Gildan Tries to Cut and Run!

Posted July 25, 2004
Information for this alert was provided by Maquila Solidarity Network

On July 12, Gildan Activewear, a Montreal-based T-shirt company, announced that it would close its El Progreso factory in Honduras on September 30, 2004, a decision that will leave 1,800 workers unemployed. This decision was completely unexpected considering that the company is currently under investigations by the Fair Labor Association (FLA) and Worker Rights Association (WRC) for labor rights violation.

The company has been under investigation since a complaint was submitted by the Maquila Solidarity Network (MSN) to the FLA and the WRC in December 2003 following unjust firings of about 100 union sympathizers in 2002 and 2003. Although an official report has not been submitted yet, the fact that Gildan has been meeting with FLA and WRC to discuss corrective action proves that worker rights violations have been substantiated. Gildan's way of dealing with the situation was to close the Honduran factory and make plans to relocate to Haiti and Nicaragua.

Gildan claims, however, that the reason it is closing the El Progreso factory is not related to the audit of the factory or to worker organizing. The justifications it put forth include a lack of competitiveness in this specific factory, cheaper wages in neighboring countries like Nicaragua and Haiti and ongoing militant protests that block access to the free trade zone where the factory is located, which costs it 1 to 2 days of work per month. But these explanations are not satisfactory, given some of the circumstances described below.

If the firm previously had the intention to close its doors in Honduras, it would not have entered joint discussions with the FLA and WRC on corrective action and would not have waited to make such an announcement just before the reports of the FLA and WRC were to be made public. Also, it would not have begun the creation of "solidarista association" (a company union), which included the establishment of a savings and loan program for workers. Futhermore, if the reasons that it put forth were genuine, it would have decided to close the two other factories that it has in Honduras, not just the one that is subject to FLA and WRC investigations. Finally, as advocates for workers' rights and labor standards, we should not step aside as the company takes its business to cheaper locals such as Nicaragua and Haiti, which are also known for serious negligence of labor rights.

In a July 14 article in Quebec newspaper Le Devoir, WRC Executive Director Scott Nova is quoted as saying, "We are very troubled by their decision to close the factory. While we haven't seen all the facts, we fear that there is a link between the fact that they are subject to investigations for workers rights violations and the closure of the factory."

Gildan's decision to cut and run from the factory in the midst of negotiations on corrective action is totally unacceptable and a clear violation of the FLA's corporate membership requirements. Thus, the firm still has the obligation to take corrective action to address the violations that have been identified by the FLA and WRC, even if it were closing the factory for business reasons, a duty is clearly trying to escape.

Write Gildan Activewear to let them know that you are appalled by their announcement and that they must assume their responsibilities as employers!

Below is a sample letter to the vice-president of the firm, which you can feel free to modify. Letters can be sent by email to: slemay@gildan.com, by fax to: (514) 735-6810 or by mail at the given address.

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 express my anger at your company's decision to cut and run
from its responsibilities to the workers at its El Progreso factory in
Honduras. I am particularly disturbed that Gildan would announce such a
decision at a moment when it was in discussions with the Fair Labor
Association (FLA) and the Worker Rights Consortium (WRC) on corrective
action to address worker rights violations at the factory.

Gildan's decision to cut and run at a moment when a solution to problems at
the factory were within reach sends a clear message to workers in all your
company's off-shore facilities that if they attempt to organize, they will
be fired, and if they complain about violations of their rights, Gildan
will close the factory and eliminate their jobs.

This is totally unacceptable behavior and a clear violation of your
company's commitment to the FLA.

I strongly urge you to immediately reverse this misguided decision and
fully comply with all the recommendations for corrective action from the
FLA and WRC. If Gildan fails to reverse its decision, it has no right to be
considered an FLA member in good standing.

Sincerely,