Electronicsmultinationals and labour rights in Mexico

Second report on working conditions in the Mexican electronics industry Centre for Reflection and Action on Labour Issues (CEREAL) October 2007 1 Centre for Reflection and Action on Labour Issues (CEREAL)

CEREAL is a project of Fomento Cultural y Educativo A.C. (Cultural and Educational Promotion A.C.), part of the apostolic works of the Mexican Province of the Company of Jesus, which for the last 35 years has been devoted to educating and organising Mexican popular sectors.

CEREAL provides legal assistance, labour rights training and organisational support for workers’ groups; it also carries out research on working conditions in different productive sectors in the country and promotes public awareness campaigns with regard to workers’ situation.

2 Table of Contents

4 Introduction.

5 Chapter 1. The Electronics Industry in 2006-7

15 Chapter 2. Working Conditions in the Mexican Electronics Industry

16 Outsourcing and labour rights violations 20 Discrimination 27 Constant work instability 33 Unsafe practices: Work-related accidents and illnesses 49 Exposure to toxic materials and work related illnesses 56 Sexual harassment 58 Excessive wage deductions 59 Humiliating treatment and work overloads 63 Lack of Trade Union Freedom

73 Chapter 3. Overall balance 77 Chapter 4. One year later: Collaboration between Canieti and Cereal 83 Recommendations 84 Annexes

3 Introduction.

This is Cereal’s second report on working publication. These are the cases conditions in the Mexican electronics described in this report. All cases were industry. Being the second report means forwarded to the companies for that its nature has changed slightly. Now, consideration and most companies gave in addition to describing the current a reply in writing. Those replies followed situation of workers’ rights in this sector, the description of each case. Cereal there is a comparison to last year’s also met on multiple occasions with situation. Also, this report has been representatives from the companies to drafted within the context of a dialogue discuss each situation directly. The between Cereal and the companies, outcome of all this coming and going is which have pledged to resolve those a piece of research that includes the problems previously raised by Cereal. perspectives of the different parties Therefore, this report also assesses the involved. However, Cereal has not companies’ attempts to improve working played the role of impartial mediator in conditions in their factories. The outcome this dialogue. Cereal has acted firmly of these attempts, as shown in this believing that the abuses are serious and report, is far from satisfactory. In that workers’ grievances need to be addition, this report also emerges at a heard. That is why Cereal has made time when Mexican electronics workers workers’ voices the heart of this report. are making their first efforts to organise Hopefully, they will also be the main themselves, which is an important beneficiaries; since in addition to being a development both for Cereal, who should report, this document is also an start giving way to the workers, and for educational resource which will be the companies, who must learn to circulated amongst workers, who will negotiate with them. In this year of almost certainly see their own situation research (June 2006 - July 2007) Cereal being portrayed in their colleagues’ met with almost 2,000 workers; 237 stories and will learn from their cases were chosen to be documented experiences. Cereal would also like to and 74 of those were selected for thank the companies for their replies. 4 Chapter 1

The Electronics Industry in 2006-7

5 Global context Graph 1 Average annual production growth , 1978 - 2004 Over the last three decades, the electronics industry has been the Electronics 7.5% most dynamic in the world. Its role in trade between countries has outdistanced that of important sectors such as the automotive or Civil aviation 5% chemical sectors by a wide margin (see table 1). In addition to Chemical 5% representing a considerable share of the global economy, the Automotive electronics industry growth rate is significantly higher than the overall 3% industrial average. Between 1995 and 2005, global sales of electronic Oil 2% equipment increased at an annual rate of 4.8%, while the global -1% Estimated growth of the Textile electronic industry for industrial GDP increased by 2.2% per year (see graph 1). -2% Steel 2004-2010: an average of 7% each year. Source: 3% World GDP Guilbert, 2005. Table 1 Global Trade Breakdown (2005) There are several different branches in the electronics industry. HP alone, to give an example, sells more than 10,000 different products in the electronics and IT sectors. However, the best known element Sector % of this industry is the so called ‘consumer electronics’, i.e. that producing mobile phones, televisions, computers, DVD players, iPods, games consoles, etc. Many consumer brands have become household Electronics Industry 16.5% names. Machinery and equipment 14.0% Main segments of the electronic industry Fuel and derivatives 11.7% Computer Electrical Land vehicles, components and accesories 9.8% Audio and equipment appliances Chemicals 9.0% Video Food and beverages 7.1% Automotive Telecommunications Iron, steel and their manufactures 5.0% Textile products 3.6% Machinery and tools ELECTRONICS Robotics Plastics and its manufactures 3.4%

Non-ferrous materials and their manufactures 2.7% Optical and Defence and measuring Other industries and products 17.2% military equipment equipment Total 100% Medical Aeronautic and espace equipment Source: United Nations equipment

6 Currently, the main computer manufacturers are DELL, HP, IBM, Top Providers of Electronics Manufacturing Services Fujitsu, Siemens, Toshiba, NEC, Apple, Lenovo and Gateway. Sharp, Profits in 2006 (USD Million) Sony, Samsung, Philips and Panasonic are leading companies in PuestoRank EmpresaCompany ProfitsGanancias television manufacturing. Nokia is at the top of the list in mobile 1 Foxconn $39,253 phone manufacturing, followed by Motorola, Cisco, Ericsson and NEC. 2 Flextronics: $17,773 3 Solectron: $11,103 4 Jabil Circuit $11,087 Big names in consumer electronics 5 Sanmina SCI $10,872 6 Celestica. $8,811 Computers TV Cell phones 7 Elcoteq $5,139 8 Benchmark $2,907 DELL Toshiba Sharp Nokia 9 Venture $1,971 HP NEC Sony Motorola 10 Universal Scientific (USI) $1,676 IBM Apple Samsumg Cisco Top 10 Total $110,592 Fujitsu Lenovo Philips Ericsson Siemens Gateway Panasonic NEC Top Original Design Manufacturers Profits in 2006 (USD Million) PuestoRank EmpresaCompany GananciasProfits 1 Asustek $17,348 Restructuring of the Electronics Industry 2 Quanta Computer $14,170 3 Compal Electronics $9,410 In the 1980s, the global electronics industry began relocating to third 4 TPV Technology $7,238 world countries in search of cheaper labour. This brought about a 5 Inventec $7,167 series of structural changes that resulted in the geographical break- 6 Wistron $6,603 up and relocation of its manufacturing processes. Currently, many 7 Lite On Technology $5,048 well-known brand products are manufactured by external companies, 8 Inventec Appliance $3,389 9 High Tech Computer $3,295 hired for that purpose. These companies are known as Electronic Manufacturing Services (EMS) and they are spread all over the world. 10 Mitac International $2,540 Top 10 ODM Total $76,208

Nowadays, even product design can be outsourced. Companies that There are some major brands that do not own any manufacturing sell both the design and manufacture of new products are known as facilities, only offices (these brands are known as ‘fabless’). Therefore, Original Design Manufacturers (ODM). In recent years, these many people are unaware that the electronic equipment they buy in companies have expanded considerably and are literally “one-stop- a department store or a specialised shop has been manufactured in shops”, as they are capable of producing a piece of equipment from a developing country and, very likely, by a little known company. the original idea to the finished product. These companies are also These companies have a huge influence over the everyday lives of spread around the world and it is common practice to share out electronics workers worldwide, but in contrast to the brands they equipment production among several factories. have almost no profile among consumers. 7 The supply chain

Although very few brands dominate the market (no more than thus widening the gap between poor and rich countries. twenty), an electronic product travels through a wide network of factories and companies before it can reach the market. This network At present, electronics exports take up the first places in several is known as “the supply chain”. developing countries’ trade balance; but many of the workers manufacturing computers have never used a computer and virtually A computer, for example, is manufactured in parts at several none of them have one at home. companies and in different parts of the world. Then it is finally assembled in a factory where it is packed and shipped to a specific market. The supply chain The same applies to printers, mobile phones Components Example and TVs. Capacitors Parts Rich companies in poor countries China

Hard Disk In several parts of the planet, in the so called Philippines ‘low-cost areas’, there are thousands of Final assembly factories of the global electronics industry. Circuits Sale Mexico, India, China, Brazil, Malaysia and Philippines Philippines are part of that low-cost production CD and DVD Mexico chain, which takes on millions of workers from Tailandia Sale different and varied cultural backgrounds. This United States army of the humble strives day in day out to manufacture modern equipment to satisfy increasing world demand. Memory Malaysia Monitor These nations, like a club, have seen China themselves forced to compete against each other to attract the considerable resources of the electronics industry. As is well known, China Chips is an example, in terms of low tax costs and India cheap labour. Ironically, some of these poor nations, where vast amounts of capital are invested in electronic equipment manufacturing, have a very little access to digital technology; 8 The 2002 crisis The Electronics Industry in Mexico in 2006-7

During 2001-2002 the global economy experienced a widespread The Mexican electronics industry has gradually recovered from the crisis. There was a slowdown in international trade and global severe blow that hit it after the global economic crisis of 2002. Five production plummeted. Hundreds of factories closed down and years later, in 2007, its main financial indicators are back to levels thousands of people lost their jobs. Electronics companies were the similar to those prior to the crisis. In 2006, annual exports reached most affected. Many of them cancelled projects or moved them to US$ 46 billion and in the first quarter of 2007 there were around China, where low labour costs allowed for higher profit margins. Some 400,000 workers in the Mexican electronics industry. Currently, Sanmina experts agree that the 2002 crisis was ‘led’ by the electronics industry, i.e. that it started within Total exports of the Mexican electronics industry this industry and then spread to (MDD USD) the rest of the world. Macroeconomic data supports this explanation, since while sales of products and services overall fell by 2% in 2002, sales of electronic products fell by 13.9%.

The above can be explained by the fact that many shareholders, eager for profits, invested increasingly in the electronics industry until investment exceeded consumer purchasing ability. This resulted in equipment being stock-piled in warehouses and in a slowdown in trade and production. One expert gave another explanation: “The 2001- 2002 crisis was generated by capital over-accumulation and a fall in business profitability, accelerated by the burst of an enormous stock market bubble 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 focused on the IT sector”.1

9 SCI employs approximately 14,000 workers in Mexico, Flextronics Graph 2 12,500 and Solectron employs approximately 7,000. Origin of imports to the US % Source: US Department of Commerce However, this recovery did not happen automatically. Mexican businessmen, concerned with the exodus of their projects to other countries (particularly China), were forced to take a more proactive approach. In 2003, these businessmen took on the task of attracting new projects, but unlike previously, they focused their attention on projects with more added value, i.e., projects that could yield them higher profit margins.

This strategy did not bring about a drastic change in the type of equipment previously produced by the Mexican electronics industry (TVs, computers, mobile phones, etc.); it was instead a change in the internal complexity of the equipment. In 2004, that equipment became more technologically advanced, more expensive and more exclusive, therefore smaller quantities were produced. This production formula is called ‘high-mix, low-volume manufacturing’.

This strategy proved successful in the medium term. The Mexican electronics industry’s added value exceeded 15bn pesos (US$1.39bn) in 2002 and 33bn pesos (US$3.05bn) in 2006, a 103% increase. In fact, in 2006 the electronics industry alone represented 34% of the country’s added value, which positioned it (again) as the largest industrial sector in Mexico.2 Although, overall, China sells more electronic products to the US than What remained unchanged after the crisis was the exporting nature Mexico, in some areas Mexico is still further ahead than its competitor. of this industry. Mexico is the world’s 10th largest global exporter and This is, for example, the case with televisions. As a result of the in 2006, its main export was electronic equipment. That year strategy adopted by Mexican entrepreneurs to manufacture higher electronics exports amounted to almost 20% of the country’s total value added products, in 2004 Mexico started mass-producing LCD 3 and plasma TVs. Soon, Mexico became the main supplier of high- exports and the annual variation rate regained a steady growth. tech TVs to the US, and also remained the main global manufacturer Mexico, as is well known, is in close competition with China for the of TVs (of all kinds). Each year, Mexico exports US$ 5 billion in first place in electronics exports to the US. Mexico had traditionally televisions, in contrast to the US$ 260 million currently being exported held this position, but China took over after 2005. by China.

10 Graph 3 However, not all Mexican electronics sales are directly correlated to Mexico and China Chinese sales. China has increased production of a lot of equipment Share in the total of US imports of high-tech TVs without affecting Mexican production, and many projects that used to be based in Mexico have closed down and not moved to China. Each country has its own specific market niche although, of course, there is always competition to attract certain projects. Source: US Department Of According to the Mexican Foreign Trade Bank (Bancomext), TVs Commerce (USDOC) are the main export of the Mexican electronics industry (30%), followed by computer equipment (20%). Telecom equipment is in third place (8%) and audio and video equipment in fourth (6%). TV manufacture is concentrated in the cities of Tijuana (70%) and Chihuahua (18%), and IT equipment in the city of Guadalajara (70%).

The Global Position of the Mexican Electronics Industry In the case of computers, the situation is exactly the opposite. In recent years, China surpassed Mexican computer sales in the US, Mexico is the 10th largest exporter of electronic equipment in the and while China’s exports are on the increase, Mexican exports are world. Exports in this area amounted to over US$46 billion in 2006. decreasing. Graph 4 Mexico’s main attraction for foreign investment is its closeness to Mexico and China the US, the world’s largest market. Currently, 94% of Mexican Share in the total of US imports of computer parts and electronics exports are destined for that country. Mexico’s second accessories (percentage) attraction is cheap and young labour. The average wage of an Source: USDOC electronics worker is 100 pesos (US$ 9.25) per day and the average age of the Mexican labour force is 22. Finally, a third attraction is Mexico’s network of trade agreements. Mexico has signed the highest number of trade agreements in the world, the most prominent being the North American Free Trade Agreement it signed with the US and Canada. There are also some government programmes, such as PITEX, aimed at attracting foreign investment. These programmes allow companies to temporarily import consumables, with a preferential tariff, or no tariff, and then export them as finished products. All that makes Mexico one of the preferred destinations for foreign direct investment (FDI).

11 According to CEPAL, in 2006 the main FDI recipients in Latin America Mexico, in particular, has several features that make flexible and were Mexico (US$ 18.94bn) and Brazil (US$18.78bn). This makes controlled labour ideal for exploitation. Mexican Labour Law allows Mexico the main FDI recipient in Latin America and the fourth in the unrepresentative trade unions, and the labour authority (which is world (only surpassed by China, the US and the Russian Federation). directly under the jurisdiction of the president of the republic and not under the judicial system) allows a series of excesses by the In August 2007, the Mexican government announced that Mexico companies, such as the unregulated use of outsourcing and temporary had achieved a historical record in attracting FDI, capturing over US$ hiring; collective protection agreements or unfair dismissals without 13.24 bn in the first half of 2007, an increase of 53.37% over the fair severance pay. This, obviously, translates into lower costs for same period in 2006. This news has created a sense of optimism the companies and a deterioration in conditions for the workers. amongst Mexican entrepreneurs, including those in the electronics industry, who have forecasted growth for the coming years. Local Unfortunately, deterioration in working conditions is not limited to governments (such as Chihuahua, Jalisco, Monterrey, Reynosa and financial issues, it also compromises workers’ dignity. By considering Tijuana) have also implemented specific programmes to strengthen workers only as a part of a business, companies frequently treat the electronics industry in their jurisdictions. The Federal Government them inhumanely, submitting them to humiliating practices, such as has also recently implemented several programmes to encourage discrimination, sexual harassment, excessive workloads, exposure investment in different areas in the electronics industry (software, to toxic substances and unequal treatment. These kinds of abuses TVs, IT, components and design), in the hope that these will maintain the growth regained after several difficult years during the crisis.

The workers: In the eye of the storm

This competition to gain markets and increase profits hits workers in the industry hard. Currently, due to its nature, electronic equipment manufacturing is labour intensive, which has created a ‘global rush’ to reduce labour costs. This has encouraged the emergence of a series of practices described as ‘new working methods’ or ‘flexible work’, which are no more than personnel management methods that violate workers’ rights. These practices include the excessive use of employment agencies; indiscriminate temporary hiring; pressuring workers to sign resignation letters; the express prohibition of enrolling in a trade union; and the effective abandonment of historically established social benefits such as annual leave, severance payment, maternity benefits, profit sharing, etc. These practices are aimed at lowering labour costs and are widespread in the whole of the electronics industry, regardless of whether it is in Mexico, With low wages and pitiful labor conditions, the workers China, Malaysia, Thailand, India or the Philippines. carry the economic globalization on their backs 12 and ‘new working methods’ are precisely the drive behind the production of this report. As the reader will be able to see in the following pages, these are deep-rooted abuses that started with the arrival of the electronics industry in Mexico and have prevailed ever since. This proves that these are not isolated cases, but practices that are part of the operating logistics of an industry which, driven by fierce competition, places the heaviest load on the workers’ shoulders.

Footnotes

1 Ordóñez Sergio. “Crisis y reestructuración de la industria electrónica mundial”. (Crisis and restructuration of the global electronics industry) Comercio Exterior Magazine . July 2006 2 “El Financiero” Newspaper. 18 July 2007 3 In 2006, total Mexican exports exceeded US$250bn. Source: Mexican Treasury. 13 Geographical location of the main electronics industry companies

