21090: (Arthur) Levi Strauss garment maker, rebel trouble-shooters (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Tttnhm@aol.com

Monday, March 29, 2004
Levi Strauss garment maker, rebel trouble-shooters
http://www.telepark.de/clubhaiti/archive/2004_03_28_charch.html


Founded in 1986, Grupo M is the largest private sector employer in the
Dominican Republic with more than 12,000 employees and is the largest apparel
producer in the Caribbean/Central American region selling $200 million worth of
clothing annually, supplying to major brand name companies including Hugo Boss,
Liz Claiborne, Polo Ralph Lauren, Levis, Hanes and Tommy Hilfiger.

On 9 October 2003 , the World Bank's private sector lending arm, the
International Finance Corporation (IFC) authorised a US$20 million loan to Grupo M for
a new production facility in a free trade zone located near Ouanaminthe in
north-east Haiti. The total cost of the project is estimated by the IFC at US$43
million.

The day after President Aristide was escorted to exile, 34 union members at
the Ouanaminthe garment assembly factory were fired. The next morning, when the
600-strong workforce decided to strike, a group of armed men allegedly
launched a violent attack. Some unionists were handcuffed, many others were beaten
up, and the workers were forced back inside the factory. The aggressors were
members of the so-called rebel force. They said they had been called to the
factory by management, to deal with workers "causing trouble".

Limbert Cruz, the factory manager, pretended that 27 of the 34 people were
dismissed not because of involvement with the union but because the factory had
insufficient work. His claim that 27 people had been 'let go' merely because a
shortage of orders was exposed when the Levi Strauss Company - the main
contractor for the Ouanaminthe factory - in response to inquiries from US labour
organisations, categorically denied that it had reduced its orders in any way,
shape, or form.

The founding companies for Grupo M were established in 1986 by Fernando
Capellan, a Dominican Republic entrepreneur. Grupo M, the holding company, was
established in 1993. Fernando Capellan and family members are the controlling
shareholders who, together with senior management and company staff hold 82% of
the outstanding share capital. Banco Popular, the largest financial group in the
Dominican Republic holds 10% of the outstanding shares, while the remainder
is held by other local shareholders.

Grupo M prides itself for their non-abusive, progressive treatment of its
workforce. According to US publication Fast Company Capellan is said to be
revered by Dominican workers throughout Grupo M - in part because he treats them
well financially, but also because he remains approachable.
[Source: World Bank / Batay Ouvriye / Fast Company]
http://www.telepark.de/clubhaiti/archive/2004_03_28_charch.html