WRC Factory Investigation

Palm Apparel

Factory: Palm Apparel

Key Buyers: Gildan, MV Sport, New Agenda, Top of the World

Last Updated: 2021

Case Summary

In 2020–2021, the WRC investigated the chronic failure of Haitian garment factories to make legally required contributions to the country’s public healthcare and pension systems. This failure contributed to the avoidable deaths of two workers that occurred after each of them was unable to access lifesaving medical treatment. The WRC’s investigation found that the factories where these two workers were employed, Palm Apparel and Sewing International (SISA), were responsible to provide compensation to the families of the deceased workers, since evidence indicated that the factories’ failure to make the legally required healthcare contributions were a contributing factor in their deaths. The WRC engaged with Gildan Activewear, which supplies products from both factories to university licensees and, as a result of this engagement, the owner of both factories, Palm Apparel Group, agreed to provide significant financial compensation to the families of the deceased workers.

In order to ensure that no further harm to workers employed in the production of university licensed apparel results from the employers’ nonpayment of these contributions, the WRC is undertaking additional efforts to assess compliance by other Haitian garment factories disclosed for licensed apparel with regard to their obligation to make healthcare and pension contributions. The WRC will report on the results of this engagement and any resulting remediation after it is completed.

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