Dear Friends,
This encouraging news on the situation at Mexmode (Kukdong) comes from the Nike international list.

source: Workers' Rights Consortium's April Update

MEXMODE (KUKDONG)

There have been two very positive developments at Mexmode in the last month.

1) On April 1st, the management at Mexmode and SITEMEX, the new independent union, signed a new collective contract. The contract calls for a direct wage increase of 10%, a 5% increase in cash benefits, and a new, substantial attendance bonus. Workers receiving the attendance bonus (granted to all workers who, in a given week, have no absences, instances of tardiness or disciplinary violations) will, as a result of the bonus and the direct increases, take home up to 40% more pay than they were receiving under the old contract. This large wage increase will have a very significant impact on the ability of Mexmode workers to support their families. The new contract is a clear indication of continued progress at Mexmode.

2) Also on April 1st, Nike announced the placement of a substantial order at Mexmode involving 215,000 units of fleece apparel -- with a value to the factory of roughly $2.5 million. This represents the fulfillment of Nike's pledge, announced in December, to place new orders at Mexmode in view of the substantial progress at the factory toward Code of Conduct compliance. It is unclear at this point whether Reebok is planning to place orders at Mexmode.

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