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NGB Too, Guatemala

Publication date: 
Thursday, June 9, 2016

On November 11, 2015, the FLA accepted for review a complaint filed by a union representative about  a Guatemalan sewing factory that suddenly terminated its operations at the end of March 2015 without paying workers the required wages, beneifts, bonuses, and severance benefits. The complainant further alleged that FLA-affiliated company PVH was a buyer at the factory, as product under PVH’s brand Tommy Hilfiger was produced at the factory, though here was lack of clarity on whether the production was direct or licenced, or was authorized or unauthorized.

PVH determined that the Tommy Hilfiger production referenced by the complaint was done on behalf of a licensee, Fishman & Tobin. PVH requested that Fishman & Tobin investigate the allegations. Fishman & Tobin, through its parent company Global Brands Group (GBG), investigated the allegations and determined that although NBG TOO was not an approved factory for Tommy Hilfiger product, nevertheless unauthorized production had taken place at the factory in early 2015.  A third party investigator engaged by GBG was unable to make a definitive determination of the volume of Tommy Hilfiger product sewn at NBG TOO, as the factory’s records were not available.

The intervention of PVH and its supply chain partners led to a monetary contribution by GBG to the welfare fund of the NBG TOO workers intended to assist them through the difficult adjustment period after the closure of the factory where they worked.  This contribution has been acknowledged and accepted by the complainants.  The complete summary reports for this case appear below.

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