Gildan El Progreso shuts down, urgent action needed

October 10th, 2004,

Dear Friends,
We are disappointed to report that Canada-based Gildan Activewear has closed its El Progreso factory in Honduras, in the midst of a dispute regarding questionable labor practices at the factory. They plan to relocate production elsewhere. It is crucial that Gildan is sent a clear message that this is unacceptable – workers who speak out in defense of their rights should not be punished.

Please pressure Gildan to properly compensate their El Progreso workers (including those unjustly fired for supporting the union) and meet other key demands articulated by the workers. The Maquila Solidarity Network (MSN) continues to coordinate an international campaign to ensure that the rights of the El Progreso workers are respected – please see their action request and sample letter below. Letter-writers from Europe are encouraged to send copies of their protest letters to the Gildan distributor in their country. A list of these distributors can be found in the previous appeal circulated by CCC on this case http://www.cleanclothes.org/urgent/04-07-30.htm#action. For more background on Gildan and El Progreso, please also see the earlier appeals distributed by MSN http://www.maquilasolidarity.org/campaigns/gildan/index.htm.

Gildan Closes El Progreso Factory in Honduras
Tell Gildan: Don't Run Away from Your Responsibilities to El Progreso Workers

October 1, 2004
source: Maquila Solidarity Network

On September 24, Montreal-based T-shirt manufacturer Gildan Activewear closed its El Progreso factory in Honduras, leaving 1,800 workers unemployed. Back in July, Gildan had made the surprise announcement that it was closing the factory in the midst of discussions with the Fair Labor Association (FLA) and the Worker Rights Consortium (WRC) on corrective action to address serious worker rights violations substantiated in two independent investigations. Gildan is a member of the FLA, but its continued membership is currently under review.

Gildan's decision to cut and run from its responsibilities to its El Progreso workers rather than compensating the workers whose rights were violated, sends a clear message to all Gildan workers that if you attempt to organize to improve conditions or tell the truth to factory auditors, you will lose your job.

While Gildan claims it has complied with its legal obligations to the workers who are now out of a job as a result of the factory closure, to date, the company has NOT fully complied with recommendations for corrective action from the FLA and WRC or with the conditions set by the FLA for continued membership in the Association. Nor, to MSN's knowledge, has Gildan offered laid-off El Progreso workers first-hire employment opportunities at other Gildan factories in Honduras or used its influence to ensure that the workers are not blacklisted by other employers in the free trade zone.

On July 27, the FLA placed Gildan on a 90-day Special Membership Review, and set specific conditions for the company's continued membership in the Association. These conditions include:

• Developing a satisfactory remediation plan for the worker rights violations found by the FLA-accredited monitor, and implement that plan in a timely manner;

• Publicly acknowledging that there were restrictions in the El Progreso factory on workers' right to freedom of association;

• Publicly acknowledging that it accepts and agrees to adhere to the Freedom of Association standard in the FLA Workplace Code of Conduct in its business operations; and

• Communicating to its Honduran employees its commitment to their associational rights.

The WRC has also posted its investigative findings on its website, along with information on corrective action proposed to Gildan and the company's response. You can access the report at: www.workersrights.org.

Although the El Progreso factory is now closed, Gildan cannot be allowed to shirk its responsibilities to its 1,800 laid-off employees or to the approximately 100 workers who were fired for supporting unions in 2002 and 2003. These responsibilities include:

• Offering El Progreso workers first-hire job opportunities at other Gildan factories in Honduras and protection against blacklisting at other factories in the free trade zone;

• Providing full back pay to all unjustly fired union supporters from the date of their firings to the date of the factory closure;

• Fully compensating all workers who did not receive legal overtime pay and/or vacation pay; and

• Fully complying with the conditions set by the FLA for the company's continued membership in the Association.

Please write a letter of protest today to Gildan today.
By E-mail: slemay@gildan.com, or by fax to: (514) 735-6810.

If you are involved in an organization or institution that purchases Gildan products, please urge that organization/institution to tell Gildan they will not place any future orders with the company unless and until it satisfies the FLA and WRC that it has met its responsibilities to the recently laid-off and unjustly fired Gildan El Progreso employees and has complied with the FLA's conditions for continued membership.

For updated information, please visit our website at: www.maquilasolidarity.org.

SAMPLE LETTER:

Stephane Lemay, Vice-President, Public and Legal Affairs
Gildan Activewear
725 Montée de Liesse
Montreal, Quebec, H4T 1P5

Dear Mr. Lemay,

I am writing to protest your company's decision to cut and run from its responsibilities to its El Progreso workers in Honduras. I understand your company has not yet fully complied with the recommendations of the Fair Labor Association (FLA) and Worker Rights Consortium (WRC) for corrective action to address documented worker rights violations at the factory. I am also concerned that Gildan has not yet complied with the FLA's conditions for continued membership.

I urge you to take immediate action to make good on your responsibilities to recently laid-off Gildan El Progreso workers and the approximately 100 Gildan El Progreso workers who were fired for supporting unions in 2002 and 2003.

If Gildan wants to be considered a socially-responsible company, it must do the following without further delay:

1. Offer El Progreso workers first-hire job opportunities at other Gildan factories in Honduras and protection against blacklisting at other factories in the free trade zone;

2. Provide full back pay to all unjustly fired union supporters from the date of their firings to the date of the factory closure;

3. Fully compensate all workers who did not receive legal overtime pay and/or vacation pay; and

4. Fully comply with the conditions set by the FLA for the company's continued membership in the Association.

I look forward to receiving information on the actions your company is taking to address my concerns.

Yours truly,
(Name, City, Country)