14 Chapter 2

Working Conditions in the Mexican Electronics Industry

15 2.1. Outsourcing and labour rights Foxconn: unequal treatment “My name is Blanca. I work in violations Foxconn. I’m outsourced via an agency called Manpower. I earn 110 pesos (U$10.17) per day. Outsourced workers don’t get any profit shares, and we only get an annual bonus. This year we received a bonus of 300 pesos (U$27.75). Outsourced workers do not have a right to annual leave because we are under Personnel outsourcing via however, in many cases, temporary contracts. Also, we recruitment agencies is still a outsourced workers operate are paid-off every year, which widespread practice in the under working conditions that do means we are fired and then re- Mexican electronics industry. It not comply with the minimum hired. Every year they pay-off is also one of the main causes legal requirements set out in such all Manpower employees, around of labour rights violations. law. Workers employed through 5,000 of us. The only hope of Research carried out by Cereal agencies miss out financially and improving we have is when we in June 2007 showed that are disadvantaged when it comes are assessed to see if we can currently at least 62 different to other benefits. Mexican Labour become Foxconn employees; recruitment agencies provide Law states that outsourced because Foxconn employees outsourcing services for the workers must have exactly the have the right to profit shares Mexican electronics industry1. same rights as those who have and annual leave.” They select, hire and manage been hired directly2, therefore around 60% of the workers in such unequal treatment has no the sector. In reality, outsourcing legal basis. The same law states creates many problems for that both employers, the agency Mexican electronics workers and, and the company, must be in that sense, can be linked to equally responsible for their most of the cases mentioned in workers’ rights. The following “Outsourced workers do this report. The most visible of testimonial by Blanca, a Foxconn not have a right to these problems is the unequal worker in the Chihuahua plant, annual leave because we treatment of outsourced workers where Motorola and Nokia mobile are under temporary by the companies. Direct phones are manufactured, contracts.” employees enjoy most of the illustrates what being an labour rights under Mexican Law, outsourced worker means: Blanca. Foxconn’s Worker 16 “We are paid-off every As can be seen from Blanca’s This is not just a temporary Nokia will review these responses year, which means we testimonial, she refers to measure: Ernesto has been and take action if required.” are fired and then re- Foxconn’s workers and working in Foxconn for a year. hired. Every year they Manpower’s workers as if they Blanca has worked there for two Foxconn’s response: “Due to pay-off all Manpower belonged to two different years. They still wear the same our production volume fluctuation companies. From a legal badges and both of them believe (…) we have the need to hire employees, around 5,000 perspective there is no such that they are Manpower and not services from a temporary of us.” difference, however, as a result Foxconn employees. According to employment agency in order to of the unequal treatment by the Mexican Law,4 Ernesto and face the variable volumes. With Blanca. Foxconn’s Worker companies, many electronics Blanca are employees of both this strategy we have been able workers live with that confusion. Foxconn and Manpower. They to offer many jobs to our could prove their working community. Nevertheless, since Some companies even treat relationship with Foxconn simply the starting of this flexible outsourced employees as if they by showing their payslips to the workforce system, we took were not their employees at all.3 labour authority; however, here some actions to ensure that all In Foxconn’s factory in the important issue is highlighting rights, equal treatment, and Chihuahua, workers frequently the unequal treatment that same labour conditions of our complain about a daily reminder Blanca and Ernesto, as well as plant are provided to the of the fact that they are not their colleagues, receive from employees hired through the company employees. Ernesto Foxconn. Foxconn’s factory in temporary agencies. In Foxconn (below) talks about this illegal Chihuahua manufactures Chihuahua, we are and will situation, which was identified in Motorola mobile phones and continue working to improve our the previous Cereal report and is fascias for Nokia mobile phones. Social Responsibility System. still happening: In July 2007, Cereal met with That is a part of the way we Nokia and Foxconn to discuss want to do business. Regarding the above mentioned cases. In the cases the report mentioned “My name is Ernesto. I work in August, Cereal received two about our Foxconn Chihuahua Foxconn. There are around written replies in which the Plant, there are some actions 6,500 workers in the factory. companies point out: that we are taking (…) to ensure Foxconn hires around 1,500 the immediate correction and workers and Manpower around Nokia’s response: “Nokia has prevention of any issue.” 5,000. I am from Manpower and spoken with all of its suppliers my badge has a caption saying: mentioned in the report, and ‘This ID does not prove that the each has confirmed that they are bearer is an employee of looking into the matters raised by Motorola received a copy of this Foxconn Mexico Precision the CEREAL report and will provide report, but did not give any Industrial Co. S.A de C.V.” detailed responses to CEREAL. response. 17 Flextronics: Confusion After learning of the above case, the companies replied to Cereal “I am pregnant and my Lack of acknowledgment of in writing. In those replies, among outsourced workers as company concern is that now other things, they point out: employees is not exclusive to one neither the company nor factory. Having two employers the agencies want to pay (the agency and the company) me my maternity leave” Azanza’s response creates confusion among workers; many do not really know Graciela. Flextronics’ Worker “This dissent was manifested by who their employer is. This the worker affected before confusion makes it more difficult CEREAL in the month of May, Companies try to avoid for workers to access and enjoy maternity benefit either because however, from April 11, as their labour responsibilities their basic rights. In May 2007, I haven’t made enough confirmed in the email received by ‘transferring’ them to the Graciela, a Flextronics worker in contributions. This is worrying, by Flextronics, Azanza, Dinamitec agencies Guadalajara, tried to exercise her who is going to pay my maternity and Flextronics knew the maternity rights, but she could benefit then?” situation.” HP’s response not do it because she did not know exactly who her employer Under Mexican Law, when a “It is lamentable that Dinamitec “HP is committed to ensuring that was: worker, like Graciela, has not had not done anything to resolve our own outsourcing suppliers’ made enough contributions to this, on time and form, required hiring practices are meeting our “I work in Flextronics assembling Social Security, maternity benefit by our Client Flextronics.” standards.” HP printers. I came to work via should be paid directly by her an agency called Azanza, but employer5. However, Graciela did “As part of our monitoring and later I was transferred to an not know who her employer was, Flextronics’ response continual improvement process agency called Dinamitec. I am therefore she did not know who with our outsourcing agencies, in pregnant and my concern is that should pay her. According to the “Flextronics was contacted by May 2007, HP requested 5 now neither the company nor the law there is no doubt that her Cereal and informed of this agencies to conduct their 2nd agencies want to pay me my employer is Flextronics. However, situation.” annual worker satisfaction survey maternity leave. Azanza tells me she had to seek external advice and to provide HP with their that Dinamitec should pay me, and wait for over thirty days to “The immediate response was to corrective action plans based on and Dinamitec tells me that it have her problem resolved. assist with the case and have the worker feedback and results. should be Azanza. Flextronics Graciela’s maternity benefits paid Overall, workers gave the told me that there was no In June 2007, Cereal contacted right away. Flextronics involved agencies over 70% satisfaction problem, that they were going a Flextronics representative to the corresponding agencies and rating. The top concerns workers to pay me, but no one has paid discuss Graciela’s case. Soon since Dinamitec is her current have across all the agencies are: me so far. The Social Security after, Dinamitec finally paid her employer they covered her lack of incentives program based told me they can’t pay my maternity benefit. maternity benefits.” on employee performance and 18 expertise; agencies do not provide 3. To save costs, by avoiding Percentage of outsourced personnel in the Mexican electronics incentives that rewards the effort payment of outsourced workers’ industry. Data by company when objectives are exceeded; benefits. Company Total number Outsourced agencies do not provide enough and location of workers workers feedback about performance to The previous Cereal report, Foxconn 7,000 50-70% their employees; no system in published in June 2006, indicated (Chihuahua and Guadalajara) (variable) place to review payment that 60% of electronics workers Sanmina SCI 14,300 60% increases and benefit changes in Mexico were outsourced (5 factories in Guadalajara) causing high levels of rotation and through an employment agency. Solectron 7,000 20-40% absenteeism of production One year later and that proportion (Chihuahua and Guadalajara) (variable) workers due to low wages and remains exactly the same, Jabil (Chihuahua and Guadalajara) 5,000 0% benefits; no program or training without major changes, although available for professional with considerable difference Flextronics (Guadalajara) 12,500 60% development so personnel can be between one company and Kodak (Guadalajara) 8,000 80% qualified to be promoted to another. Jabil, for example, hires Philips (Cd. Juarez) 4,000 0% different positions; not enough all its employees directly and does Panasonic (Tijuana) 4,000 0% training for agencies’ HR not use any employment agency. Sony (Tijuana) 5,000 0% coordinators so they can respond Hitachi, on the other hand, uses appropriately and immediately to the services of three different Nokia (Reynosa) 4,300 40% personnel issues. HP will follow up employment agencies and Benchmark (Guadalajara) 1,000 90% with all labor agencies to ensure outsources 90% of its workforce. USI (Guadalajara) 700 0% improvements in the processes In Mexico, like in many other Samsung (Tijuana) 1,000 0% are made based on the workers’ countries, outsourcing is legal. feedback.” Although Cereal believes that it Hitachi (Chihuahua and Gdl) 5,000 90% would be better to hire workers Source: First hand, based on workers testimonials and checked by the Electronics companies in Mexico directly to avoid confusion, it also companies. use employment agencies mainly believes that the most pressing for three reasons: issue right now is that companies ensure a fair and equal treatment 1. To streamline the companies for all their workers, irrespective operations, leaving to third parties of the way in which they have those activities considered less been hired. profitable, including personnel management. Respect for outsourced workers’ 2. To adapt to production peaks, full rights must be a priority in hiring temporary workers through Mexican electronics companies’ employment agencies. improvement plans. Hitachi workers protesting against outsourcing 19 2.2 DISCRIMINATION “Using a questionnaire they asked me if I was related to any lawyer or trade unionist.”

Maricela. Solectron’s Worker

Tackling discrimination is a stated Solectron. Lawyers and priority of the electronics industry trade unionists but discrimination is still being practiced by both electronics Solectron’s factory in Chihuahua companies and employment repairs printed circuit boards for agencies in Mexico. Although several brands including Nokia, Cereal noted a significant Lucent, Seagate, Ecostar, Intel, reduction in discrimination cases Dell, and Apple. It has 1,500 in the period between 2005 and workers on site. Solectron’s plant the first half of 2006, Cereal did in Chihuahua was mentioned in Kelly, an employment agency in Chihuahua, asked recruits if not see a further decrease in the Cereal’s previous report because they have relatives who are lawyers or trade unionists subsequent twelve months. of the discriminatory practices During the second half of 2006 carried out by one of its agencies, me if I was related to any lawyer letters was written by Kelly. and the first half of 2007, CEREAL Kelly Services, which asked or trade unionist. We repair Nokia, Cereal believes that it was identified one company and one prospective employees about Lucent, Intel, Dell, Seagate, obvious that Kelly did not take employment agency that had family ties with lawyers and trade Apple… printed circuit boards and the commitment made in 2006 satisfactorily improved their unionists. In this new survey mobile phones in the factory. I seriously and calls on Solectron recruitment processes in order to (2006-2007), Cereal identified work in Ecostar repairing dishes.” to take appropriate action. In avoid discriminating between that the same practice is still August 2007, Solectron sent applicants. However Cereal being carried out in Solectron As a result of the comments Cereal a new reply: identified 12 different companies Chihuahua by the same agency, made to Solectron last year, the and employment agencies that Kelly. Maricela told us about it: company showed Cereal’s Solectron’s response were still carrying out a series of “My name is Maricela, I’m 30. I representatives some letters in discriminatory practices. It appears started working in Solectron which employment agencies “We believe our agency partners that either internal systems are not Chihuahua on 10 August 2006. I providing their services pledged are sincere in their commitments working or companies are not earn 95 pesos (U$ 8.79) per to eliminate discriminatory to conform their candidate exercising effective control over the day. I was hired through Kelly. questions in the personnel sourcing practices to Solectron’s agencies that they use. Using a questionnaire they asked selection process. One of the expectations, including our 20 specific prohibitions on selection Foxconn and Manpower. Cereal sent Foxconn a copy of questions dealing with personal Tattooed people and trade “During the recruitment the case. Foxconn provided the attributes and affiliations unionists. process I was asked if I following reply in writing: unrelated to the nature of the had any tattoos, I was work to be performed. Our The Foxconn factory in the city also asked if I was a Foxconn’s response staffing partners are routinely of Chihuahua assembles Motorola member of a trade union, being monitored in this area by mobile phones and manufactures I said no.” “By this report we learned that Solectron, and understand that plastic fascias for Nokia mobile during the recruitment process the their business and employment phones. The only agency Elena. Foxconn’s Worker candidates were asked if they practices are scrutinized recruiting outsourced personnel have tattoos, and been part of alongside Solectron’s during EICC for Foxconn is Manpower. In a union, even though the and related external audits. fact, more than 50% of the outcome of those questions were “My name is Elena, I’m 23 years Additionally, Solectron has almost 7,000 workers in Foxconn just for general information. We old. I started working in Foxconn reserved approval authority over are outsourced by Manpower. have reviewed the process with on 24 August 2006 and I work the agencies’ employment This agency, one of the largest our suppliers to eliminate any on the fourth floor in Nokia applications and other documents in Mexico, carries out two of the question or practice that can be plastics. I earn 70 pesos (U$ related to the candidate sourcing most common discriminatory seen as discrimination.” 6.47) per day. I was hired and selection processes. practices in the Mexican through Manpower.” However, as a result of the draft electronics industry: the exclusion “in the application they CEREAL report (2007), Solectron of tattooed people and trade “During the recruitment process asked me if I was a recognizes a need to expand its unionists. Two Foxconn workers I was asked if I had any tattoos, member of a trade monitoring activities.” describe this situation: I was also asked if I was a union.” member of a trade union, I said “In the current draft report, we no.” Alejandro. Foxconn’s Worker read that at least one candidate “My name is Alejandro, I am 22 for a temporary assignment in years old. I started working in our Chihuahua facility had Foxconn on 9 November 2006. recently been asked prohibited I earn 80 pesos (U$ 7.40) per questions about ‘lawyers and day. I work in the warehouse. I trade unionists’ during an was hired through Manpower. I interview with an agency sign contracts every fortnight. recruiter. These questions, even When I started I had to take if asked only once, represent a medical and psychometric tests, violation of a written agreement I also had to take the antidoping between Solectron and its test, in the application they asked agency partners supporting the me if I was a member of a trade Manpower, hiring for Foxconn, asked discriminatory Chihuahua facility.” union.” questions about tattoos and trade union membership 21 Manpower and Nokia: “There were questions Sexual life, tattoos and trade such as are you unionists. pregnant? Which contraceptive method do In another city, Reynosa, the you use? How often do same agency, Manpower, applies you have sexual a similar discriminatory selection process. In this case, candidates relations? Have you had are recruited for one of the two a sexually transmitted Nokia factories in the city of disease? I was asked if I Reynosa. These two plants had any tattoos” employ around 4,300 workers and they are jointly the main Andrea. Nokia Worker mobile phone production centre in Mexico. Andrea, a 35 year old worker, describes how she was questioned during the admission tests: Manpower, which hires for Nokia, asked recruits if they were pregnant, had tattoos or were trade union members

Andrea’s story Nokia’s response

“My name is Andrea, I am 35, eye tests. There were questions Cereal met with Nokia married and I have three such as are you pregnant? representatives to discuss the children. I started working in Which contraceptive method do details of the above case. On 7 Nokia’s plant 1 on 6 January you use? How often do you have August 07, Nokia gave Cereal the 2006; I work in the fourth shift sexual relations? Have you had following reply in writing: “Nokia and earn 850 pesos (U$ 78.62) a sexually transmitted disease? has reviewed the complaint with per week. I was hired through I was asked if I had any tattoos. Manpower and agreed that these Manpower, in the application form Men are asked to take their shirts questions should not be included. there were several general off and pull up their trousers to It has requested that Manpower questions, such as: sex, age, show their legs.” and its other recruiters not use marital status. I had to take these questions and will check urine, blood, psychometric and compliance with this request.” 22 Foxconn, HP and Spyga: Hewlett Packard and recruitment agencies Tattooed people. (text provided by HP)

Foxconn also replicates, or at “HP takes the issue of discriminatory hiring practices with labour least allows, discriminatory agencies very seriously. HP is recommending several approaches for practices in different Mexican 2007/2008 to address these issues: cities. In Guadalajara, Foxconn has a factory where it mainly · Consideration of reduced usage of agencies, longer term produces equipment for Hewlett contracts and/or transference of workers to permanent Packard (HP). In December positions. 2006, Norma approached an · Increased monitoring of labour agency hiring and pay practices agency called Spyga, which to ensure conformance with the EICC standards. recruits workers for Foxconn, to · Increased training and certification of specific recruiters to apply for a job. She pointed out: provide better assurance of proper qualifications and hiring behaviours. “I was asked if I had tattoos and I said no. They asked me if I “I was asked if I had HP met with Foxconn and CEREAL on August 1, 2007 to discuss an was willing to undergo a medical tattoos and I said no” action plan to ensure discriminatory hiring practices are not used, as examination and I said yes.” well as address other labor management concerns. During the Norma. Foxconn Worker meeting, Foxconn, CEREAL and HP agreed to hold monthly meetings Cereal informed Foxconn and HP with workers and the labor agency representatives. Workers will also about Spyga’s practice of asking receive training on EICC provisions. The first training will be on Freedom candidates whether they have of Association, the next will cover pay bonus and clarification about tattoos. HP and Foxconn gave their legal contracts, and the 3rd will cover hiring practices and Cereal the following replies in Foxconn’s response discrimination.” writing: “We have reviewed the HP’s response recruitment process and forcing Labor supplier to eliminate “HP has reviewed SPYGA’s non- discriminatory questions such as discrimination policy and is tattoos and [are] promoting requesting that SPYGA adds constant EICC training with Freedom of Association and recruiters to avoid cases against tattoos to the policy.” our policies and EICC rules.”

Spyga, hiring for Foxconn, asked new recruits if they had tattoos and got them to sign resignation letters 23 Flextronics: Contrasts had to have a medical exam and “The fourth time I got a job in they use, particularly Damsa and I had to answer the following Flextronics through Dinamitec, on Azanza. Taking the commitment the questions: Do you drink? Do you 30 October 2006. I went to see electronics industry has made to smoke? Do you have any the doctor, he asked me if I had Flextronics’ response tackle discrimination seriously, tattoos? Do you suffer from any had any contagious or skin means that the companies must illness? After passing all those disease, this time he did not ask In reply to the above case, monitor all their recruitment tests I didn’t have any problems me if I had tattoos; previously Foxconn gave Cereal the agencies to make sure that the getting a job in Flextronics.” they asked, not anymore. They following response: minimum required standards are did not ask me anything about met at all times. Cereal observed Cecilia, 24, married, also works trade unions or about my private “Flextronics will reinforce training that in Flextronics Guadalajara for Flextronics. She started life either.” provided to Agencies regarding one agency (Dinamitec) was no working there on 30 October all administrative processes they longer asking discriminatory 2006. That was the fourth time Cereal welcomes the reforms are responsible for. Recruitment questions in the selection Cecilia worked for Flextronics, and made by Dinamitec. However, and Selection are included in process; however, other two coincidentally, the previous times Flextronics must improve its these processes. Agencies will be agencies (Damsa and Azanza) she had also done so through monitoring mechanisms for the periodically certified and recertified were still asking applicants if they Dinamitec. rest of the employment agencies in the EICC code of conduct had tattoos. standards.”

In October 2006, Lucero went to Damsa to apply for a job. “I had to do a urine and an eye test, I was asked if I had tattoos, they checked down to my knees and uncovered my arms. I had to take a psychometric text, and then I signed a one-month contract. I work in Motorola, in “I was asked if I had building 1. I earn 76 pesos tattoos, they checked (U$7.02) per day.” down to my knees and uncovered my arms. I Sonia also applied for a job in work in Motorola, in Flextronics Guadalajara, but she did it through Azanza: building 1. I earn 76.35 pesos (U$7.06) per day.” “On 28 December 2006, I went Some of the agencies hiring for Flextronics Guadalajara Lucero. Flextronics Worker to Azanza to apply for a job. I use discriminatory questions about tattoos 24 Direct discrimination Philips: Tattooed people and practices pregnant women

Discriminatory questions in the There are around 4,000 workers selection process are not in the Philips factory in Ciudad exclusive to employment Juarez. Philips plasma and LCD agencies. Companies hiring their televisions are manufactured workers directly also use these there. Recruitment is done practices. During our research directly and during the selection we identified two companies that process they try to identify ask discriminatory questions to people with tattoos and pregnant prospective employees. These women. Two workers, one male are Hitachi and Philips. The and one female, describe the Hitachi factory investigated is process: located in the city of Tijuana and “My name is Adriana, I am 21 Philips’ factory is located in Ciudad years old. I started working in Juarez. Philips on 23 May 2006. I earn In Philips, women have to take a pregnancy test 45 pesos (U$ 4.16) plus benefits. Hitachi: Trade Unionists I was hired directly, I had a Philips’ response medical exploration, to remove pregnancy test, an eye test, and their clothing; it is however The Hitachi factory in Tijuana I was asked questions about my Cereal met with a representative requested to turn up their manufactures Hitachi high health.” from Philips to discuss the above trousers for preventive medical definition televisions. There, cases. Later, in August, Philips reasons (presence of varicose prospective employees are “My name is Martin, I am 40 sent Cereal a reply pointing out, veins). During the New Hires asked if they are members of a years old, I started working in among other things, the Process, the medical exploration trade union: “My name is Philips in April 2007, and I earn following: includes questions related to Adriana, I am 18 years old. I 80 pesos (U$7.39) per day. I was pregnancy for preventive medical started working in Hitachi, hired directly, they gave us the “Philips does not tolerate any purposes.” Tijuana, on 24 July 2006. I earn application form here and we discriminatory practises. (In 78 pesos (U$ 17.38) per day. were interviewed by a nurse. I Philips) Blood Testing is not a After receiving this reply, Cereal My hours are from 7.00 am to signed a three-month contract. practice. As for Urine Test, there asked new workers again about 5.00 pm. I was hired directly, we I had a urine and a blood test. is the practice of random testing the company’s recruitment were given the application form In the interview I was asked if I to all employees, given that our process. They confirmed that all there. In the application there had tattoos and to remove my company is BASC (Anti-Drugs, the above mentioned questions were some questions regarding T-shirt to check if I had tattoos Anti-Terrorism) certified, requiring and examinations are still being health. I was also asked if I was on my back, I was also asked to these random urine tests. There applied. This new evidence has a member of a trade union.” turn up my trousers.” is no request to New Hires during been sent to Philips. 25 Hitachi: Undesirables Hitachi’s response the workplace. This was an Two positive cases inappropriate use of the Discrimination is not restricted to In reply to the above case, employer’s time. The dismissal At the beginning of this section the selection processes used by Hitachi gave Cereal the following was not because she was we mentioned that Cereal had employment agencies and response: studying law, given the fact that identified an employment agency companies; it also takes place the company encourages and an electronics company that inside the factories. “To Hitachi GST one of the most workers to study.” removed discriminatory questions important topics are our non- from their personnel selection This kind of discrimination is discrimination practices. The only Following receipt of this reply, processes in 2007. The agency directed particularly against situation of this type we have had Cereal made further enquiries into concerned is Dinamitec, whose people deemed ‘undesirable’. was with an employee named the case. From this new enquiry case was described above, and Usually, these people are not Estela, who started working for Cereal could establish that the the company is Sony, in Tijuana, even hired, but when someone Caspem on June of 2005 and who facts, as described by Estela, where Cereal’s researchers could has already been hired, the was separated on February 27 were irrefutable. Mr Efraín corroborate that workers are no solution for the company is to 2007. The reason for the Camacho, Caspem’s (the agency longer asked about their religion, simply fire them. That was the separation was that the employee that hires Hitachi workers) HR trade union membership or case of Estela, a former Hitachi was using work time to counsel representative, fired Estela, and sexual life, and they are no Guadalajara worker. co-workers about personal it was he who personally longer asked to remove their matters that were unrelated to explained to her that she was clothes to check for tattoos. being fired for being a law Cereal wants to highlight these Estela’s story student and giving advice to her two positive cases because they colleagues. Cereal urges Hitachi show that it is possible for both “My name is Estela, I started to review the procedures used agencies and companies to working in Hitachi, in Guadalajara, by Caspem and make sure that eliminate discriminatory practices. in June 2005. I was fired on 26 its recruitment agencies act in However as shown above, most February 2007, using the accordance with the company’s companies and agencies still need argument that I was studying law social responsibility policies. to change their recruitment and advising my colleagues. I procedures to avoid discrimination. never told anyone in Hitachi that The first cases of discrimination I was studying law, I wanted it in the Mexican electronics industry to be a secret, but it was not documented by Cereal and possible to keep it secret because “I was fired using the circulated amongst the companies it was impossible to ignore the argument that I was date back to 2001. Cereal violations to our rights in the studying law and believes it is unacceptable that plant. That is why I was fired.” advising my colleagues” now, several years later, new cases of discrimination are still Estela. Hitachi’s Worker arising. 26 “I was surprised the 2.3 Constant work instability contract was only valid for that same month, because we have to sign a contract every fortnight.”

