VICTORY FOR H&M WORKERS IN PERU

After three years of negotiations, the sole union of H&M Workers in Peru (SUTRAHYM) successfully concluded collective bargaining agreements with H&M for the years 2022, 2023, and 2024 at the end of December 2024.

First, both parties agreed on the initial clause, which defines the scope and commitments made during the collective bargaining process. This establishes that the agreement aims to ensure fair and transparent working conditions for H&M workers in Peru.

“We see the conclusion of these negotiations as a historic achievement for our organization. After three years of negotiations, we have secured salary increases, improved working conditions, and the recognition of our rights,” said Cynthia García, General Secretary of SUTRAHYM. “This victory is a starting point for the future. We will continue to grow as a union and add more members,” she concluded.

Regarding economic matters, the company agreed to increase the monthly base salary of union-affiliated workers for each year, with a 2.80% raise starting in January 2022, a 3.50% increase from 2023, and a 4.00% increase from 2024.

Similarly, the company will provide a schooling allowance for union-affiliated workers with children in initial, primary, or secondary education, as well as for those with children with disabilities requiring rehabilitation therapies. Alongside this allowance, a birth bonus was also established, as well as financial assistance in the event of the death of immediate family members.

“The agreement reached between the union and the company in Peru has finally ruled in favor of the workers after several years of struggle.” said Marcio Monzane, Regional Secretary of UNI Americas. “We want to thank the Handels and Unionen unions for their unwavering cooperation and support for SUTRAHYM, to continue organizing more workers and growing union strength.”

A one-time financial contribution of 8,250 soles (2,210 USD) was also agreed upon for the union, along with a union leave allowance of 40, 45, and 50 days for each respective year, which are additional to those established by law, and a bonus for the closure of the collective agreement for each year. It was also established that all agreed-upon financial reimbursements will be made effective within 60 days of the signing of this agreement.

Both Handels and Unionen played an active role throughout the years the process lasted. “Handels sends our heartfelt congratulations on SUTRAHYMs significant union victory. Their dedication, resilience and hard work have led to an achievement that strengthens not only their members but also the broader movement for workers rights. This bargaining success shows the importance of social dialogue as a key instrument for securing lasting progress and fair working conditions. Handels hopes for an ongoing fruitful dialogue between H&M Peru and SUTRAHYM.”

From Unionen, they added: “Unionen would like to congratulate SUTRAHYM on their recent bargaining success. Unionen hopes this milestone achievement will pave the way for long-lasting constructive social dialogue between the union and H&M in Peru and set an national industry benchmark for other multinational companies to follow.”

From UNI Americas, we celebrate the outcome of this negotiation and hope that the implementation of these agreements strengthens the relationship between the company and its workers, promoting a fair and sustainable work environment.”