Thirty-four union members at a free-trade zone plant financed by the IFC – laid off for over six weeks – were reinstated on 14 April. Management further agreed to provide medical treatment to those who were beaten; to pay back-salaries for the time of the dispute; and to recognise the right to unionise inside the factory. The layoffs vindicated fears of labour and NGO monitors who had pushed the IFC into commissioning an independent investigation into prior alleged labour violations against the plant’s owners, Grupo M.
World Bank & IMF in the news
EarthRights International examines how the Jam v. IFC case has helped to shift the landscape of accountability for international financial institutions by successfully challenging their claim to “absolute” immunity in US courts, potentially opening IFC up to further legal challenges in future.