Eduardo. Foxconn’s Worker Temporary contracts

Another widespread problem in the Mexican electronics industry is the use of temporary employment contracts, which translates into work instability for thousands of workers. Temporary contracts are applied in series, one after another, which is forbidden by Mexican labour law.6 However, despite being forbidden, they are still used with astonishing frequency. Despite being illegal, serialised temporary contracts are widespread in the electronics industry

Foxconn: 15-day contracts manufacture Motorola mobile Foxconn’s response employment. Foxconn Chihuahua phones and also fascias for Nokia also believes that it would be Foxconn is also a good example phones.” “The nature of our business better to hire all workers directly; of this; the company asks its forces us to face volume unfortunately our variable employees to sign temporary Ernesto, 26, is even more explicit fluctuations. Every effort is made manufacturing volumes do not contracts lasting merely a when talking about this issue: to keep our workforce as stable allow us to do it. However fortnight. Eduardo, 22, a as possible, however at times it regardless of the reasons to hire Foxconn worker in Chihuahua, “I started working in Foxconn on is very difficult. All the employees services from temporary said about this: 9 November 2006, I work the that are hired through an employment agency, we have nightshift. I work in the Outsourced agency knows that the commitment of ensuring fair “My name is Eduardo. I started warehouse area and earn 80 the contracts are given for 15 and equal treatment for all, working in Foxconn on 9 pesos (U$ 7.40) per day. When days period, and it depends on independently of which way they November 2006. I earn 80 pesos I started work I was given a the season we are, during high have been hired.” (U$ 7.40) per day. I work in the contract to sign; however, I was season we are able to offer warehouse. I was hired through surprised the contract was only contracts for 1 or 2 months. The Motorola and Nokia also received Manpower and I sign a contract valid for that same month, employees are told from the a copy of the above case. Only every fortnight. The factory only because we have to sign a beginning of the contract with us Nokia gave Cereal a reply (See manufactures mobile phones. We contract every fortnight.” the conditions of the p. 17). 27 Jabil. 286 dismissed Angelica’s story “During the thirteen months I worked for Jabil Fluctuations in the global “I was working in HP’s line 1. I signed contracts every electronics market mean the There we were making printers 45 days.” opening and closing down of for HP. During the thirteen months projects in the factories, which is I worked for Jabil I signed Angelica. Jabil’s Worker why most companies prefer to contracts every 45 days. hire employees under temporary However, on 4 December 2006, contracts. For workers this means the superviser came to tell us living with the uncertainty of there wasn’t going to be any whether they will have a job from more work, that we were going Jabil’s response one day to the next. Angelica, a to be fired. He just said ‘the former Jabil worker at the clients are gone and there is not Cereal showed Jabil a copy of the Chihuahua plant, told us how an going to be any more work.’” above case. The company sent employee can just be dismissed the following reply in writing to at any time: Cereal:

“Jabil confirmed the reduction in Angelica, like other 286 workers, December of 2006 was 286 was dismissed and given workers. Potential for general severance pay in accordance factory work force reduction was with the law and did not need to communicated to all employees turn to the labour authorities. Her in advance. Severance pay was problem, however, was the more than law requested. Jabil unexpected dismissal she had to Chihuahua does not allow face, following more than a year temporary workers to have of insecurity caused by repeated contracts for more than 1 year, short-term contracts. if it happens, employee will receive a permanent contract immediately.”

“The supervisor came to As can be observed in Angelica’s tell us that we were testimony and in Jabil’s response, going to be fired. He just the 286 fired workers were said ‘the clients are gone notified of their dismissal and An electronics worker can be fired at any time, as happened and there is not going to dismissed within the same in Jabil, Chihuahua be any more work” month, December 2006. 28 Sanmina SCI: Dismissals “I worked in plant 6 in Sanmina “She told me that if I under deception. SCI, inspecting circuit boards; I didn’t sign they were checked them to make sure no going to ‘put me in the Having a good performance faults, shortcircuits, etc. were bulletin*’ and it wasn’t record can prove pointless when carried forward. On Friday 7 July going to be easy for me staff cuts are carried out 2006, the supervisor told me to to find a job.” indiscriminately. Barbara, 39, go to Damsa’s office at 6.00 am; who was an excellent worker in but then he told me that there plant 16 in Sanmina SCI, had been a mistake, that they Cereal filed a legal suit to try to Guadalajara, told us how one day were looking for another Barbara, resolve Barbara’s case, and at it was ‘her turn’ to be fired, her so I relaxed. Then someone from the same time, got in touch with dismissal being done in a rather Damsa came to me and told me Sanmina SCI in an attempt to strange way. She told us: that the company needed to cut find a solution by putting the facts down on staff and that this time of the case directly to the it had to be me and to go with company. Four months later, her to hand back my stuff. I Barbara received her severance handed in everything: badge, lab pay in accordance with the law. coat, bracelet, heelpiece, face mask, brush, and work tools. When I had handed in everything, she gave me two sheets to sign, but one of them was folded in half, hiding the heading ‘voluntary resignation’. I told her I was not going to sign that sheet, then she told me that “She gave me two sheets if I didn’t sign they were going to to sign, but one of them ‘put me in the bulletin*’ and it was folded in half, hiding wasn’t going to be easy for me the heading ‘voluntary to find a job. She also told me resignation’. that it was compulsory to sign the sheet in order to leave the company, so I told her ‘if you want I can stay here in the company and sue you for *The bulletin is a blacklist of staff which kidnapping, only then she let me is shared between employment agencies Sanmina Sci out.” in Guadalajara. Damsa’s offices 29 Advanced resignations Sanmina SCI: Resigning and Sanmina SCI’s response then going back to work Another, more insidious way in “Sanmina SCI’s HR staff has had which companies try to control Zafira, a former worker in several meetings with all of our the number of employees, is Sanmina SCI’s plant 45 in Agencies. In these meetings, we forcing people to sign a Guadalajara, went to Cereal’s have discussed ‘best practices’ resignation letter every so often. offices on 15 March 2007 to ask in managing outsourced labor. In that way, the employment for advice. She had been working These meetings are aimed at agency is ready to get rid of a for Sanmina through an agency establishing practices that certain number of employees at called Cosea: accommodate Sanmina SCI’s any time, without having to go increase and decrease in through the hassle of firing them, “The reason why I’m here is that workload based on customer since they have already signed the people from the agency want don’t want me to accumulate requirements as the work flow a ‘resignation letter.’ me to sign a voluntary resignation working time. Three different changes.” letter. They said that if I do it I people talked to me and told me: can have 4 days off and after if you want to keep working here “Finally, we are investigating those days I can go back to my sign, it’s an internal requirement. CEREAL’s claim that our agencies job. The truth is I don’t want to Of course I’ve refused to sign, I have the unfair practice of asking sign anything. When I signed my think it’s an abuse; I’ve never employees to sign an advanced “Now they want me to contract I was told it was for an missed a day’s work, I was resignation notice.” sign a voluntary indefinite period of time and now punctual, I do my job well and resignation letter. I’m they say that I have to sign a now they want me to sign a “Working with agencies gives us not asking for anything, I resignation letter in exchange for voluntary resignation letter. I’m the flexibility we need in our only want what is mine, some annual leave. I work in a not asking for anything, I only industry and we will continue project called Tellabs, we want what is mine, what is fair, using them for this flexibility. what is fair, the time I’ve manufacture printed circuit the time I’ve already worked.” Sanmina SCI employs more than already worked.” boards for telecommunication 6,400 temporary employees networks. I earn 105 pesos (U$ Zafira’s case illustrates the (48% ratio population) and 7,000 9.71) per day. Tellabs is the pressure put on electronics regular employees (52%) as of largest project in the plant and workers to try to make them sign July 2007. This flexibility gives the circuit boards are the most away their rights. Cereal spoke Sanmina SCI the chance to be expensive in the factory. Tellabs with a Sanmina representative competitive and continue to give is Sanmina’s main client and now regarding Cosea’s practice of jobs to more than 13,400 they’re saying there is no work. forcing employees to sign a employees and their families.” Besides, they are still doing the resignation letter. Subsequently, kind of work I did, it hasn’t the company sent the following stopped, and the thing is they reply in writing to Cereal: 30 Advanced resignations: HP and Foxconn

In Guadalajara, Foxconn has a factory where it mainly produces equipment for Hewlett Packard (HP). In December 2006, Norma approached an agency called Spyga, which recruits workers for Foxconn, to apply for a job. She describes what happened when she was hired:

“I signed a 15-day contract and at the same time I signed my resignation. They told me I was signing a 15-day contract but that could last longer or less time depending on the project, and that is why I had to sign a resignation letter.”

“I signed a 15-day contract and at the same time I signed my resignation.” Foxconn’s factory in Guadalajara is located within HP’s Norma. Exrabajadora de Foxconn premises

Forcing workers to sign an they are renouncing several of HP’s response Foxconn’s response advanced resignation letter, their most basic rights; most usually undated, is one of the importantly, they are giving up “HP was unaware of the practice “The labor agency has been most serious abuses in Mexico. their right to access to labour of advanced resignation letters requested to eliminate advance With that document in hand, the justice, since the sole existence and agrees with CEREAL that it resignation letter as part of the company can fire workers of a signed resignation letter should not be occurring and has recruitment process and this step whenever it wants to, without a prevents workers from taking learned that SPYGA has stopped was eliminated as of July 2007, fair severance payment and legal action in the industrial this practice. HP expects that our where agency signed a letter as a without the need to justify the tribunals. Foxconn and HP gave first tier suppliers monitor their compromise to EICC regulations.” dismissal. In reality, when workers Cereal the following written suppliers to ensure they are sign a document of this nature responses in relation to this case: meeting the EICC requirements.” 31 Withholding annual leave: This means that workers may In October 2006, Gerardo, an want to know what you want The Solectron case have little control over the few engineer also working for them for.” days of holiday that they are Solectron but in the Guadalajara Another right violated by work entitled to take. plant, pointed out something Solectron’s response instability is the right to annual similar to what happens with his leave. According to Mexican law, “My name is Salome, I’m 23 and colleagues in Chihuahua: “It makes clear sense that for every year worked in a married; I studied IT and work Solectron would have difficulties company, the amount of annual in Solectron, Chihuahua, in the “I work reparing faults in granting every vacation request leave for an employee Intel project. I earn 104.50 equipment that clients send back. submitted by its many employ- increases.7 However, since so pesos (U$ 9.67) per day. I’m an Nortel Calgary, Lucent, IBM... I ees. Production requirements, many electronics workers only operator. I test the finished circuit earn 188 pesos (U$ 17.38) per seasonal demand, and other have temporary contracts their boards. I asked for my annual day.” employee time off requests are annual leave never increases. leave on 2 December 2006, I all valid considerations when was entitled to eight days, but “When I asked for some annual approving or denying an annual Furthermore, companies give was only allowed three. Solectron leave they got upset, I think they leave request. Solectron annual leave when it is convenient gives us annual leave at their wanted to give me some sort of understands all of the implications for them and not when the pleasure. I was told that the lesson because they want people in this area and has proper employee asks for it. problem was that everyone was to take some days here and mechanisms in place to ensure booking them for the same time, there and not all in one go; they workers receive the time off they Finally, annual leave is given to but that is not true, because I wanted me to take one day a are entitled to.” workers in blocks of few days at had booked them way in month; also they question you a time and not all in one go, as it advance, still they didn’t want to when you ask for more than Intel also received the report, but should be under Mexican law8. give them to me.” three consecutive days, they it did not give any reply.

In the previous Cereal report, Mexican electronics industry were entitlements. Shockingly, workers temporary workers to 40%. In companies claimed that under temporary contracts. In are even being pressured to sign the same report, Solectron also temporary contracts were a 2007, that figure remains resignation letters and give up talked about a programme response to the frequent basically unchanged. As the those rights which they do have implemented in 2005, which had fluctuations in production, which cases above illustrate, the costs under Mexican law. Last year allowed it to increase the forces them to have a of this flexibility are carried by the CEREAL welcomed pledges by percentage of permanent percentage of temporary workers. They experience job several companies to give workers to 60%. According to workers. In fact Mexican insecurity, are unable to take the permanent contracts to a greater their own data, 48% of Sanmina electronics companies hire most leave that they have earned number of workers. Among SCI’s workers are now on of their workforce under when they want and receive these were IBM and Sanmina temporary contracts. For temporary contracts. In 2006, repeated short-term contracts so SCI, who intended to cut down Solectron the proportion of around 60% of employees in the that they don’t build up holiday the percentage of their permanent workers is 60%. 32 Solectron (Intel- Dell): boards and mobile phones for 2.4 Lack of safety. Work-related Forced to work on their feet. Nokia, Lucent, Intel, Dell, accidents and illnesses Seagatle, Apple... In general, “My job is to test circuit boards working conditions are good, but for Intel/Dell computers. I’m I don’t think it is right to have to always on my feet, sometimes stand up for so long.” although we could be sitting down, we are not allowed; a lot In the second half of 2006, of the time we have to be on complaints about standing up for The issue of work-related accidents and illnesses is one of the our feet even if we don’t have long periods became a major lengthiest in this report. In contrast to last year, workers complained anything to do, they force us to issue for workers in Solectron’s more insistently about unsafe working conditions affecting their health stand up, they force us to be on two factories in Mexico: during the period covered by this report. Some of these workers our feet.” approached representatives from their companies directly to demand “My name is Edith, I’m 30, I am a solution, but in most cases they did not get a reply. This year’s Those were the words of Rocio, married. I started working in report also includes detailed accounts of three accidents because of 40, mother of four, a Solectron Solectron Chihuahua on 8 July their extremely serious nature. Amongst the workers’ complaints, Chihuahua worker. In the period 2004; I work on the Intel project the most frequent one was the amount of time they have to work covered by this report, 2006- from 6.00 am to 3.30 pm. I earn on their feet. This happens in several factories and in different cities, 2007, Cereal came across 115 pesos (U$ 10.63) per day. I as described below. dozens of workers whose carry out the functional tests on complaint was being on their feet the circuit boards. In my area, for too long, sometimes the we work standing up, we are very “They force us to stand whole of a twelve-hour shift, tired, the technicians and repairers up, they simply say that without taking into account work sitting down; but not us, we overtime. Ana, 30, who also are always on our feet. We have we have to stand up” works in Solectron Chihuahua, anti-fatigue mats, but they don’t pointed out: make us less tired. The only Rocio. Solectron’s Worker protection equipment I have is a “I started working in Solectron on lab coat. The factory carries out 10 August 2006 and I earn 95 repairs for brands such as Dell, pesos (U$ 8.78) per day. I am Intel and some others I can’t just a normal operator and I work remember. There are ten Intel on my feet. Only pregnant production lines. There are women are given chairs, around 60 people in my line and although the rest of us have anti- around 1,200 workers in the In Solectron, Chihuahua, employees work on their feet 8 fatigue mats. In the factory, we whole plant.” hours per day carry out repairs for circuit 33 Lean manufacturing principles and no set rules. In badly, I am in a bad mood and I’ve gone back to talk to the fact, each company tailors it that’s why I haven’t increased Employee Relations manager, but “My name is Maria, I’m 19, according to its own needs. production. That’s why I went he keeps telling me that those married, and I have a daughter. Therefore, Lean Manufacturing to talk to the Employee Relations are the orders from above and I started working in Solectron does not specifically state manager. He told me I’ll get there is nothing he can do. I told Chihuahua on 13 March 2005; I anywhere that workers must do used to it, but I have already him he should try working work on the Intel project from their job standing up. However, told him ‘how come you are standing up to have an idea of 6.00 am to 3.30 pm. I earn in the case of Solectron this hurting us?’ Because working on how we feel, but he told me that 780 pesos (U$ 72.14) per week. seems to have become a general our feet is making us ill and he doesn’t have to prove I am a universal operator, this policy that was implemented in frankly I can’t get used to the anything to me. After all this, I means I test the functionality of both its Mexican factories. pain. A few months ago I made found myself a chair and hid it, I the parts. I work on my feet all an anonymous call to the labour take it out every day and sit the time, we have anti-fatigue Twelve hours on their feet authorities and some people down to do my job. I have mats, but we are very tired still. came to inspect the factory. already been told off for having The protection equipment I get “My name is Alicia, I’m 42, However, at the end of the a chair, of course; they said they includes gloves, goggles and a married and I have 6 children. I inspection they said everything were going to report me, but I lab coat. Solectron carries out work in Solectron Guadalajara. I was fine. Despite that, I am not didn’t pay attention to it. repairs and manufactures CPUs. work on the Calgary project happy working on my feet, so Obviously, I wouldn’t like to be About a month ago we were (circuit board repairs), I do the divided into working cells, groups 4x3 shift, from 7.00 am to 7.00 of 5 people each. We only work pm Thursday to Sunday. I earn “‘How come you are for Intel in this area, but the 99.50 pesos (U$ 9.20) per day.” hurting us?’ Because factory has several other working on our feet is projects like Maxtor, Ecostar, Dell “Lean manufacturing was making us ill and frankly and others. There are around implemented a year ago, I can’t get used to the 130 people in my line and around meaning we have been working pain” 1,500 workers in the whole plant.” on our feet ever since. In my area, the chairs were taken away Alicia. Solectron’s Worker Like Maria, all Solectron’s workers only two months ago. Having to who approached Cereal for stand up for 12 hours a day has advice established a link between made me very tired. I started the sudden demand to work on developing varicose veins. their feet and the introduction of Before, if we were asked to do a system known as Lean overtime I would double my Manufacturing. This is a globally hours, sometimes staying for up well-known production system, to 24 hours; but now that I work In Solectron, Guadalajara, employees work on their feet which is made up of a series of on my feet I feel ill, my feet ache 12 hours per day 34 reported, but my health comes days later, Alicia told us she had require a certain degree of first. Besides, I’m not the only been allowed to use a chair. change management. The “We have been one who’s not pleased; we are However, the rest of the workers efforts put forth by Company complaining for a while all upset with this new working are still waiting for a reply from management, site management, because we have to system.” Solectron. and the site HR allowed for a spend twelve hours on majority of the employees to our feet and that is very “I have challenged Human Solectron’s response make the shift to stand up cells tiring. We have asked Resources on several occasions. without difficulty. Today, every for chairs, but our They told me we have to stand In reply to the above case, worker assigned a role in the request has been up so we don’t fall asleep, ‘so Solectron gave Cereal the transformed production you are more active and following response in writing: environment attends mandatory denied.” production increases.” training on Lean manufacturing, “Solectron has implemented a and is provided with ergonomic Rogelio. Solectron’s Worker As Alicia pointed out, she is not proprietary production system additions to their work cells to aid the only discontented worker. On that incorporates, in part, the them in their work.” 30 October 2006, a group of well-established principles of Lean Solectron workers went to Manufacturing. The CEREAL Cereal’s offices asking for help report suggests that re- regarding this matter. Rogelio, engineering operations to include one of them, pointed out: standing work stations - such as Solectron has done - is arbitrary “We have been complaining for and lacking clear purpose. The a while because we have to issues presented in the draft spend twelve hours on our feet CEREAL report (2007) related to and that is very tiring. We have the physical impact of stand-up asked for chairs, but our request production cells are not new to has been denied. The guy from Solectron, although the Company Employee Relations told me that is pleased to report that only a they were going to have a small (and manageable) meeting with us to discuss it, but percentage of its workforce has up until now we haven’t seen any actually experienced trouble change.” adapting.”

