-partisan coalition to combat this abhorrent denial of the most 
basic human rights of children. 



163 

#96-16 



Statement of Charles Marciante, President 
New Jersey State AFL-CIO 

before the 

House Committee on International Relations 
Subcommittee on International Relations and Human Rights 

on the Use of Child Labor in Overseas Production 

June 11, 1996 



Mr. Chairman and members of the Subcommittee: 

On behalf of the New Jersey State AFL-CIO, I want to thank you for the opportunity to 
submit my testimony for these important hearings. 

"Child Labor is a wicked practice ~ one totally abhorrent to all ideals of intelligence... 
There is nothing in later life that can ever compensate a neglected or abused child for the losses 
which were a part of its childhood. As the human body and the human mind and the human 
personality develop they remain fundamentally unchanged. There is a tune to grow and a time 
to develop which never returns..." 

This is a quotation from Samuel Gompers, the first president of the AFL, written in 1916 
when child labor in the United States was a serious problem. You might say to yourself: yes, 
but that was almost 80 years ago. What bearing does it have on us today? 

Eighty years ago, conditions for working children in India, Sudan, Haiti and other 
developing nations were not so much worse than conditions for child workers here in the U.S. 
Furthermore, international trade was minimal compared to today. The impact of their societies 
on ours was insignificant. 

Since that time, the United States has made enormous progress. Our wages and working 
conditions are among the best in the world and we do a fairly good job of enforcing 
comprehensive laws against the use of child labor. However, a recent expose' found that in the 
garment district of New York the child labor continued to exist. 

Hundreds of millions of children are in the global labor force. For U.S. policy, this is 
a fact of both moral and economic significance. Today, capital flows freely across international 
borders. Technology is almost completely mobile. Exchanges between branches of 
multinational corporations account for almost half of all world trade, and several international 

1 



164 



corporate empires now have incomes at their disposal that are greater than the total gross 
domestic product of many medium sized nations. 

It has become a simple thing for companies to shop the world for the least expensive, 
most exploitable and best trained workers. This means that millions of children are compelled 
to labor night and day for a pittance, in conditions which are truly Dickensian. Through 
unregulated trade, the products that they make are imported into the United States, displacing 
American workers and depressing living standards, here and abroad. 

The Scope of the Problem 

While there are few firm statistics on the use of child labor, there is much that can be 
gleaned from peripheral reports and limited sectoral or regional studies. 

In press reports on the civil war, refugees from southern Sudan tell horrifying stories of 
soldiers executing adult males and capturing male children to serve as slaves. 

The use of child miners in remote Peruvian gold fields was not widely known until burial 
sites were discovered in 1991. Treated as chattel, child workers were dying from accident, 
overwork and starvation. 

A 1988 Business Week article described the abuse of Chinese children in a toy factory 
owned by Kader Enterprises Ltd., Hong Kong's largest toy maker. When asked about Chinese 
government objections, one Kader official replied: "We told them, this is the toy biz. If you 
don't allow us to do things our way, we'll close down our Chinese factories and move to 
Thailand." They did not, in fact, close their plants in China. They did, however, open plants 
in Thailand which they ran in similar fashion. In May, 1993, one of Kader's Thai toy factories 
burned to the ground, becoming the worst industrial fire in history. Managers had locked the 
doors of the plant to "prevent theft. " Approximately 200 young female employees were burned 
alive or crushed to death. Many were only a few years older than the American children whose 
toys they made. 

The International Labor Organization's most recent surveys indicate that 73 million 
children between the ages of 10-14 are in the labor force, more than 13 percent of all children 
in this age group. No one knows how many children under the age of 10 are working. This 
means that potentially hundreds of millions of children work under the conditions just described. 

There are many reasons why children enter the labor force. Within the family, it is 
generally a practice bom of tradition and sustained by necessity. Poverty is the primary 
motivation for sending children outside of the home to work. This, in turn, often breeds 
exploitation. 

According to experts, the prime reason that employers find child workers so attractive 
is precisely because they are easily exploited. They are more docile. They work fast and they 



165 



don't tire easily, so more work can be extracted out of them. If they are cheated in wages or 
subjected to djingerous working conditions, most are powerless to defend themselves. 

From what little is known, it appears that child labor in both Africa and Latin America 
occurs mostly within the family or in the informal sector. Asia, which has some of the highest 
absolute numbers of child laborers, also appears to be the region where they are most often used 
in the formal sector - sometimes as the direct employees of multinationals or their 
subcontractors. 

There are more than 1 billion children age 15 and under in Asia. Given conditions in 
the area and based on the AFL-CIO's years of experience in the region, we believe that up to 
30% of these children work in the formal and informal sectors. This would give us 300 million 
working children in Asia alone. 

Tragically, in many countries, foreign investment and industrialization have intensified 
the problem. In Bangladesh, for example, approximately 100,000 children, some as young as 
8 and 9 years old, work full-time in the garment industry for $2.50 or less a week on the same 
schedule as adults - six or seven days a week, at least 60 hours a week. Sometimes these 
children work more than 24 hours straight to fill rush clothing orders for children in the United 
States, Canada, Japan, and Europe. 

Two years ago, an AFL-CIO representative interviewed two Bangladeshi garment 
workers who reported that children in their factory were routinely subjected to blows on the head 
for making "mistakes," such as miscounts in packing or unpacking. They also reported that 
children were punished by being forced to kneel on the floor for 20 to 30 minutes or stand on 
their heads for long periods of time. They were also threatened with violence: being burned with 
one of the hot irons, scalded with boiling water or hung up by their hands. The garment 
workers were sisters, aged 10 and 11. 

Thailand has been attracting foreign investment at an unprecedented rate. Exports rose 
by ahnost 84% from 1983 through 1987. During this same period ~ according to Thailand's 
own statistics ~ the number of child workers in the country jumped 34% to an estimated 1.7 
million (others put the figure at more than two million). 

There seems to be a direct relationship between the growth of exports and the increase 
in the number of working children especially where the export growth has been in those 
industries which normally use child labor - gem and jewelry manufacturing, carpets, 
brassworks, textiles and food production. Thousands of these children many below the age of 
12 are held virtually as slaves in small back-door factories hidden from overburdened 
government inspectors. 

Working conditions are unspeakable. One of our representatives tells the story of a 12- 
year-old Thai girl who worked in a garment factory which is an unlicensed sub-contractor for 
a firm that exports a part of its production to the United States. 



166 



She is considered to be "fortunate" since she only works from 8:00 a.m. to 10:00 p.m. 
with a day off every two weeks. She earns $27.00 per month. "Fortunate" because her aimt 
who found her the job works in the same factory. "Fortunate" because she's been promised a 
shot at a job on a piece rate basis where she can earn as much a $1 15 .00 per month. Of course 
this means working even longer hours that she does now and no days off. "Fortunate" because 
she is protected from being sidelined into prostitution, thus joining an estimated 40,000 other 
boys and girls in Bangkok's "massage parlors," in a country incidentally where there are an 
estimated 120,000 prostitutes under 14 years of age. 

India is thought to be the country in the region with the worst child labor conditions. 
Estimates on the number of child laborers in the country range as high as 120 to 140 million. 
Of these, SS million are languishing in some sort of servitude, and 10 million are in bondage. 
Some are sold into bondage by desperate families; others are forced to begin work to pay off 
their parents' debts. When small, the children work for their parents' master (or debt holder) 
without receiving any wages. When the bonded parents die, the children "inherit" the debt. In 
effect, the children are bom into a system of slavery which can last for generations. 

There are more than 3 million Indian chUdren working in brick kilns, stone quarries and 
on construction sites. At least 25% of them are in "chronic bondage" ~ which means they are 
not recognized as an "individual labor unit" and, therefore, do not get paid for their work. 

More than 10,000 children, 90% of whom are Muslim, are employed in the lock-making 
industry in Aigarah. Their bondage is hereditary. The children earn less than IOC for each 12- 
hour workday. Their bonuses include asthma, tuberculosis and various skin diseases. 

One study foimd that 65,000 children are employed in the diamond cutting and polishing 
factories of Surat and Jaipur. Some 80% of those in Surat and 20% of those in Jaipur are 
victims of chronic bondage. They toil for 8 to 10 hours a day and receive a daily wage of only 
25 C. Their bonuses, after completely surrendering heir childhood freedom, include tuberculosis, 
viral and urinary infections, skin diseases and eye defects. 

About 80% of the 50,000 children (aged 5 to 14) who are employed by the glass and 
bangles factory of Ferozabad are in chronic bondage. They get paid 16C per day. Many suffer 
from asthma, bronchitis, eye problems, liver ailments, skin bums, retarded growth, chronic 
anemia and tuberculosis. 

A survey of the handloom industry in Kanchipuram found that 20,000 children, aged 7 
to 14, work for just 6C a day. About 15 % of these children have bondage debts. Their working 
hours are unfixed. 

Many of the children employed in the carpet industry are also victims of the bondage 
system. They are forced to work from 12 to 16 hours a day. Many of the textiles, metal crafts 
and stonework products that we import ft-om India are also produced under similar conditions. 



167 



Conclusion 



There are those who will tell you that child labor is too controversial and/or political. 
This has certainly been the response of those who oppose a formal linkage between worker 
rights and trade. We believe that this response denies an obvious reality. Labor and the 
economy are linked. When a global economy rewards those who abuse children, we either 
condone this abuse or we oppose it. There is no middle ground. 

There are those who will tell you that to ban the use of child labor is to further 
impoverish those who are most in need. But child labor does not just result from poverty, it 
prolongs it. There is evidence that the work done by children is a major cause of unemployment 
and underemployment in developing nations. (By some estimates, if India were to confront its 
child labor problems, at least 50 million good jobs would be created in that nation.) As long 
as a 10-year-old can be kept in bondage doing production work — virtually for free — what 
incentive is there for an employer to hire the child's father or mother and pay them a decent 
wage? The status-quo only continues a cycle of exploitation that keeps incomes down and 
deprives people of the means to buy the products their country produces. 

When all is said and done, of course, the real solution to child labor is prosperity: a 
healthy economy in which an adult workforce gets a fair share of the wealth they create. Our 
laws and trading rules must be designed to help encourage this outcome. 



GEORGE MILLER 



168 



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V«ii(jo CA9*S90 
(7071 61^(888 



Mr. Charles Ingram 
Environmental Justice 
U.S. Chamber of Commerce 
1615 H Street, N.W. 
Washington, DC 20062 

Dear Mr. Ingram: 

I am writing to request your assistance regarding oversight of issues that were raised at the 
Democratic Policy Committee hearing on April 29, 1996, concerning consumer choice and 
corporate responsibility. As you know, the Democratic Policy Committee consists of 
Members identified by the Democratic leadership to raise policy issues before the Congress. I 
regret that you were unable to testify at the hearing; I believe your insight into these issues 
would have been valuable for those in attendance. 



Since you were unable to attend, I would welcome your views in the form of written 
testimony, and would be happy to include your timely response in the report to the Congress 
that will be prepared on the hearing. 

One of the issues in the general debate over free trade and corporate responsibility is that a 
highly competitive, unregulated global market can encourage corporations to flee strong 
environmental protection or labor laws in the United States for nations where these protections 
are less stringent, or even non-existent. Some governments, and a growing number of non- 
governmental organizations, have begun promoting consumer information and product labeling 
as tools that can aid consumers in making responsible choices in the growing global 
marketplace. 

In order for Members of Congress to better understand this growing debate, we would 
appreciate hearing your views on the following issues: 

1 . Is the increasing globalization of the economy having an adverse impact on workers 
or the environment, domestically or abroad? 

2. Is there a need to better inform consumers about the products they purchase? 

3. Can informed consumers play a role in improving working conditions or the 
environment on a global scale? 



169 



4. How should that information be conveyed, and what is the best mechanism for 
assuring the accuracy of information about the conditions of manufacture or assembly (e.g., 
government regulation, independent verification, international organization, etc.)? 

5. Would you support a method by which consumers have access at the time of 
purchase to information about the methods by which products are harvested or made, 
particularly with regard to the environment or to child or exploited labor? 

Thank you for your assisUnce on this important and timely issue. If you have any questions 
or require further information, please feel free to conUct my staff, John Lawrence at 
(202)225-6065 or Danny Weiss at (202)225-2095. 




GE MILLE 



bCi\ 



Ler 

Co-chair 

Democratic Policy Committee 



170 



Photographs of the apparel manufacturing plants 
Submitted by Jesus Canahuati, Vice President, Honduran Apparel Manufacturers Association 





171 





172 





173 





174 




175 




RSPUBLICA DS HONDURAS. C. A. 

SECRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



En el municipio de La Lima; Cortes, a .los cuatro dias del mes de 
junio de mil novecientos noventa y seis/ los suscritos Inspectores 
de Trabajo, en uso de las facultades conferidas por la Ley L-aboral 
y acatando drdenes emanadas de la Supervisi on de T rabajo , se cons- 
tituyen en el "Centre de Trabajo denQminado 'J^SMQiS'Si'PAREL ,' S . A . de 
C.V.", gita en el Parque Industrial Continental de este municipio, 
con el unico fin de levantar acta de compromiso sobre irregular idades 
laborales que se detectaron mediante inapeccmon oompleta reilizada en 
dicha Empresa, y se detect© lo siguiente: Que las empTeadas NERY 
FIDELINA ZELAYA, VILMA PADILLA, EVELYN SOLIS, CARMEN ONDINA LOPEZ, 
denunciaron que los supervisores NELSON MANALO, IMELDA MANALO, 
LEONIZA RODRIGUEZ) ERLINDA RAMANO y SOTERA CONTRERAS , les^gritan 
para darles ordenes de trabajo y a veces en Tagalog, el Senor Manalo 
le tiro' el coche de recoleccion de trabajo e inclusive le quiso pegar 
a una de las empleadas, tambien la supervisora Erlinda dice la 
empleada Carmen Ondina Lopez, que ella le dice que le cae mal y le pone 
sobrenombre diciendole que su boca es culo de sapo y la pasa trasla- 
dandose de un lado a otro, tambien les pasan diciendo a los trabajado- 
res que renuncien a su trabajo, inclusive algunos de los supervisores 
filipinps los insultan a los empleados reclamantes que parecen tortugas 
y son pura mierda. Seguidamente se le cede la palabra a los 
Supervisores Filipinos siendo ellos NELSON MANALO, LEONIZA RODDRIGUES, 
ERLINDA RAMANO, SOTERA CONTRERAS y la Gerente de Produccion IMELDA 
MANALO quienes por asi quererlo se manif iestan a una sola voz lo 
siguiente: "Que lo manifestado por las empleadas reclamantes algunas 
cosas son. verdades otras carecen dsOf undamentos , pero nos compromete- 



mos en esta acta que a partir de la fecha este tipo de incidentes 
laborales jamas se volveran a dar/por ei] buen desarrollo obrero-patronal j 
y esperamos que las empleadas denunciantes acaten nuestras ordenes 
de trabajo que se les imparten ya que algunas de ellas no acatan las 
raismas y si/-Io hacen siempre reniegan". Acto seguido se le cede la 
palabra a'los trabajadores NERY FIDELINA ZELAYA, VILMA PADILLA, EVELYN 
SOLIS, CARMEN ONDINA LOPEZ, quienes tambien por asi quererlo se 
manifiestan a una sola voz lo siguiente: " Que en ningun momento 
hemos tratado en perjudicar a la Empresa por lo denunciado por nosotros 
ante los Inspectores de Trabajo, sino que lo hacemos para que nos 
respeten nuestros derechos laborales como tales lo testifica el Codigo 
de Trabajo y demas leyes del pais, tambien nos comprometemos que a 
partir de la fecha acataremos todas las ordenes que se nos den relaclo- 
nados con nuestro trabajo y que las mismas se den con educacion y en 
nuestro idioma, esperando que este compromiso tanto para los supervi- 
sores Filipinos y nuestras personas se cumplan apegado a la misma Ley 
Laboral y de los contrario acudiremos a la Inspectoria Regional de 
Trabajo, para el cumplimiento de esta Acta". Y por ultimo se les cede 
la palabra a la Lie. FRANCIA Ci VELASQUEZ, en su condicion de Gerente 
de Personal del mencionado centro de trabajo, quien sobre el mismo dice 
"Que yo personalmente vigilare el cumplimiento de esta Acta para que 
no se violen los derechos de los trabajadores como tambien de los 
supervisores filipinos ya que mi mision es que se cumplan las leyes 
laborales regidas por nuestro Pais. Los Suscritos Inspectores de 
Trabajo, dejan Constancia del compromiso contrai'do por ambas partes y 
de violarse el mismo acudiremos nuevamente a recabar la informacion 
necesaria para informar del mismo a nuestros jefes superiores. Leido 
el contenido de la prsente acta a las partes declarantes y estando de 
acuerdo con la misma, la ratifican y la firman para efectos de cons- 
tancia, juntamente con los actuantes que dan fe. 



176 



Rf/FXPELIJM ZCLAYA VlLrt« PADILLA EVEE»N LOBO . S< 



EHPrEADA 



(Z}L,.,^X>, 



CARMEN ONDINA LOPES 
EMPLEAOA 




LEONIZA RODRIGUEZ 
SUPBRVISORA 




EMPLEADA 



EHPLEADA 



LlCjjtSJWejttre^ VELASQUEZ 
GBR^NTB dE PERSONAL 




177 




RtfUIILICA UK IIOSnUKAS C. A. 

SECRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TRADAIO Y PREVISION SOCIAL 



ACTA 



e S P E C i: A L 



£n IrTi cludacl dc^ cJiolomsi. CorleK-, £\ !lo=v veinV.e diiiViK. deil. nies- de 
ulunio dfs im HovC'CientoB Hovent.-* y St?i», Iob suscri tos 
insi-pec: torc'S. de Iriibii.io, c-n usjo dc:- ;ic«© -(-.ticuI lades;, quf? 3..v« ley 
.labDr.;i.l l(?s confiere j. Be c(:> n stA t^ en Iuib ofirirnTiB de .la 

E(rif:.reE»«-. denom:Ln£ida S|SSiS^^pl^#)-lQt^iW^' ^> - ^•- '>'••: ''-'•'" 
ubiCuidiTi en el parque indu&trirtd IHHDELVA, rarrelera a la 
:iuiDs.a, <:cm el unico propoBiio dc? darle c.umplilmlenio al auto 
(:|U<? an tecede de fecha Eiel.e de junlo <Jel preserrle ano, 
em :i tide por el .iefe de .la Ins>pe(.:rion Reci.ional de Traha:io . 
Mlsma que (s-e deriva en llevar a cabo :Ln is. peer.: ion completa en 
lasi iriBtalacicjneEi -CisiicaBi de la Empresa y cenB l.a lar los 
siquientes extremossPRIHEROs El numero de trabaj adores que 
laboran en la EEiniuresa. SEGUIIDOs El nuinei-o de li-abajadoi es!. que 
laboran en estado de Embaraio y la iornada que tienen.™ 
TERCEROs Si si.e lea obllqa a •t.raba:lar llempo ex Iraoi-dlriai' ;i. (:< y 
si les. pAqan el pre y post-natal de con formldad coino lo 
establere el Codlqo de Traba.jo-~CUARTDsS:i. laboran ivienore'-i. de 
dieciseis anos. y si la E/npresa ci.unple con la ..iornada de cieiis 
horas diarias e^qulvalenteiR. a cuarerit.a y ocbo de Balario 
semanal .-QUIHTOsSi reciben buenos Iral.oE por parte de los 
ejecutlvos de la Empresa y de los «.lefesi Inmedia tos.-SEXTOsSi 
laboran (?xtranjeroB .- Sequidainente los si.iscri tos invipect<::<r es 
de troiba.io , para lal fin le ceden la palabra a I'lARlA SMITH, 
en su condicion de Geren te de planta de la referida Empresa, 
qui en ten 1 en do conocimiento de la vislta, libre y 
espon taneamente, expresa lo siqui(o?ntes"En relacion al primer 
punto, nuestra Empres!.a cuen ta actualmente con treirrta y 
cuatro empleadoB honduren(33 todos, los que <?..e desqlosan de 
la manera siquientes hombres catorce (I'^l), mu iei'oss ' vein I e 
(20). ~ Los horarios de traba.io para todo el personal de 7s<)0 
a lis 30, 1.2S00 ^s730 de lunes a .ieves, y c:-! viernes de y'sOO 
a .11:30 y de 12b00 a 3s30, para un total de 4''» boras 
semariales haciendo una Jiora mas de lunevii a iueves fjaia no 
laborar los dlas sabadoss 
....................................... (:ias,a a 1 a 



178 



KSrUBLICA DC UOHDUKAS. Q. A. 

SECRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



FAOIHA «2 



CLuxndo so haccn horas extraia bb hacen dp fornia 
voluntariv^okentes tainpoco a nlnqi.in K^mpleAdo st? le dan annXan 
triitos d«? pAlfibra , yn que la EmprcBa y -trc-ibaiadorcrsi tic-nc-ri 
un.Ti bu&na relacion de trabajo.-A nuestraB einpleadao 
En relacion a los otros puntoa, no laboran en nueatra EinpreBii 
empleadoB extrAnjeros , ni tampoco inenoi-eB de dleclseis 
anoB.- La empresa RUSSELL DE HONDURAS Inicio opera tiorieB el 
once de mario de mil novecientos noventa y selB, Es •lo<lo lo 
que mani-f iei&to al reapeclo." Los Su&crl loa Insper: lores de 
Trabajo dejan constancia que no le lomaron de-clarscion a loe 
empleados RUSSELL, DE HOWDURAS S. A DE C.V. en vista que la 
mayoria de elloB Be encuentran en periodo de prueba ya que la 
iriisma dio inicio el ocho de abril de mil novecien Iob n oven la 
y seis, a si miamo pudimoB constatar con loe. esc-edientes de 
archivo que no lavoran menorea de dieBlseia anos y taiiipoco se 
encuentran laborando mujerea en caeo de embarazo, tamblen 
adjuntamoB fotocopiaB de las planillaa de paqo donde s>e hace 
constar que la empreaa paga salarios mas altoB a lo 
establecido en el rubro de la maquila y tambien ae ad junta uri 
listado de .todoB loB trabajadores donde ue hace constar la 
•fecha de nacimiento de cada uno y la -fecha de irjqreso a la 
empresa donde se refleja que son relativamente nuevos.- 
leidos que le es el contenido do la precente acla a HARIA 
SMITH en representacion a la empresa y estando de acuerdo con 
la mismq)., la ratiflca y firma para constancia, juntamerile con 
loB actuantes que dan fe.- 



., '.;>■ MARIA SMITH , 'it" . "/^ 




OAIHRIEir~aiW!*ABf:IA DISCUA 
'.'.'iHSRECrOR DE TRABAJO 




179 



tSrOBUCA DS BOSDUHAS, C. A. 

SECRETARIA DE ESTADO 

EN LOS 

OESPACHOS DE TRABAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 

En la Ciudad de Choloma, Depto de Cortes, a los dies y nueve dias del mcs 
de Junio de mil novecientos noventa y soia; los suscritos Inspectores" de tra- 
bajo en uso de las facultades que la Iieylaboral lea confiere, se constituyen 
en el centro de trabajo denominado Monufacturera Internacional Apparel, S. A. 
IKAUlIK PiVKS^^^^'iliiisma que se encuentra ubicada en la Zona Libre INHDELVA 
de esta misma ciudad; con el objeto de darle cuioplimiento al auto que ontecede 
dc fecha siete de Junio del presente aiio, y que se contrae a reolizar inspcccio- 
nes completas en las distintos Empresas de dicho Parque Industrial, para ins- 
peccionar en los siguientes aspectos : PRIMERO ; el numero total de trabajado- 
res en la Empress, cuantos hombres y cuantas mujeres, cuantos hondurenos y 
cuantos extranjeros, numero de mujeres embarazadas, horarios de trabajos ordi- 
narios y extraordinarios y si las mujeres embarazadas gozan del descanso pre y 
post natal remunerada conforme lo establece el Codigo del Trabajo. SEGUNDO; 
Si labo^an menores de diesiseis aiios y si la Empress cumple con la Jornada de 
seis horas diarias equivalentes a cuarenta y ocho de salorio semanal. TERCERO; 
Si los trabajadores reciben buenos o malos tratos departe de los ejccutivns de la 
Empresa y de los Supervisores de produccion. CUARTO; Si los salarios extra- 
ordinarios son cancelados conforme a la ley cuondo los trabajadores son rcqueri- 
dos para desarrollar actividades fuera del tiempo ordinario. - Para tol efecto los 
actuantcs se abocan con la Seiiora Miriam Gonzalez de Manzano en su condicion dc 
Gerente de Personal de la mencionada Empresa, quien enterada del proposito de 
nuestra visita expresa lo siguiente: La Empresa MA1NTA,S.A. Rcprcsentada en 
este caso por mi persona, esta en toda la disposicion de colaborar con los Inspec- 
tores de Trabajo, proporcionandoles toda la informacion requcrida para Ucvar a 
cabo su cometido de la manera siguiente; a) Actualraente contamos en ecta Empresa 
con quinientos cincuenta y ocho ( 558 ) empleados de los cuales docicntos veinti- 
uno ( 221 ) son varones j trecientos treinta y siete ( 337 ) son mujeres, dc los 
cuales quinientos cincuenta y seis ( 556 ) son hondureiios y dos (2) son ex- 
tranjeros Icgalmente documentados. b) Actualmente tenemos catorcc ( 14 )muje- 
res embarazadas. c) nuestro horario de trabajo es de 7 a.m. a 4:30p.m. dc Lunes 
a Jucvcs y de 7:00 A. M. a 3:30 p.m. los Vicrnes y no se labora los Sabados; 
compensando de Lunes A Jueves las cuatro boras del dia Sabado. d)Respetaroos 
totalmente los derechos de las mujeres embarazadas pagando sus descansos for- 
zosos ( pre y post natal) conforme lo establece la Ley /Laboral e) no tenemos 
ningun empleado menor de diesiseis aiios f) En cuanto a los buenos o maJos tratos 
por parte de los jefes a los trabajadores, en este acto damos absoluta Ubertad a 
los Inspectores de Trabajo, para que constaten personalmente dicho punto y que 
ellos saquen sus propias conclusiones. h) En relacion al tiempo cxtraordinario 



180 



(.;- 



I MtrOBUOA DE U0MDURA3. C. A. 

;SECRETARIA DE ESTADO 
! EN LOS 



DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



SA... , ; , ( 2 ) 

debo decir que lo canceliimo3 por completo y de conformidad a los recargos ya eota- 
blecidos en nuestra legislacioii laborol, extremo que se puede comprobsr en Ins res- 
pectivas planillas de pago; es todo lo que al rcspccto puedo iDanifestar. Seguidainente 
se Ics cede la palabra a las empleadas: Eva Ayala, Maria Cristina Robles, Maria del 
Rosario Castellanos. Olga Patricia Lemus, Rosa Danery Zepeda, Maria Elena Ayala, Karla 
Patricia Andrade, Sandra Nimez, Maria Yamileth Ramos, Doris Maritza Paz, Lurbin Lopez 
Maria Yamileth Buezo y Ana Miriam Garcia, quienes en una sola voz y por asi querer 
hacerla expresan lo siguiente: En esta Empresa " MAINTA, S.A." tenemos un horario de 
Lunes a Jueves de 7:00 a.m. A 4:30p.m. y los dfos Viernes de 7:00a. ra. A 3:30p.ra., 
cumplietido con la Jornada de cuarenta y cuatro horas a la semana equivalentes a cua- 
renta y echo de salario, dejando constancia de que nos conceden tres recesos diarios 
asi: de diez minutes por la manana, de treinta minutes al mediodia y diez minutos por 
la tarde; algunas de nuestras compaiieras laboran tiempo extraordinario pero lo hacen 
en forma voluntoria sin presiones de ningxuia naturaleza y el pago se efectua con los 
recargos establecidos en el Codlgo del Trabajo; A si mismo dejomos constancia que go- 
zamos del descanso pre y post natal, remunerado y recibimos asistencia medica privada 
de manera permanente, cuyos gastos corren a cargo de la Empresa, finolmente dejomos 
constancia que no recibimos malos tratos de ningun ejecutivo de la Empresa ni de los 
Jefes inmediatos, tampoco nos obligan a trabajar tiempo extraordinario en. estado de 
embarazo, es todo cuanto podemos expresar.- Los suscritos Inspectores de Trabajo 
dejan constancia que tuvieron a la vista los expedientes de cada uno de los trabajadores 
constatando que no laboran menores de diesiseis aiios, que el total de trabajadores es 
de quinientos cincuenta y ocho, trecientos treintaysicte mujeres y docientos veintiun 
varones, de los cuales solo dos (2) son extranjeros, y que de acuerdo a la informacion 
recabada en la Empresa no existen malos tratos para los trabajadores. Lcido que es el 
contenido de la presente a las partes declarantes, estando de acuerdo con la raisma, la 
rati6can y firman para constancia juntamente con los actuantes que dan fe. 




Eva Ayali 



'pULj^^ 



Ma. Cristina Uoblcs 



^ 



CSfl/l O 



Cft^ 



)laoo\ 



Ma. Rosario Castellanos 



Rosa Danery 'Zepeda. 



Ma. Elena Ayala 
"Ma. Yamileth Ramos 



Karla Patricia Andrade. 
Doris Maritzu PazP^ 



'^d.^LA /nJQ.IC^ 



Sahdra Nunez. 



LvH \)\ n Jvoffj 



Lurbin Lopez 



PASAN FIRMAS 



181 



Ma. Yamiletli Bueso. 



Q^riel Chavarria. 
Inspector de Trabajo 



^0y7j>Ui>r^ y^a-tCtX 




182 




MMtOtUOJ Dt BOHOOKM. O. A. 

SBCRETARIA DE ESTADO 

EN LOS 

DESPACHOS OE TRABAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 



En la Cludad de Choloaa, Departaaeato de Cortes a los velnte dias 
del aes de Junlo de all noveclentos noventa y sels, los suscrltos 
Inspectores de Trabajo en uso de las facultades que la Ley LaKo ral 
les c onfiere B e constltuven en el centro de trabajo denomlnadd]^)JDQ]Oir? / 
^]|f£nEMjQSB9c7vr, que se encuentra ubicado en el ZONA LIBRE INHDELVA, 
en esta alsna cludad; con el objeto de darle cumplljnlento al auCo 
que anCecede de fecha slete de Junlo del presente aoo, emltido por 
la Jefatura de la Seccl6n de Inspecclon Regional de Trabajo, y que 
se contrae a reallzar Inspecdones completas en las dlstlntas empresas 
de dicha Zona Industrial, para Inspecclonar los slgulentes aspectos: 
PRIMERO: el nGaero total de trabajadores de la Empresa. cuantos 
honbres y cufintas mujeres, cuantos hondurenos y cunntos extranjeros, 
nCimero de nujeres embarazadas, horarios de trabajo ordinarlos y 
eztraordlnarios j si las Bujeres embarazadas gozan del descanso pre 
y posnatal remunerado conforme lo establece el Codlgo de Trabajo. 
SEGUIIDO: Si laboran menores de dleclsels anos y si la Empresa cumple 
con la Jornada de sels horas dlarlas equlvalente a cuarenta y ocho 
de salarlo seoanal. TERCERO; SI los trabajadores reclben buenos o 
■alos tratos de parte de los EJecutlvos de la Empresa y de los 
Supervlsores de Produccl6n. CUARTO: 81 los salarlos extraordlnarios 
son ' cancelados conforme a la Ley cuando los trabajadores son 
requerldos para desarrollar labores fuera del tiempo ordinario. Para 
tal efecto los actuantes se abocan a la Llcenclada Rosa Ofella Holliia 
en su condlclon de Jefe de Personal de la menclonada Empresa, qulen 
enterada del prop6slto de nuestra visits express lo siguiente: La 
Empresa en este caso representada por mi persona esta , en toda la 
disposlcion ' ii colaborar con los Inspectores de Trabajo, 
proporcionandoles toda la Informacion requerida a fin de llevar a 
cabo su cometldo, de la manera slguiente: a) Actualmente contamos 
en nuestra Empresa con 653 empleados de los cuales 410 son varones 
y 24S BuJeres, hondurenos 651 extranjeros 4«'b) Actualmente tenemos 
20 Bujeres embarazadas c) tenemos un horario de trabajo de slete de 
la Banana a cuatro y treinta de la tarde de lunes a Jueves, de slete 
de la Banana a tres y treinta de la tarde los vlemes y no se labora 
los dIas sabados, compensando de lunes a Jueves las cuatro horas del 
sabado. d) Respetamos los derechos de las mujeres embarazadas y 
pagamos su perlodo pre y post-natal conforme a lo establecldo por 
la Ley e) no tenemos ningun empleado menor de dleclsels anos. f) 
en cuanto a los buenos o malos tratos^ en este acto damos absoluta 
llbertad a los inspectores de trabajo para que constaten personalmente 
dicho punto y que ellos saquen sus proplas concluslones. g) en 
relacion al tiempo extraordinario cuando por casualldad se trabaja 
horas extras se pagan por completo y conforme a los recargos 
estlpulados en el Codlgo de Trabajo, como se puede verlficar en las 
respectlvas planillas de pago. Deseo agregar que el reclamo que 
algunos trabajadores ban hecho de\ conocimlento a los Inspectores de 
Trabajo, en cuanto al uso de mascarillas y que le son vendldas, que 
en lo suceslvo se les proporcionaran gratis y se hara hincaple en 
que los trabajadores cuaplan con lo establecldo en el Artlculo 97 
numeral 9 del Codlgo de Trabajo; en relacion a que cuando los 
eapleados no tlenen que hacer^ los Jefes los desiiachan y luego los 
hacen reponer el tieapo, qulero aclarar que lo 'qufe tratamos es de 
beneflclarlos despachandolos a su casa pero reoninerandoles el dia, 
pero ya que Cellos no les parece blen en adelante los mantendremos 



PA. 



183 




MMTOBUOA Ot HOKOOMAM. O. A. 

SBCRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



.SA 



(2) 



en el centro de trabajo aunque no tengan labores que reallzar; 
aslnlsao qulero dejar constanda que serfi correglda la dificultad 
que se presenCa con los bultos que a veces traen mas docenas de lo 
previsto; y flnalaente qulero ezpresar que cuando los trabajadores 
cometan alguna falta consCltutlva de causa suflclente para ser 
sancionadost se abservaran los procedlnlentob legales establecldos 
en el Reglamento Interno de Trabajo y de conforaldad a lo preceptuado 
en el Artlculo 92 numeral 9 del Codlgo de Trabajo, es todo cuanto 
deseo aanlfestar. SeguldamenCe se les cede la palabra a las 
trabajadoras embarazadas senoras: Vllma Suyapa Pacheco, Lourdes 
Rodriguez, Tolani Flneda, Maria Victoria Amaya, Mayra MeJIa, Melba 
Cruz, Amlda Otero, Maria Leticia Lopez, Candy Licooa, Martha Carolina 
Reyes, Susana Oseguera, feva Leticia Escobar, Eaerita Alenan, Claudia 
Zelaya, Belquis Dorila Floras, Blanca Hans, Fany Torres, Ana Cisnados 
y Maria de los Angeles Ramirez, quienes al unlsono y por asl desear 
hacerlo manlfiestan lo slguiente: en la Empress DRAGON MATA S.A. 
tenemos un horario de lunes a Jueves de siete de la manana a cuatro 
y trelnta de la tarde, los dlCas viernes de siete de la manana a tres 
y treinta de la tarde y los dias sabados no laboramos, cumpliendo 
con la Jornada de cuarsnta y cuatro horas a la semana equivalentes 
a cuarentp y ocbo de salario; que algunas de nuestras compafieras por 
casualidad laboran tiempo eztraordinario pero lo hacen en forma 
voluntaria sin presiones de ninguna naturaleza y los salarios le son 
cancelados con los recargos establecldos en el Codlgo de Trabajo. 
Ademas gozamos de descanso pre y postnatal remunerado conforme a Ley 
y a la v'ez somos beneficiadas con asistencia medica a traves del Plan 
Medico de Medidub. Tambien quaremos deJar constancia que no recibimos 
malos tratos de ning&n ejecutivo de la Empress ni de Jefes inmediatos, 
y tampoco nos obllgan a trabajar tiempo eztraordinario en estado de 
embarazo, es todo lo que queremos expresar.-Los Suscrltos Inspectores 
de Trabajo dejan constancia que tuvieron a la vista los expedientes 
de cada uno de los trabajadores de la Empress donde se verifico que 
no ezistan menores de dieciseis anos, que se encuentran veinte mujeres 
en estado de embarazo;' que el total general de trabajadores es de 
seiscientos cincuenta y cinco, cuatrocientos dlez varones, doscientos 
cuarenta y cinco mujeres y solo existen cuatro extranjeros. Leldo 
que es el contenido de la presente a las partes manifestantes, 
encontrandola de«r«cuerdoirsiB7<-.-C8tifican y firman para constancia 
Juntamente con<los actuantes que d&h-.fe. 



nte con<los actuantes que dl 



w 



Lie. ROSA 0^LLA\)10LINA ' 
JEFE DE PERSONAL 



LOURDES RODRIGUEZ''* ^ - •• ' ^ ■ -■ - r-"-^^-- 






TRABAJADORA 



VILMA SUTAPA PACUECO 
TRABAJADORA 



TOLANT PINEDA 
TRABAJADORA 



MARIA VICTORIA AMATA 
TRABAJADORA 



MAYRA MEJU 
TRABAJADORA 



PASAN FIRMAS. 



