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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

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

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)

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.

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.

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.]

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.

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 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-

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-

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.

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.

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.

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

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.

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

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?

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

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?

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

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

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. /

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

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

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.

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

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.

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.

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

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

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.

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,

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.

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 countries 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/

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-

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 question -o£^ political will. Why are some
governments that are seriously faced withTtheTssue of chTIHTabor
on avefageTgpepding 30 percent more 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.

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-

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^

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

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?

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

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.

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.

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.

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

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-

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

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)

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.

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-

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.

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. businessesthat do not 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.

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.

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

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 can 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

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

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-

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?

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

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

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

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.

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.

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

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

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

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

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

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

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.

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 phased 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.

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 demonstration 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 jionformal 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 themJioyiU^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.

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

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.

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

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-

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.

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.

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.

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

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.]

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

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.

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.

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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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."

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0-7 rn a Qc

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.

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

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

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

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

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

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

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.

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.

119

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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

128

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

129

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

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 Toil 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

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

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.

Supporting 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

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.

Supporting 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

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

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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

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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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

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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 Supervision de Trabajo , 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 confierej. Be c(:>nstA 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 LaKoral
les confiere Be 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

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 grp ^ 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"^^ ^ buyeii 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

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 0 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 0 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.

■/M(5^^ V-AcvAQV^oro^

-' C(krcli'ha Oaxion7a

y<2Lsr^\^. M^^-.Air,!

tJ'^^ct^ ^kitfit'c^ rv^^<«^cii

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/\\c:a/i S>~ /JKyTtaX ^S<^^'J^'/--

*?■;. —;'■/ OABft^;&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

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 "ORGANIZACION INTERNACIONAL 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 0 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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DIRECaON OKNERAL Dl lOtLACIOM Y MUnCA MnilAIOMA

TAkJETA DF. INSCRIPCION

r-brXno

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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 0 JOMI-'Al.vIlJA KYIKO HEBx KIH

Ho. DB KIJOS 2
KACIONALI DAD .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\VAL

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 0 ■ T 0

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— antay 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 0 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

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
0 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 0 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, 0 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

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
0 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 0 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, 0 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 0 PAIQOE

FEDElACIOl

recu KOTivo de coifucto siioical

A.A.A. lOIDOUS APPAUL

TICAIAU, CIOLOIA.

17/1/J4

SDSPEISIOI LABOIES

FITS

SEOLII BOIDS., I.A. DEC.?.

IllDELVA

19/l/M

SDSPEISIOI LABORES,
lECLAlO PAGO DE SAUIIO.

GILAH IIODSTIIAL

GAUn, CIOLOIA

IJ/I/M

lECLAW) POI PAGO
SAUIIO COUECTO

FESITIAIB

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

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.

•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 0 PUQOE

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

TOO TJUK, t.l.

coniKniL

ULIU

21/t/«

SOSPEISIOI LABOIES,
lOIEITO SlLilUL.

PESITIAIB

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 0 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 0 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 0 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 0 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 0 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 0 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 0 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.'

iiiufK*!!'!^

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), »pi*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

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

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( Commetca 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

EiBptoyaWOigaiilsadonelOlewaida

Cw^aJaiaUdn EspaBola da OtyrtiaElonaa 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

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.

GOVERNMENT DOCUMENTS DEPT

BOSTON PUBUC UBRARY

700 Boylston Street

Boston, MA 02117

ISBN 0-16-053692-8

9 780160"536922

90000

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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"

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