Worker Rights Consortium Status Report re: Ongoing Monitoring Sweat Free Ordinance Independent Monitor Agreement (Agreement No.

Transcription

1 Worker Rights Consortium Status Report re: Ongoing Monitoring Sweat Free Ordinance Independent Monitor Agreement (Agreement No. C ) The following is a report of the Worker Rights Consortium ( WRC ) on labor rights monitoring and enforcement efforts at facilities manufacturing apparel, footwear and accessories for the City of Los Angeles. These activities were carried out pursuant to Section 5.5 of the above-named agreement. This report covers the period from June 1, 2015, through March 31, The goal of the WRC s monitoring activities is to identify and correct violations of the City s Ordinance. A majority of this monitoring work is carried out through off-site worker interviews, conducted away from the factory and in locations chosen by the workers where they know that they can speak candidly about their working conditions. The interviews, in most cases, have been arranged by local organizations that the workers trust. This comes as a result of the WRC s ongoing communication with local civil society organizations and labor unions in the countries and regions where City suppliers are located who, acting on behalf of the workers, bring to the WRC s attention possible violations that have occurred at the workplace. This report includes information about several City supplier factories where the WRC has gathered information regarding potential or confirmed violations of the City s Ordinance. The WRC will continue to carry out monitoring activities at each of these factories in order to verify violations of the Ordinance and will report to the City if further action is required. Bangladesh In the previous year s monitoring report, the WRC reported on Dekko Fashions Limited ( Dekko ) and found evidence of potential violations at the factory, located in Mirpur, an area in the north of Bangladesh s capital, Dhaka. Dekko is disclosed as a producer of shirts to the City of Los Angeles by the Galls subcontractor Edwards Garment. The WRC conducted a series of follow up interviews with Dekko workers in February and March The workers interviewed reported the following issues: A. Failure to Provide Statutory Rest Days As reported in the previous monitoring period, Dekko workers continue to report that they are sometimes required to work seven days per week without receiving a legally mandated rest day. Workers report that this is more often an issue during particular times of the year. For example, workers are often required to work seven days a week in the period leading up to the Muslim holiday of Eid, during which time the factory is closed. During the current monitoring period, 5 Thomas Circle NW Fifth Floor Washington, DC (202) Fax: (202) wrc@workersrights.org

2 Dekko workers report working seven days a week for at least four consecutive weeks during the weeks preceding the Eid holiday. The Bangladeshi Labor Act, Article 103, requires that workers be provided with at least one full day of rest every week. B. Failure to Provide Legally Mandated Benefits Bangladeshi law, in Articles of the Labor Act, requires employers to provide employees with paid leave as follows: 1) 14 days per year of sick leave; 2) 10 days per year of casual leave; and 3) 20 days per year of annual leave. Workers reported to the WRC that requests for leave of only one day are made verbally to their direct supervisors but that when the workers wish to request multiple days of leave, they must submit a written request to management requesting the days that they wish to take off from work. While the workers reported that the verbal requests for one day off are often granted, the requests for multiple days continue to be denied, despite the workers legal right to take days off. Management frequently denies these days off without offering any reason for doing so. While in most workplaces the timing of employee leave is subject to approval by management, worker testimony in this case suggests that the managers are so reluctant to grant any time off that workers are functionally prevented from taking their legally guaranteed leave. C. Excessive Overtime and Failure to Properly Document Overtime Hours Article 102 of the Bangladeshi Labor Act prohibits a worker from working more than 60 hours in any week and states that workers may not work more than an average of 56 hours a week during a given year. Dekko workers are scheduled to work eight hours a day, six days a week. They report for work at 8:00 a.m. and their workday ends at 5:00 p.m. with one hour for an unpaid meal break. Workers reported to the WRC that they standardly work two additional hours, from 5:00 p.m. to 7:00 p.m. Therefore, in practice, Dekko workers are consistently working, as a regular schedule, a total of 60 hours per week, the maximum legal limit. However, workers reported that they are sometimes expected to work past 7:00 p.m. Therefore, the workers are frequently required to exceed the legal limit of 60 hours per week, established by Bangladeshi law, and are exceeding the average of 56 hours per week during the course of a year. While the workers interviewed stated that they do receive compensation for the overtime hours worked, paid at a rate of two times the regular pay as stipulated by law, they also reported to the WRC that these additional overtime hours are not reflected on their pay stubs and are, instead, recorded on a second document that is distributed to each worker. Workers reported concerns that the second document is created in order to conceal information about worker overtime in documents provided to the government since, as noted above, the workers are performing hours that are in excess of the legal limits established by Bangladeshi law. D. Occupational Health and Safety As reported in the previous monitoring report, Dekko is disclosed as a supplier to two companies that are signatories to the Accord on Fire and Building Safety in Bangladesh ( Accord ). Page 2 of 12

