Nike Factory partner Tegra to pay laid-off garment workers $ 600,000 – Sourcing Journal
Tegra is set to sign a deal to pay 965 workers about $ 600,000 in layoffs and other compensation as it dismantles a key garment factory in Managua, Nicaragua, union officials told the Sourcing Journal.
âWe will sign the agreement this afternoon,â said Miguel Ruiz of the Coordinadora Regional de Sindicatos de Maquila, which oversees workers’ interests alongside IndustriAll and other unions. âThey agreed to pay 20,000 cordobas, [$566] equal to 3 months of salary and social contributions until August or September. We’re just going to formalize the deal.
Ruiz said the U.S. sportswear maker, which is restructuring its business in Central America and has production deals with brands like Nike, will also help fund a labor fair to help laid-off garment workers at the site, located in the Astro industrial park in Managua, to find new work.
Meanwhile, Tegra’s plans to merge its operations in Honduras are progressing according to schedule, union official Wilson Jarquin said. The company hopes to integrate its Southern Apparel Contractors and New Holland Lingerie divisions in Honduras in a process that should not lead to job losses.
âThey are executing the plan and will start moving people within the next two weeks,â Jarquin said, adding that workers will be moved between different garment manufacturing sites as part of the reorganization.
He added, however, that the unions have asked Tegra to sign a formal pledge that the process will not result in workforce losses and will offer severance pay to long-tenured workers who choose to leave the new merged entity.
“One thing is to say they won’t fire anyone and another is to sign a legal agreement promising it,” Jarquin noted.