Category Archives: Nicaragua

2010 Annual Survey of violations of trade union rights – Nicaragua

Population: 5,700,000
Capital: Managua
ILO Core Conventions Ratified: 29 – 87 – 98 – 100 – 105 – 111 – 138 – 182

Despite the change in political direction, companies continue to violate trade union rights, especially foreign corporations, which exploit a variety of legal mechanisms to overturn any rights gained or to destabilise and destroy trade unions. There are many restrictions on the right to strike.

Trade union rights in law

Although basic trade union rights are guaranteed, some problematic areas exist in the law. Workers have the right to form and join the trade union of their choice, as well as to bargain collectively. While union leaders have protected status, this is limited to nine executive members per union and three branch members. The Labour Code also allows the employer to dismiss any employee, including union organisers, provided that they have the permission of the Ministry of Labour and pay double the usual severance pay. The fines for interfering in trade union affairs are not sufficiently dissuasive.

Furthermore, while the right to strike is recognised in the Constitution, a trade union must receive the approval of the Ministry of Labour before engaging in strike action. Also, to be considered officially approved, a strike must have the support of at least 50% plus one of the members of the trade union, voting in an extraordinary general meeting. Finally, the Labour Code provides for compulsory arbitration of a dispute where 30 days have elapsed since the calling of a strike.

Trade union rights in practice and violations in 2009

Background: The Economic Commission for Latin America and the Caribbean (ECLAC) warned that Nicaragua needs to resolve its internal political problems if it wants to see a return to economic growth in 2010 along with the rest of the region. Measures have not been taken to tackle weak governance and the democratic deficit. Following accusations of electoral fraud during the municipal elections of 9 November 2008, several donor countries suspended direct support, which had amounted to 600 million dollars during the previous year.

Anti-union discrimination: In a communiqué dated 24 February, the national trade union confederation, Confederación de Unificación Sindical (CUS), reported that the Transport and Infrastructure Ministry had still not responded to the requests for a meeting with the trade unions representing the workers employed by this Ministry, despite repeated requests dating back to January 2007. The CUS added that the government has not yet fulfilled the recommendations formulated by the ILO Committee on Freedom of Association in 2008 and continues to violate the clauses of the collective agreement in a number of areas, including contracting, dismissal procedures, facilities for trade unions (offices, etc.), and the bilateral agreement with drivers, especially as regards pay reviews.

Companies oppose union organising: It is part of corporate culture to persistently oppose the free exercise of trade union rights, with the backing of professional advice from lawyers and managers. Unionised workers speak of constant attacks, harassment and other forms of pressure aimed at forcing them to leave the union or the company. Dismissals, including of trade unions’ leaders or founding members, are the main strategy used to stop or prevent any attempts to organise. Employers often offer workers financial incentives to leave the union, to weaken the organisation by stripping it of its members. Employment relationships are changing and the increasing use of short-term or one-day contracts is making it impossible to increase union membership. Tactics such as changing company name, although this may seem like a formality, are also used as a way of de-legitimising the union or replacing members of the management with anti-union “hardliners”. The export processing zones or maquilas continue to be the sector where the most workers’ rights violations are committed.

Refusal to negotiate with legally established unions: A US multinational continues to refuse to negotiate with the unions legally recognised by the regional banana workers’ federation, Federación de Trabajadores Bananeros del Departamento de Chinandega (FETRABACH-CST), in six of its plantations in the Chinandega region.

Independent unions suffer harassment and discrimination: On 10 February, representatives of the Boaco and Chontales regional independent trade union confederation, Confederación Regional Sindical Independiente de Boaco y Chontales, and the hospital workers’ union, Sindicato Independiente del Hospital Alemán Nicaragüense, denounced the Health Ministry for the harassment and discrimination levelled against independent unions. The hospital management and the health workers’ federation, Federación de Trabajadores de la Salud (FETSALUD), excluded the independent union from negotiations and signed a collective agreement scrapping a series of benefits enjoyed by the workers.

Reprisals against unionised workers: On 26 March, the bottling workers’ union, SITENSA, denounced fresh reprisals being taken against its members by the bottling company, Embotelladora Nacional SA (ENSA), owned by the Central American Beverage Corporation (CABCorp), the Central American bottling operation of Pepsi Cola Company (PepsiCo).

