Supply Chain Innovation

Choi Shin Factory in Guatemala

Publication date: 
Miércoles, Septiembre 1, 2004

In September 2004, FLA published a report on the Third Party Complaint (3PC) filed by union members at two apparel factories owned and managed by the same Korean company  alleging violations of freedom of association and collective bargaining. This company had longstanding contracts with FLA Participating Company Liz Claiborne. Several rounds of meetings and negotiations were held between the union and factory management. In July 2003, the first collective bargaining agreement in Guatemala's maquila sector was signed from these factories. FLA commissioned COVERCO, an FLA-accredited monitor, to examine compliance with the collective bargaining agreement. Despite initial positive results, the situation between the union and management became increasingly tense. In May 2004, the FLA received another complaint from the unions alleging violations of the collective bargaining agreement. Liz Claiborne worked with union representatives and factory management to remediate the ongoing challenges that existed in the factory.

Report type: