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10 August, 2026FESITEX, Nicaragua's national federation of textile, clothing, leather and footwear trade unions, has won an agreement with BTF, securing outstanding benefits for 249 workers made redundant in 2025.
The textile screen-printing company had dismissed most of its staff without paying severance and other benefits required under Nicaraguan labour law. In March 2026, IndustriALL general secretary Atle Høie wrote to BTF’s management, denouncing the breaches. BTF managing director Giljoo Han replied, acknowledging the outstanding obligations. He attributed the delays to a difficult economic situation and presented a new payment plan drawn up with the Ministry of Labour.
Social dialogue resolves the dispute
In April, company and worker representatives met at BTF’s premises. They confirmed that 249 workers were owed payments. They agreed a phased settlement based on the Ministry of Labour’s official calculations and relevant court rulings. Despite a temporary closure due to a lack of orders, BTF made its first payment, to 61 workers, on 5 May.
On 31 July 2026, BTF, the former workers and the Trade Union Confederation of Free Zone Workers, CST-ZF/CST, signed a settlement agreement. The agreement formally recognizes that social dialogue delivered the solution. BTF made full, individual payment of all benefits owed to 188 former workers. This included length-of-service pay, holiday pay, thirteenth month’s salary and outstanding wages. Together with the 61 paid in May, this resolved the claims of all 249 workers.
FESITEX general secretary Pedro Ortega said:
“We would like to thank everyone for their international support and solidarity. Without that backing it would not have been possible to reach this agreement. Social dialogue is a tool to achieve satisfactory solutions when labour disputes arise. We also thank the company for its willingness to reach this solution.”
BTF will resume operations from 20 August, hiring 36 workers under a new production order. The company hopes to expand this in the coming months, gradually reopening fully and creating up to 300 jobs.
IndustriALL’s regional secretary, Marino Vani, said:
“Despite the long road to this agreement, we welcome it with great satisfaction. It is the result of FESITEX’s perseverance and the commitment of those who never stopped pushing for a fair solution.
“We are confident the commitments made will be fully honoured, and we thank everyone whose collective effort made this progress possible. This agreement stands as an example of organisation, solidarity and the defence of workers’ rights.”