3 Established in May 2013, the Accord is a legally binding agreement in which signatory brands and retailers agree to ensure that their supplier factories in Bangladesh operate safely. Specifically, Accord signatories agree to do the following: 1) Require their Bangladesh suppliers to undergo independent fire, building, and electrical safety inspections by qualified engineers, the results of which are made publicly available on the Accord s website; 2) Require suppliers to carry out remediation and repairs pursuant to the engineer s findings and recommendations, which are outlined in a Corrective Action Plan (CAP) and then posted on the Accord s website along with a time-bound schedule for implementation; and 3) Provide financial support to factories so that they can afford the cost of all necessary repairs and renovations; among other obligations. The Accord conducted fire, 1 electrical, 2 and building 3 safety inspections at Dekko in March At the time of the WRC s last report, Dekko had begun to address the safety issues identified by the Accord s engineers. For example, workers stated that the factory has removed the collapsible metal gates that were previously in place in the doorways between the production floors and stairwells. One of the most critical elements of fire safety is the ability of workers to exit a building through emergency exits that are protected from smoke and flame. In a multi-story building, like that in which Dekko is located, there must be proper fire separation between the production floor and the stairwell such that if a fire were to break out on the ground floor, the stairs from the upper floors would remain clear of smoke and flames. The lack of fire separation has been a welldocumented issue in the Bangladesh garment industry and has led to hundreds of deaths. One of the most well-known examples of this problem is the November 2012 fire at Tazreen Fashions, which killed 112 workers. The fire at Tazreen began on the ground floor of the building and quickly spread to the upper floors. The factory s stairwells became impassable due to smoke and flames. The situation was made worse by the fact that many of the doors were locked and workers were unable to escape the factory. In 2015, the WRC noted that Dekko s removal of the collapsible gates which provided no fire separation between the stairwell and production floors and were able to be locked was a good first step toward ensuring that workers can not be trapped in a burning building. However, the majority of the required repairs listed in the CAP were far behind schedule. Now, given that almost two years have passed since Dekko s initial inspection was completed, all of the mandated renovations should be completed. 4 However, as of March 2016, many issues are still pending. Particularly worth noting is Dekko s failure to complete structural renovations, 1 The Accord s fire safety inspection report for Dekko is available at 2 The Accord s electrical safety inspection report for Dekko is available at 3 The Accord s structural safety inspection report for Dekko is available at 4 Bangladesh Accord, Remediation Summary of Actions Required for Dekko Fashions, March 20, Page 3 of 12

