property, management, and profits” (Art. 1). It is established as a private legal entity whose objectives are: (a) to contribute to the establishment of constructive forms of interrelation within the industrial corporation; (b) to strengthen the industrial corporation though the joint action of its members in management and in the productive process, and their sharing in the ownership of the corporation’s assets; (c) to establish an appropriate and rational distribution of benefits among the investors and employees of an industrial corporation; and (d) to promote ongoing training and encourage creativity among the company’s workers (Art. 3). 44. The objective of regulating the Industrial Communities was to have employees share in the assets and management of the corporation. In this respect, the law provides that the industrial corporation will deduct 15% annually from its net pre-tax income to establish its employees’ assets and contribute funds to the Industrial Community until it reaches an amount equal to 50% of the company’s capital stock (Arts. 38 & 39). As for employee participation of the management of the company, the law established that the employees in the Industrial Community will take part in the company’s management by appointing representatives to the company’s Board of Directors (Art. 61 et seq.). 45. According to the Decree Law, the leadership and administration of the Industrial Community is the responsibility of a General Assembly, composed of all the members of the Community, and an executive body called the “Community Council” (Arts. 19 & 29). The Community Council is responsible for managing the Industrial Community’s assets, in particular by drafting an annual budget, balance sheets, reports, and the annual report of the Industrial Community, drafting plans for the development of the Community, and devising the annual investment plan for the share of assets that belongs to the Community (Art. 30). 46. According to the law, the members of the Industrial Community are entitled to elect the members of the Community Council, as well as the employee representatives on the company’s Board of Directors (Art. 16). For these purposes, the General Assembly will appoint an Electoral Committee every year, which will be responsible for holding elections for the members of the Community Council and the representatives to the company’s Board of Directors, for each term (Art. 23). b. Mr. Lagos del Campo as union leader and his resulting dismissal 47. On July 12, 1976, Alfredo Lagos del Campo began working as an operator electrician in the maintenance department of the company Ceper-Pirelli S.A.5 The records in the case file show that Mr. Lagos del Campo held various leadership positions within the company’s employee union, including secretary of defense for two terms (1982-1983 and 1985-1986), and as secretary general (1983-1984).6 48. As a permanent employee of the company, and in accordance with Decree Law 21789, Alfredo Lagos del Campo was also part of the company’s Industrial Community, where he held positions representing shop floor workers. During the 1988-1989 term, he held the position of President of the Electoral Committee of the Industrial Community,7 the entity responsible for holding the elections for Community Council members and the representatives before the company’s Board of Directors for this term (supra para. 48). 49. On April 26, 1989, in his capacity as President of the Electoral Committee of the Industrial Community, Alfredo Lagos del Campo complained to the Participation Office of the Ministry of Industry regarding irregularities in the calling of elections for members of the Industrial Community Board and for the employee representatives to the company’s Board of Directors, to be held on April 28. After the elections, a group of 5 Annex 2. CEPER-PIRELLI. Pay stub for Alfredo Lagos del Campo. Week of June 26 to July 2, 1989. Attachments to the petitioners’ communication of July 23, 1998; Annex 8. Fifteenth Judge of the Labor Court of Lima. Judgment 25-91 issued on March 5, 1991. Attachments to the petitioners’ communication of July 23, 1998. 6 Annex 3. Note entitled ¨List of Officers with their respective positions. 1982 – 1983 term.¨ Undated; Union of Employees of CEPER. Note addressed to the Chief of the Union Registration Division. June 1983; Union of Employees of CEPER. Note addressed to the Chief of the Union Registration Division. June 1985. Attachments to the petitioners’ communication of March 16, 2011. 7 Annex 4. Ministry of Industry. Participation Office. Official Letter No. 1526 ICTI/OGP-38. Registration of the Electoral Committee. August 9, 1988. Attachments to the petitioners’ communication of July 23, 1998. 8

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