Wages & Benefits
Gildan has developed and implemented a competitive compensation structure that helps in attracting, motivating and retaining the best talent in each of the countries in which we operate.
At all our manufacturing locations, Gildan is proud of its record in creating well-paying jobs with attractive benefits, such as access to free medical assistance, access to financial aid programs, subsidized transportation to and from work, and subsidized meals. We also empower workers by providing them with the opportunity to upgrade their skill sets and education level through training programs. The majority of our permanent production employees earn significantly more than the legally-mandated minimum industry wages in all the countries where we operate. This has had a direct and positive impact on the quality of life of our workers and their families.
Gildan also offers incentives above basic salaries to employees who exceed certain objectives. These bonuses, which represent compensation over and above their basic wages, reward workers whose performance is above average, similar to the model found in many North American companies.
In 2012, Gildan conducted a pilot project to assess the wages of its direct employees in Honduras based on a fair wage approach. The goal of this assessment is to develop a procedure that could be used by our local human resources management team in order to calculate fair wages. We are currently reviewing the results of this project in order to develop a methodology for assessing fair wages in all regions where we operate. We expect to report a summary of this project during the next year.
Minimum Wages in Latin America
Countries in Latin America typically have various categories for the application of minimum wage compensation. The legally-mandated minimum wage in most Latin American countries will vary, depending on the industry sector. The various industry sectors include agriculture, services, industrial, banking and textile sectors.
Most countries have a minimum wage that applies for the textile industry. Wages in the manufacturing or industrial sectors can be used to compare with salaries in the textile industry as they relate to similar activities.
Minimum Wages in Bangladesh
In Bangladesh, there is a specific minimum wage structure for the garment sector. The workers are graded by their position.
Rewarding Employee Dedication and Performance
Gildan has established a performance appraisal process for indirect hourly and salaried employees.
Short-Term Incentive Plan
A large proportion of indirect employees are eligible for a short-term incentive plan. The plan provides annual bonuses when the Company’s key financial profitability and growth objectives are met. The plan also recognizes individual and team efforts towards achieving superior financial results.
Long-Term Incentive Plan
The Long-Term Incentive Plan (LTIP) was first implemented in 1998 for the granting of stock options and was subsequently amended to allow the Board of Directors to grant Treasury Restricted Share Units (RSUs) and Non-Treasury RSUs, to officers and key employees of the Company and its subsidiaries. The primary objective of the LTIP is to encourage individuals to work towards, and participate in, the long-term growth and development of the Company and to assist the Company in attracting, retaining and motivating its officers and key employees. The LTIP is administered by the Board of Directors, which has delegated the LTIP responsibilities to the Compensation and Human Resources Committee.
Employee Share Purchase Plan
In order to promote employee commitment towards Gildan, the Company has been offering an Employee Share Purchase Plan (ESPP) to its employees in Canada since 2000 and in the US and Barbados since 2007. In 2012, the Company also launched the ESPP in Central America and the Dominican Republic to employees in manager level positions and above to allow them to become shareholders of the Company. The ESPP allows employees to buy shares of Gildan through payroll deductions at a discounted price. The program requires a minimum two-year retention period. Employee participation is voluntary. The program has not been rolled out in Asia yet.
Read more about our Long-Term Incentive Plan in the Management Proxy Circular.