18239: (Arthur) IFC Haiti project funding goes ahead despite investigation's "mixed res (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Tttnhm@aol.com

(Please note the following article is written by the Bretton Woods Project,
and not by the Haiti Support Group)


IFC Haiti project funding goes ahead despite investigation's "mixed results"

News | 3rd February 2004 | Bretton Woods Project

On 15 January, the World Bank's private sector arm, the International Finance
Corporation (IFC) committed $20 million to help Dominican company Grupo M
finance an industrial park in a new Haitian free trade zone. The decision comes
after an investigation into allegations regarding the abuse of workers' rights
at a Grupo M plant in the Dominican Republic. In October 2003, as a result of
the allegations by international trade unions, the IFC decided to make the
Grupo M loan contingent on the addition of freedom of association and collective
bargaining covenants into the agreement. It also declared that the loan
agreement would depend on the findings of an investigation into the charges of
anti-union practices in the Dominican Republic. (see Update 36). On receipt of the
investigation report, the IFC concluded that the "project deserves continued
strong support given its development impact, even if some wrongdoing was
demonstrated."

IFC contracted ALGI of the United States to conduct the investigation,
selected "because they were Fair Labor Association certified and had extensive
experience working in the Dominican Republic." ALGI described its findings as
"simultaneously troubling and reassuring." It found that Grupo M was guilty of
targeting some employees for dismissal because they were members of the union
organizing committee; discouraging employees from joining the committee; and
preferentially treating "the aggressors who beat up two members of the organizing
committee". The report goes on to defend Grupo M however, saying that there was
no evidence that management hired the "aggressors" who beat up the organising
committee; that the incidents were not reflective of "systemic" problems at
Grupo M; and that "recent developments suggest a much more constructive and
respectful relationship."

The NGO Haiti Support Group, echoing concerns of Haitian civil society
organisations and labour organisations, is expressing reservations about the
decision and the way it was taken. Representative Charles Arthur was "staggered" that
the loan was approved on the basis of an investigation carried out by a Fair
Labor Association-certified monitoring organisation. The Fair Labor
Association, a coalition of textile industry, university and NGO representatives, has
been criticised for being too weak and industry-friendly by organisations such
as Global Exchange and the UNITE union. Arthur also expressed his surprise that
the International Confederation of Free Trade Unions appeared to accept the
findings of a report which, at the time of the loan decision, had only been
reviewed and interpreted by the IFC.

A Remedial Action Plan will form part of IFC's loan agreement with Grupo M,
including:
training all managers on all aspects of freedom of association and collective
bargaining rights;
creating an ombudsman function to resolve disputes and a Social Comliance
Officer to monitor compliance with labour laws and codes of conduct; and
giving clear, written explanations to unionised workers who are laid off.

The loan agreement will contain specific covenants requiring:
adherence to Grupo M's code of conduct including freedom of association;
annual compliance audits (unannounced); and
a report to IFC within one year on progress made in implementing the remedial
action plan.

Those wishing to review the ALGI report may do so on a "read-only" basis at
IFC offices worldwide.
Contact Mark Constantine at (202) 473-9331


Source: Bretton Woods Project
http://www.brettonwoodsproject.org/article.shtml?cmd[126]=x-126-35235


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See the Haiti Support Group web site:
www.haitisupport.gn.apc.org

Solidarity with the Haitian people's struggle for justice, participatory
democracy and equitable development, since 1992.
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