4 some of which were mandated for completion in a period of six weeks and so are now 22 months past the initial deadline. The WRC will continue to monitor compliance with Bangladeshi law, the Accord, and the City of Los Angeles Sweat Free Ordinance. Number of monitoring hours conducted: 30 China During the current monitoring period, the WRC became aware of and investigated a crackdown on independent labor rights advocates, initiated by the Chinese government, in China s Guangdong province. On December 3, 2013, some of the province s leading independent civil society voices advocating for labor rights compliance were arrested as a result of their advocacy efforts. The targeting of these labor rights advocates was widely reported 5 and has resulted in the ongoing detention and criminal prosecution of the labor rights advocates. Guangdong is a global export center for garment and footwear manufacturing, with substantial production for the City of Los Angeles. Contractors and subcontractors for the City of Los Angeles disclosed a total of nine factories in the Guangdong province. The factories located in Guangdong were disclosed for the current monitoring period by the BUI supplier Sports Tek and by the Galls subcontractors 5.11 Tactical, Bates, Hatch Gloves, Thorogood, and Helmet House. The WRC s investigation of what occurred in Guangdong found that, on December 3, 2015, Chinese police carried out a series of surprise raids on the homes and offices of staff members and volunteers working with several local labor rights groups in Guangdong and held at least 21 persons for questioning. Six prominent labor rights advocates, who were among those held, were then placed under ongoing criminal detention. Two of the six detained labor rights advocates were subsequently released on bail, but expelled from the province. Of the remaining four detainees, three associated with a civil society organization called the Panyu Workers Center Zeng Feiyang, Zhu Xiaomei, and Meng Han have been charged with the criminal offense of gathering a crowd to disturb social order, which carries a potential sentence of life imprisonment. The fourth detainee, He Xiaobo of the Nanfeiyan Social Work Service Center, has been charged with misappropriation of occupational funds, which also carries a potential life sentence. As of 5 Phillips, Tom, He Xiaobo: latest victim of China's crackdown on labour activists, The Guardian, February 2, 2016, and Friedman, Eli et. al., Cruel irony: China s Communists are stamping out labor activism, The Washington Post, January 3, 2016, Page 4 of 12

5 today, three of these labor rights advocates, Zeng Feiyang, Meng Han, and He Xiaobo, are still detained. The fourth, Zhu Xiaomei, was released on bail on February 1, The criminal charges against all four are still pending. Since, as the WRC reported in its Supply Chain Analysis, Chinese labor unions are controlled at the national and provincial level by the Chinese government, and at the workplace level by factory owners, independent civil society organizations like the Panyu Workers Center and the Nanfeiyan Social Work Service Center play an especially vital role in helping Chinese workers resolve labor disputes, secure compensation and treatment for occupational injury and illness, obtain legally owed severance payments and social security contributions, and otherwise defend their rights under the law. However, they have been targeted by government authorities, in retaliation for this activity, and hit with detentions, evictions, and administrative harassment. The current persecution of independent civil society organizations that advocate on behalf of garment and footwear workers in Guangdong not only violates the associational rights of the advocates targeted, but effectively deprives workers throughout the province of the assistance of these groups, necessary in order for workers to achieve a greater level of respect for their rights and thereby restricts the freedom of association of these workers, as well. Freedom of association is a core principle of international labor and human rights conventions and of the City of Los Angeles Anti-Sweatshop Ordinance. The WRC will continue to monitor the situation of the labor rights advocates, Zeng Feiyang, Meng Han, He Xiaobo, and Zhu Xiaomei in the Guangdong province. If the situation does not improve, the WRC may recommend that the City of Los Angeles allow the WRC to contact all contractors and subcontractors sourcing goods from this region, urging them to send a written communication to the Chinese government expressing concern about the current repression of labor rights advocates and requesting the immediate end of the detention of these individuals and the dismissal of the charges against them. Number of monitoring hours conducted: 18 Dominican Republic and Haiti Propper During previous contract years, the WRC conducted full investigations at four facilities owned by the Gall s subcontractor Propper International ( Propper ). These four facilities were included in two full compliance investigations, a 2010 investigation on Quest Best and Lajas Industries in Puerto Rico and Suprema Manufacturing in the Dominican Republic, and a 2014 investigation on BKI in Haiti. Page 5 of 12

