Code of Conduct
Contractors & Suppliers
When a decision is made to outsource production to a new contractor, we apply a comprehensive selection process to assess the contractor’s ability to comply with our cost structures and quality standards, as well as with our labour and environmental standards. This selection process includes a thorough analysis of the contractor’s social responsibility practices through the completion of a self-assessment questionnaire on critical issues outlined by Gildan. In addition, Gildan performs a preliminary audit assessment prior to engaging any contractor.
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Contractual Requirements
To ensure that Gildan’s major contractors and suppliers respect the Gildan Code of Conduct, as of 2010, we included a clause in the commercial agreement governing our contractual relationship which stipulates that contractors must abide by our Code. This new practice encompasses the following agreements:
- Sewing agreements (for all long-term suppliers)
- Short-term sewing agreement (for all short-term suppliers)
- Agreement with our biomass suppliers
- Yarn Supply agreement with our joint-venture partner
- Agreements for major equipment purchases
As a next step, we are currently working on ensuring that all commercial agreement contracts signed by suppliers (including trims, dyes and chemicals, and thread suppliers) will include a clause on respecting the Gildan Code of Conduct as a contractual condition. This process began in 2011 and should be completed by the end of 2012.
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Contractor training
At each of our long-term Haitian sewing contractors, we have been providing training on our Code of Conduct to all new employees on an ongoing basis.
Also, as part of the Better Work Haiti program, our Haitian contractors’ employees received training on various labour issues. In 2011, managers from our four Haitian contractor facilities attended the following sessions:
- Human Resources planning
- Mastering recruitment for key positions
- Securing employee loyalty
- Organizing successful training sessions
- Communicating effectively
In 2010-2011, in addition to Code of Conduct training, security personnel in Central America and in the Dominican Republic (all of whom are employed by sub-contractors) also received training on labour and human rights as part of their induction training, as per our commercial agreement with contractors. Designed specifically for security employees hired by third-party contractors, this new training program focuses on situations these particular employees might face while performing their duties on behalf of Gildan.