After this meeting, Cereal “Prior to transitioning to stand up contacted Solectron’s HR cells, Solectron realized that Department to make them aware altering the way work would be of the workers’ complaints. Some performed in this manner would 35 Standing up: The Jabil case Jabil sent Cereal a series of clarifications regarding this case. Lorena read them and made her own comments. Workers in Jabil, in Guadalajara, also complain about this. Here there JABIL'S CLARIFICATIONS LORENA'S CLARIFICATIONS is also a direct link between being forced to work standing up and the The facility only has two floors. The building has three floors: introduction of Lean Manufacturing. The employee stated three ground floor, first floor and second floors. floor. “My name is Lorena, I am 35 There is a lift in the same I used the lift, but still had to walk and a single mother. I started location as the stairs, which she quite a long way. working in Jabil on 24 August did not mention. She could have used the lift for her 2004. I earn 95 pesos (U$ 8.78) convenience. per day. I work on the Cisco The employee pointed out that I never said I was sent to hospital. I project from 2.00 to 9.30 pm. she was sent to casualty was seen in the factory. The Currently I am in manual (hospital). There is no record attending physician was Dr. assembly. I work 7½ hours on of that in Jabil. Alejandro Renteria, from Jabil. my feet because our chairs were The operation that appears to The problem is not that the nature taken away when Lean correlate with case requires the of the job requires for the operator Manufacturing was introduced. operator to stand up due to to stand up, but that I was pregnant There are 4 production lines in product dimensions. and working seven and a half hours on my feet. Cisco, each one has about 15 people and there are around After reading both Jabil’s and Lorena’s clarifications, Cereal believes 3,000 people in the whole that there is no excuse for pregnant women to continue working on factory. The working their feet for long periods of time. Cereal calls on Jabil to improve its environment is tough, because but the same thing happened to treatment of pregnant women. Cereal has also put Lorena in touch we have to stand up all the time. me again yesterday and I was with Jabil. I am six months pregnant and I sent to casualty. Then they told have to be on my feet all the me I was going to be moved to time. Whenever I tell them I another post, but that hasn’t need to sit down they ignore me. happened yet. Although HR On Thursday I felt dizzy and I knows that I’m pregnant, they couldn’t stand up, I sat down for still haven’t done anything. Since a while and then went to the I’ve been working on my feet infirmary. I had to go down three I’ve developed varicose veins, floors and walk a long way to get my feet hurt and swell up badly. there. When I got to the I think that working conditions are infirmary I was given some very tough. Furthermore, oxygen because I couldn’t engineers treat us badly, they are very arrogant.” breathe. That day I got better, Jabil Guadalajara 36 Standing up: The Flextronics rubbish bins. Those are red confirmed what his colleague said. case medium-size pedal bins. We use He earns 600 pesos (U$ 55.49) “We sit on the tables or them to throw away waste paper per week. He told us: on the rubbish bins. We Workers in the Flextronics factory drenched in paste or isopropilic use them to throw away in Guadalajara also complain they alcohol. There are two bins in “When I receive the circuit board, waste paper drenched in have to stand up over long my production line, and when we I have to check it isn’t damaged paste or isopropilic periods. There the sitting down are very tired we cover each or that it doesn’t have a part alcohol.” ban has forced workers to look other so we can sit down for a wrongly installed. I have to stand for ‘other alternatives’ and in while. Sometimes we feel under up to do my job, there is no doing so they are exposing a lot of pressure because we chance of sitting down; but in Flextronics’ response themselves to even more danger. have to make many circuit some stations, although workers In February 2007, Adela, 24, boards. Sometimes my knees can sit down they are not “Flextronics is working on a explained what happens in hurt badly and that is why I have allowed, so they sit wherever definition towards this issue. We Flextronics because of the lack to look for a place to sit down. I they can. We are currently are currently performing an of chairs. “I work in Flextronics have varicose veins as a result having a problem with the chairs, analysis on each specific position and I earn 76.35 pesos (U$ 7.06) of being on my feet for so long. colleagues are chaining them to in order to determine if a chair is per day. I work on the Sun We don’t have anti-fatigue mats, the work stations because required or not. Workers with Microsystems project, we I used to have one in the other otherwise someone comes and special conditions will be manufacture computer modems factory; they are useless takes them away. When there addressed depending on their that are exported to Japan. anyway. There are around 8,000 are no available chairs and they needs. A revised policy with the Being on my feet all the time is workers in the factory.” want to sit down, they do so on corresponding changes including very tiring, only the supervisor the rubbish bins and carry on ergonomic concerns will be has a chair. When we have the Jose, 22, also a Flextronics working. The problem is obvious, submitted before the end of 2nd chance to sit down, we sit on the worker on the Whirlpool project because of the lack of chairs.” Qtr. FY’08 (Sept.’07).”

Sun Microsystems’ reply. Cereal. The supplier identified as requires that all of our suppliers accordance with the Electronic not providing a place for workers meet our high standards for Industry Code of Conduct In relation to the above case, on their lines to sit down is environmental practices and (EICC).The EICC is an industry Sun Microsystems gave Cereal conducting an in depth study of business conduct. We work consortium that works to the following reply: the requirements of different closely with them to address and maintain a standards-based positions in their facility to ensure remedy practices that do not approach for monitoring suppliers’ “Sun attended the EICC that anti-fatigue mats or chairs meet Sun’s requirements.” performance across several conference in Guadalajara with are provided as appropriate.” areas of social responsibility, Cereal and met with several “Sun requires that all suppliers including labor practices, health suppliers while in Guadalajara to “Regardless of where or with adhere to the Sun Code of and safety, ethics, and discuss the findings presented by whom we do business, Sun Conduct, which was developed in environmental protection.”

37 Standing up: Sanmina SCI

Some workers acknowledge the need to stand up in order to do their job, but there are circumstances in which the idea of keeping workers on their feet is seemingly just a whim. The problem is that rebelling against that whim can cost a worker his/her job. Julieta who used to work for Sanmina SCI in Guadalajara, pointed out: “I was working on my feet all the time when I was pregnant. My The situations described above refer to the unsafe colleagues would hand me a chair, working conditions which need an immediate solution but the mobiles’ supervisor used to from each of the concerned companies. All companies come and take it away. She said have a duty to protect their workers’ health and safety, that sitting wasn’t allowed. I didn’t to listen to their employees’ concerns and to implement even have anti-fatigue mats. On the necessary preventive measures in their factories. 10 December 2006, I told her my On several occasions, electronics companies have said back was aching, then, on the 19th, that workers’ health and safety is a priority, but I told her I was going to the doctor. obviously they have not adopted the necessary The next day I went to see my “I was working on my standards to ensure a healthy and safe working GP. I went back to work on the feet all the time when I environment. Cereal believes it is paramount that 21st and I had a sick note; companies implement better preventive measures however, I wasn’t allowed in the was pregnant. My before the consequences become more serious. plant anymore. I went to HR and I colleagues would hand Unfortunately, accidents resulting from unsafe was told I had been dismissed. To me a chair, but the conditions are already happening in the Mexican be honest, I couldn’t understand mobiles’ supervisor used electronics industry. Sadly, these took on special the situation, I told them I was to come and take it significance during 2006 and 2007. unwell and handed in my sick note, away. She said that so I couldn’t understand.” sitting wasn’t allowed” Sanmina-SCI response:

“Many of the job positions within Sanmina-SCI require the employee to stand up. It is not possible to have chairs for every position. However, there are positions within the company that we provide chairs for based on job requirements. In situations in Guadalajara where we are notified that we have pregnant employees, we automatically provide them a new job position which will help prevent risk to the pregnant employee.” 38 Special cases

Due to their seriousness, Cereal wants to present the following three cases individually. They demonstrate how the lives of electronics workers can be literally destroyed by negligence.

Case Study 1: In-depth analysis Silvia’s story

On Sunday 27 August 2006 at driver couldn’t see her because 6.30 am, Silvia Martinez arrived she was wearing black clothes, it at Solectron’s plant in Guadalajara was still a bit dark and the rear- in an SUV from a personnel view mirror must have been transportation company called misted up, because it was raining Busmen. After getting out along and it was around 6.30 am. Some with her colleagues, Silvia started people, who weren’t even there, walking through the car park on said that she had headphones the way to her post. Suddenly, on; but that isn’t true, she, like another bus, also belonging to us, came out of the SUV, walked Busmen, driving along the a few steps and the SUV ran her Silvia in hospital carpark hit her from the front and over.” threw her to the floor. Silvia did not have time to react. One of Silvia was taken immediately to thing I can remember is Silvia think she was exactly a nurse the bus’ wheels ran over her leg. Arboledas Hospital, a private screaming in pain, which was because it was obvious she didn’t Araceli Cuevas, 18, Silvia’s niece hospital, to receive medical what made me run to see what know what to do, she even and also a Solectron worker, attention. Fernado Vasquez, the had happened. That was when brought out a wheelchair and witnessed the event. SUV driver who took her to I saw her under the SUV, her leg wanted us to get Silvia on it, but hospital, told us his version of the badly injured. I and other Aida, Silvia’s cousin, said no. “We all arrived together and saw events: colleagues helped her, I However, the so called nurse kept everything; we were waiting for remember the night nurse was trying to get her on it, then Aida her to come out of the SUV. It “Silvia’s accident was really an there because she hadn’t shouted at her “Can’t you see wasn’t her fault, maybe what accident. The truth is I don’t finished her shift yet and she she can’t get on the chair?” and happened was that the SUV’s know how it happened, the only came out to help us. But I don’t I told her to have a look at her

39 leg, that was when they rushed honest, there are a lot of SUVs to get a stretcher. When the in the car park, and workers have stretcher arrived we got her on to dodge them all the time.” the SUV and I had to drive.” Busmen’s reactions Aida, Silvia’s cousin, also a Solectron worker, described how When Silvia was still in Arboledas Silvia was taken to hospital. Hospital, a representative from Busmen’s insurance company “Neither the Green Cross nor the went to talk to her. Aida, Silvia’s Red Cross came, we think they cousin, recalled that moment: weren’t even called, she was taken in an SUV. She was in bad “ABBA insurance told us not to pain. The driver was jumping contact the Public Prosecutor’s 9 traffic lights, he was very nervous Office so we didn’t. However, too. She was screaming in pain, later people from the Public especially when going through Prosecutor’s Office turned up of speed bumps, she was only on An bus similar to the one that ran Silvia over their own accord. They gave me a stretcher in the SUV. We arrived all of Silvia’s belongings, her at Arboledas Hospital at around but she was not taken in because gave his expert opinion on the handbag, her clothes, and they 7.00 am and she didn’t go into the infection was too advanced. safety conditions in Solectron’s asked me to give a statement. the operating theatre until So, she was transferred to Clinic car park at the time. Fernando We gave a statement and signed midday.” 89, another public hospital, where pointed out: it.” she died on 22 October of the When Silvia arrived in the hospital same year. Silvia was just 24 and “Many vehicles come into the This was the first in a series of she was in danger of losing her she was the single mother of an company’s premises. We all events that made Silvia’s family leg. In the following days an eight-year-old girl. come in and out at the same suspicious of Busmen’s intentions. infection in Silvia’s wound time, that’s why all SUVs crowd Silvia’s sister, Rocio, 26, looked developed complications and together and since there are no after her and also took charge Busmen’s insurance company What caused the accident? signs the situation is very of talks with the companies. She stopped paying for treatment. dangerous for workers who have explained the way in which As with most accidents, in Silvia’s to cross the car park to get from Busmen dealt with Silvia’s case. On 23 September, Silvia was case it is difficult to establish the one place to another. There are moved to the Centro Medico de exact causes. However, 25 Busmen SUVs in the car park, “I remember that on the day of Occidente (Western Medical Fernando, the driver who took maybe more, plus 12 from the accident Mr Adan Magaña, Centre), a hospital within the Silvia to hospital and who works another company and some Busmen’s owner, told us not to Mexican social security system, regularly as a driver for Busmen, others parked there. To be worry, that everything was going 40 already been told that she was insurance policy that Solectron ready for a skin graft, that she had on its entire workforce. was already in the tissue bank Finally, Adan Magaña, Busmen’s register’, then she told me there owner, voluntarily gave Silvia’s was no such a thing as a tissue family a further 50,000 pesos bank. That was when I realised (U$ 4,624), in a gesture I had been lied to.” acknowledging his company’s social responsibility. The consequences. Cereal also helped Silvia’s family to process an orphan’s benefit Cereal found out about Silvia’s for Silvia’s daughter, which she is case a few days after the legally entitled to until she accident. Two members of reaches 18 years of age. Cereal’s staff contacted Silvia, her family and Busmen and Solectron Other positive changes were also representatives immediately. made after Silvia’s death. Silvia’s Solectron Guadalajara: the place where the accident nephew, Jose Luis Cuevas, 26, happened While Silvia was still alive, Cereal also a Solectron worker described took on the legal representation those changes: to be fine, that they were going the withdrawal of the claim; they of her case, but after her death to take responsibility and would kept telling me that it was only a it was necessary to set up a “Some good things have never abandon her. However, requirement for the insurance to negotiating table in order to find happened since Silvia’s death. after only a few days he sent his pay all the expenses.” a solution agreed in consensus. Before, there wasn’t any lighting solicitors to ask me to sign a Negotiations between Silvia’s in the car park, there is now. withdrawal of the claim, which of “They also told me she was going family, Solectron and Busmen There weren’t any signs, vehicles course we refused to do.” to be moved to the Medical were very tense; however a final went all over the place and Centre because she had already solution was agreed by all three people had to dodge them; now “Then, things at Arboledas been accepted in the tissue bank parties. Silvia’s family agreed to they have built up a ramp, SUVs Hospital got increasingly worse. to have skin grafts. My surprise grant Busmen legal pardon in turn there and if you walk behind Doctors said they weren’t going was when we arrived at the exchange for 280,000 pesos (U$ one of them you can be reported. to treat Silvia anymore because Medical Centre and the doctors 25,897), the maximum possible Now, there is a place to park, Busmen no longer wanted to told us she couldn’t be admitted amount of compensation for SUVs can’t go beyond a transfer money for medical because she had a severe occupational death under designated space. Now there are expenses.” infection in her leg. I told the Mexican law. signals for pedestrians, there person who was saying all this weren’t any before, they look “Also, Busmen representatives ‘listen, I don’t understand why Also, Solectron paid 120,000 after us better. All this, of course, were trying to trick me into signing you are telling me this, I have pesos (U$ 11,098) from a life was done after the accident.” 41 Solectron’s response “Cereal believes that all Cereal sent a draft of the case companies should study to Solectron for the guarantee their workers’ company to comment on. In its safety from the moment written reply, Solectron points out they get on the that “Solectron and all its personnel transport employees were deeply affected vehicles to go to work” by this incident, and were especially stunned and dismayed by Silvia’s death weeks after the accident.” Solectron also gives some details of how the accident happened and makes its position regarding the treatment Silvia and her family received from the company clear. Those details did The house where Silvia used to live not modify substantially the nevertheless, they were included Silvia’s family, members of Cereal original account given by Cereal, in the final report in order to have and some first-hand witnesses. a clearer picture. In its reply, Finally, Solectron adds “This Solectron argues that “the incident was truly an accident with description as written by CEREAL tragic significance that Solectron is very inaccurate. Details dealing will keep close in mind and heart, with how the accident occurred, and learn from in any way the area and the conditions possible. But, this unusual and where the accident occurred, solitary incident is not an example who rendered aid and what of unsafe working conditions in corrective actions Solectron later the electronics industry, the took are all incorrect. Additionally, focus of the CEREAL report, and the role of CEREAL (in relationship is therefore misplaced among the to Solectron) and the nature of other issues raised by CEREAL.” the Solectron’s dealings with Cereal disagrees with this view Silvia’s family after the accident and believes that all companies have been unfairly misstated.” In should guarantee their workers’ spite of Solectron’s opinion, the safety from the moment they account of the case has been get on the personnel transport Silvia’s daughter reviewed (and approved) by vehicles to go to work. 42 Case study 2: In-depth analysis

Aleyda’s story

On 23 June 2006, Cereal received Cereal replied to the person who the following message by e-mail: sent the message asking to “Please do not use my name, I identify him/herself and to give am afraid of reporting this. One more details about the person of my best friends had a terrible who had the accident. At the accident in the Sanmina’s metal same time, Cereal staff asked and plastics plant recently opened other Sanmina SCI workers by Mexican President Vicente Fox about the alleged accident. On here in Tlajomulco, Jalisco. She 26 June, a new e-mail arrived in lost both her hands. She is very Cereal’s inbox: frightened and needs your help. Sanmina SCI: the place where Aleyda’s accident happened I want to ask you to make some “The bosses went to see her to enquiries and help her. The convince her not to say anything. Once again, Cereal replied asking a 21-year-old girl, who worked in accident happened two weeks Everyone at Sanmina knows this person for more details. On the mechanic metal area in ago, everyone knows about it what happened, she lost both her 17 July, the same person sent a Sanmina SCI and lived in a but no one does anything to help hands and life for her will never last message: popular suburb in Guadalajara. her. She has been threatened be the same again; and all These workers gave Cereal because they are trying to hide because of a company that “Her parents accepted some promoters an account of the the whole thing. She is depressed never gave her any training. I money from the company to accident. Cereal also contacted and she needs you. She told me work there myself, everyone keep quiet, we won’t be able to Sanmina SCI’s HR Director for she started working in the factory knows about it, they even make help her anymore, I am very Latin America. He confirmed the without any training, she was jokes about it and that makes angry, there is nothing we can accident and offered his own sent to operate that machine and me really angry. I will ask for her do now.” account of the incident. that’s when she lost her arms... permission to give out her name According to all these accounts, Launch an enquiry, Cereal knows and address and will get back to Workers interviewed by Cereal the incident happened as follows: Sanmina very well; they have you later, but it wouldn’t be regarding the alleged accident many factories around here, difficult for you to find out, immediately identified the On 2 June 2006, Aleyda was in that’s why we are so afraid.” everyone knows. Thanks.” concerned worker. It was Aleyda, plant 4 in Sanmina SCI operating 43 a machine used to make cuts What caused the accident? Sanmina SCI’s reaction agreement, Sanmica SCI was and grooves on metal sheets going to provide Aleyda with “the used in various electronic According to Sanmina SCI’s Sanmina SCI’s representative best medical attention available equipment. This machine comes explanation, the accident was also explained that immediately in the world”. Aleyda was treated with a set of presses that come caused by a fault in the machine after the accident, the company in a hospital in Dallas, Texas, and down with force to make cuts in Aleida was operating. This contacted Aleyda’s family to offer in a rehabilitation centre, where the metal sheets. The operator machine had been brought in medical, financial and she got two pairs of prosthetics: has to feed this machine three days before from another psychological support. At first, one for aesthetic purposes, which manually, introducing and SCI plant in the US and neither Aleyda nor her family look like real hands at a glance, straightening metal sheets in a presumably it had a fault in the agreed to talk with the company and a mechanical one equipped compartment. In normal mechanism that makes the representatives, because they with artificial fingers that move in circumstances, this machine is stamping machine go up and were very angry with Sanmina response to the muscle only activated when the operator down. This was a recurring fault SCI. Despite their refusal, movements in the lower part of takes out his/her hands and during the time that Aleyda was Sanmina SCI managed to meet the arm. With the latter pair pushes two buttons for the operating that machine. That with the family and reach an Aleyda moves the mechanical presses to come down. But in was what caused the accident. agreement. Under this fingers with stimuli from her Aleyda’s case things did not brain, which sends signals to the happen that way. arm as if she still had hands.