6 The 2010 investigation, which reported on Quest Best, located in Adjuntas, Puerto Rico; Lajas Industries, located in Lajas, Puerto Rico; and Suprema Manufacturing in San Pedro Macoris, Dominican Republic, was based on offsite interviews with workers at these facilities that identified possible violations in the areas of wages and hours, harassment and abuse, discrimination of disabled employees, and occupational health and safety. The WRC was not able to verify the worker allegations given that Propper, despite repeated requests by both the WRC and the City of Los Angeles, refused to provide access to its facilities in order for the WRC to carry out an onsite inspection and meet with the factory management at each of these facilities. The WRC s 2014 investigation was carried out at Propper s BKI factory, located in the CODEVI Industrial Park in Ouanaminthe, Haiti. This investigation, which also included offsite interviews with BKI employees, revealed violations in the areas of wages and hours, abuse and discrimination, and occupational health and safety. Again, Propper refused to allow the WRC access to its facilities to review documents, meet with management, and audit the factory s working conditions. Of particular note in the BKI investigation was the factory s failure to comply with Haiti s minimum wage rate. 6 In 2013, the WRC issued a report on the failure of garment factories in Haiti to pay the appropriate minimum wage. 7 Haitian law defines two minimum wage rates, one that is used for workers paid by the hour, and a second, higher wage for workers who are paid based on production. Given that virtually all garment workers are paid based on production rates, the latter wage is appropriate for most factories. While a number of Haitian factories, at the encouragement of their buyers, have agreed to pay this wage following the release of the WRC s report, others have refused to pay, arguing that the law simply requires that the higher wage be theoretically achievable in the production quota structure, not that any worker actually receive this wage. For both requests at the Puerto Rican and Dominican factories, as well as at the Haitian factory Propper refused to comply with the WRC s investigation and would not allow the WRC access to any of the factories under review. Based on multiple reports from the WRC to the City, documenting Propper s failure to comply with the City s Sweat Free Ordinance, the City decided, in January 2016, to remove Propper from the Galls contract, thereby eliminating it as an approved vendor for the City of Los Angeles. 8 The City Attorney signed the updated contract, which eliminated Propper as a Gall s subcontractor, effective January 15, The WRC s 2014 full compliance report makes reference to the factory s failure to pay the minimum wage of 300 Haitian Gourdes per day. In May 2015, the minimum wage was increased to a daily rate of 320 Haitian Gourdes per day. See: Presidential Decree on Minimum Wage Increase, May 1, Workers Rights Consortium, Stealing from the Poor: Wage Theft in the Haitian Apparel Industry, October 15, 2013, 8 In January 2016, the City s procurement team eliminated a total of three Galls subcontractors as a result of their noncompliance with the Sweat Free Ordinance, which included Propper, Hi-Tech Magnum and Hardwick Clothes. Page 6 of 12

7 On March 4, 2016, Propper and Galls contacted the WRC to express Propper s interest in taking the necessary steps to return Propper to the list of approved subcontractors under the Galls contract. Following this initial contact, the WRC asked the City of Los Angeles to consider the request submitted by Propper and Galls and, on March 23, the City requested that the WRC work with Propper in order to develop a course of action by which Propper could once again be considered compliant with the City s Sweat Free Ordinance. Together, the WRC and the City determined that the best course of action would be to request that Propper respond, in writing and providing supporting documentation, to the violations that were outlined with regard to the two factories that were disclosed by Propper for the City of Los Angeles during the current monitoring period: Suprema Manufacturing in the Dominican Republic and BKI in Haiti. On March 25, the WRC contacted Propper confirming the City s interest in pursing a route to reinstating Propper as an approved subcontractor under the Galls contract. The WRC asked that Propper outline the steps it has taken or plans to take to remedy the violations documented at Suprema Manufacturing and BKI. The WRC currently awaits a response from Propper and, after receiving this response, will review information and make recommendations to the City with regard to the company s compliance with the Sweat Free Ordinance. Number of monitoring hours conducted: 14 Honduras Productos Textiles (Protexsa) In previous monitoring periods, the WRC interviewed workers at Productos Textiles ( Protexsa ), located in Choloma, Honduras, who reported at that time about possible violations of forced overtime. During the current monitoring period, the WRC conducted an in-depth interview with one worker at Protexsa. This factory is disclosed as a supplier of products to the City of Los Angeles by Dickies and Edwards Garment, both of which are Galls subcontractors. The worker testified to the WRC regarding possible violations of the City s Sweat Free Ordinance in several areas. While the WRC attempted to contact additional workers in order to obtain further evidence to corroborate the worker s allegations, we were unable to successfully obtain such interviews. When speaking with other workers about their willingness to give testimony, workers repeatedly informed the WRC that they feared employer retaliation, including dismissal, if the employer discovered that the workers had participated in an interview with an independent monitor. The issues identified by the worker who gave testimony to the WRC included potential violations in the areas of wages and hours of work, abuse and harassment, accommodations for pregnant workers, freedom of association, and health and safety. Page 7 of 12

