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Working Conditions
Facility Closures
During 2010, we commenced the consolidation and relocation of approximately 30% of our knitting operations and all of our remaining wet processing operations located in Ft. Payne, Alabama, to our integrated facilities in Honduras. Additionally, during 2010, in conjunction with the opening of our new distribution centre and retail operations in Charleston, South Carolina, we closed our distribution facilities in Ft. Payne, Alabama, and Martinsville, Virginia. While we were able to relocate some employees to other facilities, a total of 348 employees were impacted by this reorganization.
In 2011, Gildan closed the remaining sock manufacturing operations in Ft. Payne, Alabama and consolidated the production at its new vertically-integrated facility in Honduras. The relocation of production capacity was required in order to further improve supply chain efficiencies, reduce manufacturing costs and maintain the Company’s competitiveness against Asian imports and other global producers. Close to 300 employees in Fort Payne were affected by this reorganization
All affected employees in 2010 and 2011 received a minimum 60-day notification prior to the elimination of their employment, benefits that met or exceeded those required by local law, and were provided with support to facilitate their transition to new jobs and education opportunities through collaboration with local organizations.