Gildan Pays $700,000 to Cover Collegiate Supplier’s Arrears to Workers

I am writing to report on a new case, involving unpaid severance at a factory in Haiti that closed recently, after having made university logo goods for many years. Premium Apparel closed in November without paying workers approximately $700,000 in legally mandated severance and other terminal compensation. The factory’s owner refused to fulfill his legal obligations to the workers, and it was soon clear that there was no means available to compel him to do so.

I am pleased to report that Gildan Activewear, which sourced blank goods at Premium for the university licensee New Agenda and many other customers, made a commitment to the WRC, shortly after the factory’s closure, to pay workers 100% of the severance and other compensation they are currently owed. We have confirmed that the process of distributing these funds to workers began this week.

Here is some additional background: Last year, Gildan was forced by exigent circumstances to discontinue sourcing from Premium. In June 2023, Gildan informed the factory’s owner, the Apaid Group, of its plan to fully exit the factory by November. Gildan, whose orders represented most or all of the factory’s sales, engaged with the Apaid Group in an attempt to ensure that, if Gildan’s departure led to the closure of the factory, workers would receive the full amount of severance and other compensation legally owed to them. 

However, on November 10, 2023, Premium’s owner announced that the factory was closed and told workers that he would not be paying them any of the compensation they were legally due. Shortly thereafter, Gildan, recognizing its responsibility to protect the rights of the workers who made its clothes, committed to the WRC that it would pay the workers in full. 

The WRC is monitoring the distribution process to verify payment. The WRC will also engage Gildan concerning debt the factory may have owed in unpaid contributions for workers to the Haitian pension system.

Needless to say, Gildan’s commitment came as a great relief to the workers at this facility, many of whom sewed collegiate apparel for years. Gildan’s actions have averted any ongoing severance violation at Premium, ensuring compliance with the provisions of Haitian law, Gildan’s code of conduct, and university codes that require payment of legally mandated terminal compensation to employees.

We will relay further updates on this case as warranted. As always, please let us know if you have any questions.