It is not the first time that this multinational has shown such strong opposition to unions. In 2007, the united federation of food, agribusiness, tourism, service, commerce and allied workers, FUTATSCON, an IUF affiliate, managed to form a trade union of ENSA workers, SITRUENSA, but the organisation was dismantled within just months.

On 13 December 2008, the workers, backed by FUTATSCON at national level and by STIBYS and IUF at international level, managed to form SITENSA, in defiance of the company’s opposition, but just four months later the unionised workers reported that the situation had become extremely difficult, and ENSA was once again proving to be overtly anti-unionist.

Employers renege on agreement with trade unions: In March, an agreement was reached between the unions, the CZF corporation in charge of EPZs and the Labour Ministry, whereby the workers would make concessions regarding the increase in the minimum wage to help employers cope with the crisis. In exchange, the employers agreed to take every step necessary to avoid lay-offs. The employers have totally disregarded the commitments made and the CZF completely failed in its attempt to ensure compliance with the tripartite agreement.

More dismissals at maquila companies: In October, workers at the maquiladora company VF-Jeanswear Nicaragua denounced the dismissal of nine workers, all members of a recently formed union. The dismissed workers called on the José Benito Escobar trade union confederation, CST-JBE, to back their cause.

Workers dismissed for unionising: On 15 October, 32 unionised workers went to the Nicaraguan Centre for Human Rights, CENIDH, to make an official complaint regarding the violence they suffered on 27 September at the hands of security officers at the maquiladora company Sae-A Tecnotex on trying to enter the factory, to return to their posts. The workers were asserting their rights after being unfairly dismissed for forming a union. The Labour Ministry had nullified the dismissals affecting at least 300 unionised workers. One worker who was 6 weeks pregnant suffered a miscarriage as a result of the violent assault.

source: http://www.unhcr.org/cgi-bin/texis/vtx/refworld/rwmain?page=country&docid=4c4fec6228&skip=0&coi=NIC&querysi=trade&searchin=title&display=10&sort=date

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2009 Annual Survey of violations of trade union rights – Nicaragua

Population: 5,700,000
Capital: Managua
ILO Core Conventions Ratified: 29 – 87 – 98 – 100 – 105 – 111 – 138 – 182

The number of registered trade unions continues to rise. Labour laws essentially protect workers’ rights, but problems remain with their application. The elections polarised the population and led to violence in the streets.

Trade union rights in law

Freedom of association: All public and private sector workers, with the exception of the armed forces and the police, may form trade unions and join the trade unions of their choice. They are also free to create federations and confederations and to join international organisations. At least 20 people are required to form a trade union; no prior authorisation is needed. Once created, it must be entered in the Register of Trade Union Associations, thereby endowing it with legal status. The members of the union’s steering committee must be Nicaraguan.

Limited protection: Union leaders have protected status, but this is limited to nine executive members per union and three branch members. The Labour Code allows enterprises to dismiss any employee, including union organisers, provided they have the permission of the Ministry of Labour (MITRAB) and pay double the usual severance pay.

The right to collective bargaining: The right to collective bargaining is recognised in the Labour Code, which stipulates that companies engaged in disputes with employees must negotiate with the union, where one is present.

The right to strike: The right to strike is recognised, albeit with some limitations. To be considered officially approved, a strike must have the support of at least 50 per cent plus one of the total number of members of the trade union. Votes on strikes are held at an extraordinary general meeting. The trade union must receive the approval of the Ministry of Labour before engaging in strike action. A mediation procedure involving the Ministry of Labour must first be exhausted. If there is no agreement between the parties within 30 days of the strike being declared legal, the Ministry of Labour may intervene and end it. Labour law allows sympathy strikes in support of another legal strike in the same industry or business.

The Regulation on Trade Union Associations (Reglamento de Asociaciones Sindicales) also limits the right to strike by federations and confederations. In the event of a dispute, federations and confederations may only provide the workers in question with advice and moral or financial support.

Trade union rights in the export processing zones: (EPZs) Whilst stipulating the need to respect the Constitution and national laws, the Foreign Investment Law regulating the EPZs opens a loophole for avoiding their jurisdiction by providing for discrepancies, controversies and claims to be settled by international arbitration.

