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Economy, tax incentives & labor conditions

The minimum wage in Salvador is of 0,67 $ per hour, that is to say 5,4 $ per 8 hours day.
(National Labor Committee , Etats-Unis , 01/05/2008 , Another CAFTA failure )

There is severe discrimination against workers because of their union membership or activities. Mass dismissals of workers and union leaders, without severance pay, are very common in El Salvador. The de facto acceptance of that practice has encouraged employers? use of the strategy to undermine trade unions. Discriminatory ?blacklists? are one of the tools used most frequently by employers against trade unions, in particular in the export processing zones. By denying jobs to people with some previous links to trade unions, companies are excluding virtually all trade unionists from these zones, thus making it harder to create new unions. The various firms are all involved in sending these lists to one another. What is more, despite receiving repeated complaints, the state institutions are doing nothing to tackle this problem.
(ITUC-CSI , Suisse , 01/12/2007 , Annual Survey of violations of trade union rights )

Although the right to collective bargaining is recognised in law, it is not applied in the EPZs, owing to the extreme anti-union discrimination practiced by employers and the government's abdication of its responsibility to defend the collective bargaining rights of workers in Export processing zones. Any attempt at organising is repressed and the workers are threatened with dismissal if they attempt to form or join or a union or else with the closure of the company, which would leave everyone jobless. The special incentives these companies enjoy are facilitating and supporting these anti-union policies. The maquiladoras can close down their business whenever they feel that their profits are threatened by unions? insistence on their rights, leaving behind debts owed to the workers and the state. In such situations there is no scope for bringing a legal complaint and no state fund for making severance payments to the affected workers.
(ITUC-CSI , Suisse , 01/12/2007 , Annual Survey of violations of trade union rights )

Free trade zone American Park, free trade zone El Pedregal, free trade zone El Progreso, free trade zone Export Salva, free trade zone San Bartolo, free trade zone San Marcos. Firms located in export processing zones or bonded warehouses that export 100 percent of their production outside the Central American market, including drawback/assembly operations, can enjoy the following benefits:
-- Up to 20 years exemption from income tax; duty free importation of machinery, equipment, tools, spare parts, furniture, and other products necessary for the operation; duty free importation of raw materials, semi-manufactured, and intermediate products. Duty free importation of fuels and lubricants.
(US & Foreign Commercial Service , Etats-Unis , 01/01/2000 )

El Pedregal Zona Franca Export Salva Free Zone Lido Free Zone Parque Industrial La Concordia Parque Industrial y Zona Franca El Transito Zona Franca 10 Zona Franca American Park Zona Franca Calvo Conservas Zona Franca El Progreso Zona Franca Internacional Zona Franca Miramar Zona Franca Pipil Zona Franca San Bartolo Zona Franca San Marcos Zona Franca Santa Ana Zona Franca Santa Lucia Zona Franca Santa Tecla Zona Franca Santo Tomas
(Entreprise , 01/01/1999 )

Minimum wage noted (US$/day)
(year, wage and name of the contracting company)

1998 7.8 US$/day at/for Chaus
1998 4.8 US$/day at/for Nike Inc.
1998 7.8 US$/day at/for Liz Claiborne, Inc.
1998 7.8 US$/day at/for Leslie Fay
1998 7.8 US$/day at/for AnnTaylor Stores Corp.
1996 4.8 US$/day at/for The Gap Inc.

Main labor right violations
(year, company name and norm number)

2008 North Face Inc. 1, 131,29,87,98
2007 Luis Calvo 89, 98
2002 AnnTaylor Stores Corp. 87, 98
2002 Columbia Sportswear Co. 87, 98
2002 Foot Locker Inc. 87, 98
2002 Phillips-Van Heusen Corp 87,98
2002 The Dress Barn, Inc 87, 98
2002 The Gap Inc. 87, 98
2000 Nike Inc. 1
1998 Adidas AG 1, 26, 100, 111, 131
1998 AnnTaylor Stores Corp. 1
1998 AnnTaylor Stores Corp. 100, 111
1998 AnnTaylor Stores Corp. 29, 105
1998 AnnTaylor Stores Corp. 87, 98
1998 Chaus 1
1998 Chaus 100, 111
1998 Chaus 29, 105
1998 Chaus 87, 98
1998 Leslie Fay 1
1998 Leslie Fay 100, 111
1998 Leslie Fay 29, 105
1998 Leslie Fay 87, 98
1998 Liz Claiborne, Inc. 1
1998 Liz Claiborne, Inc. 100, 111
1998 Liz Claiborne, Inc. 29, 105
1998 Liz Claiborne, Inc. 87, 98
1998 Nike Inc. 100, 111
1998 Nike Inc. 29, 105
1998 Nike Inc. 87, 98
1996 The Gap Inc. 1
1996 The Gap Inc. 29, 105
1996 The Gap Inc. 87, 98

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