184 




MMTOtUOA DM BOKDOMJS. C. A. 

SBCRETARIA DE ESTADO 

EN LOS 

DESPACH08 DE TRABAJO Y PREVISION SOCIAL 



(3) 



VIENER FUMAS 



^ MELBA CRUZ 
TRABAJAOORA 

MARIA LETICIA LOPEZ 
TRABAJADORA 



MARTHA CAROLIHA RETES 
TRABAJADORA 



EVA LETICIA ESCOBAR 
TRABAJADORA 



CLAUDU ZELAXA 
TRABAJADORA 



fli^'umd^ cJ-i'ic) 



BLANCA UANS 
TRABAJADORA 



ARHIDA OTERO 
TRABAJADORA 



CANDT I/ICONA 
TRABAJADORA 

SUSAHA OSEGUERA ^ 
TRABAJADORA 



BIERITA ALEHAN 
TRABAJADORA 

BELQUIS DORILA FLORES 
TRABAJAOORA 

Thn*^ lOttzs. 

FANT TORRES 
TRABAJADORA 



MARIA DE LOS AHCELES RAMIREZ 
TRABAJADORA 




185 




UrOSUOJ DM aOJIDUMAS. O. A. 

SECRETARIA DE ESTADO 

EN LOS 

OESPACHOS DE TRABAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 

En la ciudad de Choloma. Deoartamento de Cortes, a 1 os dieciocho 
dias del mes de Junio de mil novecientos noventa v seis. 1 os sus- 
critos InsDectores de Trabaio en uso de las facultades one la lev 
laboral les con-H g rp ^ PR , ipopsti tuven en el Centro de Trabaio de- 
nominado (HJHH53BlWBi8¥l»9a'l*lfe''&;Ak' misma aue se encuentra ubica- 
da en la Zona Libre INHDELVA de esta misma ciLidad: con el obieto 
de darle cumolimiento al auto aue antecede de fecha siete de JLinio 
del corriente anp emitido por la Jefatura de la Insoeccion Regional 
de Trabaio. y que- se contrae a realizar inspecciones comoletas en 
las distintas empresas de dicha Zona Industrial oara insoeccionar 
los siguientes aspectos: PRIMERD: El numero de trabaiadores de la 
emoresa. cuantos hombre y cuantas muieres. cuantos hondurenos v 
cuantos extranieros, numero de muieres embarazadas. horarios de 
trabaio ordinario y ex traordinario y si las muieres embarazadas 
gozan del descanso pre y post natal remunerado conforme lo esta- 
ble'ce el Codigo del Trabaio. SEGUNDO: Si laboran menores de dieci- 
seis anos y si la empresa cumole con la iornada de seis horas dia- 
rias equivalentes a cuarenta y ocho de salario semanal. TERCERO; 
Si los trabaiadores reciben buenos o malos tratos de oarte de los 
Eiecutivos de la empresa y de los Suoervisores de oroduccion. 
CUARTO: Si los salaries ex traordinarios son cancelados conforme a 
la ley cuando los trabaiadores son reaueridos oara desarrollar ac- 
tividades fuera del tiempo ordinario. Para tal efecto los actuantes 
se aWocan con el Licenciado Rolando Sierra en su condicion de Ge- 
rente de Personal de la mencionada emoresa. auien enterado del oro- 
posito de nuestra visita exoresa lo siguiente: La emoresa 
reoresentada en este caso oor mi persona esta en toda la 
disDOsicic/n de colaborar con los Insoectores de Trabaio. orooorcio- 
nando toda la informacion requerida oara llevar a cabo sli cometido 
de la manera siguiente: A) Actualmente contamos en nuestra emoresa 
con docientos noventa y un empleados de los cuales ciento setenta 
son muieres v cientos veintiun varones B) No tenemos extranieros 
C) Actualmente tenemos dieciseis muieres embarazadas D) Con un 
horario de trabaio de siete de la manana a cuatro v treinta de la 
tarde de lunes a iueves. de siete a tres v treinta los viernes v 
no se labora los sabados. comoensando de lunes a iueves las cuatro 
horas del dia sabado. E) Respetando a las muieres embarazadas v oa- 
gando su periodo pre y post-natal conforme a lo establecido en la 
lev. F) No tenemos ningun emoleado menor de dieciseis anos.G) En 
cuanto a los buenos o malos tratos. en este acto damos absoluta 
libertad a los Inspectores de Trabaio para aue constaten oersonal- 
mente dicho punto y que el los saquen sus prooias cone lusiones . 
H) En relacion al tiempo extraordinario se cancela oor comoleto v 
conforme a los. recargos estipulados en el Codigo de Trabaio. dando 
adicionalmente a nuestros emoleados el beneficio de que si su oro- 
duccion es mayor a lo establecido por la ley se le otorga un incen- 
tive extra como se puede verificar en las rife^oectivas olanillas de 
pago. Seguidamente se le cede la palabra a les emoleadas DIGNA 
PINEDA, Esther Flores, Tomasa Murillo. Dilcia Melendez. Miriam 
Vega, Araly VArgas, Gloria Gonzales. Sandra Faiardo. Maria Sofia 
Castro, Juana Castillo, Doris Faiardo. Rosa L. Ramos. Carmen Looez . 
Eva Velasquez, Aminta Meiia y Daysi Martinez quienes en una s-ola 



:■ I 



186 




KSFOBUOA DB BOMDURAS. O. A. 

; ' ' ' SECRETARIA DE ESTADO 
EN LOS 
DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



voz y por quererlo hacer asi expresan lo siguiente: Que en esta 
empresa Industrias del Valle, S.A. tenemos un horario de lunes a 
iueves de 7:00 A.M. a-ll:30 y de 12;40 a 4:30 y los dias viernes 
de 7:00 A.M. a 11:30 y de 12:40 a 3:30 p.m. para no laborar los 
dias sabados cumpliendo con la iornada de 44 horas a la setnana 
epuivalentes a 48 de salario que algunas de nuestras comoaneras 
laboran tiempo extraordinario pero lo hacen en forma voluntaria 
sin presiones de ninguna naturaleza y son pagadas legalmente de 
conformidad al Codigo de Trabaio. ademas gozamos del pre y post- 
natal y ngs dan asistencia medica en la Clinica Bendana de San 
Pedro Sula. ademas deiamos constancia aue no recibimos malos tra- 
tos de ningun eiecutivo de la empresa ni tampoco nos obligan a 
trabaiar tiempo extraordinario en estado de embarazo" . Los Suscri- 
tos Insoectores de Trabaio, deian constancia que tuvieron a la 
vista los expedientes de cada uno de los trabaiadores uue lleva la 
emoresa- donde se hace constar que no laboran menores de dieciseis 
anos, Bxtranieros, y el total de trabaiadores es de docientos noven 
ta y uno, los aue se desglozan de la manera siguiente: Muieres cien- 
hombres ciento veintiuno. Leido aue le es el contenido 
e Acta a los declarantes v estando de acuerdo con la 
ifican y firman para Constancia iuntamente con los 
dan fe.- 



to setente 
de la ores 
misma. 1*1 
actuante 




^riHttlA /SOFIA CASTRO 
' JUANA ^ CASTILLO 



MAR 



ESTHER FLORES 



DILCIA MELENDE 
MIF 



DORAS FAJAHl 





r.f .,^r 



^ HnilNIH MEJIA 



/UBALTJCrrfADRID 

fePECTOR DEL TRABAJO 




187 




188 




ACTA 

Ell I't oini.l&f.l cle Cholomo Depar-tnineiito i.lt? iJi-Tt:'?.'? , •< \l.<'.■^ liioi.i :;: i. •( ... ,ii.i:- 
dc! ei met) de Junlo d© Mil Noveciontf>£i Ni.ivent^ v iV-it;. lo:? ciipoi-j lo- 
InrrPcLoi-es de Traba^lo en ueo de las Joou.l tad'?i3 -jiie la Lrf.v i..-'l'(. ir- 1 1 I'-'c 
"^ '■■■iViiiifii'iiK^iSw wS "^^ ^ bu yeii on Iws oticiiias do li\ limtT f?f<.:. (gjPntnBCKJ^KMff'A'A 
TTJlTnffMl'fBTin*ntri'i'l|TNIIMlTiy '^'^^ munLclplo d*? Cliolnina •.''.M-toi^ . ijl' i'-'-ci-ir '^ii 
pi PAROUl': INfHJSTHlAL IHHDELVA Catrol.era n Is ..luloro . .on la t ii.--> I idfxd 
".!» drirle c-umpllnilento si Auto que anterode de J:oi:-li-:-« Giet-c IV) di^ ..I i.m lo- 
de Hii N'.ivffcientoff Noventa y eoio r-initldc poi- •*! delf de !-■ .1 iir.(""".-'.- ion 
Hegional de Trabajo, mi^nia qu© on deriv« « tea I b.-.-ir insTM?---:- !■ 'ii •■■.•iin.le 
l-a en Ins- oJ'iclnas y las instaiacioneei tisJc^s de lo enif-rerjAi n ••0113I-1 
tar Ins BieuienbeB ©xtroroos; PRIHEHO: El iiumeio do ri-jl.'a.i--\dorci5?. 'jiie ifilw.i 
r'.«n eii eeita empreea en estado de oiiiljara.Tio. el Ii'.m-.-ji- lo ai.i-:- I i-.-n^'ii . si 
no loo ot'lic'.on a traba.jar tienipo oxli-a y pi If:" i^'-iaaii el pi-r> v p---:.;!.. nn 
t«l f.-onio io esbabiece ei Codigo Lyboi-e I .SE'.i'llJlH.i; ol lyboreai me n.-, !-•;»£• i.l--. 
diec'ioeie anoa y si ia ©mpi-esa curiipie con i.M :]':>ri\>\>i» dt- ?c>ir ln'iy:'" ■.! i o 
il'ia equivolentes a cuareiita y ocho <.le ralariv' Meni'.un 1 .TlOlv.'iri.i.v; ■.yi i-r. 
c-lbeii bueno.?! tratos por ioe e.ificutlvoB de La ':iiipi-r--Ev' y i.le rjur-erv i r-....| "r' 
de prodij'.''-loii.CI.'Ar<'i'0: ei-tota] de tral.ia.ladovers llMiidnreiior!, Mni.i'.|-e3. Iiom 
bi-es y el ncoiero de extran.leros. tJl.UIJT'.i:lH les p"irtan el l.ietnt"' er-'tva'.-i- 
diiiurl).' cuMiiilo non requeridoo pi>r i^s "iin'i*"?'! .il rj'-e ; d-* rii .i---!-- iniuT- 
dlMty, IjC'6! miscrlto Inspectores de ti-«b.H.i'> i:-?»i'.i (.--il lin i.-'i.lr-n It i.--m I -1 
brci a ia Licenciada KMELUA REYEo UE HEIKAV.b en .-ii .•..n'.ii..i..... d- .i-?lr- .le 
i'eison'Al y recureoa Humanos de ifi clt?id3 cnipi-".?'' v I en l'--tid..> '.■••ii' "1111.1 en 
to de ia vinita expresa io oiguiente: A ia (.•iliii'/t-S ini-ei-i-T- -ml •:■ . 'jm"^- 
eii ia eiiip'j-ef.'a Intertex Apparel Htinuia'.d'.irluc .i.A. -jctua linen • e ■■•■•-■ .i'- 
!?einpennn 2f5 liiii.leref? laborando en estado "le euibar^is-.p , lav 'iv •••'ii:lllK' 
UIVERA: ENMA (JLEHJG URUUiA: WKU^ LAIUEZ: C/MU'RA <.'I<TI';i.:a MAN^'IA: !|llvJ'\!l 
HEKNAllDBZ: ROSELI ULIXHA; KUBILA IIEKNAHDEZ: I'l'JIlA AIIEI.Ii;a i:mI"'V: IIaI.ia 
bUClA CACERES: MARIA DE l/.i:5 fclAMTDS BAUTliJTA: L'AI:^y Ku/.A '.'Ald'AL I.' •: I'J K 
I'Al' <;»IIZALEtii tHjRIS HERNANDEZ: ZOIU JENIIK'J'li.'XiMZiALE;; ALBERT'.': U'.'l-" 
ELJ MEZA: RUSA II'ALIA ROMERO: 'oILVIA MARTlllEZ: DEUJA LlZL.'i'm M' ITJ IIKI.E;: 
WENDY JA:-;MIM PEREZ: IKMA SU/APA MORALES: LELY OIU'ULJA CERI' A'l' • : UliLI.Y 
FiJ'RES; M.1\LDRED SANCHEZ: BRENi ELIZABETH VAROA;:! : Ll'^LY :.:UiAtV^ (^'.i'lILAK 
MARIT<:A LETICIA AGUIRRE: YEHi HERNANDEZ Y MAKIT,;/-. A'.Ji'iKj.E. .:i-,,r. el 
lioiario d».' Lraba.io de las senaladae tiabo.iadoias el sie.iii-.nlr- 1'^ Imi-'h" 
a. jueveb de 7.30 Je ia inanana a 11.30 de In m-Aiinn-.: .le i2.:-ii' ii-i ■> l>?; 
5.3" de la larde donde »e In-^luye la lif>i«i ..I"- •rab-ii-^ del li < ;• .1-' I 
que no J.il"-.rnn v el ..11., vietiies en l^ lui-l.- .!■? l.;.-:!''-! 4.;-" .I-- li • .1 
• le, .jiir; el e..i. l./.aiiiente 8© lee paija y re>-.-on.'.-e eu )>ei-l.-"J..' 1:1 •=• \ i.-.i nvi 
I'll, il lu InLerr.jgante noniero I«I)f'. qne n-.. l<bof.:ui iiie.|...| ^-^ .|-- li.. j.^r. i..- 
anos. ii \^) jnterri-'gante tercen; yue en nliKsnn iifiii'--iil '• -> J-i: ii-ii.itii 
dofMP) se lea braba mal per ninguna pers-on/t p-ilv.. lr.i;; rtnii'.- i..ii.-,- jm-- !-i 
iridiB'.-lpliriT ii.>r violaciofi a los preceptos lea.-^|.=.3 -ri.;d'l»..M.. • .•- Imi 
C';>ii norma I i- lid. a la iiit<»rrogaiil.e nunier... f.iiA(.r" 'lu--- e:;i.Ti ••n mh i-' .| ■!•■ 
iJillNrENT'ty .-lETEHTA Y ClN'.».i EMPLEAUi.if. ll..ndiii-n..>P .1 b- ldi-1: ■.= • ••'■vi| 

•".•JEHTiKS r.^lCTKUTA Y SIETK MU-JERES y NOVENTA V iii-||i. .'r,r,,iv>?^. ••.■ i-'-.i 

'le <X'IIf." ^rtl.a.larlores d© nacionaildad Cc.rer»iin. A I -• i:-r---"«'ni •• inj!,!-. -in- 
••JM'S etecti vniiii»iibo cuaJqulei- traba.i.'sdoi- que ep r'-'pier i.U. •> i.-.l..- .1 h-.r-i 
.?;:t'rn le won •.•un.-'eladan ©n en totaild-jd v i-onl oiiiiv J.=-v J.-i.-'- n 1 . in ..■ . I .- 



189 



fi'i.irJCTi toe liifspectoreu tie trahia.jo pavft tal tin 1«^ •■n-.U- J.-a i..-« I.iI»i-'i h I m;- 
ti-.'.il>«,1acioi'«e pfe;liidicadaB y en estado >.le eiiili-ii-a;;--! ■^o\r:l^1^e •=■11 '.m.-i filr. 
voz V p<>»- querer hacerlo ««i expresan lo slaulenl ».»: "quo on «?s-i-.n ^:nif-i-- 
h;=x IHTEkTEX AF-PARfiL l-tAHUFACTURIlliJ fcJ.A. UiI'Suk-a im li. >i;.i'.lu ..U. 1 1 i,i..-..|. . 
rlc- V.ciO d«J lo inaiiono a 11.30 de la nuuiaoa v de l'J.3'.i d-? .la 1. arde ;i 
S.S*.' <.lft la tafde de luiien a .Jueves y loe diai? vierne? d-? 7.J'.i .:i 11. 
30 de 1« iimnoiia y en la barde de 12.30 a •1..'^0 pufe /:iei ial.-i.-i-Aini;? -.n 
e.Ne liorario para no trabajar loe dias «ial;>ado9 cui» tPiieiiioo libfe-, ;i!.ie 
ai<(unbs dfe noeotras laborainoa en ocasion<?E» hoi-ari <.•;•. Ir ■is (.■ov:.' de in.-.<ii-» 
ra v-jluntai-ia Bin pfesloiiee de nlnguna iiaturalern v hop- son p'neiMi^.yFj -[•'. 
niuiieio legal y que en iiueatra totaildad tcoihiinos ■.••-•Dt ro I poi- 'riiil'«ii.->:-,>: 
P'.-r uii medico pogado por la empresa <jue nos reiiwJo el per J '..'do pi-'' v^ 
puet ncitiil el que ue noe recoiioce debldamen'e- v •.■iu« i-c.-r p1 Ii«.'«.-Ii'-.' d^r 
eel-ui- eiiiL>arQ;sada8 no reciblmos iilu{!i.in ti-elo iiml'j per el conti-.-ir.!';- if.-i- 
«'«! vigllada nuestra ealud con mae frecuencia p<ir li» •?iiipro::i-.i . " I ■:•••=' .'.-i.in 
orltc'S dp.lau constaiicla que tuvieron a la vir?.l.>« 1 ^t.i e;Mpe<.IJ*nl oi.- •I--- !•■ 
dop y cydo uno de loe troba.iadoree donde e""* \\cyf •.••itxotnv que n-v ;••_• tii 
ouenti-aii iaborando uienoree de dioclBsiif" ario.^. -.lo Ism-tiI in;.in«?r« :='e -jd- 
.imiUii lol.oci"'pia de planlllas de pogo vlonde ae liav-'? •••;;iiEitt>r •.uie .lo.-- •;mii 
pie'.idoi9 de cote mercantll* recibon ewlarl'TC nictw hH-oo <}el iiiln.tiii'.' •_>.?':» 
I.de'.-ld'j en el rubro de 1^ luaqulla y conlcimi'? a' alyti'.l'ir dc o^J n i-.'.- 
ej'tablpcidos por el Goblerno. leldo que .'ei.' ln;^ ►•! ■••■>nt*n.ld" dr> | ■, ^ 1 .•■ 
yente ncka a loo declaranbee y «.?3tarKlo de M'.n)i?r".l<-' en su '.•oiit':-ri M • • m 
rtitilifim y ilriimn para constsuicia ,j>.iii(,MUi<uti).« ■-.■■jii i-: a ?i'-i.nyrit.^B -.ri'v 
d^n L*- ..- 






1,10. tlTTb'lW^KtVl^ DE MENOCAL 
dr^UMfiSMl^rson'^ lAHSA 











I I 



190 




uroiucA at uohookas. c. a. 

SBCRETARIA DE ESTADO 

EN LOS 

OESPACHOS DE TRABAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 

En la ciudad de Cltoloma, dqnrtaincnlo de Corlcs a los veinliun dias del nics dc Juiiio dc mil 
novecieiUot novenU y seU, los suscriios Inspectores de Trabsuo, en uso de las raculaodcs que la ley 
Ubonri lei contiere,_gq_conriiluye en las oricinas de la emprcsa denoniinada fQUXJSMA^ 
|RE{^PGEBI|9l)klNOCX)MPANY'/S:A/'' ubicada en el Parque Industrial INHDELVA salida a carretcra 
a (a iutoa con d unioo pfopadlo de darie cuniplimienlo al AUTO que anieccde de rcclia side dc Junio 
del pteaenle aAo emilido por el Jefe de la Inspecdon Regional de Trabigo de la Ciudad dc San Pedro 
Sula. Misma que oonsiste en reallzar inspeocton compleia en las inslalaciones Hsicas de la emprcsa y 
consular loc riguienles extremoa: PRIMERO: El numcro dc Irabqjadores que laboran en la emprcsa. 
honduieflos, extfai\ierot y nuyeies ea estado de enibarazo. SEGUNDO: Si laboran (rabajadorcs 

menores de diedseis alios y ti la empresa cumple con la jomadad de scis lioras diarias cqulvalcnies a 
cuarenla y ocho de nlario temanal. TERCERO: Si reciben bucnos Iralos por los cjccullvos de la emprcsa 
y los supervisoie* de producdoiL Si les pagan (icmpo cxiraordinaria de conTomiidad con el codlgo de 
trab^ cuando ton requeridos por la ooinpaAIa. Scguidadmente se le cede la palabra a la Ing. Ligia X. 
Ayestas en su oondicion de Gerenle Adminislralivo y Icniendo conociinicnio dc la vislla e.xprcsa lo 
siguienle: Consideraiiios que esta es una empresa solidanienic cstablccida en la que los cmplcados 
cuenlan con una terie de bcnefidos tales conio: Plan medico (Clinica Bcndafla), Dcsaj-uno gratis, 
Cooperativa empleados rioanciada por empresa, Traiisporie gratis (San Pedro Sula - Clioloma), Scrsicio 
de CaTeteria higitaica, Salario miniino superior al eslablccido un mil cicnio cuarcnia y dos con ocho 
cenlavot nientuales(lj», 1,142.08) y un operario al cten porcicnio gana un mil sclccicnios once con 
novenia y un cenlavos mensuales (Lps. 1,71 1. 9 1), Instatacioncs con aire acondicionado y Club de Tulbol 
patrocinado por empresa. Los horario de trabajo son de Lunes a Jueves de Sicte y Media a Docc 
Meridiano y de Doce y media a Cinco de la tardc, conlando con do$ recesos de quince minuios cada uno 
en la maOana y en la tarde y el dia viernes de Siete y Media liasia las Cuatro de la Tarde cumplicndo asi 
las boru reglamenlarias dc la temana y asi no trabqjar los Sabados. Qucremos niencionar que hay 
operarioa como el sellor Mclvin Hernandez que devenga salaries de mas de sciscicnlos Lcmpiras 
s^manales (Lps. 600.00) badendo un total de dos mil quinicntos novenia y ocho Lempiras mensuales 
(Lps. 2,598.00) que es mayor al minimo esiableddo dd rubro de la maquila. En lo que a maiidos medios 
ce leOeie, supervisoies, instractoies, auditores e ingcnieros, cc cuenta con un programa de.enlrciianiienio 
KSA (Kurt Salmon A. Associates) desde d inido de operadones dc la empresa que coslo a la emprcs 
aproxioiadanienle dncoenla y dnco mil dolares (USS 53,000.00). Oiclio cnlrenamicnio Tue impartido 
por personal de d Centio Asesor para d Desarrollo de Rccursos Humanos de Honduras (CAOERH). En 
la oompafUa laboran adualmente un total de 172 empleados de los cuales 97 son nmjercs y 75 son 
varones de los cuales todos son mayores de diedseis alios. Contamos con oclio mujcres embarazadas que 
redben control prenatal y ioi dcrechoi de Pre y Pos natal y Ladanda; siendo ellas: Maria Conccpcion 
Mcjia. Maritza Oliva, Elena Lizdh Pacbooo, Anabd Romero, Ycssenia K. Horcs, Maria Teresa Nunez, 
Nubia Idalisis Gaida j Ddmy Azucena Martinez a las que no se Ics obliga Irabajar horas e.xiras. A 
ninguno de loi emplcadof se le da mal trato, ni fisicamenlc ni \-erbalmenle y mucho mcnos 
psicologicamenle. Seguidamentc se le ccda la palabra a las empleadas en cslado de enibara/o: 
MARITZA OLIVA. ELENA PACHECO, ANABEL ROMERO. NUBIA GARCIA, DELMY 
MARTINEZ, MARIA TERESA NUNEZ, YESSENIA K. FLORES. DORIS DIAZ. SARA AY ALA y 
DILCIA MELENDEZ quienes ca un sola voz y por qucrcr liaccrlo asi nuiniricsian lo sigiiiciiic: "En 
idadon al lo expuesto por la Ing. Ligia A)'cstas en su condicion ya mencionada. csianios lotnliiienie dc 
acuerdo que redbimos dc la empresa d Pie y Pos Natal y la liora dc lactancia de conlorniidad como lo 
eslablece d oodigo de trab^ y la Jornada de trabajo es: Lunes a Jueves de Side y Media a Docc 
Meridiano y de Dooe y media a Cinco dc la larde. contando con dos recesos dc quincr .iniiios cada uno 
en la nuHana y en la tarde y d dia viemcs dc Side y Media liasia las Cuairo dc la T ,c y que en ningun 
momento nos obligan a trab^ar Uempo exlraordinaria ya que si lo hidcramos s-..ia voluntariamcnie. 
lambien dcjamos conslanda que no redbimos malos tratos por ningun cjcculiN'O y supcrvisorcs de la 
empicsa ya que tenemos una buena reladon obrero palronal; tambicn tcnemos un receso de quince 
minuios por la mafiana y por la tarde." Los Suscritos Inspedorcs de Trabajo dcjan consiaiicia que 
luvicfon a la vista los expedienles de cada uno de los Irabsyadores donde sc liace conslar que no laboran 
menores de diedtds aflos ni tampoco laboran exianjcros, asi mismo adjuniamos Tolo coptas dc planillas 
dc pago donde se hace cooslar que ganan salarios mas altos del Mioimo Eslablccido en cl raiuo dc la 
Maquila Lddo que le es d conlcnido de la prcscnie acta a los dcclaranles y eslando dc acuerdo con la 
misma. la ratifican y Orman para oonsianda juntamcntc con los aduantcs que dan k. 








PASA A LA 



191 




KBTOBLICA DM BOHOMAS. C. t. 

SBCRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



PAGfNANO.2 . 
ELENA PACHECO 



U 



ANABEL ROMERO 



DELMY MARTINEZ 



NUBIA GARCIA 



^ 




MARIA TERESA NUNEZ 



YESSENIAK.FLORES 



SARA-ftYALA 



DORIS DIAZ 



U^^^^ 




lOMEJIADELCID 
ECrpRDE TRABAJO 



» ^^HT^HSPECTOR DE TRABAJO 





192 



ACTA ESPECIAL 



En la ciudad de Choloma, Departamenlo de Cortes, a los diez y ocho dias del mes de jiuiio de mil 
novescientos noventa y seis, los Susciitos Inspectores de Trabajo, en uso de la faciUlad que la ley 
laboral le conliere, se constituyen en las oficina de la empresa denomiiiada {7^"MORGAN DE/ 
iHORDURAS^'/ulAcada en el Parque Indusliial INHDELVA carretera a la Julosa con el luxico 
proposito de darle cumplimieitto al Auto que antecede de feclia siete de Junio del prescnte afio 
einitido por el jefe de la Inspeccion Regional de Trabajo de la ciudad de San Pedro Sola. Misina 
que se deriva en realizar Inspeccion complete en las inslalnciones lisicas de la empiesa y 
contratar los siguientes extren\os; PRIMERO: El munero de tiabajadores que laboran en la 
empresa SEGUNDO: si laboran mujeres en estado de embarazo y si cmnplen con los pagos del 
pre y post- natal de conformidad del codigo del trabajo vigente y la jomada que tienen. 
TERCERO: Si laboran menores de diez y seis aflos y si cumplen con la jomada de seis lioras 
diarias equivalentes a cuarenta y ocho de salario. Segtudamente se le cede la pnlabra a la Seflora 
Amanda Montoya en su condicion de Gerente de personal y teniendo conocimienlo de la visita 
libre y expontaneamente expresa lo siguienle: El numero de tiabajadores de la empiesa son 
doscientos sesenta y dos empleados y sus horarios son de Lunes a Jueves de side de la n\nilana a 
doce meridiano, por la tarde de doce y treinta p.m. a cuatio y tieinta p.m. y el dia vierues dc siete 
de la maflana a doce meridiano y por la tarde doce y heiula a ties y beinta p.m. con mi 
equivalente de cuarenta y cuatro horas a la seniana y para no laborar el dia sabado. SEGUNDO 
la empresa J.E. MORGAN DE HONDRUASS.A no laboran menores de diez y seis anos, ademas 
aclaro que no trabaja ningun extranjero. Tambien quiero dejar conslancia en estn acta que los 
reglamento intemo de trabajo y Reglamento de higiene y seguridad se encuentra en tiamite y en 
el Uanscurso de esta semana le presentare las constancias ante la inspectoria de trabajo. Que 
unicamente labora una empleada en estado de embarazo y su jomada de trabajo es de ocho horas 
diarias y en ningun momento a nadie se le obUga a trabajar tiempo extiaordinario". 
Seguidamente se le cede la palabra a la empleada: Dora Rivera quien Ubre y esi)ontaneainente 
expresa lo siguiente: "En relacion a lo inanifestado por la Seflora Amanda Montoya en su cahdad 
de jete de personal de la mencionada empresa, ratifico que me encuentro en estado de embarazo 
y que mi jomada de trabajo es de odio horas diarias equivalente a cuarenta y ocho de salario 
semanal, adem'as aclaro en esta acta que no me obligan a tiabajar tiempo extiaordinario y si lo 
liiciera fuera voluntariamente": Lo suscritos inspectores de trabajo dejan conslancia que tuvieron 
a la vista los expedientes de los trabajadores donde se hace constar que no se encuentra 
laborando menores de diez y seis aflos, que no se encuentra laborando ningiui extianjero y en 
estado de embarazo solamente se encuentra la empleada Dora Rivera, ademas tuvimos a la vista 
la planilla de pago donde serefleja que los trabajadores de la empresa deveiigan lui salario 
mayor del miiumo establecida en el rubro de la maqmla. Leido que le es el contonido de la 
presente acta a los declarantes y estando de acuerdo con la misma, la ratiiican y liiiuan para 
conslancia jtuitamente con los actuantes que dan fe. 



DOR A1UVERA ' 
Supervisora de Linea 




MARJOMEJIADELCID 
Iiis])ector dc Trabajo . ^ 




193 



KSFVBUCA BS UOHDURAS. C. A. 

SECRETARIA DE ESTADO 

EN LOS 

DESPACHOS DE TKADAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 

EN LA CIUDAD DE CHOLOMA, DEPARTAMENTO DE CORTES, A LOS TRECE 
DIAS DEL MES DE JUNIO DE MIL NOVECIENTOS NOVENTA Y SEIS, LOS' 
SUSCRITOS INSPECTORES DE TRABAJO, EN USO DE LA FACULTAD QUE 
LA LEY LABORAL LES CONFIERE, Y CON INSTRUCCIONES DEL INSPEC- 
TOR GENERAL DEL TRABAJO SE CONSTITUYE EN LAS OFICINAS DE LA 
EMPRESA DENOMINADA {ggy^CH&Tl^gS'TA f "o'^^fci V .' UBICADA EN EL PARQUE 
INDUSTRIAL INHDELVA, CON EL UNICO PROPOSITO DE DARLE CUMPLI- 
MIENTO AL AUTO QUE ANTECEDE DE FECHA SIETE DE JUNIO DEL COR- 
RIENTE ANO, EMITIDO POR ELJEFE DE LA INSPECCION REGIONAL DE 
TRABAJO. MISMA QUE SE DERIVA, EN I REALIZAR INSPECCION COMPLETA 
EN LAS INSTALACIONES DE LA EMPRESA Y CONSTATAR LOS SIGUIENTES 
EXTREMOS. EL NUMERO.DE EMPLEADOS QUE LABORAN EN LA EMPRESA 
MUJERES YHOMBRES HONDURENOS, EXTRANJEROS, MUJERES EN ESTADO 
DE EMBARAZO Y LA JORNADA QUE TIENEN EN EL DIA EN LA SEMANA, 
SI LABORAN MENORES DE DIEZ Y SEIS (16) ANOS Y SI TRABAJAN LAS 
SEIS HORAS DIARIAS ESTABLECIDAS , EQUI VALENTE AL CURENTA Y CUATRO 
A LA SEMANA CON GOZE DE SALARIO DE CUARENTA Y OCHO DE SALARIO." 
SEGUIDAMEITE SE LE EDE LA PALABRA AL SENOR DOMINGO RAUDALES EN 
SU CONDITION DE JEFE DE PERSONAL DE LA REFERIDA EMPRESA Y TE- - 
NIENDO CONOCIMIENTO DE LA VISITA LIBRE Y ESPONTANEAMEITE MANI- 
FIESTO LO SIGUIEWTE: QUE LA EMPRESA OPTIMA, S.A.DE C.U ESTA- - 
TOTALMErTE DE ACUERDO EN PROPORCIONAR LOS DATOS QUE SOLICITA LA 
INSPECTORIA LOS QUE A CONTINUACION SE DETALLA . 1) EL TOTAL DE_ 
TRABAJADORES ES DE CUATROCIEPTOS SESENTA Y UNO EMPLEADOS (461)- 
LOS QUE SE ttESGLOSANi DE LA MANERA SIGUIENTE: DOSCIENTOS SESENTA 
Y SIETE (267) MUJERES, CIENTO NOVENTA Y CUATRO (194) HOMBRES Y 
EXTRANJEROS SIETE (7) 2) QUE EN LA EMPRESA OPTIMA, S.A. DE C.V. 
NO LABORAN EMPLEADOS MENORES DE DIEZ Y SEIS ANOS COMO SE PUEDE 
COMPROBAR EN LOS ARCHIVOS EXPEDIENTES QUE LLEVA LA EMPRESA .3) 
QUE .EN LA EMPRESA SE ENCUENTRA EN ESTADO DE EMBARAZO SIETE (7) 
EMPLEADAS Y QUE LAS MISMAS GOZAN DEL PRE Y POST NATAL Y GOZAN 
DE ASISTENCIA MEDICA Y QUE SU HORARIO ES DE SIETE A DOCK MEHI- 
DIANO Y DE UNA A CINCO P.M. DE LUNES A JUEVES V EL VIERNES DE 
SIETE A DOCE Y DE UNA A CUATRO HACIENDO UNA MORA ADICItNAL DURANTE 
ESOS DIAS PARA NO LABORAR LOS DIAS SABADOS, Y EN CASOS ESPECIALES 
SE TRABAJA LOS DIAS SABADOS HACIENDOLES EFECTIVO EL RECARGO DEL 
TIEMP,0 EXTRAORDINARIO, ADEMAS QUIERO DEJARCONSTANGIA QUE EN -- - 
NINGUN MOMENTO SE LES OBLIGA A TRABAJAR TIEMPO EXTRAORDINARIO A" 
LAS MUJERES EN ESTADO DE EMBARAZO Y SI LO HACEN ES VOLUNTAR I AMENTE . 
QUIERO DEJAR CONSTANCIA EN ESTA ACTA QUE A NINGUNO DE LOS EMPLEADOS 
DE ESTA EMPRBA SE LE DA MALOS TRATOS LO QUE SE HACE NORMALMENTE ES 
SOLICITARLES QUE CUMPLAN CON SU TRABAJO PARA LO CUAL FUERON CONTRA- 
TADOS Y CUMPLE CON LOS COMPROMISOS CON LOS CLIENTES DEL EXTERIOR 
ES TODO LO QUE MANIFIESTO AL RESPECTO • ' SEGUIDAMENTE SE LE CEDt: LA 
PALABRA A LAS EMPLEADAS EMBARAZADAS, JOHANA YAMILETH MARTINEZ, IRIS 
MARLENY FLORES, MARY MATAMOROS, MIRIAN HUNOZ, MARIA YANETH DIAZ, 
CARMEN ORELLANA SANCHEZ QUIENES EN UNA SOLA VOZ Y POR QUERER HACERLO 
ASI EXPRESAN LO SIGUIENTE:. " EN RELACION A LO MANIFESTADO POR EL 
SENOR DOMINGO RAUDALES EN SU CONDICION DE JEFE DE PERSONAL DE LA 
REFERIDA EMPRESA LIBRE Y ESPONTANEAMENTE MANIFIKSTA LO SIGUIENTE:" 
EN RELACION A LO MANIFESTADO POR EL SENOR DOMINQO RAUDALES EN SU 
CONDICION DE JEFE DE PERSONAL DE LA REFERIDA EMPRESA, ESTAMOS TOTAL 
MENTE DE ACUERDO QUE TENEMOS UN HORARIO DE 7:00 A.M. A 12:00 P.M. 
Y POR LA TARDE DE 1:00 p.M. A 5:00 DE LUNES A JUEVES Y EL DIA 
VIERNES DE 7:00 A.M. A 12:00 Y DE 1:00 P.M. A 4:00 P.M. PAKA NO 
LABORAR EL DIA SABADO, ADEMAS ACLARAMOS QUE NO LOS OBLIGAN A 
TRABAJAR TIEMPO EXTRAORDINARIO Y SI LO IIACEMOS ES VOLUNTAIM.AMENTE , 



194 



.2/ 



JEFES INMEDIATOS ES TODO LO QUE MANIFESTAMOS AL RESPECTO.! 
LOS SUSCRITOS DEJAN CONSTANCIA, QUE ADJUNTAN FOTOCOPIA DE 
LASPLANILLAS DE PAGO DONOE REFLEJAN LOS SALARIOS OEVENGADOS 
POR CADA UNO DE LOS TRABAJADORES DE LPS. 30.00 DIARIOS. LEIDO 
QUE LE ES EL CONTENIDO DE LA PRESEITE ACTA A LOS DECLARANTES Y 
ESTANDO DE ACUERDO CON LA MISMA, LA RATIFICAN Y FIRMAN, PARA 
CONSTANCIA JUNTAMENTE CON EL ACTUANTE QUE DA FE. 