At the end of 2007 the Law on the Professional Qualification of Labour and Social Security Lawyers (no. 637) was approved and published. The aim is to recognise and authorise trade union leaders who can give legal advice to individual workers or trade unions, cooperatives, associations and guilds involved in labour court and ordinary court proceedings. So far 35 labour lawyers have been accredited.

Trade union rights in practice and violations in 2008

Background: Nicaragua is still the second poorest country in Latin America. The country was polarised around two political choices in the national elections, leading to clashes between the supporters of the two parties. The electoral process and the outcome of the vote were questioned by several countries, including those of the European Union. International support and cooperation has been frozen until the situation is clarified. The multilateral financial institutions, which require legislative approval to grant loans, have followed suit. Poverty has deepened, and so far the social and political actors have not reached a lasting agreement on a project they can all support.

Steady rise in number of unions registered: A total of 192 trade unions were registered in 2008, eight less than the year before. Twenty-six federations and six confederations were also registered. The Ministry of Labour has sought to improve the efficiency of trade union registration, decentralising it in order to facilitate the registration of workers from the interior and from areas far from the capital. The aim is to remove the many obstacles that arose in the registration process and that made the Labour Ministry complicit in companies’ anti-union policy.

Companies oppose union organising: It is part of company culture to persistently oppose the free exercise of trade union rights, and to use the advice of lawyers and managers to do so. Unionised workers speak of constant attacks, harassment and other forms of pressure aimed at forcing them to leave the union or the company. Dismissals, including of the leaders or founder members of trade unions, are a key ploy for getting rid of unions or preventing the creation of new ones. Employers frequently offer workers financial incentives to leave and weaken the union. Employment relationships are changing through the imposition of short-term and even one-day contracts, which make it impossible to increase a union’s membership. Companies have also been making changes that may appear to be formalities but in fact affect union organising, such as changing their trade names as a legal way of de-legitimising the union or replacing members of management with anti-union “hardliners”.

Export processing zones: The worst violations occur in the export processing zones. The “maquila” companies operating in the zones feature strongly in the complaints received by the Ministry of Labour and various organisations. It is a very sensitive issue, as Free Trade Agreements (FTAs) try to encourage this type of activity and governments promote the zones in an attempt to alleviate unemployment.

Employers are fiercely hostile towards unions. Very few of the unions in the zones have real collective bargaining power, despite the fact that the Ministry of Labour has warned the companies in the zones that they are obliged to respect workers’ rights, and that there would be an inspection of companies that prevented the formation of trade unions.

Relative progress in collective bargaining: A total of 56 new collective agreements have been registered, 20 more than the previous year, covering 106,880 workers.

FTA versus workers’ rights: The government has not lived up to its promise of guaranteeing the respect of workers’ rights in the FTA and improving the living and working conditions of Nicaraguans. Whilst the Ministry of Labour made a significant effort to increase the number of inspections and remove obstacles to the formation and registration of trade unions, complaints of violations of workers’ rights have increased, with maquilas still responsible for the highest number of complaints and of workers affected.

Labour rights violated in the tourist industry: The tourist industry is one of the worst sectors for violating trade union and workers’ rights. It is also a sector where there is a lot of sub-contracting and labour flexibility.

Multinationals continue their anti-union strategy: The CARSO Group bought the Nicaraguan Telecommunications Company, ENITEL, and introduced a policy of subcontracting with the creation of a satellite company (CORRELASA) through which new employees were hired on lower wages and benefits.

In mid-May 2008, CORRELASA workers formed a trade union and submitted a list of demands to the Ministry of Labour. ENITEL responded with mass dismissals in June, including of course the new trade union leaders and the signatories of the list of demands.

On 20 June the Ministry of Labour declared the “nullity and suspension of all acts violating trade union immunity” and ordered the reinstatement of the workers concerned within 24 hours. It also warned CORRELASA-ENITEL against taking any more illegal action.

source: http://www.unhcr.org/cgi-bin/texis/vtx/refworld/rwmain?page=country&docid=4c52cad32d&skip=0&coi=NIC&querysi=trade&searchin=title&display=10&sort=date

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