Put more pressure Gildan!

16 Nov 2004, Dear Friends,
Please find below an update from the Maquila Solidarity Network on the case of the El Progreso factory in Honduras, which produced garments for Gildan Activewear, a Canadian company that also sells T-shirts in Europe. The CCC encourages you to follow up on the action request below.

Update on Gildan/El Progreso case

Source: Maquila Solidarity Network, Canada
Date: October 29, 2004

Fair Labor Association Gives Gildan One Last Chance to Take Corrective Action, or Face Expulsion from the FLA

On October 26, the Fair Labor Association (FLA) Board of Directors determined that Canadian T-shirt manufacturer Gildan Activewear had not fully met the conditions for continued FLA membership and therefore was not in compliance with the FLA Standards. The Board unanimously passed a motion to terminate Gildan’s status as a FLA Participating Company, effective December 10, 2004, unless, by November 30, 2004, Gildan implements an acceptable corrective action plan and meets several other conditions.

The conditions set by the FLA Board include:

1. Publicly acknowledging that there were restrictions on freedom of association at the El Progreso factory, which the company closed on September 24;

2. Effectively communicating to its Honduran employees in its three remaining factories in that country the company's commitment to respect their right to freedom of association;

3. Completing a corrective action plan that includes paying full back pay and severance pay to 39 workers fired for supporting unions in November 2003, and completing the first stage of a training program on freedom of association for workers and management personnel;

4. Correcting misrepresentations on Gildan’s compliance with the FLA Standard on the company’s website and other misrepresentations that appeared in the media; and

5. Constructively engaging with MSN on Gildan’s implementation of the FLA Standards.

While MSN continues to believe that Gildan’s decision to close the El Progreso factory in the midst of a third party complaint process is, in and of itself, sufficient grounds to terminate Gildan’s membership in the FLA, we feel the FLA Board has done the right thing in setting a clear deadline and strict conditions for Gildan to take corrective action or lose its status as an FLA Participating Company.

To access the FLA Resolution, visit: www.fairlabor.org/all/news/gildan.html.

If you didn't already send a letter to Gildan please write them to protest the company's decision to cut and run from its responsibilities to its El Progreso workers in Honduras.

Thanks for your continuing support.

Please read the updates on this case !

In December 2003, MSN, the Canadian Labour Congress, and the Independent Federation of Honduran Workers (FITH) filed a formal complaint with the FLA and the Worker Rights Consortium (WRC), alleging that approximately 100 workers at Gildan’s El Progreso factory had been fired for supporting unions in 2002 and 2003.

The FLA and WRC carried out separate investigations, which found that El Progreso workers’ rights had been violated as alleged in the complaint. However, in the midst of discussions with the FLA and WRC on a corrective action plan to address the violations, Gildan made the surprise announcement that it was closing the factory.

On July 26, the FLA placed Gildan on a 90-day Special Membership Review because the company had “failed to achieve or maintain compliance with the FLA’s standards.”

On September 24, Gildan closed the El Progreso factory, leaving 1,800 workers unemployed. While Gildan claims it has fully complied with legal requirements concerning severance pay and other benefits, it has not offered laid-off workers first hire opportunities at other Gildan factories in Honduras.

On October 26, the FLA Board determined that Gildan had not yet fully met the conditions for continued FLA membership and therefore was not in compliance with the FLA Standards. The Board unanimously passed a motion to terminate Gildan’s status as a FLA Participating Company, effective December 10, 2004, unless, by November 30, 2004, Gildan implements an acceptable corrective action plan and meets other conditions.

For more information on this case, please contact MSN:

Maquila Solidarity Network / Ethical Trading Action Group
606 Shaw Street, Toronto, Ontario, Canada M6G 3L6
416-532-8584 (phone) | 416-532-7688 (fax)
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www.maquilasolidarity.org