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*?■;. — ;'■/ OAB ft^;&fc-CrfAVARRIA 
•"*'/. ;^' INSPECTOR DEL TRABAJO 



rw,.r.o.yw- MADRID 

I|/SPECT0R DEL TRABAJO 



195 




UfVBUOA DB BOKOOMAS. O. A. 

SBCRETARIA DE ESTAOO 

EN LOS 

DESPACHOS DE TRABAJO Y PREVISION SOCIAL 



ACTA ESPECIAL 

En la Cludad de Choloma, Departamento de Cortes, a los diez. y 
slete dlas del mes de junio de mil noveclentos noveta y sels. 
. los Suscrltos Inspectores de Trabajo, en uso de las facul- 
tades que la Ley Laboral les ^°^^^^^^^^f^^^]^^SnB^^ki^ 
oficlnas de la Empresa Denomlnada "RJWKFKNifWfiAR , S.A.", ubi- 
cada en el PARQUE INDUSTRIAL INHDELVA, Carretera a la Jutosa, 
con la finalidad de darle cumpllmiento al Auto que antecede-- 
de fecha siete (7) de junio del corrlente afio emitldo por el- 
Jefe de la Inspeccibn Regional de Trabajo. Misma que se derl- 
va, en realizar Inspeccidn Completa en las Oficinas y las Ins- 
talaciones Flslcas de la Empresa y constatar lo sigulente ex- 
tremos. PRIMERO . El NOmero de Trabajadoras que laboran en es- 
tado d^ embarazo, el horario que tiene, si no las obligan a-- 
trabajar tiempo extraordinarios y si les pagan el pre y post- 
natal como lo establece el C6digo de Trabajo. SEGUNDO. Si la- 
boran menores de dieciseis (16) aflos y si la empresa cumple-- 
con la 'Jornada de seis (6) horas diarias equivalentes a cua-- 

renta y ocho (48) de saiario semanal. TERCERO. Si reciben 

buenos tratos por los ejecutivos de la empresa y de Superviso- 
res de Producci6n. CUART0. El total de trabajadores Hondureftos, 
mujeres, hombres y el numero de extranjeros. QUINTO . Si les 
pagan el tiempo extraordlnario cuando son requeridos por la-- 
empresa a trav^s de sus jefes Inmediatos. Los Suscritos Ins- 
pectores de Trabajo, para tal fin le ceden la palabra' MARIA 
EDITH MUNGUIA en su calldad de Jefe de Personal de la mencio- 
nada empresa y teniendd conoclmiento de la visita expresa lo 
slguiente: 'Esta empresa esta en plena dispoclsidn de proporcio- 
nar toda inforroacldn solicltada por el Mlnlsterio de Trabajo, 
y que a contlnuaci6n se detalla (a) El total de Trabajadores es 
de*165 de los cuales 78 son hombres y 87 mujeres. (B) No exis- 
te ningCin extranjero realizando labores con nosotros. (C) No 
existen mujeres en estado de embarazo, al menos no se nos ha 
hecho de nuestro conoclmiento. y (D) No existe menores de 16 
aflos y tampoco se trabaja tiempo extraordinaric/; debo a^regar 
que trabajarooB 9 horas de lunes a jueves, para compensar las 



PA. 



196 




tMtOMUOA at aonoamAM. o. d. 
SBCRETARIA DE ESTADO . 
EN LOS 
DESPACHOS DB TRABAJO Y PREVISION SOCIAL 



SA... 

las cuatro horas del sAbado, ya que date dla no se labora en la 
empresa, Igualmente qulslera expresar que la Empresa inlcid la- 
bores el dla diecinueve de febrero del aAo en curso, es todo lo 

que deseo manifestar al respecto'. Los Suscritos Inspectores de 

HONDURAS 
trabajo, dejan constancla que la Empresa ANVIL KNITWEAR, S.A., 

no se encuentran laborando menores de 16 aflo9, ni mujeres en -- 

estado de embarazo en vista que la empresa lnlci6 sus labores 

el dla dlez y nueve de febrero del corriente aflo, asimismo ad-- 

juntamos fotocoplas de planillas de pago donde se hace cons tar 

el salario que devetiga cada uno de los Trabaj adores que es mayor 

al salario minimo a lo establecido a la Industrie de la Maquila 

y que la Jornada ordlnarla de Trabajo es de Lunes a Jueves de 

7:00 a 11:30 A.M. y de 12:00 a 4:30 P.M. y el dla viernes de -- 

7:00 a 1L:30 A.M. y de 12:00 a 3:30 P.M. para no laborer los-- 

dias sAbados. Leido que el^contenido de la presente Acta a los 

declarantes y estando de acuerdo con la misma^ la rati£ican y -- 

firman juntamente con los actuantes que dan fe. E.L. 'HONDURAS" 

IRAS'. VALEN 



NGUZA 





{(tlBL CIIAVARR 
^I^^ctor de Trabajo 

if' 



RIO mej;eA delcid 

r de Trabajo 



MAPRIO 
r de Trabajo 




k 



197 



«^ 



En San Miguel Choloma, Cortes al primer dia del nies de julio de mil 
novecientos noventa y seis.Los Suscritos Inspectores de Trabajo en 
pleno uso de las facultades que la ley laboral les confiere se 
const ituyen en el centre de Trabajo denominadoSS31S5Wi;^:?iK^HiON ^^. A- 
DE C.V sito en esta misma Jur isd icion , con el proposito de dar fiel 
y estricto cumplimiento al Auto emitido por la Jefatura Regional - 
de Trabajo de fecha diez y nueve de junio del ano en curso,mismo - 
que hace mandato ha realizar Inspeccion Completa en el cenlro de - 
trnbajo arriba indicado.una vez en dicho centro de Trabajo los Sus 
critos se abocan con el senor HARRY GILBERTO DAVIS en su calidad- 
de Asistente de Jefe de Produccion.a quien sobre el caso se 1 e- ce 
de la palabra y dice" en la empresa laboran quinientos sesenta y - 
cuntro trabajadores de los cuales cuat rocien tos cuarenta y siete - 
son mujeres y ciento setenta y cinco hombres , actualmen te laboran - 
dos menores de diez y seis anos Knrol Patricia Mnchado y Karla Va 
nesa Ri vera , ac tua 1 emte laboran un numero de veinte personas en es 
tado de embarazo,Ana Iris Ore 1 lana ,Mar ia Dor jas , Hi Ida Zelaya.Fnti- 
iiia Turcios .Bertha Marquez , Nancy Padi 1 la,Merar i Caste 1 lanos , Al ba 
Rodr iguez ,E1 sa Barrera.Marra Te jada ,Mar 1 ene Gu t ierrez , Veron ica 
Zavala,Lourdes Cruz.Ingrid Monterroso.Rosa Ram irez, Rosa Gomez, Nuvia 
Rivera (Mercedes Lopez, Reyna Garcia y Veronica Cruz; la empresa 
cuenta con sus reglamentos de higiene y seguridad y trabajo en este 
acto autorizo a los Inspectores actuantes Investiguen lo que esti- 
men pertinentes" Los Suscritos Inspectores de Trabajo dejean 
constancia que realizaron un recorrido en las i ns tal ac iones fisicas 
de la empresa y mediante inspeccion ocular constataron que de que 
existenten 20 empleadas en estado de embarazo de las cuales cuatro 
se encuentran gozando del pre y post natal siendo el las "FATIMA 
ZELA.MERAL-Y CASTELLANO, ROSA RAMIREZ Y VERONICA CRUZ.tambien se 
encuentran laborando dos menores de edad karol Patricia Machado 
y karla Vanessa Rivera, quienes unicamente se encuentran laborando 
treinta y seis horas a la semana de lunes a viernes, no laboran bo- 
ras extras ni las embarazadas. A.- se han canviado las lamparas que 
quemadas por nuevas, B.- se han instalados focos nuevos. en todos 
los servicios sanitarios de hombres, C- existe personas 
permanenres para mantener limpios y secos los servicios sanitarios 
sin humeda y vijilando por el buen uso cje los mismos, D.- no se han 
puesto servicios sanitarios nuevos, pero si se han arreglado los 
que estaban malos, E.- se ha colocado un nuevo filtro de agua y 
sumanan cuatro los mismos, F.- se han instalados ven t i ladores en el 
departamento de plancha y quedan pendientes algunos para ser 
instalados, G.- se han instalado puertas dobles de vaiven de madera 
para impedir la fuga del aire acondicionado , H.- no se ha hnbierto 
ninguna puerta de seguridad en la seccion de corte y confeccion de 
la empresa, I.- no se ha formado la comision de los represenlnnt es 
de los trabajadores y la empresa para ventilar las quejas de los 
mismos, J.- tampoco se formado la comision de seguridad. estos 
ultimos dos puntos no se han concre t isados porque permarien t emeh t e 
son visitados por comisiones extranjeras y hondurenas, segun 
man i f es t ac i on de la empresa . Seguidamente se les cede la i)aiabra a 
las siguientes empleadas Ana Iris Ore 1 1 ana , Mnr ia Dorjas.llilda 
Ze laya , Rer t ha Marquez , Nancy Padilla.Alba Rodr iguez , E I sa Uarrera, 
Maria Te jada , Mar I ene Gut ierrez ,Veroni ca Zava I a . I.ourdes Cruz.In- 
grid Monterroso, Rosa Gomez, Nubia Rivera , Mercedes Lopez y Reyna - 



198 



P0.2 



Oarcla; quienes por asl quererlo se nanifiestan a una sola voz 
lo soguiente:" que la eapresa nos paga correctamente nuestros 
salarios, vacaciones aguinaldo y catorceavo mes correctamente - 
cone lo estipula la ley laboral y gozamos de los beneficios de 
■aternidad.en ningun noMento la patronal nos trata mai por el 
eatado en que nos encontranos mas bien esta pendiente de noso- 
tros no laboraaos horas extras ni hacemos trabajos que nos puedan 
perjudicar a nuestra 8alud''.Acto seguido se le cede la palabra a 
las trabajadoras Karol P. Machado y Karla Vanessa Rivera , quienes 
libremente y sin presion alguna sobre el mismo dicen:" que noso- 
tros unicamente laboramos treintA/seis horas a la semana de tu- 
nes a viernes.no trabajanos horas extras, como lo estipula la ley 
es todo lo que puedo decir" Leido el contenido de la presente 
Acta a las partes declarantes que estas estando de acuerdo con 
la misma la ratifican y la firman para efectos de constancia - 
Juntamexite co los Suscritos que dan fe. 



HARRY GILBERfo DAVIS 



ANA I.ORELLANA 



HILDA ZELAYiT BERTHA MARQUEZ 



^ Mloa e«5-.'cyoe2. 



ALBA RODRLGU 



•^ 



ELSA BARRERA 



./^^ 



VERONICA ZAVALA 



HARIA BORJAS 



ji. 



NAWCF PADILLA 



/^'t^/^ 



MARIA TEJADA 

LOURDES CRUZ 



/I NCR ID MONTERROSO 
MERCEDES LOPEZ 



% NUVIA RIVERA 



VERONICA CRUZ 




FjCAWClS L. ENAMORADO 
OA6RIEC~tfRAVARRlA D. t\>MC«>iv C' • ' '^•'' 



199 



RESULTADOS DE LA VISITA DE LA "ORGANIZ A CION I NTERNACIONAL DEL 
TRABAJO" 



- LAS INSPECCIONES LLEVADAS A CABO POR EL DOCTOR JUAN CARLOS 
BOSSIO ROTONDO, EXPERTO EN CONDICIONES Y EN MEDIO AMBIENTE" 
DE TRABAJO SE REALIZARON EN EL PERIODO COMPRENDIDO ENTRE EL 
13 DE JUNIO Y EL 22 DE JULIO DE 1996, VISITANDO EMPRESAS 
HONDURERAS, AMERICANAS Y COREANAS Y DE OTRAS 
NACIONALIDADES, ASI COMO PARQUES INDUSTRIALES Y ZONAS 
LIBRES. EL REPORTE DEL DOCTOR BOSSIO AUN NO LO HA 
PRESENTADO A LA "OIT", POR LO QUE TAMPOCO ESTA AUN EN PODER 
DE LA ASOCIACION HONDURERA DE MAQUILADORES . 



200 



EXPLICACION SI LAS VIOLACIONES GRAVES SON RESTRINGIOAS EN LAS 
COMPARIAS COREANAS 



LA BARRERA DEL IDIOMA. ACTUALMENTE LOS EMPRESARIOS 
COREANOS ESTAN CONTRATANDO PERSONAL DE COREA CON 
CONOCIMIENTOS DE ESPAROL INGLES. 

LA TENDENCIA DE LAS ORGANIZACIONES SINDICALES Y DE 
DERECHOS HUMANOS EN MAGNIFICAR LOS PROBLEMAS LABORALES 
QUE SURGEN EN LAS EMPRESAS COREANAS, NO OBSTANTE, QUE 
TALES PROBLEMAS SON COMUNES EN LA INDUSTRIA EN GENERAL, Y 
FACILMENTE SE PUEDEN RESOLVER UTILIZANDO LAS INSTANCIAS 
LE6ALES QUE EXISTEN EN EL PAIS. 

LA DIFERENCIA EN LA IDEOSINCRACIA Y LA CULTURA DE TRABAJO 
CORENA CON RESPECTO A LA HONDURERA. 



201 



^FIDE 



FUNDACION PARA 
LA INVERSION 
Y DESARROLLO 
DE EXPORTACIONES 



Tegucigalpa, M.D.C., 9 de Julio de 1996 



Sr. Jesus Canahuati 

ASOCIACION HONDURENA DE MAQUILADORES 

San Pedro Sula 

Estimado Sr. Canahuati: 

Para su informacion, adjunto enconu-ar^ copia de carta enviada por la 
Sra. Angelina Ulloa Duarte de Veniz, Directora General de la Direcci6n 
General de Poblacion, referente a la deportaci6n de nueve ciudadanos 
Coreanos. 

Sin otro particular, le saluda 

Atentamente, 




iNTONIOYQUNerORRES 
Vice Pfesidente Ejecutivo 



Apartado Postal No. 2029, Tegucigalpa, Honduras 
Telefono: (504) 32-9345, Fax: (504) 31-1808 



202 




lUNISTERlO DR GOBERNACION y JU8TICIA 



DIRECCION 



GENERAL DE POBLACION 



APABTADO POSTJVL. 4M — TEGUCIGALPA. D. C. 
8 de Julio de 1996 Oficlo V^ 260-96-DG 



Licenclado 

Mnomo YOOMG tobx^ 

Vice-Presldente Ejcjcutlvo de FIDE 
Su Of Icina 



KBtimado amigo : 

Inmediatamente que 
dole reapuesta a Ic 
ciera, a travSs de 



me incorporo a mi oflclna, eetoy dfin- 
Bollcitud de informaclfin que me hi~ 
Informe que nos presentara el Jefe - 



del Departeusento e Infonnacifin, el cual adjunto. 



Del mencionado infi 
danos de origen co 
riodo comprendido 
(Inicanente el seiioi: 
Jordae Honduras Ltla 
asimlsmo, confome 
portado por abusos 



Bn espera de que 
clba las muestras 



rme se desprende, que de loe 9 ciuda' 
reano que fueron deportados en el pe — 
3n loG anos 1992-1993 hasta la fecha, 
CHUN HO KIM laboraba en la Maquila - 
de la Zona Libre de Puerto CortSs, 
su expediente se confirma que fue de- 
leiborales . 



eJBta informacl6n le sea de utilidad, re 
ie ml conslderacidn y afecto. 




203 




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27. WmoaiHiHi: Cota^O 



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TARJETADEINSCRirciON 



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19. NO. d»r«a|»ite: 5iZ2a ; *" "7. 



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207 



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DIMCaON CEMtRAL DE fOSLAOOM V POUTICA MIO 

TAKJBTA DK INSCRIPCION 



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TAKJETA DE INSCklPCION 

l.UfuytodMdtbMcrtpctta: U C»lba.»tldn. 

L YUN JI 

Mo.Ar«do la.HoOTkra STUmET 



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209 




TAKJETA DE INSCRIPCION 



I. Neirtre M iacrilo: W BOft "{W 



la.AHUdo 



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P fi. Prof u Ofirii.; 



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f. UiwdtMelalMto: _ 

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210 



DIRECaON OKNERAL Dl lOtLACIOM Y MUnCA MnilAIOMA 

TAkJETA DF. INSCRIPCION 



r-brXno 



). Nombtc d«l id 



4. toio M. m 
■ ftarlnn 



2. Iju|iryffchid«Iaicrl|>ci6ii' La Kplhn,Af1c«a^ 
XNC fCON 



l«. ApcUdo Uo. Apdlido lar. Nombrc Mo. Nombtt 
f. ai y Miio a»ll '?oltaro □ r.. vrof. u ofitin; 



-□□a 



Coreano 

IS do SGotlBabrB da 1959 

11 Mo n«gro.Hao DO IJ.O!iM: cafQ.pchtnOdQSQ 13. PM: trJoiMflo.clam 



9. |ju|ir<l(iucimi*at_o: guBOn.Coreo 
11. Wo: 
U.Nwii: 



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10. Pedlt: . 



•POto n 15. Uatun. 



IS. DiMCCUuMMtc 



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19. N». d«PiM«K»rt«: y-;i03.?0CS_ 



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20. NO. d* IUlchid6n 



T*L Uunidfto 

2I.PccIm: 



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ax 0.|iMd6ii iw dotKle ta|ft.6: Oa-^ C,ibo,Atlda. nnq ». p^h, d. laiicto: il-thjO de 1993 



Dte 
Dte 



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Aft« 



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19. Nonbrc dalPtdn: 



2(. Oonlcaio: 

28. Rc«ideat« ^ QSt 



ONo 



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32.DoariclUo 



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34. ltcno«Mi6n o Repoiid&n dc Cuntt 



hdM 














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OMERVACIONES: Wota al Titular bb utrfano. da Pudra y Madra 



saiil Iit4^i..« 




• -.u > ....^ 




211 



MINBTERIO DE GODERNAaOX Y JUSTiaA 

DIRECCION GENfflAL DE POBLACION 

ArAKTAOOrOSrAI,4M TECUaCALrA,D.C 

MINISTKRIO DF: ROniOllHACIOW Y JTJSTICIA 
DIR3CCI0H Tra^riRAI. DE POniACIOti 



TEOUCIOALPA, D.C. PU'iKTO COIiTSS. CO.-^TBS 
KIH 



iSXPHDISIiTE tip. 06-92-001 

CiruN i:o 



Friner Apellldo Soeundo Apellldo Primer y Sogundo :ionibr« 

Lugar y Feoha de Jfaeinlento JAIXr SUIKJ, K0H3A Di?L SUR 4-3-63 



tfACIONALIDAD KOHEANA 



OCUPACION MSCWICO 



TI^O DE TRAIiSrORTS AEREA 



PASAPORTK No. 2364300 

PS3«AliSNCIA KN EL PAIS 30 DI/.S CIA3E DB VISA ?.'«>OCIO 

OTROS TCcuMSKTOs Dj^ ide::ti?icacioh i'g:;auwA sstado civil ca^ado 

MOMBRB D3 LA SSPOSA JOMI-'Al.vIlJA KYIKO HEBx KIH 



Ho. DB KIJOS 2 
KACIONALI DA D .KOKSAHA 

NACIONALIDAD KOHSANA 



Ko.. .i(K DhL PADRE 



;(ACiOi. LID.'.D r.OHEAMA 

Aw; .iBwii ;riii 



KGUillE DS LA ^UDT^E ; 5Q0H 



C-iQI 



DIHECCIO:.' Y DQMICILIO EK EL PAIS 3AR no SL PO.WKKIH. VHi\-:r- A ;iASE :i\VA L 

PUERTO CORTES. COHTBS L-UOAIJ Y ..-scziA DS Il.CnSSO AL fi:l2 AiiROVU :HTO .lAHON 
VILLEDA MORALES 19 DE JULIO 0!! 1991 ' 



COLOR 
NARIZ 



AnARILLA 



DESgfllPCIOn PERSONAL 
Pi3L0 NraORO LISP OJOS CAW^JS 



ANCHA 



FTISXTB rS^UZilA P-ZSO 120 Lbra. SSTATUriA 1.71 

CONTESTDRA MKDIAWA ■■ COMPLECCIOH DBLGADA SE.L'IS PARnCULARSf 

.VIKOUKA 



IDS.'TIFICADO KK FABHICA JORDAB :ro.'IDURAS LTDA. ir:iIC.%DA SK r.A ::o::A LinRB 
D3 PUERTO COHTES IDZNTIPC'DO POs: DT-U-.-vtiADO D' f.'ISn.'CIOlf 



OOSSRVACIOtQS HL TITOI-Afl Pl.T! nEQUS.^IDG POH D--;rii>/:;iA D:!;L S 0': HIO-.-a>;RTO 
HSBK£RA DE KACIOtlALIDAU JlOiTOU.E A , QUIEf: ?;.^KIPESTO i(A-i2;1 SIDO I/rTRAJADO 
FOR EL SKRoa ipw VSR3AI. Y i'lSICAIffiNTE ( 2iPUJ0KES) Y lAP^ULO AMn.'UZADO 
COK UK DESARMADOR (AJiBOS EHPLEADOS DE L.'. ?A3RICA JG?JDAB •OK ;UIAS LTDA.) 
EL 53.-i0n Cl-nJIf HO KIK S3RA DSPOHTADO POII Of'D3< DSL SSKOil Din3CT0n ORAL. 



FUI'IRTO COIITIJS, 18 DE BMERO DE 1992 



212 




'jBENERAL DE POBLAOON 



?HM>ta Cort4a, Oart««, 
ty «• cowo «• 1992 



A S ■ T 

A 



t/P^lBB W PBBAi\ 



L I MOoi* Olmstor Ortl. d« Pabls*16a f 
PeUUoa KLmtorU 
Abac*d» Marie Bnrl^a Boqula HtJRiliidas 

L I SoBor I>«loga4a d* lUgMbifo 
tUrU Xeterto R*««m«« K«j#a 



For aata ■•dlo eon tode »«apate m» partlto iBfonaar a uataA* 
qua al dta vioFoaa U dal Mrrtaiita an Uurva tm la aiiOaiia m 
praaaoM al SaOor IUS<S2BtO iraUBRA« aaplaado da la fabrtaa - 
■aOBOAK HOBOURASe LTDA.* da Is Zona Libra da aata Poarta y Tl 
oa Praaldaata dal Slndleato da la Miaaa a pr— a n tay yor aa - 
erit« OB* dananola an aontva dal 3afier fciua liO KIN* ia nael^ 
nalidad koraana, do liftoio Kaeaoloat la cual aa adjunta a la 
praaasta. 

Xn Tlata da lo aatarior aaa alaao dla por la tarda a« prooatfl4 
a z>a«HarlP a dlato aaOer paN tooar Ics Imojtlzooionaa naaa* 
mmeiMBf da Ic uual vaaulto lo aisuiantai 

1> Eataodo praaanta an aata Oftalaa loa Sa&oraa autaa aaBOl^ 

Mdoa aa la toao daalaraalAa al Saiier Uarrara Mairaatande 

qua aatuanto ooae rapraaootaata dal Stndlaate latarvlae an 

UB probla«s lal>flral qua tanta ow ai^laada da naaloaalidad 

twndorafla oon «X prep4aite da aonoeer la oauaa da la aapa- 

raolAn da sun laborM* fna aatoacca ouaoda «1 Safiar tSm aa 

■elaato y la aifirandio oontra He daudala tns aKpuJoti*a y 

Inago aaao ua daaanaador pas« wsplaarlo aa aoatrc da aa • 

paraooa int«rvlBtando da ioMdlato doa saOoraa da neelona* 

llicd Iraraaaa para avitar praMaMai* wqroraa* i»da aate faa 

praoaaoiado por traplaa aaplaadaa da la rabrles laa oualas 
P(m4«u dar daalav*eatCa dal oiae al tuara oaeoaorle* 

2» El dla iHoaa aa proaadl6 a una noova lovaatleaolSn an la • 
Fabvtoa jr an praaaaaia da Saplaadoit dal Hlniatarlo ilal trm- 
baJo« Aaaaor laeal da la fabrioa aa procadlo a toear daala> 
raelto da oada ana da laa paraooaa qua taablan obaarvado al 
pvobla«a( afiMwndo oada una do allaa qua Is antas daalara- 
do por al Saflaar itavraza aa vardad. 

3- Al taratoav la iaTaatl|aal6a «a dataxvlae aunpander da mm 
Xaberaa al Safler Om y rotanarla aua dooMantoa para Iimob 
-.._ . .„ Aabida dap«£taal6a« 




_ .':;au 

'JOMJ6 05 IfiaiMOXOVa 



213 



Puarto Cortas 6 de enero de 1992. 



Srea 

Departamanto de Nigraclon 

cludad. 



Con el debldo respeto me dirljo a uetedes para conunlcarles 
qua el dla de boy por la nanana, en la Bmpresa Jordae de 
Honduras, cuando ae encontraba tratando de resolver un pro~ 
blema laboral de una coapanere aflllada A nuestra organiza~ 
clon, ful agredldo en forma verbal y riafca por parte del 
Supervisor coreano (necanico), aecion que se agudlzo, por ~ 
que despues de Insultarae y de pegarme tres enpujones aaco" 
un desarnador con Intensionea de utlllzarlo, acclon eeta 
ultima que no se concretlzo graclas a la oportuna interven~ 
cion de otros dos coreanos que forcejearon con el para con 
trolarlo , en el aomento que se produjo esta agreclon se ~ 
encontraban presentee dos directives del sindlcato, el jeTe 
de personal y otros trabajadores, adjunto a la presente se 
hace acofflpanar las rirnas y noabres de los companeroa que 
pueden dar fe de lo- aqul denunclado. ~ 

Sin otro particular y esperando cpntar con su vallosa cola 
boraclon a efecto de que se le aplique la ley a este sr. ya 
que es reincidente en su focma de tratar a los trabajadores 
que laboranos para esta empresa, ne suacribo de usted, 



atentanente. 



L'^^^^tor Herr 
Vlc^ Presldente 

ccc Fesltranh 

cct Capresa Jordae 

cct Hinlsterio del Trabajo 

cci Archive del Slndicato 





MSPECClflN DEL TR/UAJO. 



214 



CERTIf ICACION 

.. „lto :.er. d. 1. S.ccl6n 0. lo.p-ccl6n d. trabejo de =.« du- 
" """"V. ir. crtlflc. .1 infor™ ,u. Ut.r.l«nt. die. - 

LL^r* I d. .... c.ud.d, S„ de.p.=-,.= „„ .. =o»ci,i.n = 
^.™^^ nn.. I.,.!.. .1 -""" I-P«'- -• '""• ° 7 • "-" 

Ten i^r d. .t. c.u».d Puerto, con .1 pr=p6alt. d. de ., c=n. an 
c r*.! pro»l.« l.p.r.l .uclfdo .n dl.n. .»pr..., P"» "-'^ 'J " 

BCtuwta P Llcnclsdo Jewl. H.Jl« ="«■ - 

..pr... .n ... c»o "•'" " • ^,„. „„,,! Hi.„. .. 

BDOdarBdo da ie gBprasa al cuai parmn- 

.rsan Padxo Sula ta..i*n al ^ncaroado da Hi«raci6n da as a ciu - 
ax aeftor Mario Ravanau, al auacrlta tuvu la praaancia da lea ta.t - 
aoa da al caao antr« al coraana Mlatar Kl« y al dlrlflanta aindlcal 
RlQQharto. 106 taatifloa aon: Roaa Jar.zano, Edyin "rmandQ SolU, - 
ju6n Ram6n BuatlUo. Manual M-mbrana. Marltza aarcla. Ana SllvU - 
P6rai. Karl- Harrara. Maurlclo Rioa, Salvln Garza. Wlctar Antonio ^ 
Martinez, qulonaa fuaron praguntodOB por bI BeHOr ReVenaU, COntfiBtBH 
do que arirnativaniBnta al aenor coTBano Hiater tsin le peg6 traa eapu 
Jonea a Rigoi y deBpuea Bac6 un deaarmador am^nazondolo con diciio — 
orticulo, sntoncea an bbb konanto fu6 detanido par doa coraanoa qua 
aataben carca de Alt dicha daclaracion fu^ da todoa Iob taatigoa >— 
ya nenclanadoa* Con lo antae axpuaato aa da por finalizado b1 prasan 
ta tnrorma en la dudad da Puerto Cortaa a loa trace diaa del nea da 
anaro da nil novacientoa novanta y doe. f) y Sallo Amando Hayea Que 
vera, Znapector da Trabajo*. 

es corrilCTCi con su original 

Cxtandida la praaanta en Puerto Cortaa, departamento aa ^ortfia , died 

ydlQa 
aaia^de anaro da ail novaclBntoe novanta y doa. 




INSPCCCim DEL TRABAJO. 



215 











^vv/:^" 7^ ^" ^^^Z 



:g^ 



/rr^g |ir 



v>^ -r/ ^;>/y 



IW XMRDt U Olncate 6m«r«l 4a roblaeite y foUtica Mifra- 
tori«. «a uao da !•• acHbweieoaa ««« 1« coafiaTC la Uj; y ao 
apticacida del artfeule 90 da la CoMtitaclda 4« U lapfikllca, 
13 ID. 7, S7, 43 No. 4 da la Uy da Fablaaida y fttlfclea llitr£ 
to"«i UMOn: PioMdar i U dnolfitfa dal »a£i_d«lj-ii«r _«_ 



216 



bA LIJiA i^US A CONTINUACIOIJ Sii DSTALLA SOW LAS PSR3CNAS 
QffS EL SSHOR RICOBSRTO HERRERA PRES:=:NT0 COMO TESTIGOS 
OE KABER OBSSRVADO el PaOBLEllA Y QU3 SV: EN001IT3ABAM 
PRESENTS BH ESE M0M31IT0I 

1- r-L'iMTSA GARCIA 

2- JUAK RAMON BU3TILL0 

3- VICTOR Ai*To?a: il\rtiicz 

4- ROSA JULIA J.:SS2iAJJ0 

5- ANA SILVIA PER-iZ 

6- MAJIUEL MEMBRSKO 

7- MAURI CIO RI03 

8- BD\/IN S0LI3 

?- SELVIN GAIZA PAZ- - - 
10- K.\RLi\ HERRERA 

NOTA: T0DA3 ESTAS P'CRSOMAS FiTSROK IITERROGADAS COrTFIRl-^AriDO 
LO -^UE EL SSHOR IffiRRERA HA3IA MAMIFESTADO. 



IM XIBD: L« DlrecciOn C«ner«l d« Poblaci6n y Politic* Hifra" 
tori«, «ti uto d« !«• ACrlbucioiMt que 1« coafi«v« la Ley; j en 
•plie«el6a del arttculo 30 dc la CoMtitucifo de 1« Icpiiblicai 
13 Ho. 7» 37. 4) Mo. 4 de la Uy d« Fobiaeldn j PolXtica Migra 
toria, USmCUPB: Proeadar a la axpulaida del PaXa del aanor " 



217 



ArAirABor<Mr4i.4M nouaoALTA.D.c 



PXISCCIOM CSMCiUL 01 PaBUCIOR T rOLITlCA MIGSATORtA. Taguci- 
galpa Hunicipio del. Di«CriCo Caatral diaciaieu da eaaro de - 
nil oovaelentot novanta y tot. 



\; Qua en {acha ocho da eaaro del aflo en curao, -al aa~ 
dor RIOOecKTO HUUBIA, Vica-Praald«ata dal Sindlcato da Tra- 
bajadere* JOKOAE "StTRAJORME. pr«acoc6 ante el aenoT Dala^ 
do d« Ni|rael6n da la Ciudad da Puerto Cortda, «a eacrito da- 
ntoiciando al aaHar SttHI HO KIM da naclonalidad Coraaoa, eaplea 
do do la Fibrxca " JOBBAI DE HOHDUMS LTM.", ubieada en ia - 
Zona Libre dal aaocienado Puerto, aobre una afraaldn vatbal j 
(lalca da que fud objato por parta del raferldo aaOor 8H0II - 
IK) KIM; daoUBcia qua fud invetcigada por autoridadaa da la Oi 
caccijin Caneral de PobIacl6n 7 PoKcica Migratorla y aaiaiaao 
por laapoctoraa dal Kiolitario de Trabajo 7 Pievlaidn Social; 
habiando coqprebado la veraddad del becho dentrndado, eoMad 
do pgr el aeftor SHUV HO KIM, en pcrjuicio del leflor KIGOBDLTO 
HBBUBA. 

flWWTPfMIWO: Que loa axtraojeroc catfci obllgadoa daada au la 
grtfo al territorio nacieaal a reapecar laa autorldadaa y a - 

COmraOMDO: Qua da la invaatigacldn raallcada par laa auco- 
ridadat Migratoriaa y Laboralea del rata, aa daaprande qua el 
aafior CHOV BO KIM da nacionalidad Cereaaa, ha violancado nor- 
■aa eoaaCitucioiialaa y lagalea cooCei^ladaa ao nuaatto Ordena 
■iaiito Jurldico. 