8 In the area of wages and hours of work, the worker reported that Protexsa employees are required to work overtime at the will of the employer. The worker reported that the factory has posted signs stating that overtime is voluntary, but that when supervisors communicate to workers that overtime hours are necessary in order to meet the company s obligations, workers are required to sign a document expressing their willingness to work the required overtime. The worker reported to the WRC that the supervisors accept no excuses and that the overtime hours are not optional. Honduran law states that overtime is voluntary and that no workers should be required to work overtime. Requiring workers, under threat of various penalties, to work overtime violates International Labour Organization Conventions 29 and 105, both of which have been ratified by Honduras. The worker interviewed also stated that workers are required to work holidays but without the additional compensation required by law. Article 340 of the Honduran Labor Code stipulates that work performed on a national holiday must be paid at a double time premium. While the worker reported that the employer often gives employees an alternate day off, in place of the national holiday, this does not negate the company s requirement to pay the double rate wage for the day of the holiday. Also in the area of wages and hours of work, the worker who gave testimony reported that employees regularly work beyond their regular shift, which is set by the company as Monday- Thursday from 7:15 a.m-4:30 p.m. and Friday from 7:15 a.m.-3:30 p.m., in order to meet production quotas, but that the workers are not paid an hourly rate for this time as straight pay or overtime pay. The worker reported that frequently this worker and other workers come in before the 7:15 a.m. start time, take only 15 minutes of their 30-minute lunch break and stay past the end of the shift, until almost 6:00 p.m., in order to increase the number of pieces that they produce in a day. Article 322 of the Honduran Constitution states that regular working hours for employees assigned to a day shift should not exceed eight hours per day or 44 hours per week. Article 330 establishes that any hours beyond this amount will be compensated at an overtime rate, calculated at 125% of the regular hourly wage. Since these excess hours are not recorded, it is clear that this time is not taken into account in calculating workers compensation. The worker also reported incidents of verbal abuse and sexual harassment by factory management. The worker stated that managers and supervisors often yell at the workers, treat them rudely, try to scare them, and use other abusive tactics in order to make workers produce more quickly and to generate a climate of fear among workers towards figures of authority. Furthermore, the worker identified one supervisor who has taken advantage of his position of authority in order to coerce female employees to become romantically involved with him. The Honduran Labor Code, in Article 95 (f) states that the employer must treat its workers with due consideration, abstaining from mistreatment by word or deed and any acts that could affect their dignity. Article 12 of the Equal Opportunities for Women Law states that female employees will not be subjected to sexual harassment. In the area of women s rights, the worker provided testimony about two specific issues which, if confirmed, would represent a violation of Honduran law. First, the worker reported that Protexsa Page 8 of 12

