After a campaign that lasted over three years, the Indonesian garment factory PT Mulia Knitting Factory finally acknowledged the right of its workers to form unions of their choice. The factory, located on the outskirts of the capital Jakarta, signed an agreement with the union GSBI in May.

The agreement also clearly recognizes SBGTS, the factory-based subsidiary of GSBI, as the representative of their members in the Mulia factory, and provides compensation for five former employees who were dismissed in 2007 as a result of of their union membership. The five had continued their struggle for the Right to Freedom of Association.

GSBI and the CCC appreciate the role that was recently played by one of the foreign buyers at the factory, Tommy Hilfiger. The company's pressure on the factory's management over the last few months has been crucial in bringing about this agreement.

At the same time, we regret that it has taken more than two years since our initial contact with the Tommy Hilfiger corporation in February 2008 before the company decided to take effective measures to bring an end to the gross labour rights violations at this supplier.

The other main foreign buyer at the Mulia factory, Polo Ralph Lauren, has consistently refused any communications relating to the labour-rights violations, a policy that is in line with their conservative practices regarding corporate social responsibility. Although Polo Ralph Lauren actively promotes charities and philanthropic programs, it refuses to mainstream ethical trading principles in its day-to-day operations.

Because of the slow and protracted process of this case, 14 former Mulia employees and union members were forced to stop the fight for their rights at an earlier stage due to economic hardships and opted for a financial settlement with the factory. Unfortunately, none of the irregularly dismissed union members have been reinstated in their former positions.

The new agreement doesn't cover all of the concerns that the union originally raised, such as pregnancy leave for female workers, a failure to offer safe transportation for female workers after night shifts as per Indonesian law, noncompliance with laws concerning health and pension benefits, inadequate safety equipment and keeping workers under precarious contracts.

However, with the union now firmly established at the factory, the hopes are high that these issues will be resolved through the regular social dialogue between the union and factory management.