Que da caoforaldad con al arcfculo 43 nuaaral 4 
d« la Ley de Pobladtfa y Polttica Higracoria, ea procedaaca la 
expulfiOii dal territorio oadonal del aeftor 8HUM HO KIM dc nar 
elonalidad Coraaaa. 



I: La Dlrccdfe Geoaral de Poblacida y loUtica Nigra- 
Ceri«, on oao de loa atiibucioaaa que le eoofiar* la I«y; y «tt 
•pUeacida del arttculo 30 da la Coiuititucifo de la ftepfibllca, 
13 Ho. 7, 37. O lb. 4 da la Ley da PobUdte y PoltcUa Migr« 
totia, BMKtra: Proeadar a la expulaida del Paia dal aaOor - 



miUlf HO KIN da Daoleoalldad Corcana, dentro dal plaao paraa- 
MClo 4a wtaclcuacro boraa. CSMPLASe. 




218 



tEcunos mm - puriioii/ius u couhms imuiii 
kh: u«/m3 
nm imiu Mumcm nmu nam 



mum mm - tknouLii n amun mmLii 
kin: iminu 
nm imiik imiiucm nmu (eclaiio 

M/l/)2 etUiii Eistc Uiiiiii imUU Sm »uit UuhuU Htpiic Utbil 

26/11/93 S(ob(( fukim, i.k. Up iu IliiiiU »uit iliu Uiu iunmm it Uboui 

pot i iiu tin 90ce ii 
SuUo. 

iiimu ftin himUiti Ckip Choloti tigottUo Petdmo ComMn (atta coittiii 



HllOin SioUi it Huiiuu imiiU Dunit JudiU «. HenilaiEntusi de^pao 

inluicto. 
110.594. 



U/l(l/92 Hiup Sung Hondu<iJ, S.k. Up UnUnintilf uij /l(eiande< Ajita inmniion d( (abotiJ, 

Ca<to4 Atbetto Ci^iti t«iino de S du4. 



19/10/92 Voftchang !iidu4tu(4, i.k.Ckip CItotoia 



liil4 Atonzo Zttaya 
UvU LmU fuiUi 
Ihin futiti 
A(((edo Pajm 
(liiuiio futi 
Jotge kltiilo imut 
Culci J(<(2 Conzite^ 

VUiuic ktiiji 
Knii Javitt (eiu4 
Ne<v yotandi Aitciga 
Niifdet 0((va 
Nuganj l/itetio 
Onti/di JatKij N. 

Am HiuUi UiltUon 
tiotm Jcnti, J 
OUu... 



impiniitin de (ibote^ 
de todo e( pet^onit de 
(a itpna. 



St (evinto acti de coipitecenc 

Se (cvinto acti dondt U eipte 
deic iin ejecto ni vi(o4 en vi 
de que li eipieii ijnomba e( 
e^tido. 

Se tevanto icti donde it tuil 
que, en e(ecto, e( U. tijoitt 
Petdoio jiUt e( te^peto, jegu 
ve<.iion de mt cotpmnot. 

H lutuante (evmti icU de (a 
enUegi de( de^pido Indiiecto 
(i t<itijado4i, pe<o no (kio 
S<. Uonz, Geiente de U (ipttt 

Se (evanto acta en /i cua( U 
4U4pen4(one4 it dejaton nn vi 
!/ eiecto en vittud de que (a 
eipte^i no ^tguio loi 
ptociiiiititloi ItjiUi pa<i di 
ju^pen^ione^. 

En e^ti oci^ton ii (evnnti net 
(i cunt ^e con^tati que hnbtan 
PKado la (nbo<e4 de4de la i 
i.i. po< e( lit coipottnitento 
Saiuet de Itim Aju((ii< VtEEed 



I 



219 



ticum omio - ?momis oc anmm moulu 
wnu ituiiucm nmn 



16/10/92 Ul la HoUuu Co,S.4. imiLU 



Jtfc it ftuuU it. ill 



lihiin i.f. Hotiuii, s.D. 



CUp Ckotoii 



lUbljiiOtli 



U Coulito c( liiio. UU 
InUjiieti it (nco/ittibi en 
ultie it ei6iti2i), pcto (a 
t§Htit U P191) e( (cti( coip/ 

<( 4U4 p«(iticilia(4 Jl llttdid 



SiupuJita it Uitmt lit In ttti ofotluiiU (1 iium 

jtce de uUiio, i il T it luHnto n tl icti que dejat 

Oct. ic nil. Ho. ilO. iin v((o< u (((cto ti p<iic<i 

4u4p(n4ion po« Ui4 iiu, y qu 

diclioi d(i4 de4cinzadi>4 (04 

pigatia a dicfta Uiliayido<a. 



09/10/92 Ci)4ii)4 /lppi«(, S.A. de CZip Su lijul OiUct Siuit Su4peii4io/i de Ubittt 



li/IO/92 Sunny Indut«ie4 Co. Ckip Ctotoii Ciiina Cu^tnzi D. ittrtndono dc litotci 
Soticitud 
P<c4eii{idi 
po< (i 
(■P<e4a. 

13/10/92 Hi ttruj Hoiidii<i4 



Zip ContineitatHad} F«nandtz 



01/10/92 Fenii tppuU 
U/IO/92 Pm(40, S.A. 
08/10/92 G(obi( Fa4ftio>, S.K. de C6i((i) Iidu4ailiiii V((i4qiicz 



Sitiiji Iidu4t(iE(bi Xontoja 

Jc44j| JiMtk Olin 



llLVUlUt Cudtdido 



Con4t(tt( dt4p(do 

Con4t<ti< d(4pido 
Con4titt( De4pido 



4e (evanto acta in U cut et 

it fmOUl, 1(4(14 0. P(«dMO 

kita (04 co<4ec(ao4 a( ci4ii v 
que 4e9un e( (ue ettmi 
invotuitKio de pitte de (1 
(■P<e4a, de icuetdo a( tcgtaie 
Intetno de Ttabujo. 

Se (evinto icli ionit u loan 
decta(acione4 de C(e'iti4 
coipiiie4a4, qu(eiie4 liuian qu 
dicka coipaneti aimdoni 4U4 
(ilio<e4. 

Quedo 4e4ue((o e( <ec(ata, i/a 
(e zmceUioit a Ut (titi^adot 
4U4 de<ecli04 (aiia<i(e4. 

LlejKon 1 un icueido 
tauUitmio con (a efp<e4ii. 

it It tiquidaion 4U4 de<eclii)4 
(ipteadi. 



07/10/92 Fcaii Uppieet 



Ctdij Iidu4(<((utui( ll0(l4C0 



Oeya< 4in va(o< j e^ecto unaSe <e4o(v(0 e( ptotfeia 
Su4pen4(0« de (ito<e4 4a cince(indo4e (04 dia4 de (1 
goce de 41(11(0 pot cinco 4u4pen4(on 1 (1 (*ibiyido<i 

d(t4. 

tequeed 1 (1 eip<e4i pi4i Se (e i«ej(o e( p(ot(eii, 
que (e p(opo<c(onen una 4(((con4idetindo(e 4u e4tido. 
pi4i de4eipenii 4U4 (ibo*e4 
)i que 4e encuen((i 



-220 



tEcuiios owm 
Ho: \mi\m 
nm imm 



nmuui H com»m umMis 



LOCkLUmOH PmOHh 



lliltiZiil. 



nmin Hyup iuj HoUuil, S./l. Zip Uiila 



20111:112 Siotii Siiiiinii, S.H. Delnkdctvt 



iupuiian de Uimn lU UHiUnioitU In tKH im i 
joce it 4ue(do po< ttn iiuUinti i dtctio luitjiim. 
de (0(11 vettit. 

knt Sujipt HuiMiti 0(^a< ^in va(4( i/ (ecto (i Se deja ^a vatix a« electa it 
4ii4peii4i9/i de Uinu po« 
Uei dui, pi>< Jet iipue^ti 
inju^Kadife/ite. 



I3/IC/9] Hi (111/19 HondiidJ 



2ip ConUftetUlNidtid 

HiiU Uuii c«uz 



ConjtiUt lo4 iclivci poi (uEt Inipecto« Juin Jon ktiu 
que dkliii eipteidiJ iuton undid un iniooe en et que pe 
dejpedidi4. 4e <<(nic<(lie<ii i U Injpecci 

|jene«il de Uiiii, en vutud d 
que no it U peeiitio que 
HiliZM Ii inveiUgacion i/ e 
4eno4 Jeie de Peuonat ti iatt 
tejpeiii. 



2I/II)/U Kant!/, S. de R.L 



Zip Ckoloci iiijii htlij Hijii Oeipidii vuhl 



,2II430I0?S3 Manuiictueii^ Inteenicicnilnlidetva 



Kiion tone) iuiti Cortititii inpiic vniil 



Se iijo en (ibeUad a la piU 
pit! que hicudin iMi de iai 
de<ecliiij inte quien 
cotu^pondieti, en vittud de q 
(i eipee^a nego liiiteid deeped 

Se coitHito li)u (04 (ejiijoj 



20/01/93 Gtokt Fi^hion, S.il. 



Zip Sin Higuet Hitii Eteiii Uioi 



Deipido ve<bi( de (i Itpnncn que Ci eipteu te pi 

teitiy'idpii iiim. U en (i lijii, de U conditio 

icujibm de Utn lotivido lujieiiui i iilti niveau. 
tij coipine<i4 piu que no Ino tejteioj. 
liboeKin hmii eittij, v 
tiitien de titdieje lucho i( 
i( i( lino. 



14/01/93 Hmuiictueij Inteenicionilnkdetvi 



tuon toneif Suite: Conjtiiit que no U petiitiiEt Injpectoe Culoa Jittu tad 
it initio 1 mt UiOHi, niun iniotie en et cuil ki20 co 
it pitque. que en eiecto i dicko (titajid 

no it te petittto et ingtejo i 
tit)i)<eJ ttejmdo iinitiiente i 
icuetdo concitutotio con dich 
eipte^i. 



2i/(ll/!3 Vonchmg Indu4t(ie4, S.H.Ckip Ckotoii leii Heenindez NeenindCectiio de todi4 im 



Fue uni coipitecencd de itchi 



221 



ncum onm ■ nnmin oe mmui mmiu 

kU: 1992/IH} 



mim 



HUU CuoUni llaqutdajto 
tml HuLiil nail 



ACCIOt 

tt iMiuU uft In4pecto« it 

JMiljO pi«l bU4Cl<{(4 4o{ucio 
KlUltO. 



29/OI/U Bi9 ytnt Cotp. Dc UUuUf Ckotoii Jo4( Atiakui UllKiUttju con^UncU it dcipido Ptndientt de (nvia< it Inspect 

ve<tit mi que no tt pi4i con4Uti<4t e( de^pido. 

Kuuu dc ttudoao dc 
tciltio. 



o;/0)/92 Ctotit HMu, i.k. 
illnm Fcbeni FukXo/i 

02/10/92 full hPuH 



lit Sm Uiul Unit tUt 

Up Suiito lituilUo Ili«idii9c fContitu iupiio 



tcctui p<e-ititit n put-nUit U cmiceUton tu iimkn 
<ectiiiitii en cjecUvo. 



hiuiUo e( p<oli{eia, 4e le 
cmcetKin lot de<ecli04 i( 
<ec(ciiAte. 



Sotci) hiiiiUiltUj lunitki Otivi Con4titi< de^pido v 4U4 
Etbi PotJikU Netttjt ciaiiZe^. 



Wo itendienon at littpictan 
aducundo e( Jeie de Pe44ona 
e4e iU ui du de pigo 1/ te/ii 
•ucto ttitijo. 



02/10/92 Cotton Ctut Nuiulic. dc KMdelvc 



Otgi Huim HilU 



tcctuo dc iu puiticiuii Se te^otvio et p«ol>teii. 
40Ctite4 n de(eclio4 idqiit<tdo4. 



OS/10/92 S.P. Uuiiuu, SJ. 



Ctip Ckotoii 



lc4tte Nittciic (tvtti Kcctbto ittoi t4ito4 po< pi4La4 pi<te4 deciduton lU^in 1 

dc ti C04eana Stndg, qitc/i itJiejto concitiitoito, dando p 

igiuo dct pcto y ti ttto te<itnado et conttato de t^abi 
cogto ti pt<cd. 



21/10/93 
Ho. ;o5 
Suii/ yidiit 

Ajutcti. 



XoAts, S. dc i.L. 



15/01/93 Hi Kvu) todiuu, SJ. 



Ztp Ckotoii Ul*^ Uiln Kcjtt Oe^ptdo. 



2tp ConttiiMtillda VtiiAudti 

Kutt Patttcii Cuitc4 
HuUU Htitii 
iUU lutu Ccitt 



Sc tevmto icti de coipKecenc 
en ti cult ti ttibijidoti <ect 
iu puiticionti iociiln, pu 
ie tojto nidi en vt<tud de que 
eip(C4i ite/i que no ti hi 
de^pedtdo J que iiji con 4u 
lectiio. 

U Inipcctoi (tndio un in(o<ie 
yi que et Jeie de Pet^onit 
llotiu Se«ino 4e lo^tto 
tenuente 1 que 4e Ucim U 
tnve4ttjicton en et ci4o que 
ocupi cip4e4indo en p<e4encii 
dct In^pectot (<i4e4 que ibin 
cont4i ti dtjnidid lodt y 
^cguttdid (t4tci dc ti iiiii; 



222 



tKum ovtuo ■ nnmLii n comiiK Mount 

kit: iiunm 

iH?nu LOCUI2KI0II rmm 



ml mm CoUot Ckt Huiiiic. it HIMiln 



OLji Hum UUi 



iuclio tiatiio. 






OS/10/92 S.f. Huiuu, S./l. 



Chlf Ctotoia 



LtilU Hultu Uvui hclblt iiloi Uitu pat puLu putu itciiiiun lliiu i un 
it U co((t/ii Sindu, quien uugli conciUatouo, dmlo pii< 
tju<o itl ftli 11 (i U(0 luiUtic il co/iUato de Uatijo. 
csnUa (I pa4(d. 



21/10/93 
Wo. 70S 

Sui) yidid 



Konty, S. dt M. 



Z^p Ckotoit Oilif Utln Utjit htpitt. 



it Uvuto icti d( cofpa*ecencii 
ti (a cua( (a t<itaiado<i tectiii 
iu pittttciinn ianiUn, p«o no 
ii I0940 nida en vutud de que (a 
eipteji iXej'a que no (1 ha 
de^pedido 11 que 4^91 con 4u 
(ectuo. 



IS/01/93 U Hum Huituu, S.H. 



Up ContiiciiU/Itia Htuuiti 

HuU PiUkU Ciliated 
HuUol Nadud 
UiU Jutix C«U2 



H/OI/93 

Ho. S)2 

*le(va 

ChincliUtt 



19/01/92 

Ho. i03 

Katie 

PoUiUo 



Ul Jin Hondiuai Co. S.A.Inkdetvt 



(ins Sttn CatieiiU 



Oioiitini tiveti Oeipido vuM 
LiUt Ujuio tltjli 
UUt tUiU hi 
Vitiet Eneique Hutinez 
Kinn Eti:atctli Kiieeni 

Zip luiilt Uu Cti4iiat toiteo Oe^pido. 



20/01/93 Vonckoag Iiduait^, S.D.CUp Ctttoit E4(y it{li 



»U>4 UltU 



H In^pectot (indio un mimu 
ja que ei Jiit de Pei^onii 
Hoeian Se<(ano 4e lo^tto 
(enuente a que it hicUu U 
inveiiijacion en e( ca^o que 
ocupt expte^ando en pte^encia 
del In4pecio< i«aie4 que iban 
conita (a dijnidad io«i( 9 
4e9u<idad (i4ici de ii li^ia; 
no oi4tante, iaIhuhU a ii, 
pe<4oni a quien hia Heinmde: 
H. Supue^taiente kiliii 
iaiiido tl tuptlo. 

h iiU oca^ion 4e (evanto acta de 
coipatecencia, donde e( Jete de 
Petionil ie liU poniendo 
P(oli(eii4 pa<a e( pajo de iai 
p<e4tacione4. 

II 4U4C(iio p«ocedion a Uvulu 
in^otie en vi<tud de que et U. 
lavunce Lii en condicion de 
Setcnte adiini4i<iiikio, dij'o que no 
podti 4e< itendido po< nadie, 
4o(aiente pot et Jeie de Pet4ona(, 
9 que E( no 4e enconttata. 

Pita que 4e con4iaia, ^104 



223 



iiami mm - nmuui k comius usomus 



tECUIIO 



21/10/93 KontK, S. lit t.L. 



Up Cktloia tiijii Utli ttiU tupiic vKbat 



C. 2043010753 HtAniictuu UtuiMloMUUiln tuon to/iey Sum UmUtu iupiic hkUI 



Si itjo en Ubtittii a lu mln 
pui que liicie<iii mot de 4U 
de4eclio4 inte quien 
cotie^pondieii, en vutud de que 
U eip<e4a nejo /idtie4ta deipedido. 

Si tantUU H^u hi tutijH que 
aabaio. 



20/01/93 Gtobat fuKUn, S.H. lip Son Xijuel Hull Elena Kuoi 



14/01/93 NuuiicUui IntctnaciontlnUeti'i 



(UM tones SuKez 



Oe^pido vc<ta( de (a Eipemtm que U eipte^i (e pigata 

Uatajadoea (ai04. Li en (a liiii, de (o cont<i*ia 

icu4alian de kabet lotXvido M}uiuU a e4ti4 ciicUu. 
lu cotpaneiu pa<i que no (no (es<e4o|. 
tibo«a(an hmu tUn.t, y 
tuMen de titdan^e lucko il 
U t( bono. 

ConJtitit que no U petiituEE In^pectot Cs<(o4 3aUu tindio 
(( injiuo t Hi tiboic4, niun in^o^ie en e( cui( hiio constat 
at paequc. que en ejecto a dicho Uabijado* 

no H (e pediUo e( ing<e^o a Hi 
Ubotii ttejando (inaUiente a un 
acue<do concUiatotio con dkha 
eip^e^a. 



2S/0I/93 Vonckanj hiatUiii, S.A.CUp Ckotoia lua Weenondcz Heenondtectaio de toda^ lu 

HuU ?iUlcU Conate^pec^tacioae^ tttUlu. 
HuUol 

HUU Catotina Vaquedino 
ti^ii Haexbet Ottli 



Fue una coipa«ecencu de dicliii 
ttabaiadoea^ donde ti te^oEvio que 
it enviatia un In^pecto* de 
feibaio pad bujca«(e^ JoEucion aE 
«ecEaio. 



29/01/93 U) yont Cotp. De KoadutZEp CkoEoia 



Joje 4b(alian VaUecEEEOeja* con^EoncEa de deipEdo PendEcnEe de enviat aE In^pecEo^ 
vcebiE paea que no Ea pata con^EaEat^e eE de^pido. 

acu^tean de abondono de 
Eeabajo. 



0//09/92 (EobaEFa^kEon, S.H. 
02/10/92 Febena Fa^kEon 

02/10/92 FtnEi Appaut 



7Ep San HEjueE DoeEi DEaz 

2Ep SttioEo E^EonEiEao NaeadEaga FCon^Eatat de^pEdo 



tccEaia p<e->aEat n po4E-naESe Ec canaceEa4on tu iincUi qu! 
tecEoiaba en etccEEk>o. 



telueEEo eE pJtobEeia, ^e Ec 
canceEa«an hi detecko^ aE 
ucEoianEe. 



SaZtiji Indu^EtEJcii!) JuiteEke OEEvt Con^EaEae deipEdo y iu 
EEba PottEcEa XonEova cau4aEe4. 



lo atendEe<on aE In^pecEo* 
aducEendo eE Jeje de Pet^onaE que 
ut iU lu iU it mi ) EuEa 



224 



ticum OBtEto - purioiuES k comim amnu 
imm mumcm PEtsom 



tECUXO 



Ulllli} Voicliuj hiuUiu, i.LCUr Ckotoil Eit) itjU 
do. (44 Xttctdci Cackg 






Uf CulUutU 



KttUi iitjuti. 



fiu que ie coft^titi, mln 
UUn, e( jiiictUo Iii20 un 
injotie en vutud dt que (e 
laniiieiti e( Sn. l/ijidnte que e( 
$4. Setente no (e podii itendet 
potque no ii encontdti eit (i 
eipee^i. 

Se tevunto icti donde (t eipteu 
pigi una ^mcion <ecu«<ente, po* 
(a no coipatencii i iitu 



nioiin 

do. lit 
SuiiCK 
liiiu 



Huiiiictiuu Iiteoacionilnkdetvi 



(uoii (onej Sut(e2 Peobteiii (edchnadoj con eOke e{ Uibiiido< que cumdo 

4iU<io. tteja 1 (a o^icina ie enaevi^ti 

con e( S(. Eev^n Btocito, que ti il 
Setente de dichi eipeeji, y cuando 
(e ptuitea et ptolteii (c dice que 
(e \iUt veega ii il jini ijuit 
ieit04. 



n/OI/93 S. P. Mondutu Ckip Ckotoia tetj Setva <Ev(4ido KaOeipido en e^tido de eibitizEiti tutayadou a pu^ento i 

llg, \^ uU oiicini !/ ^e {evmto icta de 

e.C.teje^ coipieecencii pot katet ^ido 

de^pedida uni vez que it dieton 
cuenU de que ^e enconttitii en 
e^Udo de eitiudzo. EiUbi en 
conteot con e( ledico de U 
Ufnti. II iiipiin it (o dio en 
(0*11 vubU tl hit de Pet^onut 
Kitueo Cieemzi P., enUegindote 
unicuente (i mit de Im Lpt. 235.1 
po( 4i(i<io4, J no tii lu 
p(e4tic(one4 j iiUtnidid 
co(4e4pondunte4. 



12/01/93 
Ho. SS! 
HuU t. 
PoUUio 



Fenii 4ppite( 



(iluii laduteUucUt Lopez 



Oe^pc 



En e4U oci4ion et In^pectoe 
(evtnti inioeie en vietud que 
deipuei de kibe* e4pe<ido en (o4 
po(tone4 pot 114 de 20 iinut04, e( 
vijUinte UioHH) Hetninde: (e 
counko que et S(. I.e4(i4 0. 
Peedoio, Jeje de Pe(4onit, dij'o 
que 4i9U(eti e4pe(indo. H iiml 
no (e itendio. 



225 



fim 



iKum mito ■ rmmas n mrum lksomles 

kic: I99J/I!»3 

miiu Lommcm tmm 



timiU Urn lui kuiuu, S.K. Up luiUt 
Hi. lU 

Coipaiectiic^a 

hlnn 

CkinckUU 



tUiji (chztlii 
Otcu ?oUUU 
iutci hti XcUnt 
llta Nuctti Fintz 
(uUUU UUiitth CuUo 
lUiot (coviny UcKlU 



E/i viitiU d( ^ue 1104 Uiiiu Uni vcz p< nUvim en e( 



ieatodu 4U tato<i«. 



P<iia IndaitUtJ Ud, S.ACUp Ctotoii KkU leUy BUtti 



0i/0l/«3 

(0. 123 

F<ucZ4 /I. 

EntfKido 

Oi/OI/!3 Hi (van; kondiuii, S.l. Up CtilUutiUUiii tiib) 
Ho. lii 
Sutptiniin 
de tat4<e4 
po< U(4 Hit 



potton d( {a eip«4a, vino e( 
St. yong de otigtn coteano quien, 
4in tazon atguna, ie enjutecio; 'yo 
dtiendo 1 tidtone^' , tiiiiiiHuu 
a( In4p(cto< d{ ftibi^o coia a 
UioUti. SeniUndo t( !n4pect0( (e 
■ini(e4to'. Con u4ted viio4 t 
ptUu'. 



SocUud it U tip((4( tn vitOe que (i opetatu at UUia 

coietio ««(0((4 en 4u tuttjt it 
teittzK ti opettcion que elta hice. 



n/OI/93 PMt;4o, S.A. Oc C.lf. 

*o. no 

lA(o<ie 
tluio fmliUo 

04/01/13 Fentiv Apptut 
lo. 94 
Xiito PoUitto 



Cu«(t. 1 vttitJIiMt I'at(idt«t4 
rXcuiya, C«(tc4. 



Su4pcii4ton d( tibo(e4. 



Su4p(n4io«. 



eUiill Iadi4t(tCa/iti«iM {( Ziive4tt9icDe4ptdo y •i(04 tiato4. 
dtt Ii4pect0( Hitit HUiUo. 



Hll\IU Msup $11*9 Httiiuu, i.i. Uf luittp 



(Uiji Otdut £o«z<t(4 
lle(4oa ittvui) UckiU 
Sut04 Utt Hilm 
04CU lotudo PottUto 
Cou Xutccti Fucz 
(t«aii<^4 EUzttctk cut<o 



Cuindo 4e pte4ento et In4pecto« 
dicki tdbijadod tenuncio 
itni(e4tindo que no quetii 
tdtijK ii4 piti e4i eip<e4i, en 
ad(|ui(ido4. 

En e4tt oci4(on et In4pecto( 
lindto un (n(o(ie en vt<tud de que 
et Jtie de Pe<4onit, lui4 Uon4o 
E4coto no qu(40 itendetto. 

ConttnuKOn ianiie4tindo to4 
t4ibii(do<e4 que et U. HMn in 
u It pe<4oni que to4 ho4t(9i, que 
4C (po4ti en et pottoi pod no 
dcyi(to4 ent4i<. Coio tiitien ct 
dtt 30/12/92 iuii04 4icido4 del 
ptintet pot et cotetno H, 4egun 
•tntie4tatin tod04 to4 
ttibiiidote4. Htiiiiii eipte4ibin 
que en C4i eipte4i 4on iittti(ido4 
9 que e4e iU to4 4iciton > 
(ipujon(4. 

En C4ti oci4ton 4e tevmti tctt de 
coitpitecencii en vittud de que t 
to4 ttibijtdote4 to4 quetiin 
obttgit a ttittjtt et iU 
24/12/92, dc4pue4 de kabei ttegido 
( uji icutido con ti eipte4i de que 
ttttijitin to4 4abido4 ptti 
tcpottt to4 24 9 21 9 ttibii'it 



226 



(ECUXOS OSCEtC 

iU: miiim 



pitrtoKUS K mmui luculu 



LOULmcm HKOH 



lEClMO 



(14/lll/n Fciia HpfuU 
lo. U 



Kcm 

kam (( liniin. Coit H 
tfuiuot I fticietoA (( <tc(iio 
lit iiQUin iuti de/ PlinUl coio 
45 liutoi. ttifui ill UcUintt, 
cuudo (C9<e4a<on t Ittuu, lu 
■indatiin il iii S/OU/93 t (a 
o^icix ill S<. liii d( fiuoul 
toiudo E/iaiotido, 1 uioi en Knu 
pot ti iuiui u attci pot (i 
tttde, y In ii/ituvo iciitadoi 4«n 
kic« nada; a um In iioiK^taton 
coA 5 diu de C14U90. 

Wo 4( attejto en vittud d( nu U 
tdtiijtdota ^e iu pa<i 411 ci^i. 



U 4a4C(Ui il pte^ento 1 iHi 
eipte^i con et ot^eto de con^tatat 
deipido, C941 4ue ^le iipmibli 
(II k^atud ^ue cumdo ii uiuicio 
diitton que il Si. LiUt Petdoio, 
en iu ioniUm it liii it 
fuioml, no i( enconttaba; (uejo 
ulizito inUiviiluH con il 
getcnte con cuatquiet eiecutivo 
de (t eipteia, tuego e( gutidia (e 
luiinto que eitoi ti nejittn j 
itendetd ja que teniin aittuccione 
de no petiitu e( injieio de lot 
Uibijiiom lAtn teietidoi. U 
iuictiU indajo con lot InbijUnii 
que venun iatiendo quienei 
itni^eitaion que e( Je^e de fiutul 
LilU Petdoio 4i il enconUtbi en 
U eipneii. 

Cdtijf liduUiOtgi tiUuu Uiu iupiit iiditccto y lUoi ULu Uiitjiinu dicen que 
Icty Sujipt tiju e( Si. hlia lii lu ttejado 

hut liicU l/Uoi il jtido de gotpeittii con ju 

Xuitii luhil lUuiut plini J koibto. Segun ptopiti 

pttitoi de uni de ti4 liectidti 
'(( S(. Kiitet ru intento 
jotpttti con uji tuco, y 10 cu 
i( iueto poique le ioituve ti ut 
fe4('. 4d(i(i diccn que ie 



04/III/93 


Uti it flondueai 


Zip CoaUienUtHuU iilvU <itya Stiatio tdeudodo. 


«0.9 




St iMii InioiK. 


Metuii 






Catdaiez 






04/01/93 


Fenii Appinct 


itUm Iidiiiteaceoikt LUith Heenude: 


110.92 




Hit CtUuci liodai 


FtancU I. 




leit lucU Uloi 


Enaioeido 




imi Hulbit Guziu 

Dei) Suytpa 

KuU:* Uiiil laUeiuo 



227 



Mo.' IM2/IH3 



muHLii K mmm Moum 



LKkLmcm nmu 



11/01/93 Kjiup Slug Uniuu, S.A. Uf Initio 
Ho. 3ii 

Jtit Lttutt 



HiUoi ntuo nUuutufUo yuM 
lulu UUu Huu ». 



tUtiiUU d(4ptdida4 f044U( to 

lu Ujun tnUu. 

Hoi uitutittun con (( St. Tonj 
Ckoaj, quicA finiitito que no (oi 
kttic lc4fcdtdo, qut ti H nnuM 

(tUt(94U 411 ttttl^O (4tltl 
llU, ii q(i«iu UCJK 1 u 
uujto ^iii uUbt iuputU . At 
^Ul^ let tniijiiuu icctiitton. 



l]/tl/«3 tuiiit, S.I. << C.». Cu«U. titit tluUu lUtk UiUt licluo U \iutiiuu 


(( ictauti tltiii u i«io(iudo(t 


tt. 372 rieu(|t, CoUu Mt^^o I l>««u uttu. 


tt UMt't It CUCCttdt Utl lUi 


Culoi JtUtL 


U dUUO P0( t04 «CC(U04 




KKiUlitl, <04 CUl(t4 no (04 




41(40 uciiU tlicifiido qui 




tolivii U iiUits. 


M/ti/u m ;a luuuu c<., $.iiaiu» liuuiat latu lufUt »um 


Ic4i(u tui il hit it P(«4oait 


lo. 3;i lia UiuU HiU 


(04 tiui M]utd04 Utittitnu 


Act* <t ZoiU liUU fu 


4tC tU Vt ( ftjU, S (44 (04 


CcffuccucXi *Uiu UU<u HOUu 


(iut 1 (« a cuptUo, po« (O tilt 




kuo4 uUcUUt tl tuUio tt U 


HttUL 


tMtttiiti tt (tlttjO. 


ruui 




umm u (MUi iMiuu, s.i. 2if CMtauui luu tu«H 


tl UtUMtt (iVUtt d( 


JtU J«4( 


UtMJt it Ut CtdlUt d( CittC40( 


JUUl 


tl U. (| Vmi Cku], put qat 



ir/ll/i2 Utiai EUtiMiMi, S.I.IiUttoi lOtu ruciu 

l4/tl/(2 ll«att| UiutUu, S.l.aUp CUlm Imm Cumt 

ll/H/12 SttUa liUut4, S. I. UliUtlH ttulu DuUmu 

taunt it. ImUut, M. tut tkOm Uu luiu Uiu 

vinin UtM fuum, s.i. iir u* uiui tuu* uuu 



tUflU 



UifUt 



COipUtCUCit t (4tt4 0i4C(((4 
40t4( (1 <(4p4d0 d< 7 t4(tti(d0((4 



1(4 Ue4((«( P(JO it 4(4 d((ICk04 

tiiiitUu. 



S( wit I(4p(cta4. 



ttUtitU fHttttUt fu (I ((((jIt eo( fa t((t(i(do<(. 
hit U ttuutl 



SUfUtiM it IU«((4 

iii«4 r4tti4 



S( it d(iO 4U >(iO< U 4(4Pt(44e(. 

li (cuuo( ie4 ce<tuo4 dt toto 

l« ((( (i t4(ttitiO« lUiitttO (4 
(II M il4 (CU( it (4( i«(lt put 
4«Ut«4. 



228 



nm 



Kciuos OHiu - nntuui ic ctnuiu umulu 

a»: miimi 

imiik LiULiutm nnm 



KCUM 



0I/Oi/l] tltiU fukiti, i.k. 
tllimn Ftiui fukiM 

nntin fail kffuu 



Up iu »ltul tuii Hu 

Up ttiUc Utul4lu Kutiitit. fCntUtu UipUt 



Itclui Hfuttl I fut-ul.il U cutc((t<og tu dttcctci qiit 

(tctuati u (((cUvo. 



tuultt tl p«ob(ua, It U 
cucctuu tu <c<ecli04 at 
xctuutt. 



CiXu) lUuUUtuii JuuUti lUn CmtUu iufUi y 4114 
HU fitUtU Hoiteyi ciii4Uc4. 



la ituiiuct tl Ig4ftcto( 
tikciuii (( i((e it fmiul qu 
(4( 1(1 m ill it pijo J Unit 
■ucto (*ltl/ll. 



lllliin CtUM CXiit Kmitc. it HlMiln 



0(91 Xuiaa XUti 



Itctuo it tut p<c4tac(0iit4 S( <e4«(vi9 (( ptoKua. 
4gciU(4 I 4t4cck04 tiitUiici. 



OS/10/12 S.P. Km<iu(4, S./I. 



21/10/93 Until, S. it t.l. 
to. 705 

Ajucid. 



IS/01/13 Hi lnui »cUuu, S.«. 



CUf CkUut 



Lt4Ut Hului Hum ttciilt 11X04 tntu pu ruLu putii itciiUtu lltfu t lui 
it U couu(t SUdy, qtui utttlo tnzilUtmit, iuio po< 
(JU40 itl p((o ) (i U40 ttuiniit (( contdto dt Uilij'o. 
co«t(> (I pi«ed. 



Zip Uo(«n Oil4j| A4tl) KtiU 0(4pid«. 



Zip tutUutillut Htuuitt 

»uU fitiUU CuUn 
Huiitl »tiiU 
lUii lutu Cut 



l4/OI/f3 (a lU HtUuu Co. S.H.UUttvt 
lo. Si2 
UlHt 
Cli(«clii((i 



tluUiu Hvui itifiil VC<t4( 

UU limit ll(iU 
UiU OtUti P12 
HUtt luiiu HutiMt 



Se Uvuto ictt de caip(tcc(/ici( 
M (i cult (t (<attjido(t uzlut 
4114 p<c4tac(ii«(4 iiciUti, pe«o no 
4( (O9<o aodi M viitttd d( que U 
up«4( ((cji que Its tt ki 
dC4ptdido ) qui 4i9t con 4u 

(CCtUO. 

U Iii4p(cto( (indio lui iiiicui 
yi que c( hit it Pe<4ono( 

lOUU Se(«UO 4C ■04((0 

«e»ueatc 1 que 4e kiciett (t 
(ive4ti9icioa e« tl cm que 
ocupt eip(e4iado en p(e4e«ci( 
dc( I«4pecto< it(4e4 que (tin 
cottd (1 dignidid lotit 9 
4C9u«idid iluci it (1 ii4ii; 
no ot4tute, ent<ev(4U 1 (t, 
pe(4oni 1 quien Itii fleininde! 
H. Sapie4(iiente kitii 
iiUido e( <e4peto. 

