WRC Factory Investigation

Jerzees Choloma, Jerzees de Honduras, Jerzees Nuevo Dia

Factory: Jerzees Choloma, Jerzees de Honduras, Jerzees Nuevo Dia

Key Buyers: Fruit of the Loom, Russell

Last Updated: 2025

Case Summary

A set of ground-breaking agreements were reached on November 14, 2009 between Russell Athletic/Fruit of the Loom and the union representing Jerzees de Honduras (JDH) workers and, separately, between the company and the WRC to address labor rights issues in the company’s operations in Honduras. The agreements were the culmination of WRC investigation and remediation efforts spanning a twenty-six month period.

The WRC’s work at the Jerzees Choloma and JDH factories was initiated in September 2007, pursuant to allegations that both facilities dismissed large numbers of workers in retaliation for their decision to form unions. The WRC found that the dismissals were unlawful. Ultimately, following the engagement of WRC affiliate universities, Russell agreed to provide offers of reinstatement and back pay totaling roughly $150,000 to 145 dismissed workers at the two factories. Jerzees Choloma closed in March 2008; the WRC did not find persuasive evidence that the closure was motivated by anti-union animus.

In October 2008, Russell announced the closure of the JDH facility, leaving its 1,200 workers without employment. A WRC investigation found that the company’s decision to close the JDH factory was carried out in violation of standards on freedom of association.

Substantial efforts were made by student activists, faculty, university administrators, and organizations in the U.S., Canada, Europe, and Central America to persuade the company to undertake corrective action. In November 2009, Russell Athletic/Fruit of the Loom agreed to rehire and compensate JDH’s 1,200 dismissed workers, open a new unionized factory in Honduras, and take concrete steps to respect and recognize its workers’ rights to freedom of association at the company’s seven other existing Honduran plants.

Unfortunately, in 2025, Fruit of the Loom made the decision to close the new factory, Jerzees Nuevo Día, that was established as part of its 2009 remediation, and its other remaining unionized garment factory in the country, Confecciones Dos Caminos. These closures mean that Fruit of the Loom, which had received numerous accolades for making and implementing the 2009 agreement, has effectively turned its back on its role as a leader in advancing respect for fundamental workplace rights.

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