Kraft Foods response to concerns alleging Kraft Argentina fired union workers for
organizing protests and about alleged collaboration with violent police behavior
13 Oct 2009
Business & Human Rights Resource Centre invited Kraft Foods to respond to the
following reports:
- "Kraft Firings Feed Protests", Marie Trigona, Americas Program, Center for International
Policy (CIP), 7 October, 2009:
http://americas.irc-online.org/am/6484
- “Dígale no a Terrabusi”, El Argentino.com, 1 octubre 2009:
http://www.elargentino.com/nota-60321-Digale-no-a-Terrabusi.html
Kraft Foods sent the following statement to the Resource Centre:
A. Situation Overview
The conflict at Kraft Foods Foods´ Pacheco Plant began during the outbreak of the H1N1 virus in
Argentina. As a multinational company in the food industry, Kraft Foods´ sanitation and hygiene
standards are well above those that can be found in other industries. Food production processes
include hand washing stations and the use of hairnets and smocks to ensure proper sanitary
conditions inside production facilities. In response to fears of H1N1 outbreak in Argentina,
however, Kraft Foods immediately adopted the following additional preventive measures:
a) Reinforced sanitation practices at the plants in open spaces and common areas;
b) Initiated an employee informational campaign outlining safeguards to prevent
flu contagion;
d) Assigned new cafeteria shifts to minimize crowds and personal contact;
b) Made alcohol gel available at all locations for all employees;
e) Temporarily closed the employee club and gym. The daycare center was also temporarily
closed in accordance with the preventative measures implemented by the Government of
Argentina for public daycare centers and schools.
f) Provided a $200 peso private care subsidy for the period of closure (July 4 - 26) to parents who
used Kraft Foods daycare services (matched by an equal amount from the union).
g) Parents were offered paid days off in order to make necessary arrangements for day care for
their children; and
h) Kraft Foods provided paid leave to pregnant women, immune compromised employees, and
any employee with a family member who had H1N1 flu.
No company in any industry in Argentina has been shut down due to H1N1 concerns. In
companies in Argentina where H1N1 flu cases have been reported, employees have been
extended paid leave while operations continued. At no time has there been any case of H1N1 flu
reported at Kraft Foods facilities in Argentina.
However, at that time a group of Internal Commission delegates demanded the complete closure
of the Pacheco facility and thirty days of paid leave for all production employees (see Appendix
V: Workers Demands to close Plant during July). Simultaneously, they demanded that the
Kraft daycare center remain open.
Kraft Foods declined these proposals, explaining that a demand to close the plant was
unreasonable, and that keeping the daycare center (the most vulnerable space for potential
contagion) open was counter to the Internal Commissions’ stated concern for employees’ well
being, and would have constituted a direct violation of the directives given by the government to
public facilities.
On Friday July 3, at 6:30 PM approximately 200 employees surrounded the administrative
building at the Pacheco location, impeding employees inside from leaving the premises for home
for approximately three hours with threats and physical force. Among the 70 workers locked
inside were mothers with children in the daycare facility.
In subsequent weeks, in consultation with labor lawyers Kraft Foods investigated the July 3
incident and ultimately dismissed 156 persons who could be specifically identified with criminal
acts. On August 18, these 156 workers were dismissed “with fair cause” under Argentine labor
law (article 242 of Ley de Contrato de Trabajo:
http://www.infoleg.gov.ar/infolegInternet/anexos/25000-29999/25552/texact.htm ). A criminal
investigation is being conducted by authorities.
On September 7, a group of dismissed workers forced their way into the facility, attacked
employees with blunt instruments, and forced the shut down of operations.
On Friday September 25, after the failure of 6 hours of negotiations between the group occupying
the facility, representatives of the Argentina Ministry of Labor and the Human Rights Commission
of the Argentina Ministry of Justice, the group occupying the plant was evicted by the provincial
Buenos Aires Police acting under a court order. The Human Rights Commission and Ministry of
Labor representatives verified in advance and agreed to the procedures to be used in the
eviction. The eviction was not carried out by or under the direction of Kraft Foods.
A police report on the action indicates that the group occupying the plant used knives, cutters,
slingshots with nuts and bolts, iron bars and Molotov cocktails. During the subsequent inspection
of the Plant by Kraft Foods, Molotov cocktails, knives, and other sharp objects were found inside
and were handed over to the Prosecutor’s office.
