On Friday, the United States Department of Labor (DOL) responded to a trade complaint filed last summer by ILRF and Peruvian trade unions to challenge the NTEP law and other abuses. DOL released a report that confirms what we’ve known for years. The report suggested that the NTEP law “embolden[s] employers who seek to undermine” workers’ rights to unionize, because companies “have little fear of…repercussions.” As a result, DOL acknowledged, workers could “find it more difficult to exercise their…rights without fear of retaliation.” The report also highlighted concerns around Peru’s systematic failures to enforce its labor laws.In Peru, it is perfectly legal for companies that export clothes and fresh produce to the U.S. to hire workers on short-term, temporary contracts that can be renewed indefinitely. Employers regularly use this practice, allowed under Peru’s Non-Traditional Export Promotion (NTEP) Law, to bust unions. It happens like this: if workers attempt to organize to improve wages and working conditions, their bosses just refuse to renew their contracts.

ILRF welcomes DOL’s findings on Peruvian labor law, and we stand behind the report’s recommendations on how Peru should fix its laws to protect workers’ union rights. But ultimately, what matters most is what happens next.

Despite DOL’s strong findings, the report provides no deadline for Peru to make the suggested legal and policy reforms. The U.S. Government commits only to reviewing the progress Peru “may make” in nine months. This lack of urgency is disappointing.

Right now, the controversial Trans-Pacific Partnership (TPP) – a mega-trade deal that includes Peru – is stalled in Congress until after the November elections. If the TPP is enacted, Peru will immediately be in violation of the agreement’s labor standards unless it implements the necessary reforms.  

We’ll keep you posted on Peru’s response, what it all means for workers, and how you can help in the months to come. In the meantime, you can read ILRF’s full statement on the report, and the report itself, on our website.

Thanks so much for your support of ILRF’s work for trade justice!

In Solidarity,
Eric Gottwald
Legal and Policy Director