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Multinational Companies:
United Fruit Co, Chiquita
History
"The yellow fruit that saw red." Traces United Fruit's background to Boston Fruit Company merged with the interests of Brooklyn-born Central American railroad baron Minor C. Kerith. "Their aim was to own and cultivate large areas of Central American land using well-organized, modern methods, providing predictable harvests of bananas which Keith, who controlled virtually all of Central America's railroads, could then carry to the coast for shipment to the USA......"As the company grew richer and the stakes grew higher, the company came to be known as "El Pulpo" (the Octopus). Local journalists accused it of corrupting government officials, exploiting workers and of generally exercising an influence far beyond its role as a foreign company....Personal financial interest in high places coupled with a general fear that Guatemala was on the brink of fullly embracing communism led to the CIA-engineered coup of 1954. The tremendous power of the United Fruit Company had succeeded in setting back democratic development in Guatemala by at least half a century."
"Under dictator Jorge Ubico (1931-1944), American-owned United Fruit Company gained control of 42% of Guatemela's land, and was exampted from taxes and import duties. The other two of Guatemala's three main enterprises -- International Railways of Central America and Empress Electrica -- were controlled by United Fruit.
1954 Involvement in the Coup against President Arbenz
In 1954, a CIA-orchestrated coup ended what Guatemalans call the "Ten Years of Spring," which began with the bloodless overthrow of military dictator Jorge Ubico in 1944. During this period, two democratically-elected civilian presidents governed Guatemala, trying to provide opportunities and raise the standard of living. Jacobo Arbenz, elected in 1950, began to push agrarian reforms more seriously than his predecessor. The United Fruit Company (now Chiquita) (UFCo) protested when unused portions of its vast holdings were expropriated and distributed to land-less peasants. The Guatemalan government paid the US company the tax-declared value of the land, but UFCo protested to the highest levels of the US government. Two UFCo stockholders at the time were the Dulles brothers, Secretary of State and head of the CIA in the Eisenhower administration. © 1998, Piet van Lear, A War Called Peace
Following the coup, Colonel Castillo Armas became the new president. the U. S. Ambassador furnished Armas with lists of radical opponents to be eliminated, and the bloodletting promptly began. Under Armas, thousands were arrested and many were tortured and killed. A "killing field" in the Americas: U. S. policy in Guatemala
The coup unleashed one of the most brutal military regimes in the hemisphere. Some 140,000 people have been killed and another 45,000 disappeared in a U.S. backed scorched earth campaign to wipe out dissidents, rebels and activists for peace and social justice in Guatemala. The abuses by the Guatemalan military and its death squads were so horrific that even Amnesty International reported that they "strained credulity." But next week, the guerrillas of the Guatemalan National Revolutionary Unity or UNRG, will sign a controversial peace accord with the government and formally end a generation of war. December 27, 1996 Democracy Now Broadcast,
Chiquita Today
Chiquita's web site, including Chiquita's description of their efforts to aid recovery from Hurricane Mitch.
Chiquita Banana Update by the Latin America Working Group, describing the May 1998 International Banana Conference in Brussels, the appearance of sympathy to the 20,000 workers directly emplyed by Chiquita, but of actual efforts to undermine the unions and to force new agreements which would weaken the union and roll back advances previously won. 4000 of Honduras' 7000 banana workers will not have work for the next 18 months until the plantations are rehabilitated, and it will take three years before the packing plants used in banana production will be ready for workers' return.
International Federation of Free Trade Unions and International Union of Food and Agricultural Workers (ICFTU-IUF) has issued a statement on "The Forgotten Victims of the Banana War". [Contact: ICFTU-Press at: ++32-2 224.02.12 (Brussels) cited in an article by ICFTU Online, March 11, 1999. The article highlights a "dirty war" being carried on by multinationals against the banana workers' trade union, taking advantage of the effects of Hurricane Mitch. Offenses include:
- Relocation has been threatened in Honduras by the other
banana giant, Chiquita, which last February gave the banana
workers' union an ultimatum, saying it would leave the country if
workers refused to sign a new collective agreement in which some
of the guarantees secured previously by their union had been
removed. The international trade union pressure exerted by the IUF
did serve to re-open negotiations however, although packers,
mainly women, were informed that they could not expect their jobs
back before the end of 1999.
- In Costa Rica, the banana producers took advantage of the wave
of migrations following Hurricane Mitch to hire Nicaraguan and
Honduran workers on their plantations. Hundreds of thousands of
refugees, mainly "illegal", had no other choice than to accept
insecure jobs and exploitative conditions, notes the ICFTU. A
coalition of producers, members of the government and the Church
is about to secure legal recognition from parliament for the
solidarista organisations. These pro-employer organisations are
virtually waging war on the trade union movement in Costa Rica, in
their efforts to replace it. According to the ICFTU, despite the
International Labour Organisation's repeated condemnation of the
solidarista movement as an attack on the right to form trade
unions, the Costa Rican parliament is preparing to open a debate
on April 1 which could lead to its official recognition. IUF
affiliates also report fresh attempts to set up solidarista
organisations in Guatemala where the trade unions have previously
been able to resist the spread of this form of anti-trade
unionism.
- In Panama police raided a plantation last January belonging to a
subsidiary of Chiquita. Workers were ordered to produce their
identity papers and six of them were taken away and beaten up. The
Armuelles Fruit Company, a Chiquita subsidiary, was the subject of
a complaint to the Labour Ministry about the unfair dismissals of
28 workers last December. The Armuelles Fruit Company is well-
known to the labour inspectors, having been fined several times
for refusing to cooperate with them. One of the charges against it
concerns the death of a worker, a case which has yet to be
clarified.
Virtual Truth Commission: Telling the Truth for a Better America
Home Page |
Countries |
Multinationals |
Names |
Dates |
Topics |
Allies
United Fruit/Chiquita |
Mobil Oil Company
Sign Guestbook |
View Guestbook |
Translation Service
Titles "Virtual Truth Commission" and "Telling the Truth for a Better America" © 1998, Jackson H. Day. All Rights Reserved.
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Updated March 15, 1999
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