After the eviction, Kraft Foods made the decision to suspend 36 workers for participation in acts
of violence during the police eviction procedure and various acts of misconduct during the
occupation of the plant (including destruction of property).
Between August 18 and September 25, seventy of the 156 laid off employees signed a
termination agreement at the Ministry of Labor. Despite their dismissal “with fair cause”, Kraft
Foods provided severance pay to each of the seventy former employees in an effort to help
resolve the conflict. This reduced the number of dismissed employees about whom negotiations
are being held to 86 (and the 36 suspensions).
Kraft Foods remains in negotiation with the Internal Commission and the Ministry of Labor to
resolve the status of the dismissed and suspended workers. Kraft wishes to resolve the situation
as amicably as possible, while ensuring the continued safety of workers and renewed operations
at the facility.
For Kraft Foods, the final resolution of the negotiation should:
Provide an environment that ensures the safety of our employees and the protection of
our business assets.
Ultimately bar those individuals involved in the recent violence any further access to our
facility.
Kraft Foods has always shown its willingness to dialogue and interest in resolving the conflict. In
addition, Kraft Foods has fully remunerated all employees, including payment for the period that
the plant was closed during the occupation. Kraft Foods has already submitted two proposals
toward a resolution on the matter of the dismissed employees: on October 1 it offered to rehire 30
employees as a gesture of good faith. These employees resumed their duties on October 5. On
October 6, Kraft Foods conditionally offered to rehire an additional 18 employees. All proposals
to date have been refused by the Internal Commission, which insists on the rehiring of all
dismissed workers and the reintegration of the suspended employees.
B. Employee Demands
During the occupation of the plant, a group of employees spontaneously filed a complaint with the
Ministry of Labor, denouncing activities of the Internal Commission (see Appendix II: Document
1.311.240/09). In page 2 of their declaration, the 20 signatories explain that when they tried to
restart certain production lines, they were stopped by the Internal Commission delegates who
physically attacked and threatened them with knives. In the same legal document they asked the
company to take measures to protect employees who wanted to work.
Some workers have uploaded the following videos, recorded with their mobile phones, showing
incidents where groups of workers demonstrate against the Internal Commission’s control of the
facility:
Video I: http://www.youtube.com/watch?v=7noG5rnzaJw
Video 2: http://www.youtube.com/watch?v=9Nizp6uTQVc
In both videos, the Commission delegates (the men wearing blue jackets) can be seen telling
employees to stop working, while employees shout “we want to work”.
Kraft Foods has received over 400 letters from employees in support of the company. Most of
them describe their disagreement both with the demands and the methodologies employed by the
Internal Commission members (see Appendix III).
C. The Legal Status of the Internal Commission Members
Kraft Foods does not engage in anti-union practices. While there are union delegates among the
dismissed Pacheco employees, these persons were not dismissed for being union members or
for any other reason, but for having participated in criminal activity.
The Pacheco Plant has had 11 Internal Commission delegates and 19 representatives (referred
to as “Congresales”). Of these, six Internal Commission delegates and all of the Congresales
have been working inside the facility. None of them have lost their special union protections,
provided by their legal standing as union representatives.
Kraft Foods had asked the Court to intervene to resolve the status of the remaining five Internal
Commission delegates, since the company has considered their acts to have been criminal and
believes that they pose a threat to other workers.
Kraft Foods does not wish to tolerate violence or threats of violence against its employees or its
facilities. Argentine Labor Statue 23551 allows for a company to request certain precautionary
measures in case of potential danger to persons who work at the company or to their property, as
long as that danger can be avoided or reduced with the suspension of work activity. This has
been the principle behind the Company’s decision to bar the entrance of the fired delegates given
the acts of violence caused by the group since the beginning of this situation.
However, Kraft Foods has continued to recognize their status as representatives of the workers,
which is why the Internal Commission has been part of the negations currently being conducted.
While the Criminal Court had earlier ruled on one of the pending cases against an Internal
Commission member, upholding his exclusion from the facility, the Labor Court has recently ruled
that the Internal Commission members do not constitute a threat and has ordered Kraft Foods to
allow them to reenter the facility. Kraft Foods has fully complied with this Labor Court decision.
