Kraft Foods response to concerns alleging Kraft Argentina fired union workers for organizing protests and about alleged collaboration with violent police behavior 13 Oct 2009 Business & Human Rights Resource Centre invited Kraft Foods to respond to the following reports: - "Kraft Firings Feed Protests", Marie Trigona, Americas Program, Center for International Policy (CIP), 7 October, 2009: http://americas.irc-online.org/am/6484 - “Dígale no a Terrabusi”, El Argentino.com, 1 octubre 2009: http://www.elargentino.com/nota-60321-Digale-no-a-Terrabusi.html Kraft Foods sent the following statement to the Resource Centre: A. Situation Overview The conflict at Kraft Foods Foods´ Pacheco Plant began during the outbreak of the H1N1 virus in Argentina. As a multinational company in the food industry, Kraft Foods´ sanitation and hygiene standards are well above those that can be found in other industries. Food production processes include hand washing stations and the use of hairnets and smocks to ensure proper sanitary conditions inside production facilities. In response to fears of H1N1 outbreak in Argentina, however, Kraft Foods immediately adopted the following additional preventive measures: a) Reinforced sanitation practices at the plants in open spaces and common areas; b) Initiated an employee informational campaign outlining safeguards to prevent flu contagion; d) Assigned new cafeteria shifts to minimize crowds and personal contact; b) Made alcohol gel available at all locations for all employees; e) Temporarily closed the employee club and gym. The daycare center was also temporarily closed in accordance with the preventative measures implemented by the Government of Argentina for public daycare centers and schools. f) Provided a $200 peso private care subsidy for the period of closure (July 4 - 26) to parents who used Kraft Foods daycare services (matched by an equal amount from the union). g) Parents were offered paid days off in order to make necessary arrangements for day care for their children; and h) Kraft Foods provided paid leave to pregnant women, immune compromised employees, and any employee with a family member who had H1N1 flu. No company in any industry in Argentina has been shut down due to H1N1 concerns. In companies in Argentina where H1N1 flu cases have been reported, employees have been extended paid leave while operations continued. At no time has there been any case of H1N1 flu reported at Kraft Foods facilities in Argentina. However, at that time a group of Internal Commission delegates demanded the complete closure of the Pacheco facility and thirty days of paid leave for all production employees (see Appendix V: Workers Demands to close Plant during July). Simultaneously, they demanded that the Kraft daycare center remain open. Kraft Foods declined these proposals, explaining that a demand to close the plant was unreasonable, and that keeping the daycare center (the most vulnerable space for potential
Transcript
Kraft Foods response to concerns alleging Kraft Argentina fired union workers for organizing protests and about alleged collaboration with violent police behavior 13 Oct 2009
Business & Human Rights Resource Centre invited Kraft Foods to respond to the following reports: - "Kraft Firings Feed Protests", Marie Trigona, Americas Program, Center for International Policy (CIP), 7 October, 2009: http://americas.irc-online.org/am/6484 - “Dígale no a Terrabusi”, El Argentino.com, 1 octubre 2009: http://www.elargentino.com/nota-60321-Digale-no-a-Terrabusi.html
Kraft Foods sent the following statement to the Resource Centre:
A. Situation Overview The conflict at Kraft Foods Foods´ Pacheco Plant began during the outbreak of the H1N1 virus in Argentina. As a multinational company in the food industry, Kraft Foods´ sanitation and hygiene standards are well above those that can be found in other industries. Food production processes include hand washing stations and the use of hairnets and smocks to ensure proper sanitary conditions inside production facilities. In response to fears of H1N1 outbreak in Argentina, however, Kraft Foods immediately adopted the following additional preventive measures: a) Reinforced sanitation practices at the plants in open spaces and common areas; b) Initiated an employee informational campaign outlining safeguards to prevent flu contagion; d) Assigned new cafeteria shifts to minimize crowds and personal contact; b) Made alcohol gel available at all locations for all employees; e) Temporarily closed the employee club and gym. The daycare center was also temporarily closed in accordance with the preventative measures implemented by the Government of Argentina for public daycare centers and schools. f) Provided a $200 peso private care subsidy for the period of closure (July 4 - 26) to parents who used Kraft Foods daycare services (matched by an equal amount from the union). g) Parents were offered paid days off in order to make necessary arrangements for day care