9 does not make special accommodations for female employees during pregnancy. The Honduran Labor Code, in Article 147, states that pregnant workers may not perform strenuous tasks and states that work performed by all women should be adjusted according to their age, condition, and physical state. The worker also reported that Protexsa does not have a designated area in which breastfeeding mothers may feed their children. Article 140 of the Honduran Labor Code states that, during the first six months of the life of her child, a breastfeeding mother will be granted two 30-minute breaks, with pay, in order to feed her child and that the employer must provide a space at the workplace where she may breastfeed. Many factories also provide a refrigerator in this space in case the breastfeeding worker prefers to use these breaks to pump and store milk. The worker interviewed by the WRC was not aware of any space in the factory designated for this purpose and reported that breastfeeding workers at Protexsa use the restroom as a place to pump their milk. The worker interviewed by the WRC reported that Protexsa does not have a labor union. The worker further reported that she has heard managers and supervisors inform workers that the company will not tolerate the formation of a worker organization. This worker states that factory employees are generally fearful that, if they were to organize, this decision would result in their dismissals. The worker interviewed shared with the WRC a comment the worker overheard from one of the factory s supervisors, who responded to a question from another worker about a bulletin board post sharing information with workers about freedom of association. When the other worker asked the supervisor for clarification about what the information meant, the supervisor responded, That means that you have the right to join a union. But you know that no company is going to allow for a union and this company would rather close down than accept a union. If they find out that you are part of a union, you will be fired and blacklisted from finding a job at another factory. Article 127 of the Honduran Constitution and Article 469 of the Honduran Labor Code explicitly establish the right of workers to freely join the organization of their choosing, including a labor union, and prohibits the employer from interfering in workers right to exercise freedom of association. The Protexsa worker who gave testimony to the WRC also reported on the following areas of concern with regard to occupational health and safety: Poor air quality. The worker interviewed by the WRC expressed concern about the factory s air quality, stating that the dust in the factory frequently causes the worker to sneeze. The worker further reported that the factory does not provide masks to line operators and that, when workers have requested a mask, supervisors have informed them that masks and other protective equipment are only available to cleaning personnel. The worker reported that the accumulation of fabric dust in the plant is not eliminated with the use of vacuums but, rather, that the employees clean up this dust with brooms, which contributes to the further spread of air quality irritants. Article 301 of the Honduran Regulation of the Preventative Measures of Workplace Accidents and Work-Related Page 9 of 12

10 Illness requires the employer to take the steps necessary to ensure that the workplace environment protects workers respiratory health. Excessive heat levels. The Honduran Regulation of the Preventative Measures of Workplace Accidents and Work-Related Illness, in Article 339, states that high temperatures and extreme humidity in the workplace should be avoided. The worker interviewed by the WRC reported that the temperatures at the factory are extreme and that there are no thermometers in the factory that are accessible to workers that could be used to determine whether or not the temperature in the factory exceeds Honduran health and safety standards. The worker reported that there have been multiple incidents in which workers have fainted at the worksite, possibly as a result of the excessive heat levels in the factory. Failure to maintain a properly functioning health and safety committee. Article 412 of the Honduran Labor Code requires that any workplace with more than 10 employees must establish a health and safety committee made up of both worker and employer representatives. The committee is charged with informing workers about safety risks at the workplace, preventative measures that the company and the committee are taking to counter the risks, and proper work methods. The worker interviewed by the WRC reported never having received any reports from such a committee as to possible health and safety concerns that were being addressed and is not aware of any health and safety committee at Protexsa. Inadequate ergonomics. The worker interviewed by the WRC reported that the factory may not be meeting the ergonomic requirements established by Honduran Law. Article 95(7) of the Honduran Labor Code requires employers to adopt adequate measures to establish and maintain best practices with regard to workplace hygiene and safety. In the garment industry, this includes an ergonomic program. The worker reported that the chairs used by workers are in poor condition and may not meet ergonomic standards. Furthermore, the worker reported that the factory does not conduct an ergonomic exercise program for employees, which is required by Article 9 of the Honduran Regulation of the Preventative Measures of Workplace Accidents and Work-Related Illness. Given the challenges in obtaining additional worker interviews thus far, the WRC is not currently recommending that the City contact the factory or the contractors purchasing goods from Protexsa. The WRC will continue to monitor the situation at the factory and continue to make efforts to interview additional workers, in an offsite setting, in order to obtain additional information about the conditions at the factory in order to confirm the alleged violations outlined in this report. VF Imagewear - RKI The WRC received a complaint from a worker at the VF Imagewear RKI factory ( RKI ), a facility that is owned by the U.S. company VF Imagewear and located in the town of Villanueva Page 10 of 12