On that day, she was feeding the Sanmina SCI’s response machine manually, i.e. her hands were in the compartment where Cereal met with Sanmina SCI’s the presses come up and down, representative to discuss when suddenly the presses Aleyda’s case details. On 3 came down with force. August, the company gave Instinctively, Aleyda withdrew her Cereal a written reply where it arms from the machine, and in points out, among other things, a gesture of fear, she tried to the following: touch her head. That was when she realised her hands were “The company did not deny or gone. Aleyda started bleeding hide this accident from anyone. and was taken immediately to a As soon as the accident occurred, Social Security hospital to be we responded quickly with proper operated on. The operation was medical care. Also, we informed successful in saving Aleyda’s life, Social Security, as we are required The function of a stamping machine is making holes but there was no chance of her to do by the labor law standards. through the metal sheets. It was one of these machines having her hands re-attached. The company is providing Aleyda that caught Aleyda’s hands 44 the best available private medical Dynamics Org. in Dallas, Texas. assistance locally, which includes Aleyda will receive the best psychological and physical treatment and prosthesis therapy.” available. Aleyda has successfully returned to work at Sanmina SCI “We have also researched the in a new job position learning new best prosthesis available. We assignments and performing her hired the best physician in the duties in positive and highly area to take care of Aleyda. She motivated manner. Aleyda’s is receiving psychological and rehabilitation has gone very well physical therapy for her and her and she is doing extremely well parents and this will continue for in her new position. Sanmina-SCI a total of 6 months. We worked has indicated to CEREAL they are with the private physician to find committed to Aleyda’s future and hire one of the best within the company as well as prosthetic companies in the world. ensuring they have a safe We agreed to hire Advance Arm working environment for all of their employees.”

Workers’ safety should be a top priority

A microelectric prosthetic limb similar to the one commis- sioned for Aleyda. It moves in response to cerebral im- pulses 45 Case study 3: In-depth analysis Ramona’s story

On 11 October 2006, Ramona “The machine was in Stop, I was Ramirez was working in USI cleaning it and I put my right (Universal Scientific Industrial Co., hand in to take out the paste Ltd.) in the city of Guadalajara. remains when suddenly I felt the She was cleaning a machine and machine switch on and trap my was about to finish her shift. The hand. In a matter of seconds, I machine was in ‘stop’ mode, but was covered in blood because the it suddenly switched itself on machine kept operating while my The pressure to have more production provoked the accident catching Ramona’s right hand. hand was trapped inside it. At that Ramona had in the USI´s factory first I thought I’d lost my fingers, “I was in production line 3 on the because of all the blood I could looking for the doctor and when more serious and they sent me Donatelo project, Lenovo. I was see. Later I found out that I he arrived he had a look at my to Clinic 110.” operating a Screen machine. didn’t lose them, but I was never hand and told me ‘all that fuss This machine puts the soldering going to be able to move them for such a small cut’, he also told “I was in rehabilitation there for paste onto the motherboard. We again.” me ‘open and close your hand.’ two months, I couldn’t move my were working with the security I tried to do it, it was very painful hand, it was swollen and bruised, sensors turned off. These Ramona was helped by two of and difficult, and I couldn’t do it. my fingers were paralysed, I had sensors detect when your hand her colleagues, who, after several He said I was fine. Then, the zero movement. Even today is inside the machine and attempts, managed to free her nurse arrived and she tried to (nine months later) I can’t grasp automatically stop it. But on that hand. They took her to the help, but the doctor said no, that anything with my hand, I can’t day the sensors weren’t on company’s infirmary: it was just a simple cut. She even move it, and I live in pain because because time is ‘wasted’ switching wanted to call an ambulance, but I get this sharp pain up to my them on and off, and since the “My colleagues took me to the the doctor didn’t authorise it, he elbow.” company was in a rush to finish infirmary, but it was closed, there only authorised a taxi to take me production, they were switched was nobody there; it was around to Clinic 48. When I arrived in The Social Security diagnosis was, off.” 1.40 in the afternoon. They went Clinic 48 they saw my injury was in summary, that Ramona’s right 46 hand was left permanently learn how to operate that excessive production demands, disabled. The only option left to machine, a person needs three which Ramona has already Ramona is to undergo a very full months training. Mary, the pointed out in previous risky operation, which could result person who trained Ramona, testimonials. Now, Mary confirms in her hand being amputated. In points out: those testimonials. order to do it, Ramona has to give her consent and face the “I remember I was training her “On the day of the accident, the possible consequences. Ramona to operate that machine. Training machines kept breaking down; is a single mother of 5, all below for operating that machine takes the G1 was making too much 18 years of age. She is currently 3 months, but that wasn’t the noise... Ramona couldn’t even receiving a Social Security benefit case with Ramona. I remember leave the machine. It was that amounts to 2,700 pesos she only had one and a half days around 1.30 in the afternoon and (U$249.72) per month. When training because there was a rush she was feeling under pressure Ramona is permanently retired to finish production. On that day, because she still had several for medical reasons by the Social the supervisor told me to leave things to do: The report, the Security because of the accident, her operating the machine on her raid, the day’s target... The she will only get part of that own because the circuit board day’s target is 190 circuit boards money because she is not fully production had to be finished as per hour and 1,520 per shift. The incapacitated. soon as possible.” supervisor checks the chalkboard Mary, the worker who to see whether the targets are trained Ramona to use the What caused the accident? Lack of maintenance to the being met and when he sees machine, said that Ramona´s machine has to be added to the they are not, he puts pressure training was insufficient In Ramona’s case, it is possible lack of training. Ramona herself on the operators. In this case, to clearly identify three causes points out: he started putting pressure on Ramona points out: “I feel of the accident: the insufficient Ramona. So pressure on her impotent, because I can’t move training Ramona received for “The machine switched itself on increased, because then she had my hand. I’ve suffered from operating the machine; lack of because the sensors were faulty. the supervisor putting pressure depression, I get very stressed. maintenance to the machines and On that day, the machines kept on her, she hadn’t done the I receive 2,700 pesos excessive production demands. breaking down and we reported report, she hadn’t met the target (U$249.72) incapacity benefit, this, but the people from and she still needed to clean the but that amount doesn’t go far. With regard to lack of training, maintenance only gave them a Screen. To that you have to add One of my children, who is only this was the first time Ramona quick check and left, because the the machines’ breakdowns.” 16 years old, had to leave school had operated a machine like that, company was in a rush to finish because I can’t afford it. Now and she had only received one production.” “Those were the circumstances he is working in a supermarket. and a half days training to do it. in which she started cleaning the Before, in addition to working in However, the person who trained Finally, the third factor that Screen and later I just heard her USI, I was doing washing and her calculates that in order to caused the accident was the scream.” ironing for other people, that 47 gave me an additional income because I’m on my own and I “The company doctor have five children to support. But says that when I go back I can’t do that anymore. The to USI I will be sweeping company doctor says that when and mopping the floor, I go back to USI I will be but how am I going to do sweeping and mopping the floor, it? I can’t even do that at but how am I going to do it? I can’t even do that at home.” home.”

Lenovo’s and USI’s reply Ramona. USI’s Worker

On several occasions Cereal tried to contact one of USI’s representatives to discuss the above case. Having failed in its attempts, Cereal sent a copy to a representative from Lenovo in July 2007. On 7 August, Lenovo sent Cereal the following reply. A screen machine pulls the electronic card and puts sol- “Regarding your query on USI, dering paste on it. In the case of Ramona, the machine Lenovo is an active participant in also caught her hand the EICC Group and complies with the complete Electronic Industry After this communication, a fired from USI on 3 August 2007. Code of Conduct. In addition, representative from USI According to Cereal’s enquiries, beginning this year, Lenovo has contacted Cereal. USI has told Mary was fired as a punishment required all of its suppliers, Cereal of its willingness to discuss for daring to give her testimony. including USI, to read and agree cases related to them in the Cereal immediately informed to abide by the EICC. Lenovo’s future. Lenovo of the situation. policy is not to speak on behalf Subsequently, a representative of the suppliers we do business Update: from USI contacted both Cereal with but instead allow them to and Mary. Mary did not want to directly address and respond to Fired for talking go back to work in USI and complaints or allegations about accepted the severance payment how they conduct their business Mary, the worker who gave her the company offered her. or treat their employees.” testimony in Ramona’s case was 48 2.4 Exposure to toxic materials and work related illnesses.

Workers’ exposure to toxic and dangerous substances in the Mexican electronics industry is very clearly a problem. This problem is aggravated by a lack of openness and communication on the part of the companies which leaves many workers worried and confused. Workers handling toxic substances at work know that they are being exposed to a risk; however, often they do not know the nature of the risk. This, of course, results in workers not understanding what safety measures to take to avoid illness.

Lead-tin solder has been used over several decades in the Intel and Solectron: Lead, tin and alcohol electronics industry

“My name is Claudia, I work in there isn’t anyone else they can The paste to which Claudia refers metal it can affect the lungs. It Solectron, Chihuahua, on the put in my job. The nurse told is a lead and tin alloy used for has also been proven that Intel project. I earn 104.50 me she wouldn’t believe I was soldering components. Lead, as ingestion of high amounts of tin pesos (U$ 9.67) per day. The pregnant until I went to see my is widely known, is a metal that inorganic compounds can cause toxic substances I use at work GP and showed her a medical when inhaled enters the stomach pain, anaemia, and liver are lead paste and isopropilic certificate. The thing is that the bloodstream and causes damage and kidney damage.10 alcohol. The paste makes my company doesn’t authorise any to people’s motor and cognitive hands very dry and has also change if it hasn’t been approved abilities. High levels of lead Lead and tin soldering has been caused me eye infections. Also, first by the infirmary. But the concentration in the bloodstream widely used in the electronics I am pregnant and since I work problem is that the company’s can even result in death. industry for over 25 years, and with toxic substances, I have doctor is never in his post. To be it is still being used although, asked my bosses to be moved honest, I am not happy with the Tin is not a very toxic metal; currently, its use has been banned to another post, but they have situation, but I can’t quit because however, when inhaled in the by the RoSH Directive. denied my request because I need the job.” form of vapours from the melted 49 Dell and Solectron: Harmful Lucent and Solectron: “I would like to know more abut paste. Acetones the consequences of working with toxic substances, but medical Most of the time workers are only Like Raquel, during the course of assistance in the company is worried about the external this study, other Solectron poor because there is only one effects of these substances, e.g. workers complained about the person in the clinic. Besides, my itching, infections and dryness; poor medical assistance provided only protection is a lab coat, however, they also suspect that by the company. According to heelpieces and a bracelet. In the something more serious can their reports, the infirmary does factory, we work for brands such happen to them. Unfortunately, not provide them with appropriate as Intel, Nokia, Maxtor, Dell, these suspicions are well advice on the use of toxic Apple, Ecco Star and Sky.” founded. Most of the substances substances. they mentioned can cause more The acetone mentioned by damage when entering the body Gustavo, another Solectron Gustavo is a colourless fluid with than with simple contact. In Chihuahua worker, pointed out: a distinctive smell and taste. It addition, when workers ask for work with my hands anymore evaporates easily and it is help from their companies, the because they were chapped. My “I started working in Solectron flammable. It can cause nose, reply they usually get does not hands got chapped when I Chihuahua on 20 June 1999. I throat, lungs and eye irritation dispel their fears. Raquel, who started using the paste. One am a technician, I do diagnostics when inhaled. It also causes also works in Solectron, day I just couldn’t work anymore for electronic circuit boards and headaches, dizziness, confusion, Chihuahua, repairing equipment and the supervisor told me to sit I work on the Lucent Technologies increased pulse rate, nausea, for Dell, told us about what down and do nothing. When I project. The toxic substances we vomiting, loss of consciousness happened when she spoke to her went to see the company doctors use here are acetone, isopropilic and, in high amounts, even superiors after developing he told me that he didn’t know alcohol, lead solder, lead-free coma. It can also cause changes symptoms caused by the toxic what it was and that I had better solder and flux.” in the menstrual cycle in women. substances she works with: go to the social security to be examined by another doctor. But “I talked to the supervisor, I before saying that he asked me asked him for my annual leave ‘Have the substances you use and his reply was ‘have you caused you any discomfort? earned it?’ I told him I couldn’t Have you had any strange symptoms? I replied that the “My hands got chapped only ones were that my hands when I started using the were chapped, the skin on my paste.” hands was cracking and I got some sort of irritation in my The soldering paste and acetones are irritant and toxic, nose.” Raquel. Solectron’s Worker causing damage to the skin and to the respiratory tract 50 Jabil. Lead and Flux Solectron: Lack of line: 3 women in PTH and a man “I do soldering in my job information in SMT (Surface Mount Health problems resulting from and the smoke gets in my Technology). The ‘soleros’ i.e. working with toxic or dangerous eyes I also get this pain “My name is Susana. I work in those working in the wave, work substances are characteristic in my hands because of Solectron Guadalajara. I work close to us and they also use across the electronics industry. the heat gun and the on the Calgary project and I earn tin, lead, flux and alcohol. I’ve Marilu, a 42 year-old worker in heat from the crucible.” 99.50 pesos (U$9.20) per day. been working with solder ever Jabil Chihuahua, explained what I work as a repairer, I weld with since I started in the factory. Not happened to her: As Marilu pointed out, some a soldering pen, I am in the PTH long ago they did a selection for companies are careful and test (Plated Through Hole) area; here a lead blood level test, but I “My name is Marilu, I’m 42. I lead levels in their workers’ we place the components wasn’t selected and I was very stared working in Jabil on 4 July bloodstream regularly. However, manually. I use lead, tin, flux and upset because I’ve been working 2001, I work on the Johnson again, the problem is lack of isopropilic alcohol; we also have here, with the solder, for four project and I earn 137.76 pesos information. Workers are not an ionizer. The job I do makes years and I want to know my (U$12.74) per day. The chemical given the test results, therefore me dizzy and sometimes it is so health status.” or toxic products or substances they are not sure of how hot I feel like I need to take off we use here are lead and flux. affected they are by lead my protective face mask. There As can be observed, workers’ Lead solder takes a while to dry exposure. are 4 repairers in my production main complaints are long exposure and lead-free solder dries to toxic substances, the presence instantly. We have blood tests for of exposure-related symptoms lead level every six months, and lack of information from the although I’ve never been given companies. the results. To be honest, I’m stressed out because I do soldering in my job and the “Here we place the smoke gets in my eyes. For components manually. I example, five years ago, I didn’t use lead, tin, flux and 11 have this carnosity I have on isopropilic alcohol; we my eyes now. I also get this also have an ionizer. The pain in my hands because of the heat gun and the heat from the job I do makes me dizzy crucible. What happens is that and sometimes it is so changes in temperature are very hot I feel like I need to abrupt, you are indoors and it’s take off my protective hot, then you go outside and it’s face mask.” very cold.” There are many types of fluxes, all of which emit harmful Susana. Solectron’s Worker fumes 51 USI, Lenovo, Toyota: Long “I am in the repairing term exposure to toxic area and I use solder all substances. the time I have suffered from several symptoms Unfortunately, this situation is such as vomiting, replicated in several factories and dizziness, headaches, the situation of the workers in different companies is extremely sore throat...” similar. Sandra, a USI worker, described the situation in her Sandra. USI’s Worker factory, located in Guadalajara.

“I’ve worked in USI for 7 years. I started on 20 March 1999. I’ve already feeling ill. But to this day only ever worked in USI, this is they haven’t done anything. I’ve my first job. I earn 93 pesos already told them it would be (U$8.60) per day, that has been better to get fired, but they’ve my wages for the last five years, said no, and obviously it isn’t in The crucible or ‘mini-wave’ is a container with liquid solder it hasn’t increased. I am in the my interest to quit, if do I don’t heated to 260ºC repairing area and I use solder get my severance pay.” all the time.” very bad. After taking the card pen, which is heated to 390° C, out of the crucible, we do some produces a lot of smoke.” “I’ve had two blood level tests “How do I do it? I take the circuit final touches, again with solder done in USI, but I’ve never had board, I put a fluid called flux on and flux, and clean it up with “I talked to the lady from Human the results in my hands, they it and with a small brush I spread isopropilic alcohol.” Resources, I went to talk to her always tell me I’m fine. The it over the circuit board. Then I because I want to be moved company doctor always tells me put the circuit board in the “I repair circuit boards for both from that area; I told her I I’m fine; but whenever he says crucible. The crucible is a projects: Donatello, which is part couldn’t be there anymore, that that I immediately think that container filled with hot lead of IBM and Baleo, part of Toyota. I was suffering frequent sore there isn’t even an air extractor solder, which is heated to 260º I have suffered from several throats. She talked to the to absorb the fumes where I C. In the first six years I worked symptoms such as vomiting, supervisors about my case and work. Once, about two years here, the crucible had lead in it, dizziness, headaches, sore they told her that the paste no ago, we were given a talk and now I’m told it doesn’t anymore; throat... The security equipment longer contained lead, so there we were told that what we did but it has tin and when I mix it we have includes gloves, lab coat was no longer a problem; but I wasn’t dangerous, that there was with the flux it smells foul. Smoke and protective face mask, know it still has tin and to be more lead on the streets than in comes out when I put the circuit although this last one is not honest, I’m feeling unwell, I’ve the factory and there was board in the crucible and it smells enough because the soldering been there for six years and I’m nothing for us to worry about.” 52 USI and ON Semiconductor. don’t wear the gloves because Flextronics: Incomplete Sealants. it’s impossible to work with them, information. “Those production lines they are too thick. We also use that have a wave Sometimes, after much insistence, UV rays to harden the resin used Other companies inform their machine smell foul and workers manage to get help from in the SSOVP (Solid-State Over workers about the substances when you leave the plant their companies. However, the Voltage Protector) project.” they use and the risks of being both your clothes and assistance they receive is not fully exposed to them. Bety, 24, who your lab coat smell like satisfactory. Anita, also a USI “Another colleague was having works in Flextronics Guadalajara, that.” worker, described the symptoms the same symptoms as me and talked about this situation: she has been having for a few the social security inspectors substances. There is a book on years, which are caused by a came to examine her, but they “I work in Flextronics Guadalajara the table for the labels stating sealant she uses at work. She didn’t tell her anything; what’s and I earn 76.35 pesos (U$ 7.06) the ingredients and effects of also told about the assistance she more, she wasn’t even paid for per day. I check the cards when each paste. Anyone can read it. received after asking her her sick-days.” they come out of SMT, I But now that I’m aware of the company’s representatives for measure the thickness of the substances we use and the risks help: paste that’s put on them and we’re exposed to, there is only “For the last three years, check if they have all the one question in my mind, how “I’ve worked in USI for over 5 I’ve had an infection in components, from here they go can we be sure that those years. I earn 86 pesos (U$ 7.95) my fingers caused by the to the wave.” substances are not affecting our per day. I’m on the On health? The problem is that not sealant I use at work” Semiconductor project.” “The wave machine is square- all production lines are lead-free shaped and long. Those and those that are have other “For the last three years, I’ve Anita. USI’s worker production lines that have a wave substances such as cadmium and had an infection in my fingers machine smell foul and when you silver. I know, for example, that caused by the sealant I use at leave the plant both your clothes several of the Nortel production work. On several occasions, I and your lab coat smell like that. lines use lead, the Motorola and told my supervisor about it and Allegedly there are fume the Whirlpool ones have lead and only recently was I sent to a extractors, some big black tubes, the Current and Sun dermatological hospital. There, but they don’t seem or sound Microsystems ones don’t have I was told that it was a contact as if they are working. The wave lead. I know that, but I ask infection and that I had to wear is also supposed to have a fume myself, what should I do?” fabric or latex gloves. We were extractor, but the places where also prescribed a UV blocker, to they go in and come out are open be used by all workers. The and the smell escapes through factory only bought that cream Sealants are used to join there. Here, we are made aware for one month and when it ran circuit boards. They irritate of the consequences of being in out they stopped providing it. I the skin and they are toxic direct contact with toxic 53 Ten substances The most common set up is for Workers’ testimonials show that circuit boards and components to companies’ representatives argue The substances are lead, Several toxic and/or dangerous arrive in Mexico already that the solder being used fluxings, isopropilic substances are used along the manufactured to be assembled currently is lead-free and alcohol, sealants, electronic equipment’s production or repaired here. therefore does not present any acetones, cadmium, chain. This production chain is danger to employees. However, silver, tin, copper and extremely long; so long, it These two activities (assembly it must be clarified that not all acids involves different companies in and repair) include a soldering solders are lead-free and some different countries. Factories in process, which is mainly done lead-free solders contain other Mexico are only one link in that using SMT (Surface Mount substances that also pose a long production chain, therefore Technology). This is why both danger to workers. In that them about the chemical workers’ testimonials in this processes use similar toxic respect, the RoSH Information compounds in those substances section reflect only some of the substances and workers talk and Compliance Guide says: nor explain the risks of exposure practices in this long process. In about it all the time. The to them clearly. Also, they do not consequence, the toxic substances are lead, fluxings, “It is a common mistake to provide enough advice regarding substances mentioned by isopropilic alcohol, sealants, believe that lead-free solders are safety measures or provide workers are only those used in acetones, cadmium, silver, tin, safer than lead/tin solders, since prompt and appropriate medical that part of the production chain. copper and acids. in both cases harmful fumes are attention to prevent illnesses. generated by the fluxing being used12.” Solectron’s response