En e4ti oci4(on 4e (evinto icti de 
coipuccencii, donde et Jeie de 
Pc<4onit (e e4ti ponicndo 
p<ot(cii4 piei et P190 de ti4 



229 



tEccKKOs oum ■ Hjmnu n conmus immis 

Ho: 1992/1)93 

imm ioc/iiiz;icio« rmou 



Xidt lUitUth Harlem 

tcit CnUUni. Umt Uipiii. 



19/01/92 Unj Hu (uiiUi 
Hi. m 
Unit 
PuUUt 



20/1)1/93 Votctug hiuUiu. S.i.CUt Ckoloii Itlj itiU 



22/01/93 
«o. 610 



13/01/92 
Ho. 110 

UiUi 



n/OI/93 
Ho. 196 
t.C.ttjiei 



Ki luuj HaUiMl, S.A. Zip Ccntinc/iUZ 



tanuiictiua^ UtuucUniUUilvi 



nnticioui. 

lip Saitto to4t UUtUi tcitK) tupiit. E( 4uic4Uo ptocedion a (evantit 

inisdt M vUtiii it que e( S<. 
Lautence Lit en condicicn de 
Ce<(nt( idiuut<iUvo, dijo que no 
podia in itendido poi nadie, 
taliiuU po( c( Jeie de hutnil, 
II que El no ^e encontttba. 

Kitoi Uato4 Pa<a que ^e con^taU, •i(o4 

tuloi, tl 4iiic<Uo Kilo u 
iiiiotit en vinUi de que (e 
nniiinti e( S(. l/tjitcnte que e( 
St. Ceunte no (e podii itendet 
po4que no h tncontttta en (a 
eipte^a. 

tutu in^u^ta. Se (evanU ictu donde U eipte^i 

paga una ^mcion tecuttente, po* 
U no coipKencii a e^ta^ 
oilUnu. 

tuon (onev Sutiez Ptottut^ (eUcionido^ con eDice e( ailiijido< que cuando 

iUiUo. tttja a tl oiicini ^e enUevUta 

con e( U. Etvin 6<iicito, que e^ e( 
iuiiiU de dkha eipteii, ) cuando 
U pUnttt e( ptobteia (e dice que 
(e vatc vetga u e( jana iguat 
leno^. 

Chip Ctotoii letg Sttft tlvatodo taOcipido en c^tado de iibuCiiliti tealajidota 4e pieients i 

e^ta oficina g »i tevanto acta de 
coipatecencia po< halie< iiio 
itipiiiU una vii que ^e dieion 
cuenta de que it encontiaba en 
e^tado de e(U(a:o. Estate en 
conUot con et ledtco de (a 
eipteii. Et de^pido ii to dio en 
(0410 vetbat et Jeie de Pet^onat 
A<tu(0 Ca4(an2a P., enttegandote 
untcaiente ta iuii de lot lp4. 233./ 
po4 iatatio^, g no a^t lu 
pte^tacionej g latetnidad 
co44e4poddiente4. 



12/01/93 Ftnti Dpputt 



Eitaijf I>dait4Uucttt lopci 



Oe4p( 



En t4t( oca^ion et Inipectot 



230 



ucum mm 

an: 1992/1993 

FECHA l»mH 



p/irioiiiius OE ccmim umnii 



Lmaucm rmm 



12/01/93 
Ho. 559 
Hull t. 

touau 



Ftiii lipfuil 



Citiij I>diiit(iLttcU( Lopei 



tun 



U tilt tcuioii tl Imptctot 
ttvinti injotie e/i vutud que 
itipui it tiiiu imn-ii en (o4 
pulinn pot lu de 20 linun, tt 
vZjUute Kijiilietta Huniniti It 
counica que e( S<. Lulii 0. 
Petdoio, Je^e de Pmaul, iijo 
que iijuieti e^petaido. At {iul 
no (e atendio. 



07/01/93 Hjup S(U9 koadiutj, S.A. ZZp Initio 
Ho. Hi 
Act! a 
CoipieecetcU 

»tl\iU 

Itiatl 



Ctad)4 iomUu 
Oku futiUi 
Sutoi Ion HclUi. 
Alt IlKccti Fiuez 
eulmili Itiniith CuUi 
hUan Geovtni/ AeckUt 



E> vUtui it que not tuUi (Int vez que e^tuviio^ en el 



jenttdii tin (tto<t<. 



psiton de It eipte^i, vino e( 
U. yon} de otigen cotetno quien, 
tin <i2on iljiiM, H eniu<ec(o: 'U 
tUendo 1 (idtonei* , te^uiendoie 
a( In^pectoi de Ttiti/o coio a 
toiolm. SeniUndo U In^pectot (e 
iiniie^to'. Con uUi vuo4 a 
pe(ei('. 



Oi/OI/93 

«c. 123 

Fetacu A. 

Enuottdo 



rUii UiuUiu Hi, S.ACklp Ckotoit HuU lleUv Biieei 



SocUad de (i eipee^i en vitOe que it cpe<t<it it initio 

coietio etttoeej en 4u tdtnyo tt 
(ettizt« tl opeticion que etti htce 



Oi/OI/93 U (iit>9 kotduui, S.A. 
Ho. Hi 
Suipttiion 
de (ibo(e4 
poe Uii iiu 

11/01/93 ftdi^o, S.A. Ot C.V. 
Ho. WO 
Inio<ie 
Ni<(o PottUto 



Ztp CotttiittttlSttdji hi) 



Cttttt. t vititJIXtni VtZttdtte^ 
Tictitjt, Coetei. 



Siupc>4toii de ttto<e4. 



Suipeniion. 



Cutndo H pte^ento et In^pecto* 
dtckt t(itit/ido*i tenuncio 
■tni(e4ttndo que no quetii 
tdtij'te 114 pi<i e4i eipte^i, en 
tdqui<ido4. 

En e4tt oct4ion e( In4pecto« 
(indio un iniotie en vietud de que 
et Je^e de Pe(4ontt, Ui4 Aton4o 
E4coto no qui4o itende<to. 



04/01/93 Ftiuv Appttct 
Ip. 94 
HuU PpttiUo 



Ctttiy ItdiutuCotttnut tt tnve4t(9tcDe4ptdo j itto4 t(tta4. 
dc( Iii4pecto< Kteto Poetttto. 



ContinuKOn itniU'Undo t04 
t4ibi/tdo«e4 que et S<. Ili4te< Vu 
e4 tl pe(4oni que to4 ko4ti9i, que 
4e ipo4ti en et pottoi piti no 
dcii(to4 ent<t<. Coio tutien et 
dii 30/12/92 iu(io4 4icido4 det 
ptintet po« et cotemo yu, 4e9un 
■ini(e4tibin todo4 to4 
t«ttt/'tdo<e4. Tiililien eip4e4itu 
que en e4t eip«e4i 4on ■itt(itido4 



231 



muik mniucm rmm 



lli/OI/>3 Hjup Siuij Uniuu, S.A. Uf Ba^oto 



lliiiji OniZm SiiizUu 
HiUoik Cegviftif UMU 
iutoi Im Ktiiu 
Otcu ItUndg futilU 
Cod Ili4ic(l( Fiuiez 
6t(t4u<i4 EUtittU cutto 



04/01/93 


(iii de Koaduiu 


ZZp CoitUfientiMttii Sctvi/i kuni Silulo adeiidido. 


«o.9 




S( <Zndio Inioiii. 


HtluU 






(Mill! 






04/01/93 


Fc/iii App(«(t 


Ului hiuUiVumti. Llitth HuaiAiii 


«o.92 




Oiji (itduc (odu 


F«incii L. 




Im Liicia mm 


huo4ado 




iiun Huitll (UiU 

Htlj Sujitpt 

HuUll IhM hluiuic 



K que e^e dii loj <iica<o/i i 
eipujOAt^. 

En tJti sci4io/i it ttvanta icti de 
coiipatecencii u vutud de que a 
In Utbijiimn (04 quetiin 
otitZga* 1 Uitaii* et dii 
24/12/92, de^pue^ de kaiee ((egido 
t u acueedo con (i eipu^i dc que 

tubijUlt (04 4lllld04 pt<l 

<epone( t04 24 y 21 i/ tubaji« 
ka^ti e( 23/12/92. Coio ie 
opujieion e hicieton e( lectiio 
(e4 4ica<on iueii de( Pdntet coio 
45 linutoi. ttipu4 ill acidente, 
cuondo 4e9<c4i«on i {ata«i*, to4 
•mduon e( iU i/OM/93 a U 
ii(icini de( U. hit de Cei^onit 
(oUndo Enaiotido, i unoi en ho<a4 
pot (i iinini J oU04 pot U 
titii, 1/ (e4 iintuvo 4entad04 4in 
fticet nidi; i uno4 (o4 iione4Utan 
con S dii4 de C14U90. 

He ii ittegto en vtttud de ?ue (1 
Uitiiiidota 4e lue piti 4u ci4a. 



la 4ii4CtUt 4e pie4ento 1 liti 
eipte4i con e( otjeto de con4tiUt 
de4ptdo, C041 que iue (■po4ib{e 
en vittud que cuando 4e muncio 
di^eton que e( St. letu Petdoio, 
(■ 4u condicion de Jete de 
Pe(4oni(, no 4e enconttiti; (aejo 
4o2(cUo enttevi4tit4e con e( 
getente con cuitqutet ejecuUvo 
de U eipte4i, tuego e/ jutidti (e 
■ini(e4to que e4to4 4C neqibtn 1 
itendetti ji que te/iim in4aucc(one 
de no petiiUt e( (n9te40 de (04 
ttibijtdote4 tnte4 teietido4. li 
4U4ctiti indijo con t04 ttibijidote4 
que venim 4iUendo qu(ene4 
■int(e4titon que et Jeie de Pet40Ai( 
LtUi Petdoio 4t 4e enconttitt tn 



232 



mum otmc 

kio: 1992/1993 
HCH IHttlU 



unmm u mnim ubomus 



lOCAlIZilCIOII PEIiSOII4 



U until. 



04/111/93 fiiiii ippuil 
H. U 
Hut foUUU 



SiUiij UiutiiOtji SiUuti toiii tupUo liiiiKizto y tiln ttUi Uiiijiinu iizin qae 

Juani Luck UUoi i( 9<(do de goIpcatUi C9fi ^u 

lla<((2t l4abe( Inteiians pinn ij koittii. Sejun ptopiii 

piUbtu ii uni le (14 i^ecUiia^ 
'H U. »UUk H atento 
9o(pei(i con ixn ttnca, i/ no cii 
it 4ueto podiue it ioUave tn ini 
■e^i'. Htm iUin que ^e 
con4ide<in iiipiiiiu pitqic no 
(li itjupt tnlm. 



U/OI/93 »!/up Suxj Monilud^ S./l. Ztp Suiito 
Ho. 3i6 
himit 
hit Lntmo 



Vitdon Hiiiio UUuutinpUp \lnbil 
8(iiici Itpnuii Hiiu t. 
HiUtn UlKn Haiti H. 



Hm tntuviitiiti con c( St. Tonj 
Ckong, i|uun iintl(4to que no (04 
hitii de^pedido, que 4i 4e queniiit 
<eate9<i< 4u UiCi/o e^titi 
i(U, ii queum Ueqii i un 
Ktejto que e^tibi dupue^to . H 
iiul la tttliijidoiej iccedieton. 



13/01/93 Piui^o, S.il. de C.V. 
do. 3?2 
Ci((04 3iUu 



Ciuet. vitji ilouedej HUh Jtjiii Cectuo de vtcicione4 
[icuiyi, Cntti igutnlido j hotu tiUu. 



H ictuinU 4indio un inio*iindo(e 
(t eip<e4i (e cmcetidi uni juii 
de dineto poi (04 tecdioi 
■enc(onido4, to4 cui(e4 no (04 
quiio neciliu iducando que 
todivii (e jittiti. 



IS/01/93 ma Ih HoHuu Co., i.HMtlu 
do. iU 
kUi d( 
Coipitecencii 

Kelvin 
finiti 



liuutiu iifitti hipiio \lnbil 
Uii Ujnio HtjU 
loiU UtiU fiz 
miMtt Entique KinUnc 



I!e4u((i que e( Jeie de Pe<4ont< 
no4 litnt enginidoi dicundonoj 
que no4 vi i pijit, v ui ui 
titnt y no ki cuipUdo, poe to que 
hei04 4oticUido et luiUio de (i 
lutotidtd de Uitija. 



233 



ncum mm - nmuLU n cokpaiias msomles 
imm Louaucm ?mm 



20/01/93 
Jui/i hii 
ktiU 



Hi Uu) HoUuU, S.A. Up CwtUiUil 



0l/0>/t2 Ad(JU( htunUu, S.k.UUttH Miu JuiUt 



Uku tnttcgi 



lUfUo 



0I/0J/J2 

o;/o»/92 

07/OJ/J2 

04/09/92 
01/09/92 



SeoUi Nondiuu, S. A. 

S.P. Hoidiuu, S.A. 
etoioZ FuUoa, S.A. 

iliitl fuhiu, S.A. 
VoncliMj Uimtilu, S. 



A.CIUp Ck4ton tout CucvtM 
dtliUttvt it^^Zcc Xi<U«<t 

CU| CliotoH EUi MKi/ii Atitt 
Zip iu Hi}iiil Culoi kUiii Siuccdt 

lif iu Nijad FtuudoDutcn 
A.CUf Ckoloii Xi4a tiUk HuuUi) 



Ot4pld0 



E( ictttutt tevanti de 
(ftUtga it una celuU dc citicion 
a( $4. C] Voon Ckug, pi<i ^uc 
cofpi«tc(iic(t a t4U4 oiicinaj 
iobit U iupiii de 1 tiitijiiom 

lc4 Ucit4i)ii pagt de iu iuichat 
ti(iuiUin. 

Se e/tvio In^pectoi. 



SoUcUu^ pu4u(ajt p04 tt Attegto con {i tuti/idixi. 
Jcic dt Pct^ontt 



SiuptniiOA dt UbOHi 



Ocipido. 

Pigc de Xnciptcidtd. 



Se It dejo tin utm U lupu*'-''- 

U icu^iton lot cmuti de toto 
U que e( t(ebt/'idi)t laniie^to a 
^u 4t (ei acuit de e^a iotit pa<a 

4tC>U04. 

U pigMon 4U4 pteiticionei. 

Le (lie pagtdi U Iti. inctpacidod 
quedando pendicnte otta. 



09/09/92 Ut lU Hoidiuu.Co. S.A.IiUttvi loiiUnt Cucii P. 



01/09/92 


Votckug ItiuUlu, S.A.CUp CkUm Adi Uu Hiint 


UtpUti 


01/09/92 


tloickug ladutiU^, S.A.Uip Ckotoit itbiUu I. Liin 


tupiit 


09/09/92 


m Hi UUuu, S.A. UUtln iUUt I. Hlju 

luitu Uiitl Uult 


tuttku U^aUUti 


11/09/92 


Ctuoi AppuU SUuji liiuUiCiuu i. Upci 


iuptuln 3 iiu 



iupuMn iU 90ct de iiluH luptUn tuvo t (a vi<U il 
eipedxentt de (t Uibtjidoit 
donde Utne luchai uonc4Ucioit4 
[i Jeit dt fiucnil it ziipKCKtit 
1 pagidt I dit ictptudo (i 
t(tbijtdi)(t. 

Se (tiitejto. 



Fttt dt^pedidi lunque pte^enltit 
incipacidid. 

Li Jttt it Pet^ontt H toiniiiUo 
1 ktctttti titcUvo tt pijo. 

U Uabij'idota it P'te^ento i qae 
4t (t tnt(i9t4t po< t4c<Uo U 
iuptuim, pa U niLi it It iijc 
que uuti dt^ptdidt. 



234 



HCU 
9/05/92 

16/(19/92 
i;/09/92 
(1/09/92 



ih: 1992/1993 

imm Louiiucm fimu 



ihbtl Fukion, i.A. 



Up iu Kijud LULu 0<(((iiii 



Voacking InduJtiie^, S.A.Ckip Ckotoii Nitiu S. I)ua<te 



Pago d( 4ti. 4(iana de p<e j 
p<04t-iiati(. 



P190 dt d(4(cko4 Uiniiiisi Se (( h(Zo etecUvo et P190. 
Deipxio Se tnvio Iii4pecto<. 



Pi«ai4o, S./l. ie C.I/. Cttict. vUja ailxil Vktotii NtnjiviPago de p<e4ticiofte4 jociiteAcepto tani^iciciOfie^ aiuciU. 
Ticutyi, Co«U4 



21/09/92 Hgup Sang MandiidJ, S.4. Zip Baii(« 



SUiil 1. ium 
HiiiUiu Ftinco 
S((«di Zivttt 
Xioiaii SuckC2 



Dejpido 



29/09/92 
13/01/93 



full ippuil 
Hi Kuanj Hotiuu 



UUii hiutUMuii Utuco iupUi 



ftniiintt it ifiviu In4pecti( 



finiUntt de envui In4pecto<. 



21/01/93 Konty, S. dc t.L. 



19/01/93 Kanuttctudj UtummihUUH 



Contitu (04 ioUvo4 P04 loH I/i4pectO( JuaA Jo4i UHi 
que dicka4 eipt(adi4 (ueton <adio un in^ixie eit et que pedii 
dt4pedidi4. 4e t(aii4c(ibu4a 1 (a Iii4peccioii 

Senedt de Tdiajo, en vittud de 
<ei(i2a<i (1 Lnvntiiimn j e( 
4e9uii liit de Pe(4oni( (e iiUt e( 
(C4peto. 

Se deii4 en (itcttdad 1 (14 pi<te4 
pi<i que kicieean U40 de 4U4 
de(ecko4 ante quten 
C9((e4pondte4i, en vt<tud de que 
(1 eip(e4a nego kiletti de4pedtdo. 



liuon tone) Suuuz Con4t(tt< de4pidq ve4tit. Se ciinUU 4egun to4 te4t!/i904 que 

et t(ibi/ad04 kiiiin abmdonado et 
ttitn^ii. 



2tp Ciinttnentit«ad<td 

Itdtt Teieid C(U2 



Zip Ckotoid Oijii kttlj Hjii 



20/01/93 (totit Fa4kto», S.K. Zip iu Kijuct Nutt Ettnt (ua4 



iuplit vttM de td E4pe(u<i4 que ti eip(e4a te pigaii 

t(ittiad«>t Iiii04. It en ti it4ii, de to conttitio 

tcu4ib(n de kite* lottvtdo i«e9(C4i4an a e4ti4 oi^cini. 
t<4 coipant4t4 pi<i que no (no 4e9<e4o.| 
tato<t<u ko«a4 eittu, j 
tublu dc ti<d((4e iucko i( 
U at tono. 



235 



COmO DE COIFLICTOI SOSCIITADO WWm 1»94/I9)S, H ENPIESAS UQDILADOUS, ZOIA IIDDStlAL. 



lo. EIPIESl 



ZOU PAIQOE 



FEDElACIOl 

recu KOTivo de coifucto siioical 



1. 


A.A.A. lOIDOUS APPAUL 


TICAIAU, CIOLOIA. 


17/1/J4 


SDSPEISIOI LABOIES 


FITS 


2. 


SEOLII BOIDS., I.A. DEC.?. 


IllDELVA 


19/l/M 


SDSPEISIOI LABORES, 
lECLAlO PAGO DE SAUIIO. 




J. 


GILAH IIODSTIIAL 


GAUn, CIOLOIA 


IJ/I/M 


lECLAW) POI PAGO 
SAUIIO COUECTO 


FESITIAIB 


4. 


COSWI APFAIEl, I.A. DE C.T. 


GAUn, CIOLOIA 


n/:/M 


lECLAM POI IICOIFOIII- 
OAO PAGO DE SALAIIO 


FESITIAII 



5. sour inOSTIIES CO. LTDA. CIIP dOLOU 



IJ/4/M 



SOSPEISIOI DE LABOIES 
POI 1 lOIA, COI IICOIFOI- 
IIDAD PAGO DE iOIAIIO. 
UCIOIAIIEITO EIEE 



C.G.T. 



«• 


nilA IDOITIIU 


CIIPCIOLOU 


14/S/M 


SOSPEIIIOI LABOIES POI 
IKOIFOUIDAO CABIO 
DIA DEICUIO. 


C.G.T. 






lAim 


iniau 


ll/J/M 


lOSPDSIOI LABOIES, 
IKOiromDAD DiA DE 
PAGO. 


C.G.T. 




•• 


niiA iBomia 


imtiu 


M/5/M 


mSPailOl DE LABOIES, 

IKOnOUlDAg PAGO DE 
UlUIO. 


C.G.T. 






niiA iBomiD 


laoaM 


mm 


mrnsiN liious 

ciaio Bi niuio. 

UCIOUIIDTO DEE. 


C.G.T. 




II. 


tnonr iBomin 


dircMUU 


mm* 


SDIPEIIIOI LAMIES, 

IPOTO OnPIDO TUUJADOIES. 


C.G.T. 




11. 


k.k.L.inau. nmut 

M. N C.I. 


iiroouu 


H/l/M 


nsnniN luous poi 
nt niim m ouaiziuE 
iiaiautni. 


P.T.i. 




11. 


aiNMNUI 


UPWIU, 

tnuam 


f/M/M 


lomniN UNUS, ■> 
ma N ACDmo on 

MMAIIilTO. 






n. 


•rriH, S.I. u CI. 


HMlU 


U/ll/M 


vmmmimm, 

nOMMilMI IMO 

imMiMlMmi. 







II. M'l NMUI. 1.1. 



tir 



ii/i/n 






236 



PiC. K. 1 

COIDIO DB COIFLICTOI tOSCIITlOO DOlinE l»4/l»S, D DPIESIS UQOIUDOUS, lOll IIDOSIIAL. 



lo. DPtesi 



12. GIUXT IIDOSTIIIL 



27. COSKi IPPUEL 



lOU PUQOE 



mu 



WTIVO OE COIFLICrO 



GUm, CBOLMi 



IJ/2/M 



SOSPEISIOI UBOIES, 
lECUlO IIFUCCIOI r 
PIOBLEU leWIES DE 
EDU. 



FEDEUCIOI 
SIIDICIL 



14. 




riLLUQEVi 




IICOIPOUIDID POI 
ULOI TUTOI. 




IS. 


CIEIL WIDOUS, l.i. 


IIP lOFlLO, 
flLLilOm 


U/l/« 


lOtPEISIOl LiBOlES, 
IICOIPOUIDID tOIEITO 

siLaio. 


FESITUn 


\i. 


I.I. im 


coniimu 

U LIU 


1J/I/»J 


lOiPEIIIOl LlBOIES 
IICOIPOUIDAO lOIEITO 
SiLUIO. 


PESimil 


17. 


II aUK lOIDOUS 


coniiEniL 

U LIU 


20/l/» 


SOSPEISIOI LABOIEI 
lOIEnO SlLllUL. 


PESITtAlB 


U. 


TOO TJUK, t.l. 


coniKniL 

ULIU 


21/t/« 


SOSPEISIOI LABOIES, 
lOIEITO SlLilUL. 


PESITIAIB 


U. 


CIEIL lOIDOUi 


COnilERAL, 
U LIU 


20/l/)5 


SOSPEISIOI LABOIES, 
AOIEITO SAUIIAL. 


PESITtAlB 


20. 


I.i.P. WIDOUI 




24/l/« 


SOSPEISIOI LABOIES, 
AOIEITO SALUIAL. 


P. I.T.I. 


21. 


CIEIL lOIDOUS, l.i. 


COnilEITU, 
U LIU. 


20/l/» 


SOSPEISIOI LABOIES, 
ADIEITO SAUIIAL. 


PESITIAII 



FESITIAII 



21. 


GALAIT IIDOSTIIAL 


GALAn, dOLOU 


2l/2/« 


SOSPEISIOI LABOIES, 
AOIEITO SAUIIAL. 


PESITUIB 


24. 


EIII lOIDOIAS 


coninnAL 

U LIU 


Jl/J/« 


SOSPEISIOI LABOIES, 1-1/2 
lOlA, lECLAlO PEIIADO 
SEUIA SARA. 




2S. 


8ALII lOIDOIAI 


PAIQOE SU IIGDEL 


)/4/« 


SOSPEISIOI UBOIES, 
AOMEITO DE SAUIIO. 




». 


GALAn IIDOSTIIAL 


GALAn, aOLOU 


7/4/JJ 


SOSPUSIOI LABOIES 
SDPOESTOS ULOS TUTOS. 


PESITIAIB. 



GALAn, CIOIOU 



I2/4/J5 



SOSPEISIOI LABOIES, 
lECLAM AJDSTE PAU 
lEPTIW DIA. 



PESITIAIB. 



237 



PiG. M. 1 



OEnnCIil DE PIMLEUI LUOULEt PUtEITUU UTE EL IIIISTEIIO DE TUAJO (I.P.I. | ElEiO-MTO, IMi. 



lo. EIPtEll 
GLOBiL FllilOII 



Uli PUQOE FECil 



WTITO DE COIFLICTO 



IITEITEICIOI T 
iOLDCIOI 



PUQOE GAUn »/l/H 



tOLlCITOD ?EU1L DE U 
TlillJiDOU UIU pmicii 

IIVEU, POI 101 PEItlOl I 
Dill, miClDOl POI liDIICI- 
PLIIl. EL lilPECTOI K PODO 
lElLIZll U inEITIGACIGI, 
n QOE DICU TIAIIJIOOIA, 
UUDOiO U OFICliA, LLE1AID0- 
lE ESTA EL ADTO T U IOTA DE 
UITIGO. 



PEIIT DE lOIDOUl IIP dOLOIA 



nniH lOLICITOD TEtBAL DEL TIAIAJADOI 
IIGOBEITO lEIDEiCE, COISTATOI 
?EUAL. 10 ATEIDIEIOi A U 
lOLIClTAIDOSE OIA CITA. 



FOLOGAUEn 



ZIP lU lOGOEL \iniH 



lOLICITOD EICIITA POI PAITE DE LA 
JEFE DE PEIIOIAL, PAIA TIATAl 
PIOILEIA COI EL TIABAJADOI ALEX II 
PEUMWO, QOIEI IIITAIA A LOI 
COIPAlEIOI A K LABOIAI EL DIA 
5/1/96, ACAIIOIAIDO PEIDIDA A U 
EIFIEIA El VIITOD DE QOE IE ATUtO 
01 EUUQOE. 



COIIOI APPAIEL 



PUQOE GALAn 12/2/» 



lOLICITOD PIEIEITADA POI LA 
FEIITUII, PAIA COIITATAl DEtPIDO 
?EUAL DE U TIABAJADOIA IIIUA 
GLOIIA KUTIIEZ, LA JEFE DE 
PEIIOIAL lUIFEITO QDE U IIIGDI 
lOIEITO LE Ul DEIPEDIDO. 



II EIAIG MiDOUl ZIP COnilEITAL 12/l/9i 



lOLICITOD EICIITA, PAU COIITATU 
DE lABEDIEICIA DE U TUBAJAOOU 
LOOIDES lAIOI, lEGUDOSE lOTOIDAIEITE 
A LUOUl El SECCIOI DE PLUCBA, 
lEGDI LABOUBA El LA SECCIOI DE 
aPAQOE. 



FEIIX APPAIEL PUQOE GALAH ll/l/» lOLICITOD TEUAL DEL TUBAJAOOI 

JOIIU JOIE CUALEI, COIITATAl 
DEIPIDO TEUAL. 
IOTA: IIIPEa. 10 COICILIADO 
TA QOE lOLO LE PAGUU AL 
TIUAJADOI LOS DEIECMI ADQOIIDOI 



238 



PAG. 10. 4 



OEIOKUI DE FIOILOUI UBOULU PUSEniDll UTE EL IIIISTEIIO DE TUIJO (S.P.S.) EIEIO-IATO, Wi. 



le. EMPIEM 

IPl WIDOUI 



KU PUQOE 



PECU 



WTIVO DE COIPLICTO 



IITEIVEICIOI T 
SOLOCIOI 



ZIP CIOLOU l/l/H lOLICITOD lEIBU DE U TliliJlOOli 

DEIU CIOI QOIEI lECLAW PIESTiCIOIEJ 
r BEIAS IIDEIIIZACIOIES, TA QOE IE 
EICOITIABA El ESTAOO DE EUAUZO. 
WTA: IISPEa. 6ABIIEL CI. 
POSPOIIEIOI ADDEKIA PAU EL ll/l/H. 



APA lonwui 



ZIP OMUHU U/I/)i lOLICITOD fEUAL DE U TUBAJADOU 

DOIA QOEDAIDO DE lEIOLTElLE EL 
14/l/)i, ESTAIDO DE ACOEIDO U 
lEKIOIAOA TUBAJADOU. 



inOSTIIU IIP WIDOUI ZIP VILLAKinA 



17/1/n lOLICITOD lEUAL, DEL TUIAJAOOI 
JOUITO lAnUA f . , COIITATU 
DUPIDO TEUAL. 
IOTA: lUPECT. lUm ZEUTA. 

10 inoaTO. 



GU»U PAIIIOIt 



puQoecAun 



1/2/M 



UIMDOUI 



zipnrAU 



1/1/M 



MLICITOD lEUU U U TUUJADOU 

CAiu PAniciA iinu. imniGii 
mPEnioi I till III 60IE n mm 
poi mm ruTU ( u futo uipeto 
tuitnu peuoui),uiipenAno 
u tuajamu t n di iorito ie 

UTIUM II U nPUIA T QOE ACEPTAU 

a PAfio IE ni leucioi aoqoiiiioi. 
miciTtn foui poi riin u ui 

TUIUAIOUI: lOOlia flBAI, lUILO 
IIIU T UIO IO»Ui;PlU IICLAUl 
UTCUINI;IO rniDBO K lEWLTU 

a pmuu, D vinoD ie qei u jete 
H peuoui, iia got u evieia ceiio 

oPEUcioBi n iniccioi del ait. (in 

HKUL )| Ml CMISO DI TUIAJO T lit 

r 111 H iiin coBia. 



239 



PAG. NO. S 

DEIDICIAS DE PIOBLEIAS LA80ULES PIESEITAOAS ANTE EL KIIISTEIIO DE TIBAJO (S.P.S.) EIEIO-KATO, 1996. 

inEtvEiclox r 

Ho. ENPRESA ZOIA PAIQDE PECBA KOTIVO OE COIFLICTO SOLDCIOI 



9/1/96 



ZIP SAI NIGDEL 9/2/96 SOLICITDD VEIBAL POK LAS TUBAJADORES 
JOAIA PERDODO T GLADYS DIAS, PARA 
COISTATAR DESPIDO VERBAL DE QUE POEROI 
OBJETO; NAIIPESTAIDO LA EKPRESA QDE 
FDEROI DESPEDIDOS PORQDE CONETIEROI 
ACTOS ?IOLEITOS, TEIIEI VIRTDD OE 
EABER SIDO DESPEDIDO lAIIFESTAIDO LA 
JEFE DE PERSOIAL QOE SE DESPEDIDO A 
DICHA TRABAJADORA, PORQOE SE LE 
nCOVTRO OIA PREIDA DE VEST I R EK SO 
KARIQDERA, LO QDE TRADOCIDO El ROBO, 
POR LO QOE LA ENPRESA NO RESPONSABILIZA 
AL PAGO DE PRESTACIONES ONICANENTE AL 
PAGO DE LOS DERECHOS ADQOIRIDOS 
RECOIOCIENDO LA TRABAJADORA LA FALTA 
CONETIDA. 



COSNOS APPAREL FARQDE GALAIT 26/2/96 SOLICITDD VERBAL, POR PARTE DE 

LOS TRABAJADORES: ROGOBERTO CASTRO 
HARVII PIITO, GEOVAIIT LOPEZ, 
lARVIl BOESO, JESOS GONZALES, 
RNDT CASTILLO T OTROS, CONSISTENTE 
EN COISTATAR QDE, LDNES 12/2/96, LA 
SEiORA ELOISA CACERES, lOS DESPACBO, 
DICIENDONOS QOE FUERANOS PARA LA CASA 
QOE 10 SE TRABAJARIA ESE DIA T QOE NOS 
LOS IBU A FAGAR; PERO AL RECIBIR EL 
PAGO COUESPOIDIEITE A ESA SENAIA, 10 
ESTABA IICLDIDO ESE DIA QDE NOS 
DESPACBARON. NO PODIENDO EL INSPECTOR 
lEALIZAR LA IIVESTIGACIOI, EN VIRTDD DE 
QDE LA ENPRESA PERIITIA LA ENTRADA AL 
INSPECTOR, NO AS I A LOS TRABAJADORES, 
OPTAIDO ESTE POR RETIRARSE LA IIDICADA 
ENPRESA. 



cieiL wiDoui, i.A. ZIP coniiEniL i/i/)i 



SOLICITOD VERBAL DE LAS TRABAJADOUS 
laU SDTAPA QOinAIILLA, lARIA NELLT SANTO T 
FEILA CIAVAIIIA ORTEGA, PAU INVESTIGAR 
SDSPEIIIOI FOI CIICO DIAS, SIN GOSE DE 
lALAIIO. lAIIFESTAlDO U EIFIESA QOE DICIA 
SDSPEISIOI ESTABA APLICADA DE ACOERDO AL 
lEGLAIEITO IITEUO DE TRABAJO I EL CODIGO 
DE TIIIAJO, T QOE ADI All lES REBAJARIA LA 
SDSPEiSIOi A TIES DIAS, KANIFESTUDO EL 
INSPECTOR QOE DICIA SOSPEISION ESTABAN 1 1 El 
FONDANEITADAI TA QOE lABIA REVISAOO EL 
lEGLAIEITO inEUO DE U IIDICADA EIPRESA. 



240 



PIG. 10. i 



DEIOICIAS DE PIOBLEVAS LABOULES PlESEniSAS ARE EL IIIISTEIIO DE TIBAJO (S.P.S.j EIEIO-IATO, 1996. 

IITEIVEICIOI r 
lo. ENPIESA ZOIA PAIQDE FECIA lOTIVO DE COIFLICTO SOLOCIOI 



FEIII APPAIEL 



PAIQDE GALAn (/}92 



SOLICITUD ESCIITA, PIESEITADA 
POI Ul GIDPO DE TIABAJAfiOlEI, 
PAU VEllFICAl LA FOUA DE PAGO 
A QOE ESTAI SIEVDO SONETIDAS SII 
lABEILES PAITICIPADO A LOS 
lEICIOIADOS TIABAJADOtES. VAIIFES- 
TAIDO LA JEFE SE PEISOIAL, QDE 
DEB I DO A QDE LA PAGADOU BAB I A 
SIDO OBJETO SE ASALTO T AITE EL 
PELIGIO DE OTIO ASALTO, SE TOlO 
LA DECISIOI DE PAGAl EL SABADO 
KAS PlOimO A LA QDIICEIA Y QDE 
TIEIEI LISTA DE LA VATOIIA DEL 
PEISOIAL BABIA ACEPTADO LA FOUA 
DE PAGO, r QDE U ENPIESA 10 TOKAIIA 
lEPlESALIAS COITU LAS lECLANAITES. 



