Memorandum of Understanding on North Sails case
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CCC is asked to suspend campaigning during negotiating process
On the 9th of December 2003 the managements of the Austrian based Boards & More and the Sri Lankan factory North Sails Lanka met with the FTZWU (Free Trade Zone Workers Union), a representative of the dismissed North Sails workers, CCC Austria and the ÖGB (Austrian trade union) in Molln, Austria. The FTZWU and the representatives of Boards & More and North Sails Lanka reached an understanding regarding the case of the unfairly dismissed factory workers.

Since September 2002, the CCC has been supporting an appeal to give assistance to workers at North Sails Lanka, a facility in Sri Lanka's Katunayake Free Trade Zone. Approximately 200 workers at the factory, which produces sails, had been unfairly dismissed, reportedly as a means to end an ongoing dispute over management's decision to cease payment of a quality bonus.

According to the understanding reached, the management of North Sails Lanka will negotiate with the trade unions in Sri Lanka including the FTZWU. The negotiations will focus on the reinstatement of the dismissed workers, accompanied by payment of the back wages they are owed. Secondly, the demand is to reinstall the quality bonus, while thirdly the company should respect the workers’ rights, based on ILO-core conventions.

In the course of these negotiations, the CCC is asked to suspend its campaigning activities on this case. If the process doesn’t measure up to the CCC’s expectations, campaigning can immediately start again.

Apart from the formerly mentioned points, the management also agreed to respect the right to strike and the right to picket in order to safeguard a strike. The management also agreed not to obstruct the establishment of free trade unions at North Sails Lanka.

The FTZWU would like to thank everyone, especially CCC and the Austrian federation of trade unions, very much for all the international support and campaigning. They will keep us informed about the developments.

The visit of Anton Marcus of the FTZWU and former NSL worker Indrani Wijebandara to Austria is part of a workers tour through Europe, which the Clean Clothes Campaign is currently organising. The managements of both Boards & More and North Sails Lanka attended a press meeting set up by the Austrian CCC about this ongoing case.



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