Partial Remediation at Petralex (Honduras)
|To:||WRC Affiliate Universities and Colleges|
|From:||Scott Nova and Ben Hensler|
|Date:||June 23, 2015|
|Re:||Partial Remediation at Petralex (Honduras)|
Since the WRC released our assessment and recommendations regarding worker rights violations at the Petralex factory in Honduras, there has been significant progress towards remediation. Following intervention by university licensees, Petralex management has reinstated workers who suffered retaliatory termination and has begun a series of regular meetings with the union in which they will establish a plan for implementing most key elements of a remediation plan provided jointly by the WRC and the Fair Labor Association.
While the company had initially refused to provide full back pay to union members, and to leaders and family members of union leaders, who were terminated in retaliation for their connection to union activities, the WRC has urged buyers to press vigorously for full remediation in this regard. This Monday, June 22, Hanesbrands, the parent company of licensee Gear for Sports, reported to the WRC that the company will, in fact, make additional payments to workers to complete the total amount of back pay owed to the workers in question. The WRC understands that these payments will be made to workers by July 6, 2015. One outstanding issue remains: ensuring that workers do not lose accrued severance credit, post-reinstatement. Hanesbrands has reported that it believes the factory will act properly in this regard; the WRC will monitor the outcome on this issue and report accordingly.
Licensees sourcing collegiate apparel from Petralex include Box Seat, Outerstuff (including production under license from adidas), Team Athletics, Gear for Sports (including Under Armour licensed production), VF, and the Dallas Cowboys.
Please find here an update on the progress at Petralex.
The WRC will continue to monitor the progress towards implementation of the remediation plan.