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Company Response

20 Nov 2018

Author:
Gildan

Gildan’s Response

…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…