The union representing banana workers at the Tela Railroad Company, the Honduran subsidiary of the Cincinnati-based Chiquita Brands International, Inc., announced on July 28 that it was starting an open-ended strike at 10 packing plants to demand the rehiring of five workers fired on July 24. Tela Railroad Company Workers Union (SITRATERCO) president Oscar Amaya said the dispute began on July 12 when 48 workers employed at the Ceibita banana plantation did not appear at their posts because the company failed to provide transportation as stipulated in the contract.

Workers at the Ceibita plantation had offered to go to work on bicycles if the company pays 75 percent of the cost of the bicycles. When the company didn't respond, the workers decided not to report to work unless the company provided transportation. Management retaliated by firing the five workers, the union says. (Tiempo (Honduras) 7/29/04)

On July 12, Montreal-based T-shirt manufacturer Gildan Activewear suddenly announced that it was closing its factory in El Progreso, near San Pedro Sula, on September 30, leaving 1,800 workers unemployed. Gildan management said the maquiladora (tax-exempt assembly plant producing for export) was "inefficient and more costly compared to other sewing facilities where only one product is made." The company will transfer sewing production to Haiti and Nicaragua, where it claims production costs are half those in Honduras. Management was apparently also upset when striking teachers, in the course of a national day of action, cut off a highway which happened to lead to the "free trade zone" where the factory is located. The announcement came at a meeting with the Fair Labor Association (FLA) and Worker Rights Association (WRC), which were discussing corrective action to address worker rights violations at the factory.

The Maquila Solidarity Network (MSN) is asking for letters to Gildan vice president for public and legal affairs Stephane Lemay (fax 514-735-6810, email slemay@gildan.com), demanding that the company reverse its decision to close the El Progreso factory and that it fully implement all the recommendations by the FLA and the WRC. More information is available from info@maquilasolidarity.org. (MSN urgent action 7/26/04).