WRC Factory Investigation

Manufacturas del Rio (MDR)/Central American Cutting Center (CCC)

Factory: Manufacturas del Rio (MDR)/Central American Cutting Center (CCC)

Key Buyers: Fruit of the Loom, Hampshire, Hanesbrands, Lacoste, Levi Strauss, Russell

Last Updated: 2015

Case Summary

2015: In January 2014, MDR and a sister operation also owned by the Argus Group and housed in the same location, Central American Cutting Center (CCC), closed without providing severance pay to their 1,200 employees. The Argus Group gave workers no advance notice of the closure and made no arrangements to provide workers the US$1.8 million they were owed in terminal benefits under Salvadoran law.

2006: During July and September of 2006, the WRC received three separate complaints from worker representatives concerning three factories in Central America owned by a single multinational apparel corporation, known as the Argus Group. In each case it was alleged that workers who had associated with a trade union had been fired illegally. Other areas of concern included occupational health and safety and overtime.

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