Fair Labour Association gives Gildan the boot

Labour practices monitor revokes Montreal-based clothing manufacturer's membership, leaves door open for Gildan to retain membership if it meets a number of conditions

Gildan Activewear, a Montreal-based clothing manufactuer, has been kicked out of the Fair Labour Association — but the association’s board of directors left the door open for Gildan to take steps to maintain its membership.

As reported in the Oct. 25 print issue of Canadian HR Reporter, Gildan had until the end of October to convince the New York-based not-for-profit labour practices monitor that it was complying with regulations.

Gildan was put on special review status, akin to probation, on July 26, 2004. The move came after the company announced it would close down the El Progresso factory in Honduras, the site of alleged workers’ rights violations dating back to 2002.

On Oct. 26 the Fair Labour Association’s board of directors unanimously approved a resolution to end Gildan’s membership in the association effective Dec. 10. But it left a window open for the company to remain a part of the association. If Gildan provides satisfactory evidence by Nov. 30 that it has met a series of conditions it can retain its membership. Gildan must:

•Issue a clearly worded public statement that acknowledges there were restrictions in its El Progresso factory on workers’ rights to freedom of association, including posting such a statement on its website.

•Correct misrepresentations of Gildan’s compliance with Fair Labour Association standards that appear on Gildan’s website.

•Correct misrepresentations attributable to Gildan of the Fair Labour Association’s position or of Gildan’s position relative to the association by sending written notices correcting the record to the specific media where any misrepresentations occurred.

•Effectively communicate to its Honduran employees Gildan’s commitment to their associational rights.

•Demonstrate the completion of a remediation plan including:

— Evidence of payment to (or, if necessary, escrow) of back wages to the 39 dismissed workers on the list provided by Workers Right Consortium, from the date of dismissal through Sept. 30, 2004, as well as severance packages based on each worker’s original date of hire at the factory.

— Evidence of completion of initial training by Verite on freedom of association for workers and managers, and adoption of plans for subsequent trainings in Gildan Honduran facilities and a plan for evaluation of the effectiveness of the training.

•Constructively engage in discussions with Maquila Solidarity Network on issues related to Gildan’s implementation of Fair Labour Association.

In a posting on its website in response to the association’s decision, Gildan said, “we will continue our efforts to comply with the requirements and to work constructively with both the FLA and other interested stakeholders.”

Gildan also said it remains committed to subjecting itself to the highest standards of third-party monitoring and to “further enhancing our operations as a result of any audit findings.”

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