11 in northern Honduras. This factory is disclosed for production for the City of Los Angeles by Ameripride and by the Galls subcontractor, Red Kap. The worker testified to the WRC regarding possible violations of the City s Sweat Free Ordinance with regard to freedom of association. The worker reported to the WRC that, in August 2015, she approached one of the factory s managers to inquire whether she could resign and receive full severance pay. In Honduras, workers accrue annual severance, which, in the case of a no-fault dismissal by the company, is paid to them at the time that the employment contract is severed. 9 The payment of such severance pay is not, by law, required of the company in the event that a worker decides to sever his or her term of employment. 10 However, in practice, Honduran garment factories will, at times, make available to workers the opportunity to voluntarily leave their employment with payment of severance benefits. The worker approached her manager with the hope that she could be considered as one of the workers at the factory who was selected for voluntary resignation with payment of severance. Instead of addressing the worker s request, however, the manager with whom she spoke said, I am surprised that you want to form a union here. The worker, according to her testimony to the WRC, was surprised by the manager s comments given that she had taken no steps towards the formation of a union or any other kind of worker organization. However, the worker s husband is known in the garment sector for his union leadership. In May 2013, he was fired from a neighboring factory for his decision to organize a union. In the period between when he was fired by his original employer and when that employer ultimately accepted that the dismissal was unlawful and reinstated him to his position, in January 2015, he was employed at RKI. The management at RKI was familiar with the worker s case and therefore knew of his organizing efforts in the Honduran garment industry. 11 In the RKI worker s meeting with her manager, the manager went on to say, There is never going to be a union at RKI. We will not allow that to happen. That is the company policy and it is completely prohibited. The day that a union is formed, RKI will close down. We would all be in a bad way, even I would be out of work. God willing this will never happen because it is prohibited. These are the rules of the VF Corporation. This was the end of the exchange. The worker did not sign any document stating that she was interested in voluntary resignation with payment of severance, which, the worker reports, is the customary practice at the factory. 9 Honduran Labor Code, Article Ibid, Article The details of this case have been documented in two reports issued by the WRC. WRC Assessments re Gildan Villanueva (Honduras), December 23, 2014 and December 14, % pdf and 5.pdf. Page 11 of 12

12 The worker gave testimony to the WRC that, prior to this exchange, in July 2015, she shared an informational pamphlet about freedom of association, which she had received from her husband, the union leader, with one of her co-workers. The woman with whom she shared the pamphlet later told the worker that, out of fear that she would be seen with the information and suffer retaliation, she gave the pamphlet to her supervisor. Later, the co-worker was called into the administrative offices. She reported to the worker interviewed by the WRC that she was questioned by management at length about the document, who asked her whether the worker who gave her the pamphlet was organizing a union, whether she was circulating a list and asking workers to join a union, and whether or not there were any efforts to start a union at RKI. Three other workers whose workstations were in close proximity to the worker in question also informed her that they had been called to speak with management about the worker s possible involvement in starting a union at RKI. The worker gave testimony to the WRC that, on September 4, she was called to speak with management and was told that she was being granted voluntary resignation. The worker reported to the WRC that, while she had initially inquired about the possibility of taking voluntary resignation, with payment of severance, she had not gone through the standard protocol required by the company of other workers who wish to do the same, which includes filing a written request with the human resources department. The manager s conversations with the worker and, separately, with four of her co-workers about the worker s interest in organizing a union raises questions as to the company s motive for selecting this particular worker for voluntary resignation with payment of severance and whether or not the factory s decision to do so was related to the management s mistaken belief that the worker was organizing a union. However, as the worker had requested to resign, the WRC does not find that the company s decision to grant her voluntary resignation constitutes retaliation. The RKI manager s comments, as relayed by the worker, do, however, constitute a violation of worker freedom of association, given that they threaten retaliation for workers decision to organize a union. Freedom of association is a fundamental labor right protected by Article 469 of the Honduran Labor Code of 1959 and by Conventions 87 and 98 of the International Labour Organization. It is also included in the City of Los Angeles Contractor Code of Conduct. The WRC will continue to monitor labor rights compliance at RKI. Number of monitoring hours conducted: 38 Page 12 of 12