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Our Work in Peru

with SITAG-Peru

Home » Where We Work » Peru

About Peru

The banana export industry was founded at the end of the 1990s. Almost all of Peru’s exported bananas are organic, accounting for around one sixth of global organic banana production.  Between 2010 and 2015, organic banana production almost doubled. In 2014 export production occupied around 5 500 ha, close to 4% of the total banana producing area in the country. There are estimated to be around 6 000 farmers, organised in several dozen associations.

Peru has also one of the fastest growing horticultural export sectors in the world, providing grapes, avocados, citrus, mangoes and blueberries to all continents. When Banana Link joined the UK Ethical Trade Initiative in 2013, we agreed to facilitate links with the unions working in these new industries.

Population 32,495,510 (2019)
GDP Total – $458.389 billion (2018)
Per capita – $14,252[4] (2018)
Total Land Area 1,285,216 sq km
Banana Production Area 8,000 ha
Total Banana Production 245,000 metric tonnes (2017)
ITUC Global Rights Index Rating 4
Systematic violations of rights

SITAG-Peru
Banana Link Partner

Sindicato de Trabajadores Agrarios Del Peru – SITAG-Peru is a young but rapidly growing union, originally founded by workers in Dole exporting facilities in 2006. The union now represents several thousand workers involved in the production and export of organic and Fairtrade bananas. They are nearly all employed by small farmers’ associations.

The union also has members in the mango, sugarcane, grape and avocado industries. In 2015, SITAG founded the FENTRAIR federation of unions in the agribusiness sector.

Our work in the booming Peruvian horticulture sector

Peru has become one of the world’s biggest exporters of horticultural products, from grapes to blueberries, with more than 800,000 workers in the sector. However this current agro-export boom is based on special legislation that denies many basic labour and union rights to agricultural workers. They are paid less and receive lower levels of bonuses, compensation for sudden or arbitrary dismissals, compulsory holidays and contributions to the health service than those established in the general labour regime.

A 2016 report by the US Department of Labor’s Bureau of International Labor Affairs (ILAB) found serious labor rights abuses in key Peruvian export industries, including “significant concerns” about the “current system to protect the right to freedom of association of workers employed on unlimited consecutive short-term contracts in Peru’s non-traditional export sectors”.

Model for conflict resolution

Peru’s fruit industry has increased exponentially in recent years, becoming one of the worlds biggest fruit exporters. This boom is thanks to legislation that allows producers to maximise their profits by paying workers less than other sectors and giving them fewer holidays, health care benefits and bonuses. Workers quickly became unionised, but due to lack of cooperation and organisation in management, workers lost trust and confidence in trade unions, causing a great deal of conflict. Resolution began with opening space for consistent dialogue between farm workers and unions, which was led by two well respected and experienced union workers. This roundtable format has increased trust and relations between plantation workers, management, and unions, and become an example for conflict resolution globally.

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Continuing Support to SITAG

We continue to support our Peruvian partner SITAG to organise workers in this growing sector, along with support to Sindicato De Trabajadores Empresa Talsa (SITETSA) in the face of criminal charges from the company against them.

An Ethical Trading Initiative (ETI) Working Group involving three major retailers and trade unions is starting a process of identifying more progressive employers who are prepared to work with trade unions in order to demonstrate to others in the sector that decent industrial relations and good working conditions are not only what buyers want, but will also not bankrupt the sector.

A Ground-Breaking Agreement Between the Union and Small Farmer Associations

The signing in August 2016 of a framework agreement on trade union rights and sectoral dialogue by seven banana producers’ associations and the main trade union in the sector, SITAG, is a major step forward for the producers and the workers and provides the basis for a fair sharing of the wealth created by the organic banana export industry in what was a very poor province of the country. It is also hoped that, through the trust-building process that the agreement seeks to promote, producers and workers will sit down and negotiate collective contractual arrangements to the benefit of both parties.

  • After many months of consultations with workers, SITAG presented a proposed industry-wide collective bargaining agreement to a group of small farmers’ associations in 2017.
  • SITAG has been able to secure check-off for union fees in four associations. Some employers are still resisting and not handing over what has been deducted from workers’ pay packets.
  • SITAG has also been able to establish three new joint Health & Safety Committees in the banana associations where it has strong membership; this is facilitated by new government legislation which gives these committees a strong regulatory framework.

Your Donations Helping to Rebuild Lives in Peru

Thank you for your donations to our appeal in support of tropical fruit workers who lost their homes in flooding in Peru in 2017. So far, we have raised £2000, which has been sent to Peru. The first £800 of your donations have been spent on buying 18 mattresses and 3 gas cookers, that were distributed to the victims in the La Libertad region, who are workers of the companies Talsa and Sociedad Agrícola Virú. They lost everything.

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Reinstatement won in court action

Following the campaign we launched in April 2016 in support of nine sacked SITETSA union executive members, we are pleased to announce that they have won their legal battle against unfair dismissal.
The Labour Court in Trujillo ruled in favour of four of the committee members, judging that TALSA had violated their right of union freedom, and also ruling that the company pay the litigation costs and the legal fees of the four. The five other committee members had already negotiated individual severance payments with TALSA.


 

Peruvian Agro-Export Company TALSA Dismisses Whole Union Committee

All nine members of the executive committee of the SITETSA (Sindicato De Trabajadores Empresa Talsa) union were sacked in February 2016 by their employers, the agribusiness company TALSA in Peru. Two former union members were also dismissed.

TALSA denied the legal existence, not only of the union committee, but also of the FENTRAIR federation (Federacion Nacional De Trabajadores Del Sector Agrario, Industria, Riego y Similares Del Peru) to which SITETSA belongs.

These dismissals occurred at the time when negotiations should have begun to renew the Collective Bargaining Agreement between the company and the union. Union members believe that the company is criminalising trade union activities in order to destroy their union and stop it defending workers’ rights.

Peru Resources

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