In March of 2015, a worker at the factory COFACO in Peru filed a Third Party Complaint with the Fair Labor Association (FLA) alleging various omissions and errors in providing COFACO workers with their full legally entitled wage payments and bonuses. An investigation by FLA Participating Company Under Armour determined that in some cases payments were made correctly, but workers were not aware of this, and in other cases, payments to workers were late or conducted in installments. The specific noncompliances alleged in the Third Party Complaint have been addressed by the factory at the behest of Under Armour. In addition, the factory will work to establish systems and procedures to regularize payments to workers and to inform workers of pay and social benefits to which they are entitled under national law and the due dates for the payment of the benefits.
The FLA has been in contact with the complainant and we have learned that the issues raised in the complaint have been satisfactorily addressed. The remediation plan established by Under Armour should serve as a basis for preventing the reoccurrence of the situations that were the subject of the complaint. Given the pattern of delays in the payment of benefits to workers, the FLA recommends that Under Armour pursue with the factory the creation of a fund or special account into which accruals for the payment of benefits would be deposited so that funds are available when they are due to be paid to workers.