Supply Chain Innovation

FLA Retrenchment Guidelines

Wednesday, February 1, 2006

These guidelines for FLA-affiliated companies provide suggestions whose suppliers or facilities may be involved in retrenchment and closures for operational reasons. Retrenchment, also referred to as redundancy, downsizing, or closure based on operational requirements, occurs when the employer has bona fide economic, technological, structural or similar reasons to reduce the size of the workforce. Observance by factories that supply FLA-affiliated companies of the guidance provided in this document would ensure they operate in a manner consistent with international labor standards, domestic law and the practices of company leaders in the labor compliance field.

Please read the attached guidelines for more information.

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