Supply Chain Innovation

Estofel, S.A. Factory in Guatemala

Publication date: 
Wednesday, March 25, 2009

In May 2008, FLA received Third Party Complaints (3PC) from eight former workers at Estofel, S.A., a factory located in Guatemala City, Guatemala. The complainants raised allegations of labor violations, including failure to pay severance benefits owed to workers at the plant, which was closed in November 2007. Labor rights organization Commission for the Verification of Corporate Codes of Conduct (COVERCO) alerted FLA about the closure of the factory shortly after it occurred. FLA-affiliated company PVH Corp., and FLA-licensee University of Washington also addressed this issue. PVH Corp. had sourced directly from the factory until a few months before the closure and pressed Estofel for full severance payments. FLA worked closely with affiliated companies, Estofel, the Workers Rights Consortium (WRC) and COVERCO to address the allegations and was able to reach almost 95% of affected employees. This complaint is now closed.

Note: PVH ended its affiliation with the Fair Labor Association in December 2019.

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