for their children; and h) Kraft Foods provided paid leave to pregnant women, immune compromised employees, and any employee with a family member who had H1N1 flu. No company in any industry in Argentina has been shut down due to H1N1 concerns. In companies in Argentina where H1N1 flu cases have been reported, employees have been extended paid leave while operations continued. At no time has there been any case of H1N1 flu reported at Kraft Foods facilities in Argentina. However, at that time a group of Internal Commission delegates demanded the complete closure of the Pacheco facility and thirty days of paid leave for all production employees (see Appendix V: Workers Demands to close Plant during July). Simultaneously, they demanded that the Kraft daycare center remain open. Kraft Foods declined these proposals, explaining that a demand to close the plant was unreasonable, and that keeping the daycare center (the most vulnerable space for potential
contagion) open was counter to the Internal Commissions’ stated concern for employees’ well being, and would have constituted a direct violation of the directives given by the government to public facilities. On Friday July 3, at 6:30 PM approximately 200 employees surrounded the administrative building at the Pacheco location, impeding employees inside from leaving the premises for home for approximately three hours with threats and physical force. Among the 70 workers locked inside were mothers with children in the daycare facility. In subsequent weeks, in consultation with labor lawyers Kraft Foods investigated the July 3 incident and ultimately dismissed 156 persons who could be specifically identified with criminal acts. On August 18, these 156 workers were dismissed “with fair cause” under Argentine labor law (article 242 of Ley de Contrato de Trabajo: http://www.infoleg.gov.ar/infolegInternet/anexos/25000-29999/25552/texact.htm ). A criminal investigation is being conducted by authorities. On September 7, a group of dismissed workers forced their way into the facility, attacked employees with blunt instruments, and forced the shut down of operations. On Friday September 25, after the failure of 6 hours of negotiations between the group occupying the facility, representatives of the Argentina Ministry of Labor and the Human Rights Commission of the Argentina Ministry of Justice, the group occupying the plant was evicted by the provincial Buenos Aires Police acting under a court order. The Human Rights Commission and Ministry of Labor representatives verified in advance and agreed to the procedures to be used in the eviction. The eviction was not carried out by or under the direction of Kraft Foods. A police report on the action indicates that the group occupying the plant used knives, cutters, slingshots with nuts and bolts, iron bars and Molotov cocktails. During the subsequent inspection of the Plant by Kraft Foods, Molotov cocktails, knives, and other sharp objects were found inside and were handed over to the Prosecutor’s office. After the eviction, Kraft Foods made the decision to suspend 36 workers for participation in acts of violence during the police eviction procedure and various acts of misconduct during the occupation of the plant (including destruction of property). Between August 18 and September 25, seventy of the 156 laid off employees signed a termination agreement at the Ministry of Labor. Despite their dismissal “with fair cause”, Kraft Foods provided severance pay to each of the seventy former employees in an effort to help resolve the conflict. This reduced the number of dismissed employees about whom negotiations are being held to 86 (and the 36 suspensions). Kraft Foods remains in negotiation with the Internal Commission and the Ministry of Labor to resolve the status of the dismissed and suspended workers. Kraft wishes to resolve the situation as amicably as possible, while ensuring the continued safety of workers and renewed operations at the facility. For Kraft Foods, the final resolution of the negotiation should:
Provide an environment that ensures the safety of our employees and the protection of our business assets.
Ultimately bar those individuals involved in the recent violence any further access to our facility.
Kraft Foods has always shown its willingness to dialogue and interest in resolving the conflict. In addition, Kraft Foods has fully remunerated all employees, including payment for the period that the plant was closed during the occupation. Kraft Foods has already submitted two proposals
toward a resolution on the matter of the dismissed employees: on October 1 it offered to rehire 30 employees as a gesture of good faith. These employees resumed their duties on October 5. On October 6, Kraft Foods conditionally offered to rehire an additional 18 employees. All proposals to date have been refused by the Internal Commission, which insists on the rehiring of all dismissed workers and the reintegration of the suspended employees.