In other words, although RoSH “The draft CEREAL report (2007) regulations are very useful includes several statements from regarding the environmental Solectron Chihuahua workers management, they are not describing issues handling lead equally useful in protecting material and/or uncertainty about workers’ health, since they the safety of the materials they continue to be exposed to handle. Although a majority of substances, which, although the work within our Guadalajara different, are still harmful. facility is lead free today, our repair facility in Chihuahua has not The overall conclusion is, yet been able to eliminate lead unfortunately, disheartening, from its processes due to the since companies, knowing that nature of the work performed Even when a wave soldering machine is sealed, the input the substances being used by (repairing units originally built and output conducts are open. And there is where the fumes workers are harmful to their before lead free manufacturing escape. health, frequently do not tell initiatives).” 54 “Nonetheless, Solectron has highly environmental stewardship. Jabil receive a certification on how to results of the exams prove that safe handling procedures, training ensures all employees have handle chemicals and the health there are no side affects to our programs and informational properly certified personal risks related to each chemical, workers due to the chemical materials addressing every protection equipment matching the use of Personal Protective substance exposure in their work material that workers come into job description while adhering to Equipment, and how to handle area. Which confirms that our contact with in our Chihuahua all regulations concerning any type of chemical spill. Each controls to measure (Air filter facility”. employee exposure & handling wave machine has an individual systems and the use of Personal of hazardous materials. Jabil filter system. These filter Protective Equipment) have been “The worker descriptions in the confirmed the employee was systems are checked periodically effective. It’s important to CEREAL report of irritated and provided with all necessary and maintenance complies with mention that the workers that seriously dry or chapped hands personal protection equipment to the program. On a regular basis receive the medical exams are is somewhat perplexing to perform job task.” (minimum one time a year informed of the results and sign- Solectron. The flux and paste complying with legislation) an off on them.” materials should never be “All employees are provided external lab measures handled in such a way as to instructions on how to obtain their our agents including lead, expose the hands to risk of test results. Jabil has no record chemical steam, etc. irritation and discomfort – it is a of employees not obtaining results The results obtained low irritant and is not heavily when requested. The following from this external lab in handled in our processes. It is steps are underway to improve 2005 & 2006 were found unclear from the worker communication of test results: to be within the marked statements if it is in fact the legislation. The following materials causing the irritation or - Employee relations administrator studies are scheduled for perhaps sensitivity or allergy to will talk to employees as soon as September 2007.” the latex gloves they should be medical department receives using. Our EH&S team has begun tests results. “In addition, EH&S monitoring the repair center for - Communication of results to measures these agents this issue specifically, and will employee Supervisor. This will add internally using company implement corrective training if another channel to ensure the equipment following the the material is being mishandled.” information is available to the established program. employee, now also through their The obtained results are Jabil’s response Supervisor.” within the marked legislation by the Mexican “Employee health and safety is Flextronics’ Response Labor Department. All a priority. An Environmental workers exposed to Health & Safety department “All employees that work with chemical substances exists in all factories to ensure chemicals or substances are have Medical exams employee safety and given a course in which they done annually. The 55 2.5 Sexual Harassment Victoria’s story At the time, she was being “Miguel, the manager, got physically close to me and told me he harassed by one of the fancied me, that he dreamt of me. I told him to leave me alone.” supervisors, a man called Apolinar, who before harassing Elena Martinez 13 her directly tried to put pressure Hitachi worker, Guadalajara on her through her sister, Lidia, also a Sanmina SCI worker. Lidia told us how he was putting pressure on her.14

“Last Wednesday (1st November 2006) I left work, well I was In April 2006 CEREAL highlighted workers to force them to give sacked. Apolinar told me that if I instances of sexual harassment them sexual favours. Both male didn’t convince my sister to have to electronics companies and and female workers assert that sex with him, he was going to called for fundamental changes sexual harassment is a sack me. On one occasion, for within the industry so that women widespread practice, however, example, I was walking down the workers can feel safe. Evidence women who have been victims hallway and I came across Jesus, from worker interviews suggests of harassment rarely agree to the LCI leader and he told me that the companies’ response to give their testimony. This is ‘I’m going to introduce you to date has been inadequate. understandable when taking into Miguel and Apolinar’, who were account how difficult it is for most with him. Then Apolinar told Despite asking help from her During the period covered by this people to talk about these kinds Jesus, ‘don’t bother, we are company, no one listened to report, workers, particularly of things. Nevertheless, when going to fire her, ask her why’, Victoria female workers, asserted that, sexual harassment becomes so Jesus asked me and I told Since Lidia did not agree to put like last year, sexual harassment unbearable, sometimes workers him, ‘I’m going to be fired pressure on her sister to have is still a common practice in the agree to talk to someone in the because I have missed work’; sex with Apolinar, he approached electronics industry. Interviews hope of finding some help. but Apolinar told me, ‘No, that’s Victoria directly. At some point with workers reveal that the most not true, we’re going to sack her Victoria sought help in the common form is supervisors This was the case of Victoria,18, because her sister hasn’t slept company, but soon she found sexually harassing female a Sanmina SCI worker in with me.’ There are several out that solving her problems was workers. Supervisors, taking Guadalajara. She approached people in the company who have not going to be easy. She advantage of their hierarchic Cereal’s offices in November complaints about him, but no one recounts what happened: position, pressure and threaten 2006. has the courage to report him”.

56 “My name is Victoria. I work in would tell me ‘I have a brand resignation. On that day, she Sanmina-SCI’s response: Sanmina SCI, on the Daktari new car.” received 340 pesos (U$ 31.45) project. There we manufacture severance pay. After learning “When the HR department chassis for electronic circuit “I am a production line leader, I about Victoria’s case, Cereal received the information on this boards, some of which are taken do my job well; he tried to move contacted the SCI Sanmina case by CEREAL, the HR team to SCI’s plant 29 where I believe me to the LCI area, but I told representative in Mexico. This conducted a complete, thorough they are assembled into the him that was not my area. He first contact took place when and timely investigation. The computers. Sometimes they’re got angry and told me ‘You’re Victoria was still working in SCI supervisor admitted that he sent straight to the client.” going to do whatever I want, I Sanmina and the company’s violated our policies prohibiting am the boss here and you are representative promised to sexual harassment and he was “In June or July 2006, he started just a lousy employee.’ All that resolve the situation. However, dismissed immediately. The same harassing me, although made me very upset, so on when Victoria could not take it day Victoria returned to work. previously he was bullying my Monday 6 November, I went to anymore and decided to resign, Upon her return, she asked for sister. My sister is chubby and talk to one of the managers, but Cereal contacted the a position on third shift and the he would say to her ‘Why aren’t he told me ‘What Apolinar said representative again to find out company complied with her you slim, hard-working and good wasn’t malicious. I realised that what had happened. Only then request. As of today, she is still like your sister?’ After several manager wasn’t going to help did the Sanmina SCI working as a temporary months, my sister couldn’t take me, so on that same day I went representative intervene and talk employee. However, based on on Apolinar’s pressures and to talk to the HR manager. I told with those involved. Victoria was her demonstrated performance, insults anymore and she left the him Apolinar was harassing me re-hired by Sanmina SCI and Victoria is being converted to a company last week.” and shouting at me. He told me reinstated in another plant, where full time regular employee with ‘Don’t give in, stand up to him’. I she is happier. Apolinar, the Sanmina-SCI. Sanmina-SCI “He is the Tigris, AFC and LCI also told him that maybe Apolinar supervisor, was fired. continues to implement and supervisor. When I was moved was acting that way because I regularly train supervisors on its to the Tigris project he told me didn’t give in to his demands; but While CEREAL is pleased that policies prohibiting harassment in ‘Would you like to have a baby the manager told me ‘You’ve action was eventually taken in this the workplace, including sexual with me? Tell me when and encouraged him, I’ve been case, it is clear that internal harassment. In addition, the where and I will buy you a car, noticing that for the last three systems were inadequate. company will continue to conduct set up a house for you, pay your months and you didn’t put a stop Workers need to be able to raise immediate investigations expenses; if you want we can to it’. So, this manager didn’t want their concerns effectively without whenever employees bring bring up the child together, and to help me either.” external intervention. The current complaints to our attention. if you don’t want the baby, you problems of sexual harassment Moreover, the company will can give it to me when it’s born.’ Fed up with the whole situation, in the electronics industry illustrate continue to communicate to its I stopped him in his tracks, but Victoria stopped going to work the the need for an independent employees the company’s he kept insisting, he kept asking last week of January 2007. She trade union which workers could Employee Complaint Resolution me to go out for a meal and he only went back to sign her go to in confidence. process.”

57 2.6 Excessive wage deductions

“I earn 110 “I took one day off and a 50 pesos (U$ (U$10.17) per day, if 4.62) attendance bonus, 50 pesos (U$ I miss a day 250 4.62) punctuality bonus, 87 pesos The previous Cereal report of those replies, it has not been pesos (U$ 27.75) are (U$8.04) and 7 pesos (U$0.65) food described a type of wage possible to include them in the deducted from my vouchers were deducted from my deduction that, although within report. In general terms, wages.” Blanca, wages. 195 pesos (U$ 18.04) in total. I the law, was very unpopular companies point out that earn 87 pesos (U$ 8.04) per day.” Foxconn, Chihuahua, amongst workers. We refer to bonuses are a reward and not a Daniel, Foxconn, Guadalajara, HP project. Motorola project the deduction of punctuality and deduction. The companies also attendance bonuses, which are state (despite the fact that a high discounted from their pay if they percentage of workers say the “I earn 137.76 (U$ 12.74) per day. If I take a day off around 550 pesos (U$ 50.87) are miss a day or arrive late once opposite) that they do inform deducted from my wages. If I arrive even a within a week or a month. These their workers effectively of the second late, I lose the month’s bonus.” Marilu, deductions still persist in all nature and structure of the 42, Jabil Chihuahua, Johnson project electronics factories and so does bonuses. Cereal raised this issue workers’ discontent. with the companies in 2005 so, if As can be seen from the this is the case, it is surprising “I earn 113 pesos (U$ 10.45) per day, when I miss a day testimonials on the left, this that such misunderstandings are 300 pesos (U$27.75), plus a 70 pesos (U$ 6.47) bonus are deduction is, on average, still so widespread. Workers deducted from my wages; a total deduction of 370 pesos equivalent to a worker’s wages should be aware of exactly how (U$ 34.22).” Raquel, Solectron, Chihuahua, Dell project. for three days, so their much they earn. When analysing discontent needs no more the companies’ replies, Cereal “I earn 111 pesos (U$ explanation. Although this observed that some companies “I earn 80 pesos (U$7.40) 10.26) per day. If I’m off measure is legal, the problem is pay bonuses to workers whose per day, plus 45 pesos one day, even if I’ve that workers do not know that absences have been justified. (U$4.16) per week in food asked for it, 300 pesos these bonuses are not part of Justified absences are covered vouchers. If you take a day (U$27.75) are deducted their basic wages, but a in Mexican law and should not from my wages.”Teresa, off they take off the ‘conditional reward’ payment. Of be counted as simple absences. attendance and punctuality 30, Solectron, Chihuahua, Intel project. course, they cannot be blamed According to the Law, justified bonus, one-day wages and for not knowing it, since it is the absences should not have any the food vouchers. Imagine “I earn 84 pesos (U$ 7.77) per responsibility of the companies to legal impact that damages the that, with all those day, if I take a day off 250 deductions you can’t eat inform them. Cereal received workers, and in that sense, they pesos (U$23.12) are deducted the following week!” Aurora, written responses from each of should not be used as an excuse from my wages.” Marisela, 20, Foxconn, Guadalajara, HP the companies mentioned in the to avoid paying the attendance Jabil Chihuahua, HP project. project. testimonials. Due to the length bonus. 58 2.7 Humiliating treatment and work overloads

Cereal believes all workers should be treated with respect and dignity. Unfortunately pressure to meet targets can lead to unfair treatment and unreasonable behaviour. Most cases of humiliating treatment and work overloads Cereal came across in the period 2006-7 were related to high production demand from the companies. On some occasions, these demands result in unreasonable behaviour, such as the following:

Jabil. Controlled toilet breaks

A measure aimed at increasing workers’ production is controlling their “They keep tabs of our toilet breaks, we can only go toilet breaks. Maricela, 20, also a Jabil Chihuahua worker, told us how to the toilet once a day and we have to be back toilet breaks are controlled in that factory: within 10 minutes.”

Maricela. Jabil’s Worker “My name is Maricela. I work in the HP area, where we assemble and test printers. They keep tabs Jabil’s response of our toilet breaks, we can only go to the toilet once a day and In reply to the above case, Jabil of productivity during production we have to be back within 10 gave Cereal the following time; therefore, obtaining minutes.” response in writing: supervisor’s authorization to If companies monitor toilet leave a workstation aids the Marilu Gutierrez, 42, also a Jabil breaks, such controls should not Jabil does not employ any specific entire team in managing its worker, confirms what Maricela be excessive or infringe a rule regarding toilet breaks. productivity. said: person’s dignity. Based on the Employees have ample complaints Cereal has heard from opportunity during lunch and After receiving this reply, Cereal “I am on the Johnson project. workers on this issue, it can be breaks to use the toilet. During once again asked other Jabil They are very strict in the said that a way to control the actual production time, excluding workers about the control of factory in regards to allowing us time allocated for toilet breaks medical conditions that require toilet breaks in that factory. toilet breaks, when we go we are should at the very least take into special attention or emergency They confirmed that those given a pass where the time of account the time that a worker situations where authorization is controls are in place and that leaving and the time of returning takes to get to the toilet and not needed, employees can ask they are, in fact, excessive. are stamped. We have to be back, since usually factories are for their supervisor’s authorization Cereal hopes that Jabil will review back within ten minutes and we quite large and the facilities are to go to the toilet. Manufacturing this situation in ongoing can only go once a day.” far from the working areas. environments require high levels consultation with its workers. 59 “Every day I was forced Pronto and Nokia: Work Flextronics: Excessive goes forward as needed. I have to stay behind and work overloads. Production Standards already mentioned it to the between three and four supervisors and they discussed hours overtime, actually The measure most commonly Felipe, 22, a Flextronics it with the quality control people, used to increase workers’ Guadalajara worker, also but they concluded it wasn’t extending my shift to production is work overloads. complains about the work necessary, although I think it is.” almost 12 hours per day” One case of work overloads, overload he is subjected to in that linked to Nokia, is that of a factory. Flextronics’ response Vicente. Pronto’s Worker company called Pronto, located in the city of Reynosa. Here “My production target is 140 “Flextronics needs more data workers complain about circuit boards per hour and if I’m regarding this issue in order to excessively long shifts and high below that amount, I’m put under determine which line is causing production demands. Vicente pressure. In order to have an these problems. We have no Hernandez, a former worker for excuse to bully me they don’t let reports recorded. In addition, we this company, told us that the me finish the work that has need more specific details on the situation was so tiring it drove him mounted up, i.e. they don’t let statement mentioning that when to quit his job: me switch the belt off and on lines stop the workers have time again. I can test 120 circuit to do their tasks. Flextronics will “My name is Vicente, I’m 17 boards per hour, i.e. 2 per consider this claim and take years old. I worked in Pronto until minute, that way I could do a action to re-visit line standards December 2006. There we fixed good job, with no faults. But 140 with a team composed by the all the defective materials for circuit boards per hour is a bit engineering and safety Nokia. My job was to divide good excessive. Sometimes I don’t department. A revision and and bad PINs. A PIN is a small do my job well because I have conclusion report is to be finished rectangular-shaped plaque on to meet targets. I get pressured. by the end of the 3rd Qtr. FY’08 which the chip is mounted. My The problem is that the belt runs (Oct-Dec’08).” shift was from 8.00 am to 6.00 too fast for me. In some pm, but in the time I worked production lines the belt goes there the supervisors forced me forward, then stops for a while to work excessively. Every day I and you have time to do your was forced to stay behind and task, but for me it’s too fast. I work between three and four suggested to the supervisor hours overtime, actually slowing the belt, but she ignored extending my shift to almost 12 me because what they want is hours per day. That’s why I for you to do more and more stopped working there, the work work. I think the belt in my line load was too much.” needs a sensor, so it stops or 60 Solectron: Unjustified mistreatment “I told the supervisor I Although production demands are the main cause of humiliating treatment and work overloads, there was pregnant, but he are other instances in which mistreatment does not appear to have an apparent explanation. Leticia, a told me ‘So what? It Solectron Guadalajara worker, went through one of these inexplicable situations: won’t hurt you’ ”