The mandate of each of these Internal Commission delegates expired on October 10th. Elections
for union representation will be held at a future date to be determined by the union.
D. The Police Presence at the Pacheco Facility
On Friday September 25, over two weeks after the occupation of the Pacheco facility, provincial
Buenos Aires Police acting under a court order from the Judge of Warranties No.2 of San Isidro,
upon request of the Talar de Pacheco Criminal Prosecutor, evicted the group occupying the plant.
The eviction was not carried out by or under the direction of Kraft Foods; and Kraft regrets that
this unfortunate event took place.
Contrary to Internal Commission allegations, at no time have the police entered the plant to “force
employees to work.” This has been verified in inspections carried out by the provincial and
national Ministries of Labor.
E. The Kraft Foods Facility in Pacheco
The Pacheco Plant, located in Argentina, employs 2700 people and as such is an important
employer in the municipality of Tigre, where it is located.
Guards at the facility are unarmed and follow strict rules of engagement which do not allow the
use of force. The facility is surrounded by fencing, which was easily breached by the group which
had occupied the plant.
The Pacheco facilities include five acres of park land, with a soccer field, volleyball and tennis
courts, and two running paths. These, as well as an outdoor barbecue space and recreational
room, can be used by any employee free of charge, including for personal or family use. There is
also a gym, for which Kraft Foods offers subsidized membership.
The salary level of production employees at Pacheco is well above the average for the industry in
Argentina. Kraft Foods currently compensates production employees at Pacheco between 15 and
20 percent above amounts required by the current “Convenio” (the Agreement reached between
a company and its labor union). In addition, whereas night shift workers are required by the
Convenio to receive 13 percent more than day workers, Pacheco Plant night shift employees are
paid an additional 50 percent.
The Pacheco facility also offers several additional benefits. There is a cafeteria where all
employees are provided breakfast, lunch or dinner free of charge. Production workers are
provided with vouchers exchangeable for products at local supermarkets. And Kraft Foods grants
salary advances and offers company loans at low rates.
Kraft Foods also provides a daycare center for all employee children four years or younger
without charge. The center is opened from 5:30 AM to 10:10 PM without limit to how long a child
can stay. The center has pediatricians on staff and offers music and English language classes. It
also provides meals for the children and a free diaper service.
Kraft Foods has been ranked as employer of choice in Argentina. As part of its commitment to
corporate social responsibility, Kraft Foods is one of the main donators to the Food Bank
Foundation in Argentina. In addition, the Pacheco facility implements an employee volunteer
program, in which over 250 employees participate.
F. Press Coverage
Media coverage of the situation, while varying according to the nature and editorial tendency of
the news outlet in question, has often focused on unsubstantiated allegations from groups
affiliated with the Pacheco Internal Commission. Please see the following links for additional
treatment of this issue:
Editorial in La Nacion, the country’s second largest circulation daily:
http://www.lanacion.com.ar/nota.asp?nota_id=1185044
Article by Tomas Abraham, a philosopher and political observer, with his views on the political
context of these events and media coverage:
http://www.diarioperfil.com.ar/edimp/0407/articulo.php?art=17335&ed=0407
APPENDIX I: Ministry of Labor Resolution regarding H1N1 preventive measures
RESOLUCION 471/2009
MINISTERIO DE TRABAJO, EMPLEO Y SEGURIDAD SOCIAL
SALUD PUBLICA
Bs. As., 01/07/2009.
Fecha de publicación: B.O. 02/07/2009.
VISTO la Ley Nº 26.456, Ley de Ministerios (texto ordenado por Decreto Nº 438 del 12 de
marzo de 1992), sus modificatorios y complementarios, y
CONSIDERANDO:
Que la situación producida por la INFLUENZA A (H1N1) y sus eventuales derivaciones en el
ámbito laboral hacen necesario, con una finalidad de prevención, adoptar las medidas tendientes a
brindar la mejor protección a las personas involucradas, evitando en todo lo posible que se vean
afectadas las relaciones laborales y las condiciones productivas de la nación.
Que por Ley 26.456 se prorrogó hasta el 31 de diciembre de 2009 la vigencia de la Ley 26.204,
prorrogada por su similar 26.339, hallándose en consecuencia vigente la emergencia en materia
social.
