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Honduras: Gildan accused by NGOs and unions of violating worker’s rights, company responds

Unions and NGO’s accused Gildan of allegedly not paying benefits that were accorded with the workers in a modernization process and that supposedly is not complying with the Labour authorities in Honduras. The Business & Human Rights Resource Centre invited Gildan to respond, the response is available.

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Company response
20 November 2018

Gildan’s Response

Author: Gildan

…The…allegation…related to the Star facility in El Progresso, Honduras, which was acquired by Gildan in 2012. At the time of the acquisition, the facility was unionized and we have successfully worked together on three renewals of the collective bargaining agreements with the SitraStar union, the last of which was signed in March 2018…the union has alleged a partial non-payment of severance to Star employees which was part of a negotiated agreement between the union and the Company related to changes in the production system within the facility…At the time of the change, employees that agreed to the new system were guaranteed their seniority and received their advance payments as described above. After receipt of the advance payments, the union requested of the Labor Ministry an inspection to review the payment process. The Labor Ministry visited the facility and issued a preliminary report of findings, which were not intended to be considered final, as the Ministry had yet to receive the complete data from the Company. The Company presented this complete data to the Labor Ministry in a hearing in early October that provided evidence to clarify…

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Article
7 November 2018

Gildan Activewear continues to violate workers' rights in Haiti and Honduras

Author: IndustriALL

...Sewing International SA (SISA), Gildan Mayan Textiles S. de R.L. has launched an anti-union campaign against its workers in Honduras…In September, 28 workers were fired for being members of the union SITRAGILMAS, part of the Federation of Workers of Honduras (FITH), an affiliate of IndustriALL. The company is refusing to comply with agreements reached with the union, is harassing workers and has made attempts to form a yellow union. Calling on the parent company in Canada, IndustriALL is urging Gildan to comply with the recommendations of ILO’s Better Work Programme, which has also requested that Gildan reinstate the workers in Haiti. Gildan is a member of the Fair Labour Association, which has yet to take action against the company's violations…Marino Vani, IndustriALL's regional secretary for Latin America and the Caribbean and part of the mission, said that: IndustriALL is demanding that Gildan Activewear takes urgent action with its suppliers in Haiti and Honduras to reinstate the union leaders who were dismissed in breach of international standards and that they urgently engage in a genuine social dialogue.

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Article
15 October 2018

To more than 744 thousand US dollars rises the amount in benefits that the company Gildan owes

Author: The International Union League for Brand Responsibility

To more than 744 thousand US dollars rises the amount in benefits that the company Gildan would have stopped paying to the workers of the company STAR in Progreso / Honduras who accepted in good faith a restructuring process to modernize the factory owned by the Canadian corporation in February of this year ... This modernization included the advancement of labour benefits to many workers to lighten the weight of the company's labour liability. However, the calculations of this advance of benefits made by the company were lower than that calculated by the Secretary of Labor, and the sum of what was not paid by the company to the affected workers, adds the amount mentioned above. The SITRASTAR union has matured the conflict to the secretary of labour, requesting first an inspection, which was the one that determined precisely that is owed ... $ US 744 thousand dollars ... to the workers. The case has also led to a conciliation in Tegucigalpa ... [This is an unofficial translation by Business & Human Rights Resource Centre, the original Spanish version can be found here]

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