AMEIICAI APPUEL ZIP CIOLOU 26/]/)i SOLICITOD fEUAL DE LA TIABAJADOU, 
CORPOUTIOI SILVIA AIGEITIIA lADlID, PAU COISTATAl 

DESPIDO VERBAL, lAlIFESTAIDO LA JEFE 
DE PEISOIAL, QDE U TIABAJADOU 
NEICIOIADA FDE DESPEDIDA POI GUVE 
IIDISCIPLIIA QDE CONETIO AL 
EITEUAILE 01 LAPU El EL BUIO AL 
COIPAiElO lOGEI FEIIEU, SIEIDO ESTA 
DIA CADSAL DE DESPIDO SII lESPOISABILIDAD 
DE LA EIPIESA, PAGAIDOLE DIICAIEITE SDS 
DEIECBOS ADQDISITIVOS, LA TUBAJADOU 
SILVIA lADlID, lAIIFESTO QDE ELLA SE 
EICOITUBA El SD PDESTO DE TUBAJO, 
COAIDO LLEGO EL COIPAiElO lOGEl FEIIEU 
A BDUAISE DE ELU, EIFADAIDOIE TAITO 
QOE LE Dl 01 FDTOI El EL BIAZO, T QDE 
QOIEI BABIA DADO OIIGEI AL PIOBLEIA 
EU EL TUBAJADOI FEIIEU. 



PUMA IIDOSTIIES 



CUP CBOLOMi li/]/9i 



SOLICITOD ESCIITA PUSEITADA 
POI US TUBAJADOUS lAlIA 
lOSAllO GOIEI T OTIOS, 
COISISTEITE a imSTIGU EL 
BOSTIGANIEITO DE QOE ESTAI 
SIEIDO OBJETO DE PAITE DE U 
COIEAIA E. IIVESTIGACIOI QOE EL 
IISFECTOI 10 PDEDO LLEVAI A 
CABO El VIITDD DE QDE K 
LO DEJUOI EITUI, ADOCinDO LOS 
GOAIDIAI QOE 10 lAlIA lADIE QOIEI 
LO PODIEIOI ATEIDEI. 



241 



PAG. MO. 7 

DENONCIAS DE PROBLEKAS LAJOIALES PIESEITADAS AITE EL NIIISTEIIO DE TUAJO (S.P.S.j ENEEO-NAfO, 1996. 

imiVENCIOII r 
No. ENPRESA lOtk PARQDE FECEA lOTIVO DE COIFLICTO SOLUCION 



PRIMA IMDOSTRIES 



CHIP CHOLOMA 8/4/96 



SOLICITUD VERBAL POR LA TRABAJADORA 
ALBA LDZ UNIREZ, COMSISTEMTE EM 
El REQOERIR EL PAGO DE DERECBOS ADQUIRIDOS 
ADQOIRIDOS, IMCLUrEMDO LOS DE MATERMIDAD, 
POR REIUMCIA BAJO PRESIOI SEGUM ADUCE LA 
TRABAJADOU EL liSPECTOR SE ABOCO COM LA 
COMTADOU, QOIEI LE MARIFESTOQDE EL CBEQUE 
POR LOS DERECBOS ADQUIRIDOS YA ESTABA LISTO 
PERO QOE MATERMIDAD LA LEY MO LOS OBLIGABA 
A PAGARLA. 

EN ESE MOMENTO SE PRESEMTO EL SR. CARLOS 
NOMTES Y SIM ANTES INDEMTIFICARSE PROCEDIO 
A IMPONER SDS PROPIOS CRITERIOS SOBRE EL 
RECLAKO. 



OPTIMA, S.A. DE C.V. CHIP CEOLOMA 4/4/96 



SOLICITUD VERBAL, POR EL EMPLEADO 
JESOS NOEL GUERRERO MADRID, 
COMSISTEMTE EM IMVESTIGAR 
SDSPEMSIOM DE LABORES POR 3 DIAS 
SIM GOSE DE SALARIO. EL INSPECTOR 
PROCEDIO A SOLICITARLE AL SR. 
DOMINGO RAUDALES QOE LE PERN IT I ERA 
SACER LA IMVESTIGACIOM, MEGANDOSE 
ESTE A QOE EL INSPECTOR REALIZARA 
LA MISNA. 



CONFECCIOMES DOS ZIP BOFALO 24/4/96 EL INSPECTOR SE PIESENTO CON DN 
CANINOS.S.A. TRABAJADOR A REALIZAR DMA INVESTIGACION 

LE QOITARON EL CARMET LOS AGENTES 
DE SEGDRIDAD, RECLANADONLO ESTE T NO 
SE LO DEVOLVIERON. 



IIL JIN eONDOUS, S.A. PARQOE IIHDELVA 26/4/96 



SOLICITDD ESCRITA PRESENTADA POR LA 

SRA. NARIA ESPERANZA REYES, DEL 

CODEH, CONSISTENTE El IMVESTIGAR 

PROBLEIA LABORAL RELACIONADO CON LA 

TRABAJADORA SUTOS PAZ, QDIEI SECOI 

LA SRA. REYES, SE EICOENTRA 

ENBAUZADA Y QDE RENDNCIO POR SO 

ESTADO DE SALDD. EL INSPECTOR SE 

PERSONO CON EL SR. EDOARDO NENDOZA 

JEFE DE PERSONAL QOIEN LE MANIFESTO 

QDE LA TRABAJADOU El lENCION AL PONER 

SO lEIONCIA AOOJO QDE SE QOERIA IR DE 

U ENPRESA T IDICA lAIIFESTO QDE SE 

EIC0ITRA8A EIFEUA, QOE DE EABER TEIIDO 

COIOCIIIEITO DE TAL SITOACIOI, LA 

IDEIERAI MAIDADO AL RED ICO DE LA 

EIPRESA, POR LO QDE DDDAI DE QDE SE EICDEMTRE EMBARAZADA. 



242 



PAG. 10. 8 



DEMDICUS DE PEOBLEHAS LABOULES PIESENTADAS AITE EL mmSTEIIO DE TUAJO (S.P.S.) ENERO-KATO, 1996. 



lo. EMPtESA 
PAUISO, S.A. 



:OIA PAIQOE 



PECBA 



NOTIVO DE COIFLICTO 



IITEEVENCIOK Y 
SOLDCIOI 



AIEA DE CeOLONA HHii SOLICITDD ESCIITA PIESEITADA POI 

LAS TIABAJADOUS, SAIIDIA NIUIDA, 
PELNA BEIITEZ T lOEKA GDEVAIA, 
COBSISTEITE El IVESTIGAt BOSTIGANIENTO 
CASTIGO T QUE VO LES PAGAN BOUS EITtAS 
EL IBSPECTOl SE A80CO CON EL SI. CARLOS 
BONILLA, JEFE DE PERSONAL, QUIEN LE 
MANIFESTO QDE NO TENIA TIENPO PARA 
ATENDERLE, FOR LO QOE NO PODO CONPLIR 
SO CONETIDO. 



CBARNING GARMENT ZIP 8DFAL0 



7/4/}( SOLICITOD VERBAL, DE LA TRABAJADORA 
SANTOS NIRANOA, COISISTENTE CONSTATAR 
DESPIDO VERBAL. EL INSPECTOR SE ABOCO 
CON LA Lie. VELAZQUEZ, JEFE DE PERSONAL, 
QOIEI NANIFIESTA QDE FDE DESPEDIDA FOR 
BABERSE ADSENTADO TRES DIAS SIN TENER 
JOSTIFICACION, Y LA TRABAJADORA NE DUO 
QDE NO FOE A TRABAJAR ESAS DIAS FOR 
EIFERIEDAD DE ELLA T SO NADRE Y QDE NO 
TENIA PRDEBA DE ELLO FORQDE NO FOERON 
AL MEDICO YA QOE SD NADRE LA LLEVAN 
DONDE ON COUNDERO. 
U TRABAJADORA MANIFESTO, QDE ELLA LE 
PRESEHTO UNA CONSTANCIA MEDICA A LA 
JEFE DE PERSONAL, Y ESTA LE DEJO QOE 
PODIA CONTINOAR LABORANDO, LO QUE 
U TRABAJADORA NO ACEPTO, FOR QUE YA BASIA 
SIDO DESPEDIDO. 



243 



PAG. NO. 9 

DEIUKCIAS DE PROBLEMAS UBOULES PIESEMTADAS AITE EL KIlISTEtlO OE TUAJO (S.P.S.j ElEtO-VAYO, 1996. 



lo. EMPIESA 



ZONA PAIQOE 



FECIA 



NOTIVO DE COIFLICTO 



mTEIVEICIO r 
SOLUCIOI 



nAMGLEt DE HOKDOUS ZIP VILLAIOETA n/4/9i 



SOLICITOO ESCIITA PIESEITAD 
POI LA m. ESPEUMZA lEYES 
DEL CODEB, COISISTEITE EX 
IIVESTIGAl QDE LA TUBAJADOU 
UtLA PElA ESTA SIEXDO OBJETO 
DE HOSTIGAMIEKTO POI PARTE 
DE LA SOPERVISORA JESSICA 
WAiA. EL IISPECTOR SE ABOCO 
CON LA SRA. NARIBEL DE BORJAS, 
JEFE DE PERSONAL QOIEN NANIFESTO 
QOE NO HA TENIDO QOEJA FOR PARTE 
DE ESTA TRABAJADOU T QDE LES 
ERRAiA QOE SE QOEJE ANTE LAS DE 
CODEH, TA QDE LO QOE NAS RESPETA 
EN ESTA ENPRESA SON LOS DERECHOS 
DEL TRABAJADOR. 

QOE COANDO ON TRABAJADOR SE QOIERE 
IR, SE LE PAGAN TODOS LOS DERECBOS 
QDE FOR LET LE CORRESPONDEN T DNA 
BONIFICACION SI EA SIDO BOEN ENPLEADO 
EL INSPECTOR NO INTEUOGO A LA 
TRABAJADORA POR QOE ESE DIA NO SE 
PRESENTO A SUS LAfiORES. 



INTERTEI APPAREL, S.A. PARQDE INBDEL?A 24/S/9i 



SOLICITDD VERBAL DE LA TUBAJADORA, 
LILIAN FIGOEROA, CONSISTENTE EN RECLANAR 
LA NOTA DE DESPIDO DE U TRABAJADORA 
NENCIONADA QOIEN FOE DESPEDIDA VERBAL- 
NENTE. EL INSPECTOR SE APERSONO CON LA 
ilk. ESNELDA DE NENOCAL, JEFE DE 
PERSONAL, QOIEN NANIFESTO QDE £N EL 
ACTO LE ENTREGARIA U NOTA, TA QDE FUE 
DESPEDIDA EL 20/5/96. 



244 




COPY 

The (A^lrf^fsf^Sjo Coiripaiiy. 



May 16, 1996 

The Honorable George Miller 

Co-Chairman 

Democratic Policy Committee 

U.S. House of Representatives 

Washington, D.C. 20515 

Dear Congressman Miller: 

Thank you for the chance to respond to questions about the manufacture of products that 
bear Disney images. We arc aware of the statements made at the April 29 hearing and are 
confident that such remarks arc incorrect. 

When the allegations regarding Haitian manufacturers of Disney licensed products were 
first put forward, we made an immediate investigation to determine the facts. We found 
that there were, in fact, no minimum wage law violations, as improperly alleged. We are 
aware also that the office of the U.S. Ambassador to Haiti has done its own investigation 
of the subject allegations and has determined that they have no basis in fact. 

In response to the specific questions in your letter, I note that, except in very limited 
circumstances, our company is not a manufacturer. Rather, licensed products bearing our 
intellectual property are manufactured by licensees and their subcontractors in many 
countries (as well as in the United States) around the world. Over the past several years, 
we have begun to include in all standard Disney license and manufacturing agreements 
language pursuant to which the licensee or manufacturer agrees not to use child labor and to 
observe all applicable wage and hour and other employment laws in their jurisdiction. I am 
enclosing a copy of those provisions in their entirety. 

In addition, Disney's commitment to the principles espoused in its contracts includes 
unscheduled inspection of manufacturers' facilities even though they are not under 
Disney's control. Moreover, in the future it is our intention to elicit periodic written 
certification of continuing monitoring and compliance with the terms of our agreements. 

In view of all this, we continue to believe that consumers can rely, as they do, on the 
Disney name and on the government officials and agencies that are charged with protecting 
workers, in our own country and elsewhere. 



Very truly yours 




Richard Bates 



Attachments 



245 

Port:-au-Princ«, Hay 14, 1996 

Mr. Qiuck Chanplin -^ 

Director of CoAmunicat.ion 
Disney Consumer Products 
500 south JBuena Vista Street 
Bxurbank, California 91521 

Dear Mr. Chanplin: 

In reference to your recent request, we would liXe to provide 
you with our current assessment of conditions in the Uaitiam 
assembly sector- The Embassy conducts regular surveys of the 
assembly sector to gauge overall activity, employment, wages 
and working conditions. In addition. Embassy representatives 
make periodic announced and unannounced factory visits, 
ijicluding recent visits to three of the facilities you 
mention in your inquiry. Our latest survey showed a pattern 
of widespread compliance with the minimum wage among 47 firms 
operating in the sector. Base daily minimum wages range from 
36 (the legal minimum) to 52.5 gourdes, with ten firms paying 
a daily minimum wage above 36 gourdes. Actual daily earnings 
arc higher (38-100 gourdes) because most assembly woricers are 
paid by the piece. Reported median daily earnings are 60 
gourdes, with 25 firms reporting average daily eaxmings of 
50-60 gourdes. 

Working conditions vary throughout the assembly sector, in 
general, we have found factories to be adequately lit and 
ventilated (fans, windows and large open doors) , warm — but 
not oppressively hot — reasonably clean and with adequate 
work space for each employee. These conditions appear to 
meet international standards. 

Many factory owners provide other services for their 
workers. Companies often pay to have a doctor come in 
regularly to treat employees. Most companies dispense 
condoms and over-the-counter medication (mainly aspirin) free 
of charge and many sell common prescription medications at 
cost. Still others cover all major medical expenses. We 
know of a number of employers who subsidize meals. Some 
firms also maintain a lending fund for their employees. 



246 



W« believe Alan Xaufnan's survey for Disney was characterized 
by great thoroughness and attention to detail, and we 
encovirage you to continue to take an active interest in the 
way your contractors are operating their facilities in 
Haiti. Please do not hesitate to contact us if we can be of 
further assistance. Kind regards. 

Sincerely, 



Williaia Lacy Swing 



247 




United States Department of Slate 
^'ashington. D.C. 20520 



MAY 3 1 1996 
Dear Mr. Gephardt: 

I am writing in response to your letter to Assistant 
Secretary Shattuck of Nay 14, 1996, concerning allegations that 
licensed Haitian suppliers of clothing for the Walt Disney 
Company are in violation of applicable wage and child labor 
laws in Haiti. 

In response to similar allegations brought to the 
attention of the U.S. Embassy in Port au Prince, Haiti, Embassy 
staff have recently made unannounced visits to several assembly 
sector plants, including some of those used by the Disney 
suppliers. The results of these visits (in addition to 
regular, periodic announced and unannounced visits by Embassy 
personnel) show a pattern of widespread compliance with minimum 
wage laws with most workers earning substantially more than the 
minimum wage. 

Working conditions vary throughout the assembly sector 
where the firms in question are located. In general, Bmbascy 
surveys have found factories to be adequately lit and 
ventilated, reasonably clean and with adequate work space for 
each employee. Embassy personnel have not found any incidences 
of violations of child labor laws in these factories. 

The Embassy shares your concern about labor conditions in 
Haiti and will continue to closely monitor the situation there 
through periodic announced and unannounced visits to plants in 
the assembly and other sectors. 

Thank you for your Interest in this issue. Please do not 
hesitate to contact us if we can be of further assistance. 



Sincerely, 



Barbara Larkin 

Acting Assistant Secretary 

Itegislative ACfairs 



The Honorable 

Richard A. Gephardt, 

House of Representatives. 



Ana Cristina Sol 
Ambassador 



248 



Embassy of El Salvador 

2308 California Street, N.W. 
Washington, DC. 20008 



June 10, 1996 



Dear Congressman Smith: 

The Government of El Salvador has followed with interest the recent 
news accounts in the United States regarding working conditions in the maquila 
industry. We are fully cognizant of the great importance that respect for labor 
rights has in the region as well as in the United States and in the rest of the 
world. 

For this reason, our Government fully supports your caU to action to 
eradicate once and for all these illegal labor practices throughout the world, and 
we welcome the upcoming "Fashion Summit" being organized in Washington 
D.C., under the leadership of U.S. Labor Secretary Robert Reich, to which we 
hope to be invited. 

In February, 1995, the Govenunent of El Salvador received charges 
alleging labor rights violations by some plants in our coimtry. We promptly 
created a special dispute resolution and prevention commission, integrated by 
representatives from our Ministries of Labor and Economy, the labor unions, 
Salvadoran Apparel Manufacturers Association, and ttie Human Rights Office of 
El Salvador. Their investigation made several findings of violations of El 
Salvador's labor laws, which International Labor Organization experts consider 
one of the most modem labor codes in Latin America. 

Fortunately, these findings only involved less than one percent (1%) of 
our maquila plants. The most common violations included improper 
terminations of employment delays in the payment of regular wages and 
overtime pay, and illegal salary withholdings. 



The Honorable 
Christopher H. SmiA 
U.S. House of Representatives 
Washington, D. C. 



249 



The Honorable 
Christopher H. Smith 
Page 2 



Since then, our Government has been implementing additional measures 
to prevent and penalize labor law violations. Among the most significant ones 
are the following: 

- The establishment, by Executive Order in the Labor and Social Prevision 
Branch, of a "Joint Public/ Private Free Trade Zone Conflict Prevention 
Commission", whose mission is to address and attempt to resolve in the best 
possible manner, any labor or financial disputes arising between employers and 
employees. This Commission is composed of public and private sector 
representatives, including employers and employees. 

- Reforms to our Free Trade Zone Act to include among other things a 
social clause (enclosed). This last provision subjects all plants in those zones to 
our labor and employment benefits statutes, including the right to organize, 
prohibitions against compulsory labor, minimum working age for minors, 
minimum labor requirements (e.g., minimum wage, working hours, and work 
site safety and security requirements). These amendments authorize the Ministry 
of Economy, when petitioned by the Ministry' of Labor, to impose fines on any 
business violating these provisions. In more serious cases, their license to 
operate in the free trade zones can be temporarily suspended or permanently 
canceled. 

- The design and implementation of an enforcement monitoring program, 
with unannounced plant inspections to verify compliance and identify any 
abnormal practices which may potentially give rise to labor conflicts. 

In addition to the above, the Salvadoran Apparel Manufacturers 
Association is developing a self-monitoring system and a code of conduct to 
enable its members to be recognized throughout the world as an industry with 
very high and modern labor standards. 

The Government of El Salvador is firmly committed to the strict 
enforcement of its labor laws. In this regard, we are pleased to note the return of 
two U.S. companies to El Salvador who had previously suspended operations. 
We view this as further evidence that we have taken the right course of action 
and that our Government's message has been well received. 



250 



The Honorable 
Christopher H. Smith 
Page 3 



We also want the American pubhc to know that the new challenges we 
face, as a result of the world's economy becoming increasingly open and 
international, requires us to become more competitive and productive to attract 
foreign sales and investors. Our competitive character cannot and shall not be 
based on offering cheap, unskilled labor; rather, it must and will be based in 
having higher productivity rates resulting from investment in human capital and 
infrastructure, from promoting free trade, and from modernizing our 
government services. 

Our implementation of these policies poses no threat to the economy of 
the United States; quite the contrary, it offers broad opportunities to promote 
bilateral trade and strengthen the flow of investments, because it allows us both 
to complement our respective comparative advantages, thereby contributing to 
the creation of more and better paying jobs in both our countries. 

We recognize that we face a major challenge in the field of labor issues, 
both in Latin America as well as in the United States. It is for this reason that the 
U.S. Labor Secretary Robert Reich's and the U.S. Congress' initiatives are 
encouraging and deserve our full support. Our Government has made the 
decision to take an active role in combating illegal labor practices and 
eliminating the unfair exploitation of labor from our hemisphere. To achieve 
that mission, you will be able to count on the experience of a country that was 
able to engage in a dialogue for peace to put an end to the 12 year old conflict, 
and one with more recent and fresh experience in promoting employment rights 
among its work force. 

In closing, we respectfully request that this letter be included in the 
official record of your Committee's hearing on this subject of June llth of 1996. 

Thank you very much for providing us with this opportunity to share our 
views with you and your colleagues in the Committee. 



Sincerely yours. 



251 



[TRANSLATION] 

Art. 4.- A subsection is added to Art. 31: 

Art. 31.- f) Comply with the requirements set forth in 
the statutes, regulations and other legal 
provisions concerning labor and social 
security, as well as the other duties arising 
from the legal system generally, except those 
that have been exempted by virtue of this l.aw. 

Art. 5,- Art. 32 is amended as follows: 

Art. 32.- The beneficiaries of the incentives granted 
pursuant to this Law who fail to comply with its 
provisions shall, aside from being subject to sanctions 
under the Penal Code and other laws, be sanationed 
administratively by the Ministry of Economics based upon 
information provided by other public institutions or the 
Ministry itself. 

The sanctions shall be fixed based on the seriousness of 
the offense and shall consist of: 

a) Written warning and prevention. 

b) Temporary suspension of benefits. 

c) Revocation of benefits. 

Art. 6.- Art. 3 3 is replaced by the following: 

Art. 33.- If the beneficiaries fail to comply with the 
obligations set forth in this Law, the Ministry of 
Economics may, depending on the gravity of the violation, 
admonish and warn the violator in writing, temporarily 
suspend benefits for the remainder of the fiscal year and 
an additional fiscal year, or permanently revoke the 
benefits granted. 

Should the violations to this Law recur or persist, the 
Ministry of Economics may permanently revoke the benefits 
granted and communicate this to the appropriate public 
institutions. 

Art. v.- Art. 34 is replaced by the following; 

Art. 3 4.- The Ministry of Economics shall issue 
written warnings and admonishments, temporarily suspend 
or permanently revoke benefits granted pursuant to this 
Law whenever it verifies on its own or based on a 
complaint from other public institutions that any 
m.achinery, equipment, raw materials, serai-finished 
products and any other articles that the recipient has 
acquired through the benefits granted, and also, for any 
violation of the labor, social security, and other 



252 

ob.l.roations of the law. 

Art. 8.- Art. 4 8 is amended a3 follows: 

Art. 48.- A request for reconsideration of any ruling 
whichi results in the temporary or perincinont suspension of 
benefits granted may be filed with the Ministry of 
Economics not more than eight days following the 
notification date. The reconsideration petition shall 
include the appropriate and relevant evidence and 
arquments. 



253 



Embajada de Honduras 

Washington, DC 



The Honorable Christopher Smith 
Chairman of the International Operations 
and Human Rights Subcommittee 
United States House of Representatives 
2401 A Raybum House Office Bldg 
Washington, DC 205 1 5 



June 10, 1996 



Dear Mr Chairman: 



I have been informed that you will be conducting an open session of the Subcommittee on 
International Operations and Human Rights on Tuesday June 1 1 1 996, on child labor. With regard 
to this subject, my country has been recently mentioned in the media and Congress. I would 
therefore wish to convey our ideas and impressions to you and the Subcommittee members. 

The Honduran government shares the Subcommittee's concerns on the issue of abuse and 
exploitation of underage workers. In fact, this issue is continually monitored and infractions 
enforced by the Inspectors General's Office of the Ministry of Labor under the authority and 
Laws that have been enacted by the Honduras Government. Recent allegations on this subject 
have been brought to our attention, and our Ministry of Labor has initiated specific inspections in 
the apparel workplaces. Any company, foreign or not, found in breach of our labor legislation, 
would receive the sanctions established by Law. These may be fi"om a fine, up to the closure of 
operations and imprisonment. Since the first inspections in early May, there has been no 
confirmation of these alleged abuses. 

I enclose four brief documents that I hope will be helpful for the Subcommittee's 
deliberations. 

Yours sincerely, 




JSiSRtbert 



Flores Bermiidez 
Ambassador 



254 



For iiunediate release: 

Embajada de Honduras 
Washingcon. DC 

Government of Honduras launches investigation on alleged abuse of workers 

The Govenunent of Honduras today announced its intention to conduct a thorougli investigation of 
alleged mistreatment of workers by foreign companies tliat produce garments in Honduras for export 
to tlie United States and other countries. 

"My Government is fully committed to protect the rights of Honduran workers, to enforce the labor 
laws, and to expel foreign companies that systematically flout our laws and abuse or exploit our 
workers," said Roberto Flores Bermudez, Honduran Ambassador to the United States. 

The investigation was sparked by the accusations of Wendy Diaz, a 15-year girl old fonnerly 
employed at Korean-owned Global Fashions, which produces women's pants for Wal- Mart bearmg 
the name of celebrity Kathie Lee Gifford. Diaz, an orphan who began working at the facton when 
she was 13, accused her former employers of exploiting child labor, imposing 14 to 16-hour 
workdays, subjecting employees to physical and verbal abuse, and firing workers who attempt to 
organize a union. 

■'Ms. Diaz has alleged serious violations of Honduras' labor laws, which, if pro\en. will result m 
heavy penalties against her former employers," said Ambassador Flores. He added that Honduras has 
expelled two Korean Companies in the past two years for labor law violations. 

"Fortunately," Ambassador Flores continued, "such companies are the exception in Honduras, not the 
rule." He emphasized that the Government and the private sector, including organized labor, respect 
Honduran law and workers. 

As a result of these efforts. Ambassador Flores explained, "many manufacturers, especially those 
from the United States, have agreed to comply with labor standards even more demanding than those 
required by law. Medical care is now provided on a permanent basis in most factories. Food costs are 
covered if workers stay overtime. Wages have improved. And seminars are held frequently to educate 
manufacturers and supervisors on required standards and practices." 

Honduras has also taken steps to strengthen its capacity to supervise employment practices and 
enforce its labor laws, especially in the industrial parks and free trade zones where most foreign 
garments companies operate, Ambassador Flores said. To this end, tlie Government has benefitted 
from technical assistance from the U.S. Department of Labor and the .AFL-CIO. 

The United States is Honduras' main trading partner, and most garments produced in Honduras are 
exported to the United States. "Out of everj' dollar earned from trade with the U.S. in Honduras." 
Ambassador Flores said, "at least 75 cents returns to the U.S. through purchases and services. For 
every 100 garment-industry jobs in Honduras, at least 1 5 jobs are created in the United States. So 
trade with Honduras is good for tlie United States, too." 

May 30, 1996 For additional Infonnation contact: 

Benjamin Zapata (202) 966 4596 



255 




EMBAJADA DE HONDURAS 
WASHINGTON, D.C. 

PRESSRELEASE 

FOR IMMEDIATE RELEASE 

June 4, 1996 

PRESS CONFERENCE: June 7, 1996, 9:00 a.m., Zenger Room, The National Press Club 
R s.v p.: Hugh Clifton (202) 463-6161 



HONDURAN AMBASSADOR AND PRIVATE SECTOR EXECUTIVE 

TO SPEAK ON HONDURAN TEXTILE INDUSTRY 

JUNE 7, 1996 

Allegations have been made about the possible mistreatment of Honduran workers in the 
manufactunng of garments for export to the United States, including the Kathie Lee Giiford 
clothing line. Immediately upon hearing these allegations, the Honduran government announced its 
intention to conduct an investigation of alleged violations of Honduras' labor laws. 

On Friday, June 7"*, His Excellency Roberto Flores Bermudez, the Ambassador of Honduras to the 
United States, vnti be addressing allegations of child labor abuse in the Honduran textile industry 
He will be joined by a special guest speaker, Mr. Norman Garcia, Executive President of the 
Foundation for Investment and Development of Exports in Honduras (a non-profit agency fi'om the 
Honduran private sector whose mission to promote foreign investment in Honduras). The press 
conference will be held at 9:00 a.m. in the Zenger Room of the National Press Building on the 13* 
floor. The National Press Building is located at 14"" and F Streets, NW. 

The Government of Honduras is committed to protecting the rights of Honduran workers, enforcing 
its labor laws and taking action against any companies that may systematically flout Honduran 
laws and exploit Honduran workers. The Government of Honduras has taken various measures to 
demonstrate its commitment to protecting the rights of Honduran workers. For example, three 
foreign mvestors were expelled for labor law violations in the last two years. 

Contact: J Benjamin Zapata, Embassy of Honduras, (202) 966-7702 
Hugh Clifton, Washington World Group, (202) 463-6161 



256 




EMBASSY OF HONDURAS 

REFERENCES ON LABOR CONDITIONS IN HONDURAS 

Recently there have been public accusations alleging abuse and mistreatment of minor workers in 
sweatshops in New York and overseas, including factories in Honduras. 



The Government of Honduras does not condone violations of its labor laws Any transgression of 
those rights will continue to be dealt with swiftly to ensure due process of the law Three Asian 
investors were asked to leave Honduras two years ago because of their lack of compliance with our 
legislation. When violations are detected, corrective measures are taken through established legal 
procedures. 



Given the increased investment from the United States in the garment industry, Honduras has 
striven to strengthen the inspection capabilities in the Ministry of Labor to ensure full compliance 
with labor laws in the industry The Honduran government and the Honduran private sector 
(management and labor) continue to work with foreign investors from the United States and other 
parts of the world to ensure the highest possible working standards. 



To maintain those high standards, manufacturers, especially from the United States, have 
established a social security system that goes beyond local legal requirements. Medical care is 
provided on a permanent basis in almost all factories. Food costs are covered if the workers work 
prove overtime. Seminars are held to educate manufacturers on applicable norms and practices. 
Our legislation has been translated into English, Korean., Mandarin and Chinese. 



A U.S. government led delegation which included members of the USTR, the Labor Department 
and the AFL-CIO visited Honduras last November to encourage the strengthening of the 
supervisory and enforcement role of Honduran labor authorities in the industrial parks. A 
Memorandum of Understanding was signed with Ministry of Labor and is being implemented. 



Co-production with the United States in the area of garment manufacturing has grown at a rate of 
24% for the past two years. For every 100 jobs created in Honduras in this sector by US 
investment, I S are created in the United States. For every dollar earned from trade with the US in 



257 



Honduras, 75 cents returns to the United States through purchases and services Investing in 
Honduras is also a means of investing in the United States because it is our main trade and 
investment partner These are facts that usually escape analysis by those interested in limiting US 
investment overseas 



The wage situation has also been recently addressed in the media. In order to compare wages 
between Honduras jmd the United States, account must be taken of the cost of living, which varies 
from country to country According to our Laws, the minimum wage is the manufacturing sector is 
3.75 Lempiras (US $0 36) per hour, equivalent at this rate, in an 8 hour day, a worker will earn 
LPS 30 00 or $2 85 a day. The minimum wage for workers in this sector is the highest in the 
country The mining workers minimum wage is LPS. 26.00 per day, or the equivalent, to $2 50 a 
day Working in agriculture brings in LPS. 14.95 a day or $1.40 These are impossible wages to 
live on if you reside in the United States. In Honduras, it is also a relatively small wage, but its 
purchasing power is much higher in our country. 



258 




CMBAJAOA DE HONOURAS 

WASHrNQTON. O.C. 

OJficio /CV /093 /5HW /95 



Washington DC, Novembev 9, 1995 



H J Rosembaun 
Office of Che united 
StareB Trade Representative 
G. S. P. Division 
Wafihiiiyi.on DC. 



Dear Mr. RoseirJDaum: 



As a preview co your upcoming, fact finding crip to Central America 
on labor relatione, I would like to highlight several points v/ith 
regard to the labor situation in the Maquila Industry in Honduras: 

- Despite incense investigations, by the labor authorities, It has 
not been possible to substantiate allegations against the 
Maquiladorae that women are forced to work 15 hours a day or 80 
hours a week. No evidence has been found that the women have been 
forced to take stimulants to force them to work 48 hours without 
resting. 

• Current labor regulations cannot be independently changed either 
by the government authorities nor by the judicial branch. This can 
be done only by refonning existing legislation in congress, in this 
regard, Legislation has been proposed to reform and strengthen the 
protection of workers rights, rt is expected that these changes 
will be approved shortly by the Supreme Court and the Honduran 
Congrosa . The changefl currently being contemplated have been 
formulated by a special Committee Integrated by representatives of 
the government, the labor organizations and the private sector. 
This has been done as per the recommendations and the principles of 
the International Labor Organization (ILO) . 



259 



■ TJie Mmlsciy of Labor has iasued recommenflatiuns to che Hontlut •• 
unions to pi«sonc all cheir complaints promptly r.o the authoi t Lici, 
ill Olden co allow them to fulfill their dutiftir; and search for 
solucloii to each case. In chose instances v.hen workers hav-e beer 
injustly dismissed, the Ministry has intervened on behalf of the 
workers requesting management that they be promptly reinstated The 
governm«nt cannot force cha companl«e to rehire caid v/orkera as 
this can only be done in a court of lav/. 

- In order to improve the inspection services and to guarantee tho 
full respect of the law, the Ministry of Labor has taken steps to 
carry out the necessary administrative changes, sucli as:* the 
recruitment and training of staff, and the ten^iination of personnel 
that failed to properly enforce our laws. 

- Although the three national labor ccnf«deracions fCTH, CGT and 
C'UTH) , did not participate in the National COTimission of Mir.irriur'. 
Wage, alongside representacivea of thu private and public sectors, 
the Ministry of Labor undertook the task of improving the mir.imun 
wage, baaed on technical studies done by the Direcci6n Macional de 
Salarlos. The upward adjustment of the minir.'uni wage was decreeJ L/ 
Executive Order N 001 on December 23, 1994 

- Some clear examples that the Hcnduian authorities will :;cL 
tolerate the violation of our labor laws and worker rights, is the 
expulsio.i last year of an investor fron^ Korea, Mr. 3oo-Woo lee, of 
the company, SILVER STAR nTOUSTRIAL, a.id this year of Mi . Mie Mar., 
and Mr. Km Chiun Ho, from HARDAE HOND'JRAS LIMITADA. Ail of tJ'.ese 
investors were found to be in complete' violation of our laws, and 
it wae proven there had been serious mistreatment of v/orkers ir. 
their establishments. 

In September, 1994, the national authorities called meetings 
between members of the Maquiladora Association and the three union 
confederations (CTH, CGT, CUTH) , in order to analyse all labor 
conflicts and look for solutions to them, in those meetings the 
Maquiladores v/ere required to allow investigations in those 
factories that had complaints against them. Also, two commissions 
were created And charged with the duties of supervising the 
observance of worker rights and the state of relations between 
workers and management. One of the Commit tee &' resides in San Pedro 
Sula and has as members representatives of the unions and the 
maquilas. The other committee, is in Tegucigalpa and ia also 
integrated by representatives of the maquilas, tlie unions and 
Government. 

- The Ministry of Labor opposes creating a separate worker regime 
for the Maquila industry, it considers that any separate labor 
regulations would result in the abdication of some worker rights 
and a weakening of the law. This position coincides with, the 
official stipulations of the International Labor Organization. 



260 



r*<i Q-^ Clic official posiUiun or the 
Th^ ^bo.'o hac b*«a "''r^A Che "naUonal press, and in various 

Pleas, feel ftee to co.tacc «.e any^.e U yo., nea. cUrHxcac.on o. 
further infonriaCiOn. 



Best vegards, 




Be/oamin Zapata 
Minister Counselor 



261 




EMBAJADA DE HONDURAS 
Washington, D.C. 

May 5, 1995 



Mr Joaquin Otero 
Deputy Under Secretary for 
International Affairs 
US Department of Labor 
Washington, DC 20210 



Dear Mr Deputy Under Secretary: 

Please find attached my written testimony concerning the legal framework in place in 
Honduras for the protection of underage workers My testimony explains the stipulations set forth 
both in our Constitution and Labor Code, to protect the rights of underage workers, and also refers 
to the institutions and mechanism that Honduras has set up for the pertinent control and 
supervision. 

I am also enclosing the relevant articles of the Labor Code in force at present. In this 
regard revisions are being considered to some aspects of the Labor Code, including those related to 
child labor, and shall be proposed to our Congress in the near future. If you have any question 
concerning this information do not hesitate to contact my oflRce. 



Sincerely, 



0W^^/ 



Roberto FIorej^B^miJdcz 
Ambassador 




262 



INTRODUCTION 

The protection of underage workers is contemplated in the Honduran Constitution and Labor 
Code. 

