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Labor Rights in Guatemala Aided Little by Trade Deal

Cristina Perez said security guards sometimes locked her in the factory where she worked late into the night.
Cristina Perez said security guards sometimes locked her in the factory where she worked late into the night. (Photos By Peter S. Goodman -- The Washington Post)
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"We haven't seen a significant improvement," one official said. "It's a process."

Guatemalan authorities said the American-funded programs did not tackle the root cause of abuse -- the power of employers to manipulate labor inspectors and judges.

"It's very widespread that if workers file complaints or try to organize a union, they can be fired," said Gustavo A. Campos, who leads a program funded by the United States that trains Guatemalan labor inspectors and educates workers. "The part that's still missing here is the ability to coerce compliance."

At the labor ministry, one inspector said attempting to enforce the law puts inspectors' careers at risk. "There's a lot of pressure to rule in the employer's favor," said the inspector, Marco Tulio Castillo. "We're not allowed to do our jobs."

Schwab said labor provisions in the trade deals negotiated by the Bush administration are better than nothing. Without the promise of U.S. trade, "what incentive would these governments have to improve their labor standards?" she said in an interview. She said trade boosts workers' rights in poor countries by increasing the presence of global brands: Loath to be linked to sweatshops, these companies force factory managers to obey rules.

Managers in Guatemala said foreign firms demand adherence to labor standards but also demand lower prices, with constant threats to shift work to China if the Guatemalan firms don't go along.

"Your country is pressuring us to respect our own laws, laws that hinder the competitiveness of Guatemala compared to China, which does not have the same respect for labor rights," said Carlos Arias, a lobbyist for the Guatemalan Chamber of Industry. "When you have to pay the minimum wage and all the fringe benefits, your costs increase."

At a factory run by a company called Avandia on the eastern fringes of Guatemala City, nearly 700 workers make dress pants for the American retailer Jones Apparel Group, which owns the Nine West and Gloria Vanderbilt brands. Five current and former workers said in interviews that factory bosses often forced them to work unpaid overtime. Cristina Perez, a mother of four, said security guards sometimes locked her in the factory late into the night, even as she protested that she was a nursing mother.

The drinking water was dirty, the workers said, and the bathrooms lacked soap and water -- except on days when someone from Jones came to visit.

"All of a sudden, they were giving the appearance that they treat us well," said Karen Chacon. "Actually, they treat us like animals."

Last November, nine workers, including Chacon and Perez, signed a petition to set up a labor committee, a precursor to a union. They filed the petition at the Labor Ministry and got a court injunction protecting their jobs. The next day, all nine were fired. Avandia's personnel manager, Jorge Meng, said the workers were let go because of declining production, not because of the petition.

In an interview, Ira M. Dansky, Jones's general counsel, said it was "unclear" what transpired at Avandia, but he confirmed that if the workers were fired for organizing, that would violate the company's code of conduct. Jones is continuing to do business with Avandia, he said.


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