Que mediante una interpretación armónica e inclusiva de las normas antes referidas, debe
impulsarse la adopción de medidas que tiendan a preservar las relaciones de producción y empleo
y la protección del salario que en forma habitual perciben los trabajadores y las trabajadoras y la
integridad de sus núcleos familiares.
Que la presente medida se dicta ante las excepcionales circunstancias antes referidas y en uso de
las facultades conferidas en el artículo 23 de la Ley de Ministerios (texto ordenado por Decreto
Nº 438 del 12 de marzo de 1992), sus modificatorios y complementarios, en concordancia con los
preceptos de la Ley Nº 26.204, prorrogada por sus similares Nros. 26.339 y 26.456.
Por ello,
EL MINISTRO DE TRABAJO, EMPLEO Y SEGURIDAD SOCIAL
RESUELVE:
Artículo 1º — Establécese una licencia preventiva por QUINCE (15) días corridos, a partir del 3
de julio del corriente año, con goce íntegro de haberes, para las mujeres embarazadas y para los
trabajadores inmuno comprometidos o que padezcan enfermedades oncológicas o enfermedades
que le provoquen inmuno supresión o patologías cardíacas crónicas, diabetes o afecciones
respiratorias. El trabajador o la trabajadora para gozar de esta licencia deberá acreditar tal
situación mediante certificado médico.
Art. 2º — El trabajador o la trabajadora que tuviera que atender el cuidado de su grupo familiar
primario en virtud de la enfermedad INFLUENZA A (H1N1) tendrá derecho a gozar de un
período de licencia de QUINCE (15) días corridos con goce íntegro de haberes, debiendo
reintegrarse a las tareas a la finalización de la misma.
Art. 3º — El trabajador o la trabajadora para gozar de licencia en virtud de la enfermedad de
alguno de los integrantes de su grupo familiar primario, deberá acreditar mediante certificado
médico la existencia de afección específica por la INFLUENZA A (H1N1) o, en su caso, la
sintomatología que determine una posibilidad cierta de dicha afección.
Art. 4º — El empleador podrá ejercer las facultades de control médico respecto de los integrantes
del grupo familiar primario, exclusivamente en relación a la constatación de la existencia de
INFLUENZA A (H1N1) o de la sintomatología vinculada a esta enfermedad, cuando ello sea la
causa de la licencia acordada.
Art. 5º — Los plazos de licencia se computarán a todos los efectos como tiempo de servicio.
Art. 6º — Los empleadores no podrán deducir de los haberes de los trabajadores los premios o
adicionales establecidos por puntualidad, asistencia, presentismo u otros conceptos ligados a
éstos, cuando los motivos que pudieran ocasionar su pérdida se deriven de la licencia que le
hubiese sido acordada por padecer el trabajador o algún integrante de su grupo familiar primario
de la INFLUENZA A (H1N1) contemplada en la presente norma.
Art. 7º — En toda otra situación derivada de medidas dispuestas en prevención de la
INFLUENZA A (H1N1) no prevista en los artículos precedentes, los empleadores procurarán
adoptar medidas adecuadas para la protección de la salud psicofísica de sus dependientes y
facilitar la atención integral del grupo familiar primario.
Art. 8º — Establécese que las disposiciones de la presente Resolución serán aplicables a los
trabajadores y a las trabajadoras tanto de la Administración Pública Nacional como del Sector
Privado.
Art. 9º — Delégase en la SECRETARIA DE TRABAJO el dictado de las normas
complementarias, aclaratorias e interpretativas que requiera la aplicación de la presente
Resolución.
Art. 10. — Invítase a las Provincias y a la CIUDAD AUTONOMA DE BUENOS AIRES, a
adherir a las disposiciones de la presente resolución mediante el instrumento legal
correspondiente.
Art. 11. — Regístrese, comuníquese, publíquese, dése a la Dirección Nacional del Registro
Oficial y archívese. — Carlos A. Tomada.
APPENDIX II:
Declaration of workers at Ministry of Labor (3 pages)
Appendix III: Sample of three employee letters received (5 pages)
Signature has been erased to protect identity
Appendix IV:
Court resolution against delegate Hermosilla , forbidding entrance to the Plant
Appendix V:
Internal Commission Demand to Close Plant