Supply Chain Innovation

Hermosa Manufacturing in El Salvador

Publication date: 
Tuesday, May 27, 2008

On May 27, 2008, FLA published a Second Interim Summary Report providing information on all activities related to a Third Party Complaint (3PC) initially filed on December 8, 2005 by Christliche Initiative Romero (CRI) regarding Hermosa Manufacturing in El Salvador. FLA affiliate companies adidas, Nike, Inc. and Russell Athletics sourced from the factory at the time the 3PC was filed. CIR alleged workers were owed wage, overtime and severance payments from the sudden closure of Hermosa Manufacturing in May 2005. In December 2006, FLA and the companies involved created an unprecedented emergency fund to provide immediate and direct assistance to the workers, while continuing to hold the government of El Salvador and the factory owner responsible for their legal obligations to the employees. FLA also requested the Maquila Solidarity Network (MSN) to conduct an independent review of the emergency fund and the complex issues surrounding the closure of Hermosa.

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