SINTTIM & ENLACE WIN PUNG KOOK FIGHT!

A New Kind of Victory

Maquiladora workers in Baja California Sur recently wrestled a historic victory from Korean based Pung Kook.  Enlace and SINTTIM succeeded in getting this transnational corporation to return to North America to settle up with the workers.

Working for less than the Mexican minimum wage, Pung Kook workers labored under sweatshop conditions making luggage and backpacks for Adidas, Land’s End and Patagonia.  They were working to form an independent union in Baja California Sur, el Sindicato Independiente de Trabajadores y Trabajadoras de la Industria Maquiladora, SINTTIM.

In March of 2003, after firing SINTTIM President, Raquel Espinoza, for organizing, Pung Kook shut down its factory in Mexico without properly compensating the workers. The corporation then moved all of its business operations to Asia, beyond the reach of Mexican law and NAFTA. Under Mexican labor law, the workers were entitled to three months pay plus 32 days pay for each year of service.  Pung Kook, like virtually all its counterparts in Mexico, paid only a fraction of that.  SINTTIM asked Enlace to coordinate a campaign to force Pung Kook to pay the balance of monies owed to the workers.

Enlace and SINTTIM created a synchronized action campaign plan to gain justice for the Pung Kook workers.  Since the corporation no longer had a foothold in North America, it was decided to pressure one of Pung Kook’s North American customers to induce them to help force the transnational to pay the workers.

With the help of Portland Jobs with Justice and the Cross Border Organizing Labor Coalition (CBLOC), Enlace organized support to confront Adidas America at its headquarters in Portland, Oregon.  Adidas contacted Enlace and expressed an interest in avoiding this confrontation.  Enlace knew, through member organization Koreatown Immigrant Workers Advocates (KIWA), that Pung Kook still manufactured items for Adidas at its Singapore plant. After a series of discussions, Adidas agreed to bring pressure on Pung Kook to pay SINTTIM’s members what they were owed.

In September of 2003, Enlace organized a meeting in Mexico City between Gilberto Piñeda Bañuelos of SINTTIM, internationally renowned Mexican labor lawyer Arturo Alcalde, Enlace staff, and representatives of Adidas Mexico and Adidas America.  Adidas committed to pressure Pung Kook to compensate the workers properly.

But pressure from Adidas wasn’t enough to compel Pung Kook to do the right thing.

Enlace sought support of members and allies in Canada, Mexico and the United States to pressure Pung Kook and the state government that allowed the company to shortchange the workers.  Hundreds of members and allies responded to this call for support by sending faxes and e-mails.

Finally, on June 17, 2004 Enlace organized a synchronized action that included a delegation to the South Korean consulate in Los Angeles and a demonstration in front of the South Korean embassy in Mexico City as well as two public actions in Seoul, South Korea.  At the same time, the workers organized a delegation to pressure the governor of Baja California Sur.  These actions resulted in extensive press coverage in Korea and in the Korean-American and Latino media in Southern California, organized by KIWA.  The Korean consulate in Los Angeles committed to request the government of Korea to open an investigation into Pung Kook’s practices. All these actions took place as negotiations continued.

The synchronized actions worked. On August 20, 2004, Pung Kook agreed to a settlement. This agreement brings the total compensation for the workers to between 4 and 22 months pay based on seniority; most of the workers get over 50 weeks of pay.  Pung Kook also agreed to pay union president Raquel Espinoza $10,000 U.S. for firing her unjustly and to give her the company’s 40-passenger bus which will be used by the union. Pung Kook temporarily returned to Mexico to set up a bank account so that the workers can be properly compensated. 

Arturo Alcalde enthusiastically called the agreement a historical first.

The Pung Kook campaign success demonstrates that corporations can be held accountable for their behavior in regard to workers and their communities no matter where in the world they may shift production