pregnancy doesn’t show and I that is harmful for pregnant Leticia. Solectron’s Worker even think you may not be women, but still, I was left there. pregnant.” I was there for three weeks, to be honest it smelled really bad “One day, I was given the task and despite me telling them that Solectron’s response of sticking some tape to the floor, I was pregnant, they wouldn’t it was a whole production line and give me a protective face mask. After learning about the above I had to bend over to do it. I Two days before I went on case, Solectron gave Cereal the told the supervisor I was maternity leave, I was given a following reply: pregnant, but he told me ‘So face mask; but I told the person what? It won’t hurt you’, I felt who was giving it to me: ‘What’s “Quite frankly, Solectron does very angry and told him back: the point now? I only have two not recognize this incident and 14 “My name is Leticia, I’m 21. ‘It won’t hurt you either! So let’s days left here before I go on cannot corroborate the facts I started working in Solectron do this together’ and he replied maternity leave’. By then I was as described. It is entirely Guadalajara on 27 February 2006 ‘Why do I have to do it?’ So I about 8 months pregnant and inconsistent with Company thorough an agency called said ‘So why do I have to?’ Then was still on the night shift. One and HR policy to treat an Dispem. Soon after I started I he said ‘Well, if you don’t do it I’ll day the guy from the agency employee as alleged in this was transferred to the night shift. send you to sweep and mop the came to me and said ‘If you want section.” I was already four months floor.’ At that time I was 6 and a I can move you tomorrow.’ But pregnant and I told the Employee half months pregnant, I started it took two weeks to process a “Although the issues raised by Relations’ lady that I was sticking the tape, but I could only shift change and I only had a the Solectron employee in this pregnant. She told me to do a cope with being bent over for a few days left before going on section of the report are pregnancy test, so I did and went little while, my stomach felt maternity leave, so I said no.” difficult to reconcile and back to her and showed her. She heavy; so when I realised I understand, the Company will said ‘Oh yes!’, we’ll see later, and couldn’t cope I started sweeping “I left on maternity leave on 14 use the employee’s described I was still moved to the night and mopping the floor.” September and gave birth on 10 experiences as teaching tools shift. My shift was from 7.00 pm October 2006.” in our supervisor training to 7.00 am. I spent the twelve “Then I was sent to section 6 to and leadership development hours on my feet, so I asked inspect cards next to the programs.” my leader for a chair, but she retouchers. There, they use a told me ‘No, because your soldering pen and lead, they say 61 Foxconn: they don’t want us to drink water, Mistreatment it seems to bother them. There “The treatment is aren’t any chairs either and to humiliating. They Finally, there are times when be honest we get very tired, we humiliate us even mistreatment is not caused by didn’t have anti-fatigue mats until because we drink water” something in particular, but by a four months ago. Besides, we series of working conditions that, only have the right to one lab Lucia. Foxconn’s Worker together, infringe people’s dignity. coat, I just asked for another one because the one I have is One of these is the situation worn out, but the company says experienced in the Foxconn it can’t afford to give me another Guadalajara factory, where in fact one.” workers have already complained to their superiors. This factory Antonio, a former Foxconn A Foxconn worker shows produces Compaq and HP worker fired in May 2007 her labcoat computers. Lucia, one of mentions situations similar to Foxconn’s workers, describes those highlighted by Lucia: Foxconn’s response what happens there: “What I didn’t like in the company “A study was carried out in March “My name is Lucia, I work in was that managers, leaders and 2007 with Facilities provider on Foxconn and I earn 80 pesos supervisors shouted at the the problem that exists in the line (U$ 7.40) per day. It is employees. I even heard things A, where by the generation of extremely hot inside the factory; such as ‘move, you bastards’ and heat produced by the computers the air conditioning doesn’t have things like that, and there were and temperature can surpass enough capacity to cool down the worse insults, I even had a row 23ºC, adding that to the normal area. The heat in production line with the supervisors because movement of the people in the order not to affect operations. A is unbearable, some people they were treating employees processes of manufacture. Also they count on with anti- even faint because of the heat, very badly.” Actions were taken and alternate fatigue mats in certain areas that it is very hot and people are also measures where identified to require long standing hours to mistreated, that’s why people “The proof of all this reduce temperature. Foxconn minimized fatigue which were don’t last in the company and mistreatment is in the fact that has an area specifically for installed since 2006. A survey on end up leaving the day after they there is a lot of staff turnover, coffee. In each area of work the working environment carried start.” people can’t cope, very few have water dispensers are installed. out in June 2007 showed positive been there for 4 or 5 years; Temporary rest for employee is results regarding the treatment “The treatment is humiliating, some people don’t last in permitted when required to go employees receive from they shout at us. They humiliate Foxconn for more than a month, drink water, go to the coffee area managers, supervisors and us even because we drink water, or even one day.” and/or bathroom following an leaders.” 62 “There is no trade union in 2.9 Lack of trade union freedom Foxconn and we are not and company controlled unions. allowed to organise ourselves.” Noemi, 23, Foxconn, Chihuahua, Nokia project. Many of the issues raised by this report could have been resolved far more quickly if electronics workers had access to effective, “I don’t know if there is a independent representation in the workplace. The right to freedom trade union and the company of association and collective bargaining is one of the core rights of doesn’t allow us to get workers recognised by the International Labour Organisation. organised.” Julio, 26, Foxconn Unfortunately company practices mean that Mexican electronics Chihuahua. workers are deliberately denied this basic right. “We don’t have a trade union and free association is not allowed. Yes, I would like to “We don’t have a trade union organise, but we are not and it would be very difficult allowed.” Teresa, 42, Jabil to get permission to Chihuahua, Johnson SCI project. organise ourselves.” Rogelio, 20, Sony, Tijuana. “We don’t have a trade union, and if we organise ourselves we are fired.” Norma, Jabil, Chihuahua. “As far as I know we don’t have a trade union and we are not allowed free organisation.” Monica, 19, “Yes, we have a trade Solectron, Chihuahua, Intel project. union, but it is a company “We don’t have a trade union union and it doesn’t help and free association is not workers. I’ve never seen allowed. About five years a trade union office in the ago, a group of workers tried company. My sister says to organise themselves and there is a trade union “We don’t have freedom of all of them were fired, that’s office in Plant 2, but it’s association. Everyone is why no one even attempts it a company union.” Liliana, scared.” Gaby, Solectron, now.” Manuel, 30, Solectron, 35, Plant 1, Nokia, Reynosa. Chihuahua, Dell project. Chihuahua 63 A persistent problem Jabil. Threats “In January, I was moved to HP Jabil’s Response because the RPTV project, The previous Cereal report This year’s research reveals a where I was, was closing down. “Any supervisor or manager that documented the presence of range of practices against In this area we assemble, test directly threatens or violates trade unions that did not freedom of association. These and pack printer accessories. employee rights is subject to represent Mexican electronics include threats, the express Currently, I screen accessories immediately termination. Statutory workers. These operated, and still prohibition of organisation, that go with the printer. We don’t worker rights are communicated operate, under the so called dismissals, repression and, of have a trade union, and free to all employees on a regular ‘collective protection agreements’, course, compulsory and covert association is not allowed basis. Jabil will continue to review which are legally binding enrolment. Patricia, a Jabil because, as I said at the specific policies and procedures contracts signed by companies Chihuahua worker, describes one beginning, we were warned that to ensure threatening behaviour and trade unions behind workers’ of these situations: whoever tried to organise a union of any kind is quickly identified backs, the true purpose of which would be automatically fired.” and addressed.” is to prevent the creation of a “My name is Patricia, I am 20 real organisation. and a single mother. I started working in Jabil Chihuahua in In the report it was also explained August 2006. I earn 630 pesos that workers were not aware of (U$ 58.27) per week.” the existence of such unions, and the fact that they were “When I started, we were given members. As the above one week’s training, they talked testimonials show, this practice to us about safety and the toxic is still very common in the substances being used in the Mexican electronics industry. factory; we were given a book Cereal even managed to get with the internal rules and told copies of two new protection us how to dress. On the last day agreements involving other of the training we were sent to companies and trade unions. the production line to practice. We were given a lab coat, heelpieces “We were also warned and a bracelet; we were also that if someone tried to warned that if someone tried to create a trade union, that person create a trade union, would be dismissed immediately. that person would be In the eight months I have dismissed immediately” worked here, I have never been told about the code of conduct.” In Jabil’s factory, in Chihuahua, people were told they faced Patricia. Jabil’s Worker dismissal if they tried to form a trade union 64 Hitachi: Reprisals

Measures against freedom of association, unfortunately, are not limited to simple warnings. In most cases, a worker attempting to defend his/her rights would be reason enough for him/her to be mistreated or even fired. Estela, a former Hitachi worker, whose case was mentioned in the section about discrimination, relates how she was harassed until she was finally fired:

“My name is Estela; I started working in Hitachi in June 2005. I was hired through Caspem. I started being bullied last year (2006), that company does everything it can to force you to resign. The problem was that they tried to lower my wages, and since I didn’t agree, they In Hitachi, workers who try to defend their rights are not tried to move me to a different 2007) I was seen by Efrain who welcomed place to pay me less. In the end, told me ‘You don’t have access Hitachi’s response employee referred to above. At they didn’t lower my wages, to the company anymore’, he the same time the employee, which was good, because I was also said, ‘I have a very good “At Hitachi GST we have solid who was working for Caspem going to continue fighting for my relationship with the labour values about respect and we since June 2005 was included in wages. However, one day they authorities, so you had better follow a strategy to maintain a layoff process caused by stopped paying me my bonus, accept the 50% severance pay competitive wages and salaries. demand decrease, and as the and in fact, they never paid it we are offering you.’ He also For this reason, on March 2006 rest of employees in this again. So I asked my supervisor threatened me saying ‘If you sue Caspem offered to distribute situation, she was offered why wasn’t I getting it and he I will say that nothing you’re salaries to workers in a different severance pay in strict said that he was going to look saying is true and they will believe manner in order to benefit them accordance with Mexican Labor into it. Soon after, Miguel Angel me.’ To be honest I got a little by increasing their net Law.” came and shouted at me ‘Don’t scared because I know we have compensation. This benefit get clever with me’; he only said a corrupt government and the option was voluntary and the “We always encourage and it to me because I claimed my company can do with us as they worker would decide whether he/ reinforce with all our suppliers to bonus, which is my right as a please; so I told them I was going she will or will not change to the adhere to our values and respect Hitachi worker. When I went to to get back to him, that I was new compensation distribution. all agreements with all the agency (on 27 February going to think about it.” Such is the case with the employees.” 65 USI: Enrolled in a trade area. There we manufacture union because they could see union and unaware of it. SMT cards for Lenovo. I earn we were organising ourselves, “I started the job, I was 80 pesos (U$ 7.95) per day. not because they particularly never told anything Although mistreatment and When I started the job, I was wanted to. However, until now about the union; I wasn’t repression are particularly aimed never told anything about the we haven’t had a meeting with even asked if I wanted to at those workers who try to union; I wasn’t even asked if I the trade union, we don’t even defend their rights; the main wanted to enrol. Furthermore, know who the general enrol” strategy used to prevent free a few days ago they put up a representative himself is. We association is silence, not telling sheet on a chalkboard saying: have meetings with our Carmen. USI’s Worker workers anything about the supervisor to discuss union. That was what USI ‘If you have a problem, get in production, but we never talk Guadalajara workers found out touch with SETEAMI your trade about working conditions.” when they started looking into union.’ profit sharing payments. Lucia, another USI worker, That’s how I found out the union confirmed Carmen’s words: “My name is Carmen, I’m 23, had a name. I also think they I work in USI in the components gave us those details about the “I was never told we had a union when I started working here. Now that we’re looking into the profit sharing issue we have also looked a bit further into the trade union. There is a union representative here, although we are unaware of who appointed her or how. She has been a union representative for around 5 years. I have also worked here for 5 years and she has never called an assembly. She doesn’t report on anything and when we ask her something, when we ask her about what’s going in the factory, she always says she will put the information on the In USI, workers didn’t know there was a trade union and chalkboard, but she never faced harassment when they tried to defend themselves does.” 66 USI: Harassment “He told me again ‘Why are you going there? Why The lack of information are you causing trouble mentioned by the workers was amongst people. How are the prevailing trend in USI for you going to feel if you many years. However, when are fired?” they started demanding their rights and trying to organise Luz. USI’s worker themselves, the company’s response was not silence, but threats and repression. Luz, a 45- year-old worker, came to Cereal’s offices on 11 October 2006 to take part in a meeting convened USI Guadalajara is currently a provider of Lenovo and by the workers. There they Toyota equipment developed an activity plan, which they then photocopied to (the area manager) already going to feel if you are fired? circulate among their colleagues. knows and he wants to talk to Now, Pancho gives me trouble Luz and other workers took you’; I said ‘OK’ and he told me for everything I do. I’ve already several of those copies: again ‘Why are you going there? had three big arguments with him Why are you causing trouble and to be honest I’m scared of “On Saturday 14 October, as I amongst people.’ By midmorning being fired.” was coming out of the toilet, they started calling everyone to Pancho, my supervisor, came out the manager’s office. I was called of his office. He started last. When I went in to see Lupillo However, the most paradigmatic questioning me. He had a scornful he told me ‘What is going on? case regarding lack of trade union expression on his face and he Why are you handing out those freedom this year was that of asked me ‘Why are you causing sheets? Why are you causing Hitachi workers. These workers, trouble amongst people? Why trouble? If HR finds out about driven by the need to defend are you handing out flyers?’ I said this you could be fired. Tell me, their rights in the face of the ‘No, not me’ and he replied ‘Yes, who is attending that meeting?’ imminent factory closure, you are handing out those He also told me that he already decided to organise themselves. sheets!’; I denied it and he said had a list of all of us who were What they were unprepared for ‘What do you mean, no? You going to Cereal. ‘Tell me who they was the opposition they found have been going to Cereal!’ I told are. I already have the list, and from their company, the him it was the first time I had don’t want this to reach Human authorities and their own trade been and he said ‘You see, Lupillo Resources, tell me, how are you union. 67 Case study 4: In-depth analysis

No possibility of being heard: The Hitachi case

On 22 March 2007, Hitachi Global away the chairs and now we have Storage Technologies officially to be twelve hours on our feet. announced the closure of its Besides, if you miss a day’s work, factory in Guadalajara. According they punish you by laying you to the announcement, the closure off for a further three days and was part of a company’s they write a report on you. business plan to save up to U$ Production demands have also 300 million over five years. This increased. In fact there is a Several years ago, Hitachi signed a collective agreement with plan included moving the slogan in the factory saying ‘if a trade union, but its 4,500 workers didn’t know about it production of sliders15 from the the Chinese can do it, why can’t City of Guadalajara to the city of you?’ payment of their severance pay. themselves, even if it’s just a Laguna, in the Philippines. However, after several of them second. It is not fair, because In March 2007, the company tried talked about their intentions to when you arrive it takes you a Seven months before that to force workers into signing a the media, the company’s while to get changed and go announcement, in September three-month contract, despite pressure increased, to the point through the air shower. I’m 2006, a group of workers from many already having fixed term that a conflict erupted between stressed out because we go that company had visited Cereal’s contracts. Most workers refused Hitachi and its workers. through the shower in threes and offices asking for assistance. to sign that contract, but from the queue is very long, but we Margarita Perez, 36, was one of that moment on they started to “Lately we have been placed don’t have an option, we have those workers. suspect that the company’s under extreme vigilance, they to wait.” (Carmen Camacho, intention was to fire them without don’t want us to sit down, to talk, worker) “I don’t know what’s going on, it giving them any severance pay. there is a lot of pressure. If you seems like they’re putting arrive at 7.01 pm, you are already “I feel there is too much pressure pressure on us to quit. We are From the closure announcement late. Also, there is a list in the air in the working environment under pressure from all workers realised that all of them shower area, where they write because if you laugh they write directions, if we go to the toilet, were going to be fired and that down the names of those who a report on you, the same if you if we talk. Last week they took they should fight for the fair take too long to clean chat, what they want is to be 68 able to fire you without severance defend their interests against the pay. That fact that if you are companies. On 7 June 2007, even a second late they report workers publicly introduced you is very stressful. The air themselves to the local media as showers get very crowded and it ‘Electronics Workers’ Coalition’. takes you between 5 and 10 minutes to go through, not Once gathered in the Coalition, because you want to, but workers went to the offices of because there are too many Mr Garcia’s Trade Union to people.” (Amsi worker) protest and ask him who had elected him as leader, when and how? Mr Garcia avoided giving Workers’ organisation them a straight answer and promised to help them. Workers began to mobilise in response to the environment of pressure. During those days, Hitachi’s response Cereal met over 600 Hitachi On 1 May, when Hitachi workers took to the streets of workers in its offices, they were On several occasions, workers Guadalajara, they had to wear masks to avoid reprisals from eager to know how much attempted to contact any Hitachi the company severance pay they had the right representative. The first time, to. the company asked for a list with Before the closure announcement, known trade union ‘leader’ from the names of all the workers who A group of workers went beyond all Hitachi workers affirmed that Guadalajara. would attend the meeting. that and started to speak out there was no trade union in the Workers sent that list, but the publicly about the pressures they company, despite this they went Immediately after finding out the company cancelled the meeting were being subjected to in Hitachi. to the labour authority and asked above, workers considered the immediately and fired all those They approached the local for information. They were utterly possibility of setting up their own workers on the list. media, the labour authorities, surprised when they found out trade union, but due to the trade unions, universities and they were members of not only difficulties they would face when On another occasion, workers even the state’s governor and one trade union, but of two! trying to legally register a trade asked the trade union to take exposed their situation. They union with the corrupt labour the company to the industrial also created their own webpage.16 One of those agreements authorities, they decided to set tribunal. The trade union agreed At the same time, they looked enrolled Hitachi workers and the up a Workers’ Coalition instead, and the industrial tribunal into other issues related to their other one enrolled Caspem which is also an entity legally summoned the company; imminent dismissal, including their workers. Both were undersigned recognised under Labour Law and however, the company didn’t trade union membership. by Mr Jose Garcia Ortiz, a well- which just like a trade union, can show up. 69 Despite their insistence, workers Currently, the Coalition is made consequently generates a oversee the employee separation were only able to arrange a up of workers from several production reduction in Hitachi processes.” meeting with Caspem’s solicitor. Mexican electronics companies. GST plant in El Salto Jalisco.” Unfortunately, the purpose of “Hitachi GST reiterates its that meeting was to convince However, despite having organised “During the first layoff, which commitment to continue to workers to accept a ‘standard’ themselves, electronics workers occurred in May, 218 employees support all employees and severance pay, therefore it did still have an important dilemma were dismissed, and during the express again its duty to continue not have a positive outcome. to resolve; given that this second layoff in August, 278 tight collaboration with key organisation has the same legal employees were dismissed. In government authorities complying Around 500 Hitachi workers were status as a trade union, it will both cases redundancies were with all requirements mandated fired between May and August soon be necessary to clarify who done in alignment with company’s by Mexican law.” 2007. Among them were some the companies will recognise as values of respect and legitimacy, of the discontented workers, who, legitimate representative. The which govern this organization. of course, did not readily accept non-representative trade unions, Hitachi GST has followed very Hitachi does not mention the payment offered by Hitachi. made up of a few ‘leaders’ who closely all workers redundancy anything about forcing its As days went by, overwhelmed do not even work in the processes with the firm intention employees to join a trade union by their pressing needs, most electronics industry or the of fostering the legality of each in this reply. It does not mention workers started taking on the Coalition made up of true individual case; this is a standing Hitachi’s reluctance to talk to the company’s offer. electronics workers who have commitment by all our service discontented workers either. voluntarily gathered together to suppliers.” Instead, Hitachi explains the way defend their rights? in which it has fired and will The Coalition “In parallel, the company has continue to fire its workers been collaborating with several through Caspem. However, despite the fact that Hitachi’s response government and industrial the workers have not received a organizations to minimize the The cases documented this year reply from Hitachi, or even an Hitachi received a copy of the redundancy impact and facilitate show how despite lip service to explanation, their organisation still above case. On 10 August 2007, new employment for workers who rights in the Electronic Industry exists. The ‘Electronics Workers’ the company sent Cereal a reply are released.” Code of Conduct, in reality Coalition’ born from the Hitachi in writing. companies are deliberately movement seeks to defend all “For all that has been said, exploiting the inactive unions workers in the sector against “Since March 22, 2007, and to Hitachi GST Mexico will continue allowed under Mexican law to future violations. This organisation date, CASPEM, a provider that to maintain close communication prevent workers from organising was soon welcomed by workers offers manufacturing services to with its employees, with workers themselves. in other electronics factories in the company, has dismissed 500 of the companies that provide us Guadalajara, who contacted employees due to market with services, as well as Hitachi workers to ‘enrol’ in the fluctuations and in particular a governmental authorities that new organisation. demand decrease of “sliders” that have committed to closely 70 Footnotes attempt to avoid labour 11 A carnosity is a medical obligations, some companies condition defined by any 1 The study analysed 528 hire, for example, cleaning abnormal fleshy excrescence or payslips of electronics workers services for offices, without tuberosity based in the cities of knowing that hiring such service 12 (RoSH Information and Guadalajara, Tijuana, makes them jontly and Compliance Guide, p. 9 http:// Chihuahua, Monterrey, severally responsible with the documents.rs- Reynosa and Ciudad Juarez. supplying company.” The components.com/EITC/ES/ These payslips were issued same, of course, applies to aboutrs/ROHS.0508_SPA.pdf) between June 2006 and June outsourced workers in the 13 Hitachi response: “At this 2007 and most of them had Mexican Electronics Industry. moment we have not received the details of the issuing Source: Breña, Francisco. Ley any official claim about this agency, which made Federal del Trabajo case in order to start an identification possible. Comentada. (Comments on investigation. However, it is true 2 Articles 12 to 15 of Federal Federal Labour Law) Oxford that the employer referred to in Labour Law. University Press. 1999. the above passage started 3 Unfortunately, this is a long- 5 Article 103 of IMSS Law working with the company in standing ‘perception’. In 1999, 6 Articles 36, 37 and 39 of September 2005 and at this Alfonso Alva, then Manager of Federal Labour Law. time she is working in Fab 2 IBM’s plant in Guadalajara, 7 Federal Labour Law. Articles area. We encourage all workers called that plant a ‘virtual 76 to 81. to report this kind of situation company’, arguing that IBM did 8 Article 78 of the Federal to Human Resources area or not have any employees. In Labour Law “Workers should their Supervisor in order to start reality, at the time IBM had enjoy six continuous days of immediately with proper 10,000 employees, but what holidays at least.” investigations, and if the Mr Alfonso meant was that all 9 The Public Prosecutor’s situation is confirmed proceed IBM workers were outsourced Office (Ministerio Público) is an with the appropriate remedial through recruitment agencies. institution within the Mexican action.” Source: Periódico Público government in charge of 14 Interviewed on 10 (Newspaper), 27 February receiving penal legal claims. November 2006. 1999. There is a Public Prosecutor’s 15 “Sliders” are the “needles” 4 Articles 12 to 15 of Federal Office in almost every Mexican that read data in a hard-drive. Labour Law. Labour lawyer hospital. Hitachi’s plant in Guadalajara Francisco Breña commented 10 http:// produces hard-drives for upon those articles in the www.estrucplan.com.ar/ various electronic equipment. Federal Labour Law: “Due to Producciones/ 16 www.hitachiworkers.com ignorance of this rule and in an entrega.asp?IdEntrega=1178 71 72 Chapter 3