As a country of high democratic principles and respectful of the individual rights of its 
citizens we have strived to provide an adequate legal framework to protect our workers, 
particularly underage workers. 



We have subscribed and ratified all the international agreements of the International Labor 
Organization that protect the welfare of minors in the workforce. 



THE CONSTITUTION 

Chapter IV of the Constitution of Honduras covers the rights of children and the obligation 
of the State to protect them. The children of Honduras are also protected by all 
International Agreements that have been created for that purpose, as their stipulations have 
been incorporated into the Constitution. 

Article 124, clearly states that minors shall not work at an early age, and that they will not 
be forced to work in areas that will endanger them in any way or impede their physical, 
mental or moral development. 

The Constitution further directs (article 128) that no minor under the age of sixteen who is 
still in school as dictated by law shall be put to work. 

Nevertheless, under extraordinary circumstances, the authorities can authorize the 
employment of workers between the ages of fourteen and sixteen, even if they are still in 
school, when their survival or that of their immediate family depends on it. The job 
undertaken shall not interfere with their schooling. 

All those under seventeen caimot work more than six hours a day and 36 hours a week. 



LABOR CODE 

The Labor Code further mandates and lays down several strict guidelines to protect 
underage workers. (Title 111, Chapter 1) 

Among the key guidelines are the following: All tasks given to them shall be appropriate 
for their age, physical condition, and intellectual and moral development. 



263 



No worker under the age of sixteen shall carry out tasks that under this code, the Sanitary 
Code, or all regulations or stipulations of hygiene and safety conditions, have been labeled 
dangerous or unsanitary. 

Workers under the age of sixteen shall not work at night. Also, it is riot permitted to employ 
minors in clubs, theaters, circuses, coffee houses, saloons, and establishments that, sell 
alcohol for immediate consumption, or establishments of prostitution. Employers are not 
authorized to employ minors in the distribution of any graphic material or literature considered 
to be contrary to high moral standards and customs. 

Underage workers shall be granted two hours of rest during the workday. 

Underage workers can be employed in, commercial agriculture or ranching activities within 
the limits set in articles 32 and 33 of the Labor Code. 

Article 32 states that no minor still in school will be employed in any endeavor imless it is 
indispensable for their own survival, the survival of their parents and other members of their 
immediate family. This employment should not interfere with school attendaiKe. 

Article 33 states that workers under sixteen years old need written permission from their 
Parents or legal guardian to be employed. If the Minor has no legal guardian, then a work 
inspector or an appropriate government representative must grant written permission. 

Furthermore, any employer with workers under the age of sixteen in his payroll must keep a 
detailed registry on the workers, type of job given, duration (hours per day /week) within the 
timeframe allowed by law, salary, age of the worker, starting date, full name and names of the 
parents or guardians, exact location where they work and a copy of the written authorization 
front parents or guardians. The written authorization contains the conditionality the employer 
must satisfy to guarantee the safety of the minor. 

All authorizations granted by the parents or guardians of a minor are given fmal approval by 
an inspector from the Labor Ministry or an appropriate government representative before the 
minor can start working. 



264 



Also the registry must include a certificate aetesting that the minor is fulfilling his educational 
obligations. Once a month, the employer has to submit to the labor inspector for his 
verification, a copy of the registry for each employ lee. 



RECENT INITIATIVES 



Over the past few months the government of Honduras has undertaken a comprehensive review 
of the labor code with the aim of improving and strengthening some of its most important 
concepts. 

The regulations and specific legislation that cover the portion of underage workers is under 
careful study to determine if there are areas or concepts that are in need of improving. 

Two of the sectors identified as needing more transparent regulatory guidelines in relation to 
employment of underage workers are the commercial agriculture sector and the informal urban 
job market, where a lot of children are employed, 

Some of the recommendations that have been introduced up to now 
include: 

- The harmonization of all the laws in the central american countries that relate to underage 
employment. It is proposed that this harmonization be done according to the guidelines of the 
Convetitin on Children Fights, Agreement No. 138 and Recommendation No. 146 of the 
International Labor Organization. 

- The creation of a special team of inspectors with attributions solely directed to the protection 
of child laborers in all sectors of the economy, as stipulated in the above mentioned 
international agreements. 

- Sensiitize and involve all employer organizations, worker organizations and social 
organizations to the special needs of underage workers and to the full application of the law in 
this area. 

- Work closely with the appropriate regional agencies, within the framework of the Central 
american integration system, to obtain the review and adoption at a regional level, of the the 
reconmiendations made to improve and strengthen child labor. 



265 



- Can7 out information campaigns to familiarize all those involved with the rights and needs of 
underage workers. 

- Promote among children and teens the formation of "Rights Promoters" for children; and in 
general terms, the establishment of special offices dedicated to supervising that all the rights of 
children are duly respected. 

- Unify criteria to better define the risks for minors in the workplace; introduce legislation 
which contains, based on unified criteria, a listing of the type of child labor activities that 
should be abolished. 

- Work with regional worker and employee organizations with the aim of getting them involved 
in the application of norms related to underage workers. 

- Develop or if necessary create mechanisms with the purpose of assuring both the application 
and supervision of said application of all norms related to underage workers. The supervision 
mechanisms should be reinforced with powers to apply sanctions or other punitive measures to 
assure the rights of children are duly observed. 

ADMINISTRATIVE ORGANIZATIONS THAT SUPERVISE CHILD 

LABOR 

The Secretaria de Trabajo y Prevision Social, (Ministry of Labor and Social Security) is the 
Ministry in charge of authorizing, observing and assuring that our national labor legislation is 
duly applied. 

Within the Ministry we have two agencies that have direct jurisdiction over that aspect of the 
law that relates to underage workers. These agencies are: 

The Direcci6n General de Previsi6n Social, (Directorate of Social Security) is charged with 
coordinating activities between all social assistance agencies; and the Inspecei6n General del 
Trabajo, (Labor Inspection Bureau) supervises within the context of the workplace the 
compliance with labor and social security guidelines. 

The Inspection Bureau keeps a careful watch over those Sites that employ underage workers, to 
make sure that the employer complies with the requirements dictated by law for the protection 
of underage workers. In the attached copies of the Labor Code there are more details of the 
functions carried out by both Departments. 



266 



Statement of Congressman Barney Frank (4th-MA) 

House Committee on International Relations 

Subcommittee on International Operations 

and Human Rights 

June 11, 1996 

I hope this hearing represents the beginning of a bipartisan effort to tackle the complex and 
pressing problems which of child labor. The use of child slavery in the production of 
manufactured goods and mining is an abusive and exploitative practice occurring today in places 
all over the world. Despite the fact that virtually every country in the world has laws on its books 
prohibiting forced labor and that there are countless international conventions outlawing slavery, 
millions of children are working as slaves, recruited by unscrupulous contractors, sold by their 
parents, or bom into generational debt bondage. 

The United States currently has no law which specifically bans the importation of goods made 
with child labor We do have a law that prohibits the importation of goods made wdth prison 
labor. However, this law has not been interpreted to cover bonded labor or indentured servitude 
While forced labor refers to the enslavement of workers through the threat or use of coercion, 
bonded labor (or debt bondage) is a form of forced labor in which children enter into virtual • 
servitude as a result of some initial financial transaction 

In addition to the gross violation of children's rights, the use of child labor has an equally 
distressing effect on our own domestic economy Domestic manufacturers have moved 
operations abroad to exploit child laborers' pliability — they work for less money, work longer 
hours and demand fewer benefits than American counterparts ~ and with lower labor costs, 
companies earn bigger profits when selling these products back in the US. This vicious cycle has 
the effect of widening income disparities and exacerbating class tensions throughout the country 
But, while some economists will argue the this loss of American jobs is the natural result of a 
developing country's comparative advantage in low skill labor, there is another greater, more 
systematic economic problem which child labor presents ~ the loss of foreign markets for U.S. 
goods and service The fact is: child laborers do not earn enough money to support their most 
basic human needs How, then, can we expect to export US. value added goods to those 
countries where the workers caimot afford to eat, much less purchase the products which U.S. 
workers needs to sell abroad? The importation of goods made by children doubly punishes 
Americans with losses in jobs and in markets. In the growing global marketplace, it seems to me 
foolish for us to continue to pursue a trade policy which will have the end result of closing, rather 
than opening, markets for U.S. goods. 

It is also important to understand what is meant by child labor. This does not refer to a family 
who has their children working on the family farm, or in the family store, or in an apprenticeship, 
or even working at a job afl^er school What is meant is the abusive practice of having children 



267 



under the age of 14 working full-time, and in some cases as much as 6 days a week 12 hour days, 
in conditions fraught with health and safety hazards. In most cases these children receive no 
education, a fraction of adult wages (if they are fortunate enough to be paid for their work), no 
medical attention, and are kept from their parents for extended amounts of time (in some cases up 
to three months or more). 

The use of child labor is an abominable practice which arises from the unscrupulous practice of 
brokers who purchase the use of children from unsuspecting individuals who little realize that the 
acceptance of money would lead to a life of servitude. This is not an outgrowth of culture or 
tradition. If it were, these countries would not have laws forbidding the practice This 
justification of culture is usually one made by those who trade in slavery, not by the government 
or people who suffer from it. 

The United States can act to help put an end to this terrible injustice facing the children of the 
world by using our vast economic power and preventing the importation of good made with child 
labor To this effect, I have introduced H.R. 2065, "The Child Labor Deterrence Act," in the 
House. This legislation would prohibit the U.S. from importing those products made with child 
labor Other preventive measures such as stickers labeling products made with child labor, and 
marks on products indicating child labor-free production are also options open to the U.S. and 
industry. In addition, U.S. companies can make a real commitment not to purchase goods from 
manufacturers that use child labor and devise some means to effectively police and enforce these 
commitments. 



268 




U. S, Department of Justice 

Office of Legislative Affairs 



OfTice of the Assistant Anomey General Washingion, D.C. 20530 

June 20, 1996 



The Honorable Christopher H. Smith 

Chairman 

Subcommittee on International Operations and Human Rights 

Committee on International Relations 

U.S. House of Representatives 

Washington, D.C. 20515 

Dear Mr. Chairman: 

We appreciate this opportunity to discuss the Department of 
Justice's efforts on behalf of exploited children, specifically- 
focusing on the issue of child labor. Please accept this letter 
for inclusion in the record of your Subcommittee's June 11 
hearing on that subject. This statement describes the 
Administration's work to combat one of the most pernicious forms 
of child labor -- the sex industry, in which children are 
subjected to molestation, photographing for purposes of 
pornography, and to the sale of their young bodies for sexual 
purposes . 

Federal law prohibits trafficking of children and adults in 
interstate and foreign commerce for illicit sexual conduct. This 
conduct can include prostitution, statutory rape, sexual abuse 
ranging from simple molestation to aggravated rape, incest, and 
some types of child pornography offenses. 

Several provisions of federal law, including some added by 
the Violent Crime Control Act of 1994, provide the basis and 
tools for the Department's international prosecutions against 
such child exploitation. In particular, 18 U.S.C. § 2423(b), 
which prohibits the travel for purposes of prostitution or other 
criminal sexual activity, provides a new tool that prosecutors 
will be able to use against "sex tourism": the travel across 
state or international borders for purposes of prostitution or 
other criminal sexual behavior, including the molestation of 
children. This statute provides "extra-territorial jurisdiction" 
allowing jurisdiction for the United States to punish those who 
travel to other countries to engage in criminal sexual activity 
in those countries. Along with the United States, many countries 
in Europe, as well as Australia and New Zealand, have enacted 



269 



extra-territorial jurisdiction laws to address this pressing 
issue. The 1994 Crime Act similarly established extraterritorial 
jurisdiction to prohibit the distribution via foreign commerce of 
visual materials illustrating the exploitation of children. In 
addition, a pre-existing statute, 8 U.S.C. § 1328, prohibits the 
smuggling of aliens into the United States for immoral purposes. 

The Criminal Division's Child Exploitation and Obscenity 
Section (CEOS) coordinates the Department's enforcement of 
federal statutes covering obscenity, child exploitation, child 
sexual abuse, and child pornography. CEOS is actively 
implementing the Department's effort to identify and prosecute 
those who transport minors (and adults) for the purpose of 
prostitution, or violate the "sex tourism" statute by traveling 
abroad to engage in criminal sexual activity, including rape, 
child sexual abuse, and prostitution. 

Ease of international communications and decreased costs of 
travel have contributed to the global trafficking in women and 
children for criminal sexual activity and the travel of 
"tourists" to exploit these individuals in other countries. "Sex 
tourism" is particularly popular for travelers to some Southeast 
Asian and South American countries. Once in these countries, the 
traveler may have sex with many individuals, many of whom are 
young boys and girls under the age of 14. In some countries, the 
children are likely to be housed in large "homes" with small 
rooms, with few amenities, and expected to service a significant 
number of travelers per day. In some countries, the children are 
found in bars or beaches and either wait to be approached by 
tourists or actually make the advances themselves. Many of these 
children are from poor rural areas; many of them eventually 
return home to die of AIDS. 

The Department of Justice recognizes that combatting the 
scourge of international trafficking in prostitution and 
pornography often requires reaching out to law enforcement groups 
around the world. As part of this effort. Acting Section Chief 
Terry R. Lord serves on the Interpol Standing Working Party on 
Offenses Against Children, which meets to review means of 
enhancing law enforcement on child-related crimes 

internationally. The Working Party is made up of law enforcement 
agency representatives from more than 25 member countries. The 
Department anticipates that the Interpol relationship will result 
in early notification to the United States Government of crimes 
committed by Americans in other countries, leading to prosecution 
under the sex tourism statute upon the tourists' return to the 
United States. 

The Department also has taken an active role in preparations 
for the forthcoming World Congress Against Commercial Sexual 
Exploitation of Children in Stockholm later this summer. There 
are three major sponsors of the World Congress: The Queen of 



270 



Sweden, End Child Prostitution in Asian Tourism (ECPAT) , and 
UNICEF. The Department has been involved in the preparation of 
background materials for the World Congress, and in discussions 
with other Executive Branch Departments about participation at 
the meetings. This will be the first opportunity for law 
enforcement, prosecutors, and assistance providers around the 
globe to meet and develop systems for working with individuals 
who have been exploited and victimized by traffickers and 
pornographers . CEOS provided comments on background papers and 
will highlight American activities in this area with the goal of 
increasing international coordination for prosecutions. The 
statutory provisions outlined above will be the focus of the 
World Congress and an indication of the leading role of the 
United States in combatting the trafficking of minors for 
pornography and prostitution. One of the major issues of the 
World Congress will be sex tourism laws and extraterritorial 
jurisdiction; the United States was the sixth country to enact 
such provisions. 

In cooperation with the Criminal Division's Office of 
International Affairs, the Federal Bureau of Investigation (FBI) , 
and the State Department, CEOS has developed a process to 
effectuate investigations and prosecutions of individuals who 
travel abroad with a purpose of engaging in criminal sexual 
activity, including prostitution and pornography, under the newly 
enacted sex tourism extraterritorial jurisdiction statute and 
pornography statutes mentioned earlier. CEOS is following leads 
provided by non-governmental Organizations (such as ECPAT) in the 
United States and abroad. These organizations collect 
information from local foreign law enforcement as well as from 
outreach programs for the exploited youth. These sources are 
critical to initiating inquiries with foreign governments 
regarding violations by Americans abroad. Once confirmation of 
an arrest is made by the State Department, or demonstrative 
evidence of intent to travel for criminal sexual activity is 
found, CEOS works with OIA and FBI to develop the cases which 
would then be prosecuted in the offender's home district or point 
of departure for the travel. Investigations on these cases 
require coordinated efforts between the foreign countries and 
American law enforcement to obtain evidence of the purpose of the 
travel and the activities during travel. 

In addition to pursuing prosecutions of Americans in the 
United States for these crimes which are committed both at home 
and abroad, the Department of Justice has sought the cooperation 
of foreign governments to prosecute their own citizens on charges 
of production and distribution of child pornography and related 
offenses in the foreign country. In this manner, the offender is 
brought to justice in either the United States or the foreign 
country, depending on which venue can provide the most efficient 
and expeditious resolution of the matter. 



271 



Thank you again for providing this opportunity for the 
Department to describe its work to significantly reduce the 
international trafficking and exploitation of children. 



SKndfere] 



n^^rely, f^ 



Andrew Fois 

Assistant Attorney General 



272 



June 6, 1996 



The Honorable Christopher Smith 
Chairman, Subcommittee on 
International Operations and Human Rights 
U.S. House of Representatives 
2401-A Raybum House Office Building 
Washington, D.C. 20515 

Dear Chairman Smith: 

LIFE magazine's June issue contained a very disturbing story on the use of child 
labor in the soccer ball industry in Pakistan. The article was critical of NIKE and several 
other sports companies operation's within Pakistaiv NIKE found the article (where it 
referred to NIKE) misleading and inaccurate and we would like to set the record straight 
prior to your sub<ODunittee's hearing on child labor ciirrently scheduled for June 11, 
1996. 

Though NIKE is new to Pakistan, in less than orw year of subcontracting 
production there we have tciken more steps to protect worker rights than any other 
company soxirdng products in Pakistan — something of which LIFE reporter Sydney 
Schanberg was informed, but chose to ignore. What was left out of the article is the 
following: 

• At NIKE'S urging and with our help, SAGA Sports, a Pjikistani soccer ball 
subcontractor, is establishing five new, modem stitching centers with 500 
workers each under the direct employment of SAGA. The employment of the 
stitchers will be controlled and observed to avoid under-age labor, and working 
hours will be fixed at nine hours per day, with lunch and tea breaks. The first 
center will open this fall, with three more of the five centers completed by the 
first half of 1997. 

• SAGA will open fair price shops in the immediate vicinity of the stitching 
centers to provide basic commodities at subsidized rates for workers and their 
femilies. 

• SAGA will expand existing on-site health care service for workers and their 
femily members at the new centers. 

• NIKE will also work with SAGA to establish recreational facilities and literacy 
training for workers at these facilities. 



273 



The Honorable Christopher Smith 
June 6, 1996 
Page 2 



Much to our disniay, what Sclianberg witnessed is outsourced labor to meet 
current production volumes. The use of any forced or under-age labor is in direct 
violation of NlKE's Code of Conduct and Memorandum of Understanding which we 
require all of our production partners to sign and enforce. The above-outlined measures 
are intended to address this practice for the long-term. Until the new stitching centers 
are complete, we will redouble our efforts to enforce child labor prohibitions with our 
partners. NIKE believes that it is more effective to work for change in the child labor 
system, to the extent that we can, than to ignore that such conditions exist. 

Regarding the photograph accompanying the article: NIKE finds it highly ironic 
that LIFE, a publication built on a decades-long reputation of excellence in photo 
journalism, would chose to publish a photograph so clearly staged. The scene depicted 
in the lead photo of the article is extremely unlikely for a couple of reasons: three 
different styles of balls shown, none of which are stitched in the same center; and, the 
balls are inflated to playing pressure, which is impossible at the stitching centers, since 
the balls are not inflated until much later in the production process. It is even stated in 
the article that the locations where workers stitch the ball components are dramatically 
different from the "clean, well-lit factories" where the balls are assembled and inflated. 

Wherever NIKE operates around the globe, it is guided by principles set forth in 
a Code of Conduct that binds its production subcontractors to a signed Memorandum of 
Understanding (MOU). This MOU strictly prohibits child labor, and requires 
certification of compliance with applicable government regulations regarding minimum 
wage, overtime, as well as occupational health and safety, environmental regulations, 
workers insurance and equal opportimity provisions. 

NIKE enforces its standard through daily observation by NIKE staff members. 
Every factory in the world that manufactures NIKE components and finished goods has 
NIKE staff assigned to it who are responsible for monitoring adherence to the MOU. 
The next level of enforcement is a system of third-party audit, conducted by Ernst & 
Young. These thorough reviews conducted over several days include interviews with 
workers, examination of safety equipment and procedures, review of free health-care 
facilities at the work site, investigation of worker grievances and audits of payroll 
records. 

Attached for your review is a copy of NIKE's Production Primer - a briefing 
notebook explaining how NIKE does business throughout the world. I respectfully 
request that this letter and the production primer be included as part of the Committee 
record. 



274 



The Honorable Christopher Smith 
June 6, 1996 
Page 3 



Please let me know if I can provide you or your staff any additional informatioiL 
Thank you for your consideration of our views. 




Brad G. 

Director of Governmental Affairs 

and International Trade Counsel 



275 



NIKE Practices 

Wherever NIKE operates around the globe, the company is guided by the following Code of 
Conduct, and binds its business partners to the code's principles with a signed Memorandum of 
Understanding.' 

The NIKE Code of Conduct 

NIKE, Inc. was founded on a handshake. 

Implicit in that act was the determination that we would build our business with all of our 
partners upon trust, teamwork, honesty and mutual respect. We expect all of our business partners 
to operate on the same principles. 

At the core of the NIKE corporate ethic is the belief that we are a company comprised of many 
different kinds of people, appreciating individual diversity, and dedicated to equal opportunity for 
each individual. 

NIKE designs, manufactures and markets sports and fitness products. At each step in that 
process, we are dedicated to minimizing our impact on the environment. We seek to implement 
to the maximum extent possible the three "R's" of environmental action: reduce, reuse and 
recycle. 

We seek always to be a leader in our quest to enhance people's lives through sports and fitness. 
That means at every opportunity — whether in the design, manufacturing and marketing of 
products; in the environment; in the areas of human rights and equal oppottunity; or in our 
relationships in the communities in which we do business — we seek to do not only what is 
required, but, whenever possible, what is expected of a leader. 

There Is No Finish Line. 



1 The Americui Foorwear Association has also established guidelines of ptactice. See Appendix F for these guidelines and the list of companies 
who suppon them. 



NIKE practices • l.I 



276 



Memorandum of Understanding 

1 Government regulation of business 

(Subcontractor/supplier) certifies compliance with all applicable local government regulations 
regarding minimum wage; overtime; child labor laws; provisions for pregnancy, menstrual 
leave; provisions for vacation and holidays; and mandatory retirement benefits. 

2 Safety and health 

(Subcontractor/supplier) certifies compliance with all applicable local government regulations 
regarding occupational health and safety. 

3 Worker insurance 

(Subcontractor /supplier) certifies compliance with all applicable local laws providing health 
insurance, life insurance and worker's compensation. 

4 Forced labor 

(Subcontractor /supplier) certifies that it and its suppliers and contractors do not use any form 
of forced labor — prison or otherwise. 

5 Environment 

(Subcontractor /supplier) certifies compliance with all applicable local environmental regula- 
tions, and adheres to NIKE's own broader environmental practices, including the prohibition 
on the use of chloro-flouro-carbons (CFCs), the release of which could contribute to the 
depletion of the earth's ozone layer. 

6 Equal opportunity 

(Subcontractor /supplier) certifies that it does not discriminate in hiring, salary, benefits, 
advancement, termination or retirement on the basis of gender, race, religion, age, sexual 
orientation or ethnic origin. 

7 Documentation and inspection 

(Subcontractor /supplier) agrees to maintain on file such documentation as may be needed to 
demonstrate compliance with the certifications in this Memorandum of Understanding, and 
further agrees to make these documents available for NIKE's inspection upon request. 



1.2 • NIKE practices 



277 



Enforcement 

NIKE takes a three-pronged approach to the enforcement of its standards. 

The first is daily observation by NIKE expatriates. Every factory in the world that manufactures 
NIKE components and finished goods has several NIKE staff members assigned to it. These 
employees are as responsible for monitoring adherence to the Memorandum of Understanding 
as they are for issues of product design, development and quality control.^ They ensure that, 
wherever possible, the Memorandum and Code of Conduct are posted in each factory, creating 
a public, visible (and for many subcontractors, unprecedented) standard of conduct. In addition, 
NIKE country managers formally update Memorandum reports on a semi-annual basis.' 

The next level of enforcement is NIKE's ongoing third-party audits. NIKE's strategic partners 
know that the Memorandum's enforcement can also include systematic evaluation by auditors 
Ernst & Young. In broad terms, this arrangement means that any factory, anywhere in the world, 
is subject to unannounced spot checks. If an auditor or NIKE expatriate discovers that a sub- 
contractor is not adhering to the signed Memorandum, NIKE will demand that the subcontractor 
address the situation in writing, including timelines of corrective measures. '' If neither the 
response nor the improvement is made, NIKE may terminate the business relationship. 

The final means of establishing NIKE standards is less tangible, but no less important, than the 
others: how NIKE relates to its strategic partners. From its first links to Asia, NIKE has tried 
to build long-term business ties with selected contractors. This policy had a practical origin: 
The more familiar the factories were with NIKE product, the greater their efficiency. But it has 
had another, unforeseen result. After nearly 20 years of working together, NIKE's sense of corporate 
responsibility has influenced its partners. In the last five years, NIKE contractors have made 
voluntary improvements unheard of in the decade and a half before. 




At Pou Chm, worker facilities include the moscjue at left. A Chriilian chapel is also 
located on the factory grounds. 



2 Commf ntin^ on NIKE's investment in fxpatriat 
foorwcar company has nearly as large an infrastn 
rcpon for Smith Barney, August 1994: p3.) 

5 See Appendix C for examples of recent updates. 

A See Appendix B for examples- 



one independi 
lated with its 



ndustry ai 
produ 



alysr noted, "As far as we know, t 
tion." (Fayc L. Landes and Jessica 



> other athlef ic 
Dliver, investment 



NIKE practices • 1.3 



278 



Results 

Human rights are about the treatment of people. And the people NIKE is most concerned about 
in its source countries are those working where NIKE has the most influence: on the factory floor. 
Here, the Code of Conduct expresses the principles of fair management. The Memorandum of 
Understanding gives those ideas form. The job of NIKE's expatriate staff is to interpret both the 
spirit and letter of these guidelines. 

The result is tangible progress in the lives of people directly associated with NIKE business — 
not ineffective gestures in poorly defined areas where NIKE has little impact. These improvements 
touch an array of issues: fair treatment, health and safety, corporate responsibility. NIKE believes 
that if these changes clearly advance the circumstances in this corner of a society, then they elevate 
the whole: 

• At a South Island Garment apparel facility in Malaysia, four Bangladeshi workers were publicly 
caned in October 1995. The NIKE expatriate sent a letter to the factory (and all factories in 
the region) describing the action as totally unacceptable and a breach of the Memorandum of 
Understanding. As a result, the Minister of Labor investigated the incident, the workers were 
reinstated and the two senior staff members responsible for the caning resigned. 

• In the spring of 1994, a local NIKE expatriate learned of a line supervisor verbally assaulting 
workers in the Indonesian factory Pou Chen. When the expatriate brought the matter to the 
factory manager's attention, the supervisor was subsequently dismissed. 

• Korea Polymer, a Korean factory, was discovered to be providing jobs to prisoners in a work- 
release program. In keeping with NIKE's prohibition of forced labor, NIKE put pressure on the 
factory and the arrangement was terminated in June 1994. 

• When NIKE noticed some of its subcontracted Indonesian factories paying training wages 
to a disproportionately high number of workers in the summer of 1994, NIKE expatriates 
investigated. (By law, the training wage — less than minimum wage — can only be paid to 
new employees who are not involved with produaion work.) After the subcontractors were 
questioned, the number of workers on training wages was significantly reduced. ■ 

• In the fall of 1995, NIKE's aggressive monitoring and a third-party audit revealed that Astra, 
an Indonesian footwear operation, was working its employees overtime without the necessary 
government waiver. Astra applied for the regulatory waiver immediately. 

• Constructed in the summer of 1995, the new Vietnamese factory Tae Kwang has landscaping, 
insulated roofs and scrubbers for cleaning generator waste — features requested by the NIKE 
production manager. The Chinese factory WelIko Industrial Limited attributes its new 
ventilating fans and worker dormitories to the advice of its NIKE expatriate. 



1.4 • NIKE practices 



279 



• Currently, NIKE is working with the Indonesian footwear factory NASA to develop a solvent 
recovery system. In 1994, the same company invested US$700,000 in temperature-reducing 
equipment and conducted a study on air quality, noise quality and waste management.' 

• At NIKE'S bidding, the Dongguan Wellko Shoes Factory Ltd. in China assembled a crisis 
management team in 1995. In addition to this team — designed to prevent and handle 
industrial accidents — the factory built a karaoke parlor and dance hall for its workers, and 
is currently planning basketball and volleyball facilities. 

• In the autumn of 1994, an Indonesian bus exploded while carrying factory workers home. 
There were no fatalities, but 16 workers were injured and eight were taken to the hospital. 
The bus company pledged to cover all medical costs while the factory promised to cover any 
interim payments. The recovering workers received their full salary during their convalescence. 
The factory, Garuda, is a NIKE subcontractor. 

• Youngone, the only apparel factory group that NIKE contracts with in Bangladesh, has made 
it a mission to improve living conditions for its workers. With accessible medical support and 
generous cafeteria services, Youngone exceeds the standards of its local colleagues — and 
epitomizes the type of business partner NIKE seeks.' 




iiiuf K*!!'!^ 





Workers on a Pou Chen stitching line, where upper pieces are assembled, marked and stitched together. 



3 Appendix C coniains the factory's description of these measures; refer to FT. Nagasakti Paramashoes iDdustri (NASA). 
6 Youngone is also distinguished by its refusal to employ children. The widespread use of underage labor in Bangladeshi factories recently led 
the govtmmrot to require all faaories to sign a pledge against the praaice. 



NIKE practites • 1.5 



280 



mimntamtimHM Nv tM. M> »ik nas-KM 




United States Council lor 
International Business 



AfifWHAM KATZ. Picjidtnl 



Saving Ancnon Business s U S AmaK ol: 

The Menalionil Ctanta ol Comntfoe 

The Iniennlional OrgaiisDion o( Emplayefs 

The Business an) Industry Adnscfy Comnnee to tc KCO 

The AIA Camel System 



June 6, 1996 



Hononbie Chfutafiher H. Smidi 

TiMiirimn 

Inlentational Opentioiu A Human Rights Suboommittee 

2401 Raybuni House Office Building 

Waihingtoo. DC 205 15-6129 

Dear Mr. Smith: 

I am writing to inform you of positioos taken by die International Organisation of Employers 
(lOE), » p i *i» « Hn£ the interests of enqrtoyers from 118 countries, on die issues of die 
linkage between trade and labor standards and child labor. As its U.S. affiliate, die U.S. 
Council for International Business has been working closely with the lOE on these issues. 

The lOE adopted two critical resolutions at its Oenend Council meeting on June 3. In 
advance of die December 1996 WTO Ministerial in Singapore, the first rescriution opposes 
any linkage between trade and labor or any nrfe for the WTO on this issue, and calls for 
renewed cooperative dforts in die ILO to improve international labor standards. The second 
rescriution calls on lOE member federations to {day a lead n^ in international efforts to 
fiiminate child laboT, and outlines an action program for the lOE on child labor, including an 
enqrioyer 'best practices' handboc^ and regular rqwrting by lOE member fedoalioos to die 
annual lOE General Council. 

Attached for your information are copes of die two resolutions, the press announcement, and 
f^A sheets ttt^mng fiuther the work of the lOE. As this woric proceeds, the U.S. Council 
stands ready to assist you in providing U.S. enqrioyer views on diese important issues. 
Please fieel free to call iqx» us. 



Sincerely. 



Enc. 




Abraham Katz 



281 




press release 



UNITED STATES COUNCIL 

FOR INTERNATIONAL BUSINESS 



Hold For Release: 03 June 1996 15:00 

Contaa: Marge Lipton, Geneva - 4122-798-1616 (after 30 May) 
Amanda Tucker, New York - 212-354-4854 (until 31 May) 

WORLD'S EMPLOYERS URGE ENHANCED IIO EFFORT TO IMPROVE LABOR STANDARDS; 
REJECT LINKING WORKER RIGHTS AND TRADE 

THEY ADOPT RESOLUTION AND PROACTIVE BUSINESS PROGRAM ON CHILD LABOR 

GENEVA, Switzerland, June 3-American employers joined representatives of 120 employer federations meeting in 
Geneva on June 3 in rejecting the linkage between trade and labor while asserting the need for renewed cooperative 
efforts in the International Labor Organization (ILO) to improve living and working conditions and labor standards. With 
regard to child labor, they adopted a proactive program for action by employers and their federations. 

Meeting in the 73rd session of the General Council of the International Organisation of Employers (lOE), under the 
chairmanship of Abraham Katz, President of the United States Council for International Business, they adopted a policy 
statement reaffimning that an open trade and investment system leadmg to economic growth and development is the 
best way to raise labor standards. They rejected linking worker rights to trade, expressing concern that trade sanaions 
would negate the objective of economic growrth through open world trade. They saw no merit in engaging the WTO 
on the issue of labor standards. Improving working conditions and labor standards are the province of the ILO, which 
should display a greater creativity and flexibility in its operations. 

In clearly rejecting the "social clause," the lOE adopted a position similar to the views previously taken by the 
International Chamber of Commerce (ICQ and the Business and Industry Advisory Committee (BIAQ to the OECD. 
This puts the American business community squarely with the rest of the organized world business community in 
opposition to the efforts of the US and some other governments to have the trade/labor link added to the agenda of 
the WTO at the December ministerial meeting in Singapore. 

Recognizing the particular importance of the pressing issue of child labor, the General Council adopted a resolution 
which calls on employers and their organizations to act to put an immediate end to slave-like, bonded, and dangerous 
forms of child labor and to develop formal policies with a view to its eventual elimination in all sectors. The resolution 
further calls on employers and their organizations to develop action plans to deal with the child labor situation in the 
countries of operation to ensure that the condition of children and their families are improved rather than worsened 
as a result of well-intentioned but ill-conceived and hasty actions 

The resolution launched a program under the lOE Executive Committee which will create a database and disseminate 
information concerning actions by companies and organizations in combatting child labor, develop and distribute an 
employers' best practice handbook, and receive periodic reports from the membership on their initiatives and their 
efforts in this regard to be reported annually to the General Council. 

Besides its affiliation with the ICE, the USCIB is the American affiliate of the International Chamber of Commerce (ICC), 
and the Business and Industry Advisory Committee (BIAQ to the OECD. As such, it officially represents US business 
positions both in the main intergovernmental bodies and vis-a-vis foreign business communities and their governments. 

The Council addresses a broad range of policy issues with the objective of promoting an open system of world trade, 
finance, and investment. 

Copies of the lOE policy statement on the social clause and the resolution on child labor are attached 

«#* 



Serving Amefcan Business as U S Afliliaie oi 

The iniefnalional Chamber ol Commefce The Business ana industry Aavsoiy CorrMnmee lo ihe OECD 

The iniernational Organisation ol Empiovers The ATA Garnet System 

12T2 Avenue of the Amerrcas, New YocV. Now YorV 10036-1689 • telephone ?l? :^S4 44RO • loio. Q->rinR.i • i,, ->n c-re; r>ii^ 



7X2 



GENERAL COUNCIL 

OF 

THE INTERNATIONAL ORGANISATION OF EMPLOYERS 

RESOLUTION ON CHILD LABOUR 



The General Council of the International Organisation of Employers, 

Having met in Geneva on 3 June 1996 for its 73rd ordinary session, 

Considering that one of the most disturbing aspects of poverty is the 
necessity for poor families to rely on the labour of their children, 

Considering that although the problem Is complex and requires long-term 
action for its prevention and progressive elimination, its most intolerable 
aspects, namely the employment of children in slave-like and bonded 
conditions and In dangerous worK must be abolished Immediately and 
unconditionally. 

