PERU: Hialpesa factory workers object to "sham" contracts

One of Peru's largest and most profitable textile and clothing companies, Hilandería de Algodón Peruana (Hialpesa) is alleged to have turned away workers who refused to sign "sham" employment contracts.

According to the IndustriAll global union, the company called the police on Monday (4 November) to prevent union members from entering the factory.

The 136 workers had refused to sign the contracts after the labour authorities issued a landmark ruling in September invalidating 1,008 short-term employment contracts. Legally, this means the workers automatically become permanent.

The workers, who are members of IndustriAll affiliate FNTTP, told Hialpesa they were not prepared to sign away their newly-acquired rights.

But apparently the response was a blunt: "If you don't sign, you don't work."

Some of the brands sourcing from Hialpesa earlier this year asked the Peruvian government to repeal legislation that allows the use of short-term contracts in the country's garment industry.

They said this poses an obstacle to the proper implementation of their codes of conduct.

The law, Decree 22342, allows 'non-traditional' exporting companies to employ workers on short-term contracts - typically for six months, but often for three months and sometimes for as little as one month - to work on specific export orders.

IndustriAll says it is now seeking the urgent intervention of Peruvian Labour Minister Nancy Laos and of brands and retailers sourcing from Hialpesa to ensure that the union members are allowed to return to work and that the ministry ruling is upheld.

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''''''Message to TAN SRI SYED MOKHTAR AL BUKHARY - Press Release ::: Press Report for DRB

 Group – Termination action against workers exercising their political rights is abhorred. 

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