OVERALL SUMMARY

73 Following a detailed description of the most representative cases of Discrimination labour rights violations in the Mexican electronics industry in the previous chapter, Cereal has summarised the current state of Unchanged. There was no electronics workers’ rights. reduction in discrimination cases in the Mexican electronics industry This analysis has been divided into the same eight topic areas covered in relation to the analysis carried in last year’s report. Each subject begins with a rating (relapse, out by Cereal last year. This unchanged, improvement), which Cereal hopes will help the reader means that practices such as to compare more easily the current state of labour rights in the denying employment to or firing Mexican electronics industry with that of last year. people with tattoos, law students or those who are related to lawyers, are or plan to get pregnant, belong or have belonged to a trade union, and people who defend their rights or Outsourcing those of their colleagues, prevail. Out of around 2,000 cases Cereal dealt with between June 2006 and June 2007, 35% were related to Relapse. There was an increase in the these kinds of practices. Employment agencies are the most frequent excessive use companies make of this hiring offenders. However, companies also discriminate against applicants, practice. Although some production activities particularly when hiring workers directly. justify the use of outsourced workers, the recorded increase was a result of some companies’ attempts to evade their labour Work instability liabilities. The most significant violation resulting from an increase in this practice is inequality Relapse. The use of temporary in working conditions. According to the law, contracts is widespread in the every worker should enjoy fair and equal Mexican electronics industry, which working conditions.1 translates into instability and uncertainty for thousands of Several cases show that frequently outsourced workers in the workers. Such contracts can last electronics industry receive less financial and social benefits than from 15 days to six months. A those hired directly. Sometimes, outsourced workers’ benefits are percentage of temporary hiring is even below the legal minimum. This is the case even in situations justified by the unstable nature of the electronics industry. However, where two workers are doing the same job. Also, it was observed Cereal’s report shows a significant increase in illegal practices that that companies tend not to acknowledge outsourced workers as also bring about work instability and undermine workers’ rights. These their employees, which contravenes Federal Labour Law (articles 12- illegal practices include serialised temporary contracts, advance 15). The most serious consequence of this ‘confusion’ is the difficulty resignation letters (usually undated) and withholding annual leave as workers have to fully and effectively enjoy their rights. provided for in the law. 74 Work-related accidents and Sexual harassment illnesses Unchanged. Sexual harassment in electronics Relapse. Due to the high number factories is used mainly by supervisors as a of cases that occurred, both way of pressuring lower level female workers. because of the amount of workers New cases of sexual harassment uncovered affected and the seriousness of by Cereal show a lack of adequate reporting the accidents, this was the area mechanisms in the companies for workers to with the worst deterioration level raise their issues and get help. Cereal believes in comparison to Cereal’s report last year. The cases of accidents that if there were genuine trade unions in the and illnesses documented in this report are linked to production Mexican electronics industry, cases of sexual demands and a series of unsafe working conditions which still prevail harassment, and other cases, could be resolved more quickly, as in some factories. High production demands and unsafe working workers could confidently seek help from their representatives. conditions resulted in several cases of illnesses, mutilations, permanent incapacity and even death. The need for preventive measures to Excessive wage deductions guarantee worker safety in the Mexican electronics industry can never be stressed enough. Unchanged. Despite the legality of programmes used by companies to grant punctuality and Exposure to toxic materials and dangerous substances. attendance bonuses, the measure, aimed as a reward and not as a punishment, adversely Unchanged. Despite the RoHS affects workers’ income. As a result of the Directive, which restricts the use of enforcement of these programmes, the amount certain toxic and dangerous deducted for one-day’s absence is equivalent to three-days’ wages. substances, (although this directive In addition, some companies withhold these bonuses even when only applies to the EU, it affects workers’ absences are justified. These kinds of absences are covered the whole electronics industry) in the law and should not affect workers’ rights. coming into effect in July 2006, workers in the Mexican electronics industry are still using and being Lack of freedom of association exposed to a series of substances potentially damaging to their health. These substances include lead, fluxes, isopropilic alcohol, sealants, Relapse. Compulsory and secretive enrolment of acetones, cadmium, silver, tin, copper and acids; used for soldering workers in unrepresentative trade unions and the electronic components. In addition to the persistent use of these widespread use of collective protection substances, Cereal learnt that workers are still confused and feel agreements, are practices that are still widely used they do not have enough information regarding the nature and use by electronics companies; affecting more than of these substances. Daily and lengthy exposure to these substances, 90% of workers in this sector. In addition, in the developing various symptoms and lack of information are amongst period covered by this study new cases emerged of threats and Mexican electronics workers’ main concerns. reprisals against workers who were trying to assert their rights. 75 This summary has been prepared on the basis of the incidence of the cases (number per topic) and the seriousness of those cases. Considering those two factors, the result of Cereal’s overall assessment of the current state of labour rights in the Mexican electronics industry is clearly negative. There has not been a reduction in the number of cases (with some areas even showing an increase) and the severity of those cases is worrying, particularly in topics such as safety, freedom of association and fair and equal treatment for all outsourced workers.

In the period covered in this report some progress has been made in the speed of response and the attention that some companies gave to dealing with cases related to workers at their facilities or in their supply chain. These improvements are described in the following chapter which looks at the working relationship between Cereal and the companies. While this quicker response is welcome, this year’s report provides clear evidence that much more fundamental changes are needed within the industry to tackle the problems that workers face effectively.

Companies have responded to cases documented by Cereal. However it should not be necessary for an external organization to have to research and raise the problems that workers are experiencing before effective action is taken by management. Workers need to be confident that they will be listened to and their grievances will be taken seriously. This is why Cereal has stressed that workers should be free to organize themselves into a representative body which can raise issues within the company and negotiate solutions.

More effective action on preventative measures is essential to stop new cases being created in the first place. Most worryingly, the abuses discussed here are the exactly same ones discussed with the companies in April 2006. The cases documented in this report Footnotes and the comments received from the companies show that at the moment there is a big gap between the stated policies and practices 1 “Everyone has the right to enjoy just and favourable conditions of the companies and the day to day reality experienced by electronics of work” Universal Declaration of Human Rights- Article 7, workers themselves. International Covenant on Economic, Social and Cultural Rights 76 Chapter 4

One year later: Collaboration between Canieti and Cereal

77 Cereal

During the year covered by this evaluation Cereal documented 237 cases of violations of labour rights in the Mexican electronics industry. Cereal informed each of the companies involved of these cases. Following the points agreed with Canieti, in the first instance this information was presented in a direct and confidential manner.

In April 2006 the National Chamber of the Electronics, Cereal also filed 47 lawsuits to try to address the cases which Telecommunications and Informatics Industry (Canieti) and the Centre were not resolved through dialogue and asked Canieti to for Reflection and Action on Labour Issues (CEREAL) agreed to intervene in four cases that were not resolved by the 1 carry out a joint work project with the objective of improving working companies (Benchmark, USI, Hitachi, Solectron) in a timely or conditions in the Mexican electronics industry (See Annex 1). satisfactory manner.

The agreements that they reached included carrying out an annual Cereal invited members of Canieti to participate in its Diploma evaluation of the activities carried out. This chapter describes in in Human and Labour Rights and also took part in the detail the results of this evaluation exercise, which was carried out roundtable on toxic substances organised by Cereal and Canieti. jointly between Cereal, the representatives of Canieti and other In order to receive feedback from the companies, Cereal also representatives of the companies. sent the representatives of Canieti all the informative leaflets which it distributes among workers and attended the five follow- These first twelve months of joint work were evaluated (in accordance up meetings held between the representatives of Canieti and with the agreements) looking at the fulfilment of the agreed actions Cereal. by each of the parties involved ( Cereal, companies and Canieti) separately. The commitments undertaken by each of the parties Finally, Cereal publicly disclosed one case (Hitachi) in the local can be seen in Annex 1. A general assessment of the joint work is media. found at the end of this chapter. Cereal’s fulfilment of the commitments agreed can be evaluated as good. Cereal’s main challenges were:

· Providing only documented cases to the companies, since the time required to document a case caused a delay in its resolution. Cereal had to provide the companies with information on various undocumented cases to reduce the resolution time. · Managing the requirements of the local media, which sometimes publish inaccurate or false information. 78 The companies area in which Sanmina SCI needs to improve is in the implementation of more efficient policies to prevent the In order to evaluate the response of the companies to the occurrence of new cases. cases documented by Cereal, they have been divided into three groups: Those which provided a good response; those which provided an average response; and those which provided a poor or no response. Hewlett Packard

HP is an OEM which outsources most of its Companies which provided a good response. production in Mexico. Therefore, the cases relating to HP occurred in production lines There are two companies in this category: Sanmina SCI and under the management of other companies. Hewlett Packard. They represent two distinct types of company (one contract manufacturer and one OEM) which due to their During the period covered by this evaluation, HP was required commercial nature provided very different responses. to respond to two cases. One of them was a follow up case from the previous year which occurred at Jabil’s premises and the other was a case that occurred recently at Foxconn’s Sanmina SCI premises. HP responded to both cases. In the first one, it demanded that Jabil implement corrective measures; and in Sanmina SCI is a contract manufacturer with the second one, HP carried out an enquiry into a series of five factories in Mexico, employing around complaints made by the workers. The enquiry into the second 14000 workers. All the cases related to this case is still in progress. company occurred within its own premises. Nevertheless, HP’s reply was not limited to enforcing the Sanmina SCI was required to respond to 29 cases during the agreements between Canieti and Cereal. Its most important year covered by this evaluation. The company responded to role this year was to act as a mediator in cases involving the 29 cases via their human resources representative for companies which were not their suppliers.2 HP intervened in Latin America. Of these, 23 cases were resolved satisfactorily cases which occurred at Benchmark, USI, Solectron and Hitachi. for the workers and within the time frame previously agreed The first three cases, paradoxically, involved other OEM with Cereal. The remaining 6 cases were resolved with a delay companies which did not provided a response at the time. or are still being processed. Unfortunately, these cases have not been resolved yet; however, HP had the best level of response among the OEMs. Taking into account the treatment given to the individual cases, The attention it gave to its own cases was good and its Sanmina SCI was the CM company which showed the best voluntary intervention in other companies’ cases was positive. level of response. Considering the outcome of these cases, Sanmina was also the CM company that best kept to the HP also helped to fulfil other commitments undertaken by commitments agreed between Canieti and Cereal. The only Canieti, which are mentioned later in this document. 79 Companies which provided an average response Hitachi Average

There are four companies in this category: Flextronics, Jabil, Hitachi was only required to respond to a collective case this Solectron and Hitachi. year. The company showed willingness to comply with the law and to resolve any irregularity arising during the process of laying-off its 4,500 workers. However, lack of genuine worker Flextronics Average representation, arising from a collective agreement signed between Hitachi and an inactive trade union, prevented Flextronics is a manufacturing subcontractor employing around disgruntled workers from voicing their concerns through 12,500 workers in Mexico. Flextronics was only required to institutional channels and direct dialogue with the company. respond to one case during the period covered by this This created a conflict between the two parties. At the time evaluation. This case was resolved in a timely manner and this evaluation was completed, the Hitachi case was still not satisfactorily for the affected worker. However, it reoffended resolved to both parties’ satisfaction. in situations already mentioned in last year’s report. These were situations of which their representatives were already aware. The response to the only new case which occurred in Companies which provided a poor response or none at all Flextronics was good, but the remaining cases are still pending resolution. There are two companies in this category: Benchmark and USI Jabil Average Benchmark X Jabil was not required to respond to any new cases during the period covered by this evaluation. Nevertheless, issues identified Benchmark was required to respond to 7 different cases during in Jabil in the previous year continued to reoccur. These the period covered by this evaluation. Benchmark did not reply situations require better corrective measures on the part of neither when Cereal first approached its HR director directly the company. In addition, Jabil still has a case, related to nor when Canieti’s representative, at Cereal’s request, Philips, which is still unresolved. approached that same person. Benchmark’s response was the worst of all, since it simply gave none. Solectron Average USI Solectron responded to all the cases in which it was required to X give a response this year; however, not all the cases were resolved satisfactorily for the workers. The new cases and USI was required to respond to one collective case. It was those in which Solectron reoffended are documented in Cereal’s also invited to attend a meeting were Cereal was going to second report. At the time this evaluation was completed, the present more than 60 individual cases to the company. USI company had various pending cases. representatives promised to attend the meeting, but they 80 cancelled on repeated occasions. At Cereal’s request, a Canieti Canieti representative contacted the HR director and asked him to attend the meeting, despite that, the meeting never took place. Canieti appointed Flextronics, Sanmina SCI and HP Guadalajara, This meeting with USI representatives never took place and who maintained communication with Cereal members, to follow- the cases involving that company are still unresolved. As noted up the agreements. above, shortly after receiving the draft report, the company also fired a worker who had provided a testimony to CEREAL. Through its representatives, Canieti Summary Table Classification of the companies according to the type of · attended the five follow-up meetings with Cereal. reply given to the cases raised by Cereal · gave Cereal a directory with all the details of the main (Includes companies from whom a reply to this report was requested) companies’ HR directors. Company Type of response Rating · promoted enrolment in Cereal’s Diploma in Human and Labour Rights among the companies (two members of Sanmina SCI Good Canieti enrolled in the Diploma), and Hewlett Packard Good · organised jointly with Cereal the roundtable on toxic and Flextronics Average Average dangerous substances. Jabil Average Average Canieti’s involvement in dealing with the companies’ labour-related Solectron Average Average cases was marginal. Canieti only intervened when asked to do so. Hitachi Average Average In February 2007, there were changes in Canieti’s leadership and Nokia Average (1) - - at the same time the 3 above mentioned representatives Philips Average (2) - - (Flextronics, SCI Sanmina and HP) were confirmed as Canieti’s Foxconn Average (3) - - representatives to the NGOs. However, in practice, it was HP’s SER (Social and Environmental Responsibility) team who undertook Lenovo Average (4) - - the role of representative of the companies brought together in Dell Average (5) - - Canieti. In the first half of 2007, HP’s team was almost solely in USI Poor X charge of negotiations with Cereal and of looking into unresolved Benchmark None X cases. Despite having this official representative, Canieti still faces difficulties in fulfilling its commitments. Motorola None X Intel None X Canieti failed to: 1 Nokia gave a reply. Its implementation of corrective measures still needs to be assessed. 2 Philips gave a reply. Cases related to this company are still awaiting · Distribute a copy of the Electronics Industry Code of resolution. 3 Foxconn gave a reply. It asked for time to resolve its cases. 4 Lenovo´s Conduct among workers. reply was that its policy was to let the suppliers reply themselves. 5 Dell gave a · Carry out the planned thematic round tables (sexual reply. Its implementation of corrective measures still needs to be assessed. harassment and personnel outsourcing) 81 Overall perspective. · Response times need to be improved. · Direct dialogue with genuine workers’ representation must All parties involved in this joint work (Canieti, Cereal, companies) be advanced. consider this first year of joint activities to have had a positive outcome. As can be observed above, there were both forward and backward steps in all involved parties’ performance. The general overview is that a year is too short a period to thoroughly evaluate the joint work between companies and This evaluation shows that even within the context of the NGOs. It was concluded that commitments should be carried dialogue with Canieti, the responses by individual companies forward to next year. have varied significantly. CEREAL sees the dialogue with Canieti as being an interim The main advances in this year were: measure to highlight actual working conditions within the industry. This dialogue does not replace the need for a union. · Around 100 cases were resolved faster and more As a small, external organisation, it would not be sustainable satisfactorily through dialogue than they would have been or desirable for Cereal to try to take on this role. Instead through the legal channels. workers throughout the entire electronics industry in Mexico · Workers benefited from the resolution of their cases need access to better represention in their workplace. and workers who remained in the electronics industry As this report shows, the companies’ own policies and systems, feel more secure in their workplace. including the Electronics Industry Code of Conduct, are not · Working mechanisms between Cereal and some enough to the address the problems which workers currently companies have become more efficient, which allows experience. Both the brands and other companies in the supply for a faster resolution of cases. chain (including employment agencies) need to take more effective actions. Electronics workers themselves need to be The areas in which Cereal believes there is room for involved in finding ways to improve conditions within their improvement are: industry.

· More work needs to be done in preventive measures and not only in case resolution. More systematic changes are needed (e.g. implementing educational programmes to prevent sexual harassment or public access to information on toxic substances used by the companies). · The EICC booklet needs to be distributed among workers. 1 These agreements were ratified in a meeting of the EICC group · Official representation of all the involved parties (Cereal, held in April 2006 in the city of Guadalajara. 2 Canieti, workers) needs to be strengthened. In a way, HP took over a role that should have been performed by · Some sort of penalty is needed for those companies the representative of Canieti, who stopped acting in his official role when the organisation moved to different premises in that do not respond to Cereal’s requests or that do not February 2007. resolved their cases satisfactorily. 82 Based on research carried out for this report, feedback from the companies and Mexican worker’s Recommendations concerns, the Centre for Reflection and Action on Labour Issues (CEREAL) recommends:

To electronics industry companies

To adopt Codes of Conduct that meet internationally accepted standards, such as those enshrined in ILO’s Core Labour Standards and various conventions.

To promote a culture of respect for the dignity of those people working in their plants.

To strengthen safety measures in the workplace and timely medical attention in all their sites.

To eliminate or control worker exposure to toxic and dangerous materials.

To avoid reprisals against workers’ freedom of expression.

To strengthen direct and clear communication with their workers.

To correct problems related to personnel outsourcing, such as potential candidate discrimination or hiring without providing clear terms of employment.

To endeavour to assure equality in the treatment of all their workers, independently of how they have been hired.

To respect workers’ right to freedom of association and collective bargaining.

To pay electronics workers a living wage.

To monitor compliance with the Electronics Industry Code of Conduct across the whole supply chain.

To the Mexican labour authority

Not to encourage or mask the existence of company controlled trade unions and collective agreements.

To apply labour laws impartially, disregarding the social or financial status of the plaintiff workers.

To audit working conditions in the electronics industry manufacturing plants. 83 ANNEX 1 sexual harassment, outsourcing, discrimination, etc.) b) to distribute a copy of the Code of Conduct of the In April 2006 the National Chamber of the Electronics, Electronics Industry among electronics workers, and Telecommunications and Informatics Industry (Canieti) and the c) the enrolment of members of Canieti in Cereal’s Diploma Centre for Reflection and Action on Labour Issues (CEREAL) in Human and Labour Rights. signed several joint work agreements1 with the objective of improving working conditions in the Mexican electronics industry. Regarding point 3 (prevent cases from remaining unresolved), companies pledged to resolve cases within the time frame set The core objectives of those agreements were: when Cereal made them aware of the situation and Cereal promised not to publicise cases during that time frame. 1. To resolve promptly and satisfactorily cases of violations of labour rights documented by Cereal. All these agreements are to be reviewed one year after being 2. To reduce the emergence of new cases through the approved, in May or June 2007. implementation of preventive measures. 3. To prevent one or several unresolved cases from becoming lawsuits or public news.

Several actions stemmed from these core objectives. For point 1 (case resolution) a three-step working mechanism was agreed:

1 First. Cereal would inform the company directly of the case details and would give the company a reasonable period of time to examine them and, if necessary, to resolve the case. 2 Second. If, even after being informed, the company did not look into the case, Cereal could request Canieti’s intervention. 3 Third. If even after Cereal requested Canieti’s intervention the case remained unresolved, both affected worker(s) and Cereal would be free to launch a lawsuit and/or publicly expose the case.

Three activities were planned for point 2 (preventive Footnotes measures): 1 These agreements were ratified in a meeting of the EICC a) to carry out thematic round tables (toxic substance, group held in April 2006 in the city of Guadalajara. 84 Centre for Reflection and Action on Labour Issues (CEREAL)

CEREAL is a project of Fomento Cultural y Educativo A.C. (Cultural and Educational Promotion A.C.), part of the apostolic works of the Mexican Province of the Company of Jesus, which for the last 35 years has been devoted to educating and organising Mexican popular sectors.

CEREAL provides legal assistance, labour rights training and organisational support for workers’ groups; it also carries out research on working conditions in different productive sectors in the country and promotes public awareness campaigns with regard to workers’ situation.

CAFOD

CAFOD is a major British charity that has been fighting third world poverty since 1962.

CAFOD is the English and Welsh arm of Caritas International, a worldwide network of Catholic relief and development organisations. CAFOD works in partnership on 1,000 programmes worldwide.

This report was written and edited by Jorge Barajas. Research in the city of Guadalajara was carried out by Rubenia Guadalupe Delgado; in the cities of Chihuahua and Monterrey by Luz Elena Barrios; and in the city of Reynosa by Jorge Becerra. Eduardo Canales provided legal consultancy in all cases. Dialogue with the companies was carried out with the collaboration of Fr. Sergio Cobo, SJ.

We would like to acknowledge the valuable help and comments from Anne Lindsay of CAFOD, and to extend our thanks to all her team.

Errors remain the responsibility of the authors.

Companies provided their comments in English and, in some instances, they also provided the translation into Spanish.

We would welcome feedback on the report. Please write to [email protected]

Translation: Gustavo Cruz

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