Concerned that children without education are denied opportunities to 
develop their full potential and can constrain the social and economic 
development of their countries, 

Aware that the long-term solution to the problem lies in sustained economic 
growth leading to social progress, in particular poverty alleviation and 
universal education, 

Noting that although the solution to the problem requires the active and 
coordinated involvement of society as a whole, with government playing a 
critical role through its development plans and special education programmes, 
the business community has a significant contribution to make, 

Noting that while enterprises and business organisations, along with other 
groups in society, are concerned about chiki labour and have adopted 
policies and taken action to improve the situation of wort<ing children, further 
concerted action is required, 

Recognising that the positive actions taken by employers have not been 
adequately acknowledged and in some cases emptoyers have t>een subject 
to unfair accusations. 

Noting that simplistk; solutions, which can merely throw children out of work 
without providing alternative means of livelihood for them and their families, 
often put the children concerned in a worse situation, 

Further concerned that attempts to fink the Issue of working children with 
international trade and to use it to impose trade sanctions on countries where 
the problem of child labour exists are counter-productive and jeopardize the 
welfare of chiklren. 



283 

-2- 
Resolves this 3rd day of Juno 1 996 to: 
1 . Call on employers and their organisations to: 

a. Flaise awareness of the human cost of child labour as well as its 
negative economic and social consequences. 

b. Put an immediate end to slave^like, bonded and dangerous 
fonns of child labour while developing fomial policies with a view 
to its eventual elimination in all sectors. 

c. Translate child labour policies Into action plans at the 
international, national, industry, and enterijrise levels. 

d. Implement the plans, taking care to ensure that the situation of 
the children and their families Is improved as a result 

e. Support activities targeted at working children and their families, 
such as the establishment of day care centres, schools, and 
training facilities, including training of teachers, and initiate such 
activities wherever possible. 

f . Encourage and work with local and national government 
authorities to develop and implement effective policies designed 
to eliminate child labour. 

g. Promote access to basic education and primary health care, 
which are crucial to the success of any effort to eliminate child 
labour. 



2. Call on the lOE Executive Committee to: 

a. Create a database on companies and organisations active in 
combatting child labour. 

b. Develop and distribute an Employer Handbook addressing child 
labour. 

c. Receive periodic reports from the lOE membership on their 
Initiatives and other developments in the area of child labour. 

d. Report to the General Council on an annual basis as to work 
done in combatting child labour. 



Geneva, 3 June 1996. 



284 



GENERAL COUNCIL 

OF 

THE INTERNATIONAL ORGANISATION OF EMPLOYERS 



POLICY STATEMENT ON THE SOCIAL CLAUSE 



The lOE General Council, meeting in Geneva on 3 June 1996. debated the social 
dimension of international trade liberalization. At the conclusion of the debate, the 
General Council adopted the following conclusions. 

The General Council of the lOE reaffimns that: 

♦ an open trading and investment system contributes to economic growth and, 
consequently, to employment growth and Improved working conditions; 

♦ economic development requires access to world markets for both capital 
investment and imports and exports; 

♦ labour standards in most countries improve progressively with the rising standard 
of living which results from development. 

However, the lOE firmly opposes the introduction of a social clause in the rules 
of the trading system to pennit the application of coercive measures to enforce labour 
standards. Linking labour standards to the multilateral trading system implies the use 
of trade sanctions to enforce compliance, introducing new bamers to trade, negating 
the objective of economic growth through open worid trade. 

The lOE, therefore, does not see any merit in either WTO or joint WTO/ILO work 
in this area. The WTO is a "aile-making body" in the field of trade and could not 
contribute to the examination of the ways to improve labour standards: 



♦ the multilateral system of trade rules and disciplines is based on contractual rights 
and obligations which, if set aside would destroy the fundamental guarantees and 
certainty on which trade and investment are based; 

♦ the WTO has no provision for collective condemnation and application of trade 
sanctions. To amend the rules to permit the imposition by one country of 
sanctions against another for non-commercial purposes would destroy the 
balance of rights and obligations, would fragment and politicize the system and 
encourage the use of the clause for protectionist purposes; 

♦ finally, the introduction of a social clause would involve the WTO in punitive 
measures in matters of domestic governance unrelated to its rule-making mandate 
and would be rejected by many countries as an invasion of their sovereignty. 

The International Labour Organisation (ILO) is the international organisation with 
the mandate to seek to improve woridwdde worthing conditions through standard-setting, 
technical cooperation, dialogue, and example. As one of the Organisatrorr's tripartite 
constituents, employers' organisations have contributed actively to these efforts. 
Including through support for its supervisory machinery. 



285 



However, the lOE believes that the ILO must display greater creativity and 
flexibility in order to enhance its effectiveness in this respect: 

♦ ILO activKies in the area of improving labour standards, which are meant to 
govern the conditions of wotWng people, should not only take account of the 
different positions of member countries but should also be integrated with 
activities to increase employment and ameliorate unemployment; 

♦ the interests of the unemployed must also be taken into account: 

♦ the ILO's tripartite constituents should, therefore, wori< towards greater flexibility 
in national policies ar»d labour mari<ets and correspondingly greater flexibility in the 
intemational labour standards. 

The ILO should continue to promote the ratification and implementation of its core 
conventions, including examination of obstacles to the ratification of those conventions. 

To supplement the constitutional system of binding conventions and supervisory 
machinery, the ILO should also develop a parallel means of encouraging observance 
of the fundamental principles underlying the core conventions. This should take the 
form of a statement of principles which should be promoted in a variety of ways, 
including : 

♦ through actions by Member States and by employers' and woricers' organisations; 

♦ through the ILO's own technical cooperation programmes; 

♦ through country examinations related to employment policy; 

♦ through action in specific areas of the fundamental principles such as by 
intensifying and publicising ILO work on exploitative child labour and supporting 
an lOE programme of work in this important area. 

lOE member federations are urged to wori< with their govemments in support of 
the conclusions stated above and, in particular, to state the views of the business 
community on the social clause in trade agreements whether in the WTO or In regional 
economic organisations. 



Geneva, 3 June 1996. 



286 



Fact Sheet on Child Labour 

The foundations of the International Labour Organisation's GI'O) policy on child labour are set 

out in the Preamble of its Constitution, the Declaration of Philadelphia and relevant international 
labour standards, as well as in resolutions adopted by the International Labour Conference and in 
decisions taken by the ILO Governing Body. The ILO's primary instrument on child labour is 
Convention No. 138, which requires member states to pursue a national policy designed to 
ensure the effective abolition of child labour, to set a minimum age for admission to employment 
or work, and to raise this age progressively to a level consistent with the fullest physical and 
mental development of young people. This Convention stipulates that the minimum age must 
not be less than the age of completion of compulsory schooling and, in any case, not less than IS 
years. Convention 1 38 applies to work done by children both for another person (wage 
employment) and on their own behalf (self-employment). The ILO Governing Body agreed at its 
March 1996 session to place on the agenda of the 1998 International Labour Conference an item 
which will lead to a new Convention in 1999 on the abolition of the most exploitative forms of 
child labour. 

In 1991, the ILO launched a major technical cooperation program known as the International 
ProgrzuTune on the Elimination of Child Labour (IPEC). IPEC is supported by extra-budgetary 
contributions from Australia, Belgium, Canada, the European Union, France, Germany, 
Luxembourg, Norway, Spain, and the United States. IPEC became fijliy operational in 1992 in 
six countries: Brazil, India, Indonesia, Kenya, Thailand and Turkey. In 1994, an additional five 
countries joined the prograrrune: Bangladesh, Nepal, Pakistan, the Philippines and Tanzania. 
Preparatory activities also took place in Cameroon, Colombia and Egypi The starting point for 
IPEC intervention is the will and commitment of individual governments to address child labour 
issues in cooperation with employers' and workers' organizations, as well as with NGOs and 
other relevant parties in society. Since child labour can only be solved within the countries 
themselves, IPEC supports, rather than supplants, national efforts to combat it. 

When IPEC started its operations, most ongoing action programmes on behalf of working 
children were run by NGOs. IPEC has made a major effort to enlist governments, trade unions, 
and employers organisations in its efforts. The International Organisation of Employers (lOE) 
recognizes that business must play a leading role on child labour for a number of reeisons: 

♦ Humanitarian concerns. It is intolerable that children should work in deleterious 
conditions, and intolerable that business be even indirectly a party to such abuses. 
Working with other groups in society, business has an important role to play in the 
development of measures that are in the long-term interests of working children and the 
societies in which they live. 

♦ Macro-economic concerns. When a society deprives children - the workforce of the 
future - of the opportunity to develop into useful and productive members of society, it 
deprives itself of a significant economic resource and, in the case of developing countries, 
may inhibit its own long-term economic growth and development potential. 



287 



♦ International trade concerns. In the European Union and the United States, legislation 

has been proposed that would restrict imports from developing countries where child 
labor is identified. Such measures are counter-productive, not only because they may nin 
counter to the best interests of the children concerned, but also because they deny 
countries the resources needed to work for the elimination of child labor. Business is 
adamantly opposed to such measures to introduce "social clauses" in international trade 
agreements. 

« Business concerns. Tlie media, consumers, investors, governments, and unions are 

increasingly pressuring companies to address child labor concerns. As the nightly news 
broadcasts and daily newspapers feature stories about child labor, companies are 
concerned about the ways in which this issue tlireatens their reputation and the 
competitiveness of their products. A positive proactive approach by business will be 
more effective than a reactive and defensive one — both in defense of businesses' own 
interest and in the contribution that can be made to the elimination of child labour. 

The lOE has made the issue of child labour a top priority. With its ties to 120 national 
employers organisations, the lOE is well placed to collect, analyse and disseminate information, 
and to assist enterprises and organisations in formulating child labour policies. The lOE can 
provide leadership in impressing on its membership the danger to economic growth and 
development posed by child labour. It can also make clear the dangers posed to working 
children of overly simplistic, albeit well intentioned, actions when children are summarily 
removed from work. 

The lOE, at its 73rd General Council session, adopted a resolution on child labour and 
£uinoimced a major initiative to compile an Employer Handbook that will contain information on 
measures already undertaken by companies and their organisations. These might range from 
examples of corporate policies and guidelines, to accounts of construction of schools and 
childcare facilities, or details of campaigns for the suppression of child work. Together, this 
practical information on what has been done so far and the lessons learned should help 
companies design their own principles, policies, and programs. The lOE resolution on child 
labour also calls on lOE member federations to report on a yearly basis to the General Council 
on their work and recent developments in the area of child labour. 



288 



Fact Sheet on the Social Clause 



The "social clause," (i.e. the notion that trade sanctions should be imposed on countries that do not meet certain 
"internationally recognized labour standards") has been an issue in one form or another since the beginning of 
the Industrial Revolution. Proponents of the social clause argue that countries operating with lower labour 
standards and labour costs have a competitive edge, and the social clause is necessary to erase this supposed 
advantage. 

The International Labour Organisation (ILO), which was formed by the Treaty of Versailles in 1919, rejected 
this trade sanction approach, opting instead for a system based upon the formulation of international labour 
standards by conventions which are subject to ratification by member governments. Once a country freely 
commits to the provisions of a specific IL.O Convention, the supervisory machinery of the ILO oversees reports 
on any violations. 

Among the many conventions of the ILO are a number considered to be "core labour standards" because of their 
human rights considerations. These are: freedom of association, the right to organize and bargain collectively, 
the prohibition of forced labour, non-discrimination in employment, and the abolition of exploitative forms of 
child labour. These so-called "core labour standards" were reaffirmed at the 1995 United Nations Social 
Summit in Copenhagen. 

The U.S Government tried unsuccessfully to assert a link between trade and workers rights at the Marakkesh 
ministerial meeting, at which the results of the Uruguay Round were signed and the World Trade Organization 
(WTO) was set up. More recently, the U.S. Government, together with the French Government and supported 
actively by the international trade union movement, seized the OECD and the ILO with examining the 
relationship. The OECD has been studying the relationship between workers rights and trade and investment 
for two years, and just released a major report following the May 1996 ministerial that finds no clear link 
between coimtries' economic and trade performance and their respect for core labour standards, and questions 
whether trade measures would be effective in enforcing such standards. The report also expresses doubt about 
the utility of seizing the WTO with the issue, reaffirming that the ILO is the appropriate forum. The U.S. 
Government has recently again made clear that it will press for the establishment of a working party on trade 
and labour at the December Singapore ministerial meeting of the WTO. 

In the ILO, the Governing Body decided at its 260th Session (June 1 994) to set up a Working Party on the 
Social Dimensions of the Liberalization of International Trade. In the course of the Working Party discussions 
over the last two years, there has been an overwhelming rejection of a formal link between workers rights and 
trade. The trade union representatives, facing the opposition of the employers and the majority of goverrunents, 
agreed to temporarily remove trade sanctions from discussion and to concentrate on measures to improve the 
effectiveness of the ILO. 

The "social clause" has been rejected by other influential business groups, such as the Business and Industry 
Advisory Committee (BIAC) to the OECD, and the Intemational Chamber of Commerce (ICC), which rejected 
any linkage in statements to the OECD ministerial meeting, the G-7 Summit in Lyon, and to the upcoming 
WTO Singapore ministerial. The purpose of the lOE policy statement on the social clause, adopted by its 
General Coimcil meeting on June 3, is to firmly express the position of 120 employer federations on this 
subject, to state reasons for this position, and to propose new approaches for raising the effectiveness of the ILO 
with respect to working conditions and labour standards. 



289 




INTERNATIONAL ORGANISATION OF EMPLOYERS 



C(*4122)79t1$19 • Nat(*4tZ2)79aaBtg • r«Nr4f MOSotod* 



THE INTERNATIONAL ORGANISATION OF EMPLOYERS 

The International Organisation of Empjoyers (lOE) was founded In 1920, a year 
after the creation of the International Labour Organisation (ILO). At the international 
level, it Is the only organisation representing the Interests of employers in the social 
and labour field and, today, consists of 120 national employers' organisations from 
118 countries. 



The mission of the ICE is three-fold and consists of: 

♦ Defending employer interestt at the International level, particularly within 
the ILO. The lOE acts as the voice of employers and strives to ensure that 
international social policy, especially labour standards adopted by the ILO, does 
not undermine the viability of employers. At the same time. It worio for the 
creation of an environment where enterprises can operate productively and 
contribute to the economic and social progress of their countries. 

♦ Promoting free enterprise and their development. Our objective Is to 
influence the policies and technical cooperation programme of the ILO and other 
International development agencies so that, at the national level, enterprises can 
be set up and operate without being constrained by the rigidities of detailed 
legislation and regulations. In this regard, with unemployment a major concern 
In most countries, a priority for the lOE is to generate an enterprise-oriented 
culture in the ILO so that its efforts are focused on the creation and viable 
operation of enterprises, partlculariy small- and medium-sized enterprises, which 
have shown a tremendous potential for job creation. 

♦ Helping to establish and strengthen employers' organisations at the 
national level. During the period between the two Worid Wars and in the Cold 
War era, most of the ICE'S activities in this area were in the developing 
countries. Following the collapse of Communism in Eastern Europe and tine 
Soviet Union, where the concept of a free employers' organisation did not exist, 
the lOE is now also actively asslsthg in the setting up of representative 
organisations of employers in the East European countries and the former 
republics of the Soviet Union. Several of them have also become members of 
the lOE. 



290 



THE lOE IS OPEN TO ANY CENTRAL FEDERATION OF EMPLOYERS UPHOLDING THE PRINCIPLE OF FREE 

ENTERPRISE, WHICH tS INDEPENDENT OF ANY CONTROL OR INTERFERENCE FROM GOVERNMENTAL AUTHORITY OR 

ANY OUTSIDE BODY AND WHOSE MEMBERSHIP B COMPOSED EXCLUSIVELY OF EMPLOYERS. 

ITS PRESENT MEMBERSHIP COMPRISES 120 FEDERATIONS IN 118 COUNTRIES 



AFRICA 

ConfMirstlon QinArale (>M Op4rmt»un EoonomiquM 

Algeria na 
Orpanlaatlon Nadonal* Ov* Emp(oy«urs du Btnin 
Botswana Contsdaratlon o( Commarc«, Induttry 

and Manpowsr 
Cons*t National du Patronat BurWnaM 
Auoclallon det Employsura du Burundi 
Qroup«m«nt Inter-Petronal du Cameroun 
Conaoll National du Patronat Tcbadten 
Union PBt7orvale at InlerprofeMlonnalla du Congo 
Conagll National du Pat^not Ivolrlan 
radaredon of Egyptian Induotrlea 
Conftdiratlon PavoneJe Gabonalaa 
Tha Ghana Employera' Asaodatlon 
Consail du Petronai Quinden 
Padaranon of Kanys Emplcyera 
Aasodatlon of Laaotfio Enployan 
Qroupament doa Entreprlaea da Madagaaoar 
Tht Employora' Consullatlva Auodatlon ol Malawi 
F^dtraHon Natlonele dea Employeurs du Mali 
Conlddbratlon G4n4rale des Employeurs da Mauritania 
Mauritius Employers' Federation 
ritUraiori doa Chambrea de Commarce at d'induttria du 

Maroc 
Astoclapto d« Empreau Privades de Mofambiqua 
Syndlcat Patronal dee Errtreprteea at Induetrlea du Niger 
Nigeria Employers' Coniuttattve Aatodadon 
Conaoll Notional du Patrttnat du 36ndgal 
Fodoratlon ol EmpJoyerc" Asaodalioru of Seychelles 
Bualneu South Africa 
The Association ol Tanzania Employers 
Union Tunlalenne de rindustrle, du Commerce ei de 

FAniianat 
Federation of Uganda Emplcyera 
The Zambia Federation of Employer* 
Employers' Confodorotlon of Zimbabwe 



ASIA 

Jeddah Chamber of Commerce and Industry (Saudi Arabia) 

Auatrallan Chamber of Commerce and Industry 

Bahrain Chamber of Commerce and Industry 

Bangladeah En^iloyers' Association 

Chinese Natlonel Federation of Irtdustrtea 

Fqi Enployei*' Federallon 

Council of Indian Employers 

APINDO (Employen'^AsMClailon ol Indonesia) 

Japan Fedortllon d Employvra' AuotiBtions 

Anvnon Chamber of Induot^ (Jortlan) 

Korea Employwi' Pedarolton 

Kuwait Chamber o( C o mmetca and Industry 

AMooiation of Labanot* InduMilalists 

Malaysian Employers' Fe<l«rs4lon 

Fedarsfilon of Nepolaee Chombare of Cormnem and 

Induotiy 
NawZooland Emptoyoia' FedomSon 
Eirptaymr Fsdorailon ol PaMoian 
The Errpteyora' Fsdwaflon of Papua New Gulnee 
Employers' ConMoradon of tha PhmnkMs 
The angapor* National Employan' Fadaraaon 
Tha Emptoyeia' Fodan«on o( Caylon (Srt Lart(a) 
Emptoyar** ConMaradon of TTiaSand 
Fadaraden el United Arab Emkaioa Chambers el 

Comnarca and Induety 



Mqr 1999 



AMERICA 

AnOgua Emptoyer*' Federation 

UnMn Industrial Argentina 

Bahamaa Employsrt' Confederation 

BartMdoa Employers' Confederation 

Bermuda Employen' Coundl 

ContederacMn de Empreaartoa PrVedos de BolMa 

Contedaracao Nacional da Induetrle (Brazil) 

The Canadian Employars' Coundl 

ConfederacMn ds la Producddn y del Comerclo (Chile) 

Asodaddn Nadona) de Induatrlalea (Colombia) 

UMn Coalarrlcansa da Ctmaros y Aaodadones de la Empresa Prtvada 

The DomMca Enyloyers' Fadaraflen 

Confederaddn Patrenal ds la RepdbDca Dommicana 

Federaddn Nadonal da Cimaros de Industrial del Ecuador 

Aeodaddn Nadonal de le Empreaa PrVade (El Salvador) 

Comiti Coordlnador da Asodadonee AgrlcolJsa, 

Comerdolea, Induatrlalea y Rnanderaa (Quatemola) 
The ConBunaSva Association of Quyeneee Induelry 
Consejo HondureAo de la Empresa Prhisda 
The Jamaica Employers' Federation 
Corrfederad6n da Cdmaras Industrialaa de loa Eitados Unldoa 

Mexicanoa 

ConfedsracMn Pelronal de la RepOWIca Mexicana 
Consejo Superior de la Empresa Prtvada (Nicaragua) 
Consa}o Nadonal de la Empreea Prtvada (PanamA) 
Federadin da la Producdbn. la Industrie y el Comordo (Paraguay) 
ConfedoracMn Nadonal da Instltuclones Empreserlalet Privadas (Peru) 
St. Lucia Employera' Federation 
Surtname Employers Organisation 

The Employsrar Cormittatlve Assodetlon ol Trmidad and Tobago 
United States Coundl for Intsmatlonal Business 
ComlsMn Patronal del Uruguay de Aauntos Reladorados con is OIT 
Cimara de Industries del Unjguay 
FederacKin Vanezolana de Cdmaraa y Asoclaclonea de 

Oomerdo y Produccldn 



EUROPE 

Federation of Austrian Industrialists 

FMiraHon des ErKreprlses da Belglqua 

Asaoolation of the Orgonlaailone of Bulge/Ian Employera (AOBE) 

Oreodan Ennployera' AaaoctaOon 

Cypcua Employsrs and Indualrtallato Federation 

Confadaraflon ol industry of tha Czech Republic 

Donleh Employers' Confederation 

ConfadaraOon ol Finnlah Induatiy and Employer* 

ConsaR National du Patronat Francals 

Confederation of German Employars' Aasociatlon* 

FaderaOon of Greek Induatrtaa 

Nadonal Asaodatlon of Entarpranoma (Hungary) 

Contadaradon of Icalandio Etnployara 

Irish Bualnaa* and Employara Contadaradon 

Mamifacturars* Assodadon of laiaal 

Contadarazlene Genarala darindusMa ttalana 

Emptoyara Oonledaradon ol Utvia 

FMAradon dec Industrials Uscambeurgeole 

Mafta Einployar*' Assodadon 

Confadaradon of NeViarlanda Induady and Employera 

Contadaradon of Nonwogian Bualnaae and mduaoy 

CotvadafBdon of PoOan DifMiyafa 

CenMar^o da IndOaMa PwkViMa 

TTta Rofwdsn Empfayava^ OQanlaaitoft 

Coordknang Cound of Ruaalwi Aaaodadona of Employera 

AsaodaMM Nazkmala dalTnduaMa Sammaitnaaa 

Fadasaden of EnftoyacsT UMona and Asaodadorw ol tta Slovak Repubde 

EiBptoyaWOigaii ls a d onel O lewaida 

C w ^a J ai a U dn Espa B ola da Otyrt iaElonaa Eirpiaaattalae 

6wadMi Cfiipfoyaf^ ConladafaSon 

Union Canlrala dea Aaaottadona Pakonalaa Subaas 

Turtdsli Confadaiaden ol Einptoyar Aaaododeiw 

CenMaradon of BrWshlndualry 



291 



CONSULTQRES FINANCIKROS INTERNACIONALES. S.A. 



Ave Republics del rniKiiiv, N* 2302. ColonU Tepeyai, P.O. Box N* J27, TegucigalpB, M.D.C, Hondnnu, C.A. 
Tel. 31-26-03 Fai (S04) 39-22-H) 



TegucigBlpa, M D C, June 12, 1996 

The Honorable Christopher Smith 

Chairman, Sub-Committee on Human Rights and 

International Organizations 
Committee on International Relations 
United States House of Representatives 
Washington, D.C 2051S Fax (202) 225-7768 

Dear Chairmaa Smith: 

For your information, and regarding yesterday's hearing on the allegations of labor abuse and 
human rights violations in Honduras, I would like to support the testimony presented by Mr. Jesiis 
Canahuati, as a representative of the Asociacion de Maquiladores de Honduras. To this end, I am 
attaching to this fex a copy of the letter faxed to the Honorable Benajmin Oilman, Chairman of 
the Committee on Intetnational Relations, on June 10 regarding your hearings 

In 1981, as a consultant to the National Constituent Assembly, I had the privilege to escort 
Congressman Benjamin Oilman and former Congressman Roben Lagomarsino to observe a 
variety of polling places during our 1981 Presidetitial elections. Since then, I have been working 
closely witii the Congress of Honduras to promote legislation supporting d'velopmcm strategies, 
provnding employment opportunities, poverty reduction, promotion of the private sector and 
financial reform, coordinating in Washington, D C the relations between the Honduran Congress 
and the U S. Congress from 1981 to 1993. 

In such capacity, I have testified in and provided information to the former Committee on Foreign 
Affairs and met personally with many of its members, including Chairman Oilman, Representatives 
Henry Hyde, Doug Bereuter. and yourself Therefore, I would be very honored if the letter faxed 
to Chairman Oilman would be included in the records of your hearings. 

I would be very happy to meet with you, at your convenience, at the end of this month, to follow- 
up on economic and social policies that encourage economic growth and provide employment and 
equal opportunities in my country following President Reina's development strategies and moral 
revolution. 

I remain, sincerely y9dfs, 
Mario Rietti 




292 



CONSULTORES FINANCIEROS INTERNACIONALES. S.A. 

Ave RciiAhUca del Uniguay. N* Z302. Colonia Tepcyac, P.O. Boi N* 327, Tegucigalpa. M.D.C. Honduras. CA. 
Ttl. 31-26-03 Fa« (504) 39-22-10 

Tcgucigalp* M.D C, June 10, 1996 ~~ — — 

Honorable Benjamin A Oilman 

Chairman, Comnunee on International Relations 

US House of Representatives 

Washington D C 20515 Fax (202) 225-2541 

Dear Chairman Oilman: 

As we have been discussing since December 1981 when you participated as an honorary observer 
during our presidential elections, Honduras wants to develop economic policies that encourage 
economic growth in our country, where the lack of economic opportunities "pushes out" our people to 
the United States for better opportunities in life 

President Reina's development strategies are focused on employment opportunities, pove.'ty 
reduction, public sector reform and promotion of private sector development, and sustainable 
management of natural resources Within this strategy, te)ctile factories (miquilas) in the North Coast 
of Honduras, which import US raw material to manufacture m Honduras, have been developed to 
increase investment productivity and development of human capital. 

Honduras has become the number one exporter of maquila from Central America to the US and these 
maquiladoras provide more than 60,000 jobs in the northern area of my country If these 
maquiladoras shut down and stop providing these jobs, it will be even more difficuh to stop the 
migration of Hondurans to the U S in search of jobs and better opportunities. 

Therefore, we would like to take this opportunity to express to you arJ Congressman Doug Bereuter 
and to all of the members of the Committee on International Relations that the allegations of labor 
abuse and human rights violation in these factories are not true, and it is not fair to generalize on 
possible isolated cases, such as the case of the minor Wendy Diaz, who was presented to Congress 
and in the program "Hard Copy". 

To avoid this bad publicity against my country, I respectfully suggest that the U.S. Embassy in 
Tegucigalpa provide Congress with a report on their findings on the general working conditions of the 
maquiladoras Also, I would appreciate if you could meet with our Ambassador and the delegation of 
Hondurans that are travelling today to meet with members of Congress. 

Hoping to see you in my next tripjgJ^isJiLijgton, I remain, respectfiilly yours, 

Mario Rietti 




293 

Questions submined by Hon. Matt Salmon 



Q: I read in Mr. Hall's written testimony that he suggest a company be given notice of 
apparent violations, and an opportunity to correct the problem, before the press 
conferences are held. Does this seem like a reasonable course to follow? 

^ A: Ms. Echaveste - Yes. In fact, this is the policy of the Wage and Hour Division. It is 
standard operating procedure to meet with an employer at the conclusion of an 
investigation, explain the laws that are applicable to the business and explain the alleged 
violations disclosed by the investigation. Employers are given an opportunity to rebut 
the investigation findings. In the case of investigations of lower-tier garment contractors, 
the contractor is notified that the Wage and Hour Division will be contacting the 
manufacmrer which is the recipient of the goods produced in violation. The contractor 
is invited to participate in the conference with the manufacturer. If the retailer is 
identified, both the contractor and manufacturer are notified and invited to participate in 
any subsequent conversations that are held with the retailer. 

Mr. Kamberis - The AFL-CIO believes that it is the sole responsibility of companies 
to be informed of the labor practices of their suppliers and to correct problems before 
they become national press stories. If companies were to hold their suppliers to an 
effective code of conduct and implement effective self-monitoring programs there would 
be no press conferences. As long as companies do not engage in honest, effective self- 
monitoring of the labor practices of their suppliers, labor and human rights advocates will 
remain skeptical of their commitment to end labor exploitation and press conferences will 
continue to be held. 

Mr. Canahuati - Yes, Mr. Hall's suggestion is reasonable as a method by which 
violations should be resolved. In Honduras a factory which is found to be violating 
regulations is held responsible by the appropriate governmental body - Ministry of Labor 
or Ministry of Conmierce - and will be required to correct the situation and pay a fine 
of varying magnitude depending upon the severity of the violation. In some instances, 
for example improper labeling of products, the factory could be shut down and criminal 
charges could be brought against the owners of the plant. 



294 



Page two 

Questions submitted by Hon. Matt Salmon 



BOSTON PUBLIC LIBRARY 



3 9999 05983 776 3 



Counterfeiting of American name-brand labels is a worldwide problem that hurts 
American businesses and their employees. Is it likely that counterfeiters -lawbreakers- 
would be more likely to be exploiting children in creating their illegal products? 

Ms. Echaveste - Counterfeiting of name-brand labels is indeed a worldwide problem. 
It covers the gamut from garments to handbags, footwear, watches, tapes, compact disks, 
software. Factories that produce counterfeit items are notorious lawbreakers. It wouldn't 
surprise us that they also broke labor laws, but we don't have specific information on 
whether or not they are significant users of child labor. 



Mr. Canahuati - The Ministry of Labor and the Ministry of Commerce in Honduras 
monitor the garment producing industry very closely, particularly with regard to activities 
like counterfeiting brand-name labels and illegally employing child labor under fourteen 
years of age or without parental permission. Though it may be true that counterfeiting 
of American brand-name labels is a world-wide problem, it is not an occurrence in 
Honduras, to the extent with which the Association of Honduran Apparel Manufacturers 
(AHM) is familiar with the industry in Honduras. Further, given the close monitoring 
which is provided by the governmental organizations, it would be doubly difficult for a 
counterfeiter to exploit child labor through employment which violates the legal 
guidelines. It is difficult to predict the actions of such counterfeiters from the perspective 
of the AHM, as none of our members are even remotely associated with such activities. 



Do we have any reliable numbers about what percentage of products made with child 
labor are counterfeit products? Any estimates? 

Ms. Echaveste - The Department of Labor does not have any information on the extent 
to which products made with child labor are counterfeit products. It would not surprise 
us that there is some correlation between use of child labor and counterfeiting, but we 
do not have any information about this relationship. 

Mr. Canahuati - As mentioned above, Honduran governmental oversight is very 
preventive of any such counterfeiting. The businesses who are members of the AHM - 
and each garment producing factory within Honduras is required by law to be a member - 
are not associated in any way with the manufacture of counterfeit products. If any 
member of the AHM were found assembling products and labeling them incorrectly, the 
factory would be closed through governmental intervention. Thus it is impossible for the 
AHM to provide statistics as to production of counterfeit products by child laborers. 



295 



GOVERNMENT REFORM (IqUQV t^^ Ol t\)t Winittti ^tatCg 



JAMES P. MORAN 

8TM DISTRICT Of VIRGINIA 



ANDOVERSIGHT \i^KHl^Klraa VK Klji. ^b^lllitu <^«.Uil.0 WASHINGTON OFFICE 

J^om of l&eprcscntatibtfi '%',T.''S!;',Lo?^i' 

WASHINGTON. DC 20515-4608 

MaSljinBton, ©C 20515-4608 12021225^376 

COMMITTEE 
ON 

INTERNATIONAL RELATIONS 

SUBCOMMITTEE ON 
INTERNATIONAL OPERATIONS _, • ». w n «. 

AND HUMAN RIGHTS Statement of Rep. James P. Moran 

Subcommittee on International Operations and Human Rights 
July 15, 1996 



Thank you, Chainnan Smith, for reconvening tliis hearing to take testimony from 
these important witnesses. 

I would like to begin by discussing a comment made in an article in today's 
Washington Post. It is a comment by Bud Konheim, Nicole Miller's spokesman. Mr. 
Konheim says that eventually we will "Run out of people like Kathie Lee to bust. " 

If we are here today to "bust" anyone, it is certainly not Ms. Gifford. She is 
virtually the only celebrity figure who is acting responsibly and working to help eliminate 
the problem of child exploitation. If we are here to "bust" anyone, it should be those who 
arrogantly turn a blind eye toward child exploitation. Celebrities Uke Michael Jordan and 
Jaclyn Smith have passed the buck to Nike and Kmart. They pretend to be victims of 
attacks by the media. 

Mr. Chairman, let me take a moment to tell you about a few of the real victims. 

Nine-year-old Shadab is a real victim. Since he was six, he has spent 12 hours a 
day, six days a week, squatting in the semi-darkness on damp ground polishing metal in a 
brass factory. The air in the factory is visibly thick with metal dust. The temperature is 
120 degrees. The bare floor is damp with acid that sloshes from big vats onto the ground. 

Three-year-old SUgi is real victim. She sits on a mud floor in a filthy dress stitching 
soccer balls bound for Los Angeles. With needles longer than her fingers, her stitching is 
adequate, but her hands are so small that she caimot handle scissors. She must get 
assistance from a fellow employee - her sister. 

Nine-year-old Anwar is a real victim. He started weaving carpets at the age of six 
or seven. He was told repeatedly that he could not stop working until he earned enough 
money to repay an alleged family debt. He was never told who in his family had borrowed 
or how much money they had borrowed. Whenever he made an error in his work, he was 
fined and his debt increased. When he was too slow, he was beaten with a stick. Once, he 
tried to run away, but he was caught by the local police who forcibly returned him to the 
carpet looms. In order to take a break, he would injure himself by cutting his own hand. 

Forced labor is illegal in most parts of the world, yet it is on the increase in Asia, 
Africa, and Latin America.-. The reason is simple: exploiting children is both easy and 
profitable. 

Most U.S. manufacturers genuinely do not want to be a party to exploiting children. 
Yet, U.S. businesses that do not use child labor are at a competitive disadvantage. We, as 



296 



consumers, are at fault when we demand cheap, hand-made pnxlucts without considering 
whose hands may have made them. 

Unfortunately, there are those willing to turn a blind eye toward this sort of abuse. 
We need to take direct action against those individuals that tolerate and even condone the 
buying and selling of children as commodities. One Moroccan carpet manufacturer said he 
prefers "to get them when they are about seven . . . their hands are nimbler, and their eyes 
are better too. They are faster when they are small. " 

Over the weekend Pakistani authorities rescued 50 slave laborers from factories in 
Karachi. They have caught four of their "employers" . Pakistan is to be commended for 
taking action against these modem day slave-drivers. Let us hope justice is swift, certain, 
and severe so that others will be deterred. 

Mr. Chairman, I would like to commend your non-partisan leadership on this issue. 
I am pleased to be a co-sponsor of your legislation which embodies several proposals 
included in my legislation, the Working Children's Human Rights Act. Mr. Chairman, the 
exploitation of children is not a partisan issue and we should not let this issue fall prey to 
partisan posturing. There are very few legislative days left this year, but this is one issue 
that has been embraced by the Democratic leadership and the Republican leadership. There 
is no reason why Congress can't take the first step towards combating child labor by passing 
legislation immediately. 

We have heard that by depriving children of an opportunity to work, we are 
condemning them to a life of poverty. On the contrary, enforcing child labor laws will 
create more job opportunities for parents and appropriate breadwiimers around the world to 
become compensated participants rather than pawns in the globalization of our economy. 
Most of us have been blessai by the accident of birth but such good fortune ought not 
relieve us of some personal and collective responsibility to those who have not been so 
blessed. 



I 



o 



GOVERNMENT DOCUMENTS DEPT 

BOSTON PUBUC UBRARY 

700 Boylston Street 

Boston, MA 02117 



ISBN 0-16-053692-8 




9 780160"536922 



90000