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  Letter from Dennis A. Smith in Guatemala  
     
 

October 25, 2000

Friends,

For the first time ever, we greet you as a family from the U.S. In case you didn’t hear, Lucas’ adoption papers finally came through early this year. Those of you on e-mail shared in that great news. With that barrier behind us, we promptly made plans to do a three-month itineration assignment in the U.S. this fall, coinciding with the boys’ school vacation.

Folks at Louisville sent out word that we would be available to speak about our mission work from October through December, and several of you responded. So, over the next few weeks, I will be meeting with many of you in the Pacific Northwest, southern Indiana, Philadelphia, Baltimore, New Orleans and Roanoke, Virginia.

Mari and the boys (and I, when I’m not in airplanes) will be with my folks in Coquille, Oregon. The boys will be making friends, working on English (and teaching Spanish!) at a small Christian school in Coquille while we enjoy the very special delights of being home on the farm with Grandma and Grandpa. We are
very grateful for this family time and look forward to getting back on a schedule of regular itineration visits to the U.S. So if we don’t get to see you this time, you will get first bid when we are back two years from now.

If you want to give us a call from now through January 2, 2001, the phone number in Oregon is (541) 396-2748. We return to Guatemala on January 12 so the boys can launch into the new school year the following week.

What I do in my spare time -

For the last two years I have been part of the Commission for the Verification of Codes of Conduct—COVERCO. Sound arcane? Here’s a word of explanation:

Remember the big flap a couple of years ago about Kathy Lee and sweatshops producing apparel under less than humane conditions? As the economy has gone global, many corporations, especially in the apparel industry, have sent production overseas. Consumers have responded by demanding that the products they consume be produced under humane conditions. Corporations have responded by developing codes of conduct that purport to guarantee ethical production standards. When you walk into a major brand name store, you now find that many promote their code to encourage consumer confidence. Indeed, many corporations hire major accounting firms to monitor code compliance in their supplier factories.

Consumer and advocacy groups have responded to such efforts with limited enthusiasm. Some encourage corporations to take the further step of using independent monitors to verify code compliance.

This brings us back to Guatemala. Today, there are about 280 maquila factories producing blue jeans, tennis shoes, knitwear, sweatshirts and many other garments for the U.S. market, including major U.S. universities. These factories represent a dynamic growth sector of the Guatemalan economy. Most are owned and operated by companies from the Pacific Rim, especially Korea.

Most of the workers are young women. While many of them work under tough conditions (abusive bosses, low wages, forced overtime and little industrial security), the maquila provides them with a relative degree of economic independence for the first time in their lives. For many, the only other jobs available are agricultural labor and domestic service.

So, jobs, even jobs in a maquila, are important for Guatemalans.

Our goal, as COVERCO, is to independently monitor compliance with a corporation’s code of conduct in local supplier factories. In so doing, we hope to move Guatemalan society toward a culture of compliance and the rule of law.

We are not agents of the corporation. When we go into a factory, we negotiate full access to workers both on- and off-site as well as access to personnel and payroll records. Obviously, we guarantee that we will respect the confidentiality of all proprietary information.

Nor are we agents of the workers. While we make sure they know they have the legal right to organize a union, we are not union organizers.

Nor can we be agents of advocacy groups or the Guatemalan government.

Our job is to describe accurately the real situation on the factory floor so that the different stakeholders can move toward compliance. Are workers being abused? How? Does the grievance procedure work? Are legally-mandated employee benefits being paid? Are workers exposed to dangerous chemicals or procedures without proper equipment and training?

What clout do we have? First, we own the information we gather. Secondly, we insist that the findings of our investigation be made public at some point in the monitoring cycle.

So far we have monitored one factory that produces for Liz Claiborne, Inc., another that produces for The Gap, and another that produces for both companies. We have also worked with Starbucks Coffee to complete the first independent survey of living and working conditions on Guatemala’s coffee farms. Also, for an agency of the U.S. government, we have reviewed compliance with labor law by the U.S. companies that have invested in Guatemala’s recently privatized electric power sector.

COVERCO’s public reports have gotten the attention of business executives and government officials. Our presence on the shop floor has encouraged workers to negotiate improvements in unsafe or inhumane working conditions. We have found that many corporations are beginning to factor the cost of observing human rights in a place like Guatemala into their overall cost of doing business.

If you want further information on COVERCO, contact me either in Oregon or Guatemala, or write us directly at: COVERCO@terra.com.gt

Much remains to be done, but through this new area of mission we are trying to build new mechanisms for justice and accountability in Guatemalan society.

Under the Mercy,

Dennis A. Smith

 
     
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