B. Employee Demands During the occupation of the plant, a group of employees spontaneously filed a complaint with the Ministry of Labor, denouncing activities of the Internal Commission (see Appendix II: Document 1.311.240/09). In page 2 of their declaration, the 20 signatories explain that when they tried to restart certain production lines, they were stopped by the Internal Commission delegates who physically attacked and threatened them with knives. In the same legal document they asked the company to take measures to protect employees who wanted to work. Some workers have uploaded the following videos, recorded with their mobile phones, showing incidents where groups of workers demonstrate against the Internal Commission’s control of the facility:
Video I: http://www.youtube.com/watch?v=7noG5rnzaJw Video 2: http://www.youtube.com/watch?v=9Nizp6uTQVc
In both videos, the Commission delegates (the men wearing blue jackets) can be seen telling employees to stop working, while employees shout “we want to work”. Kraft Foods has received over 400 letters from employees in support of the company. Most of them describe their disagreement both with the demands and the methodologies employed by the Internal Commission members (see Appendix III). C. The Legal Status of the Internal Commission Members Kraft Foods does not engage in anti-union practices. While there are union delegates among the dismissed Pacheco employees, these persons were not dismissed for being union members or for any other reason, but for having participated in criminal activity. The Pacheco Plant has had 11 Internal Commission delegates and 19 representatives (referred to as “Congresales”). Of these, six Internal Commission delegates and all of the Congresales have been working inside the facility. None of them have lost their special union protections, provided by their legal standing as union representatives. Kraft Foods had asked the Court to intervene to resolve the status of the remaining five Internal Commission delegates, since the company has considered their acts to have been criminal and believes that they pose a threat to other workers. Kraft Foods does not wish to tolerate violence or threats of violence against its employees or its facilities. Argentine Labor Statue 23551 allows for a company to request certain precautionary measures in case of potential danger to persons who work at the company or to their property, as long as that danger can be avoided or reduced with the suspension of work activity. This has been the principle behind the Company’s decision to bar the entrance of the fired delegates given the acts of violence caused by the group since the beginning of this situation. However, Kraft Foods has continued to recognize their status as representatives of the workers, which is why the Internal Commission has been part of the negations currently being conducted. While the Criminal Court had earlier ruled on one of the pending cases against an Internal Commission member, upholding his exclusion from the facility, the Labor Court has recently ruled
that the Internal Commission members do not constitute a threat and has ordered Kraft Foods to allow them to reenter the facility. Kraft Foods has fully complied with this Labor Court decision. The mandate of each of these Internal Commission delegates expired on October 10th. Elections for union representation will be held at a future date to be determined by the union. D. The Police Presence at the Pacheco Facility On Friday September 25, over two weeks after the occupation of the Pacheco facility, provincial Buenos Aires Police acting under a court order from the Judge of Warranties No.2 of San Isidro, upon request of the Talar de Pacheco Criminal Prosecutor, evicted the group occupying the plant. The eviction was not carried out by or under the direction of Kraft Foods; and Kraft regrets that this unfortunate event took place. Contrary to Internal Commission allegations, at no time have the police entered the plant to “force employees to work.” This has been verified in inspections carried out by the provincial and national Ministries of Labor. E. The Kraft Foods Facility in Pacheco The Pacheco Plant, located in Argentina, employs 2700 people and as such is an important employer in the municipality of Tigre, where it is located. Guards at the facility are unarmed and follow strict rules of engagement which do not allow the use of force. The facility is surrounded by fencing, which was easily breached by the group which had occupied the plant. The Pacheco facilities include five acres of park land, with a soccer field, volleyball and tennis courts, and two running paths. These, as well as an outdoor barbecue space and recreational room, can be used by any employee free of charge, including for personal or family use. There is also a gym, for which Kraft Foods offers subsidized membership. The salary level of production employees at Pacheco is well above the average for the industry in Argentina. Kraft Foods currently compensates production employees at Pacheco between 15 and 20 percent above amounts required by the current “Convenio” (the Agreement reached between a company and its labor union). In addition, whereas night shift workers are required by the Convenio to receive 13 percent more than day workers, Pacheco Plant night shift employees are paid an additional 50 percent. The Pacheco facility also offers several additional benefits. There is a cafeteria where all employees are provided breakfast, lunch or dinner free of charge. Production workers are provided with vouchers exchangeable for products at local supermarkets. And Kraft Foods grants salary advances and offers company loans at low rates. Kraft Foods also provides a daycare center for all employee children four years or younger without charge. The center is opened from 5:30 AM to 10:10 PM without limit to how long a child can stay. The center has pediatricians on staff and offers music and English language classes. It also provides meals for the children and a free diaper service. Kraft Foods has been ranked as employer of choice in Argentina. As part of its commitment to corporate social responsibility, Kraft Foods is one of the main donators to the Food Bank Foundation in Argentina. In addition, the Pacheco facility implements an employee volunteer program, in which over 250 employees participate. F. Press Coverage
Media coverage of the situation, while varying according to the nature and editorial tendency of the news outlet in question, has often focused on unsubstantiated allegations from groups affiliated with the Pacheco Internal Commission. Please see the following links for additional treatment of this issue: Editorial in La Nacion, the country’s second largest circulation daily: http://www.lanacion.com.ar/nota.asp?nota_id=1185044 Article by Tomas Abraham, a philosopher and political observer, with his views on the political context of these events and media coverage: http://www.diarioperfil.com.ar/edimp/0407/articulo.php?art=17335&ed=0407
