REPORTS

Bay Island, Honduras

The FLA engaged the independent experts who conducted this Safeguards investigation at the request of FLA-affiliated companies Fanatics and adidas as well as adidas licensee Streetwear, Inc. and The Walt Disney Company.  The allegations of noncompliance with relevant provisions of the FLA Workplace Code of Conduct and Benchmarks concerning Freedom of Association followed on communications from the Federacion Independiente de Trabajadores de Honduras (FITH) union organization made in the course of a Performance Audit contacted by one of the companies that resulted in an audit report concerning the facility in June 2018.

The independent experts conducted their investigation and then submitted their report in October 2018.  The report has not been modified in any manner since its submission, including with respect to the recommendations for remediation/corrective action set out on page 18.  As the publication of the report was delayed for an extended period, the FLA is prepared to consider undertaking a subsequent assessment that would focus on the current status of issues examined in the Safeguards investigation and, in particular, on any actions taken by the management of the facility concerning the report recommendations for remediation.