The crisis in the banana industry, caused by a number of factors including overproduction, has resulted in mass layons as production concentrates on low-wage, non-union Ecuador at the expense of countries where workers are unionised, with higher wages and benefits. Ecuador's Role in the Crisis: The crisis in the banana industry is characterised by the "race to the bottom", with Ecuador leading the way as the largest banana exporter in the world. Noboa, the largest banana exporter in Ecuador, is the fourth largest banana company in the world, following the three U.S. giants, Dole, Chiquita, and Del Monte. While Ecuador may have an advantage in banana production in terms of numbers, the working conditions, wages, benefits, and freedoms for the right to organise on Ecuadorian banana plantations are some of the worst in the region. Not surprisingly, unlike most of its competitors in the region, Ecuador's banana industry is almost completely un-unionised. In a study commissioned by US/LEAP in 2000, Ecuadorian workers reported earning an average of US$56 per month. This compares to an average monthly wage of over $500 in Panama, $200 to $300 in Colombia, $200 in Costa Rica, $150 to $200 in Ecuador have only partially narrowed the gap. sive buyer from independent producers) and Venezuela. Honduras, and $120 to $150 on Guatemala's Atlantic Coast. Subsequent minimum wage increases in Ecuadorian banana workers also have few if any benefits usually provided on most plantations in the region including housing, drinkable water supply, education for children, and health benefits. Because banana plantations are often not near any cities or towns, these benefits are essential to a decent life for banana workers.
Over the last few years, the low standards in Ecuador have enticed multinational corporations to move production from countries with higher labour costs and respect for worker rights, a trend that only furthers the depression of worker rights standards in the region. For example, Dole announced in November 1999 that it would layoff 9,000 workers and suspend its operations in Nicaragua (where it had been the excluin Ecuador.
Dole now gets about 30% of its bananas from Ecuador. Del Monte fired virtually its entire workforce in Costa Rica in mid-1999 and then rehired most of the workers, but with substantial pay cuts and loss of benefits. Chiquita began planting the less-labour intensive African Palm on some of its Honduran plantations and & La Teresa! then in June 2000 announced it would not rehabilitate other plantations destroyed by Hurricane Mitch, resulting in job loss. Fighting the race to the bottom: Bananas and Beyond: A defeat of banana unions would have an adverse effect on the labour movement in Central America. The hard won and long-standing unions in the banana industry are the backbone of the labour movement in many of the countries in Central America.
The banana industry is one of the most highly unionised industries in the private sector. The deterio ration of that backbone is a threat to working and living standards throughout the region. The best way to protect the standards of union plantations in Central America and Colombia is to raise the standards of all the plantations in the region, especially The struggle to form a union on eight of the Noboa plantations is the beginning of the fight to do just that. Support worker rights and a decent life for all in Central America, Écuador, and Colombia; support the General Union of Plantation Workers of Haciendas Yanayacu | & 2, Rey Rancho | & 2, La Nueva, Zapotal, (Information provided by US/LEAP)
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