Gildan Invests over $120K in Nicaraguan School, Announces Closing of San Miguel Factory
Throughout the apparel industry, many companies are implementing environmental, social, and governance (ESG) strategies and programs designed to better themselves and their communities. Gildan recently announced that, as part of its commitment to its communities and in alignment with the company’s Next Generation ESG strategy, it completed the construction and furnishing of the Monte San Juan School in Rivas, Nicaragua.
The project began in July 2022, according to a press release shared by Yahoo! Finance. It included the construction of two new classrooms and accompanying restrooms, drinking fountains, a school pantry, water tank, and the installation of a perimeter fence surrounding the school. The preschool classrooms also received maintenance.
Gildan’s total investment in the project came in at $128,000. The press release states that the company’s contributions to the Monte San Juan School were prompted by suggestions from employees through its Part of Your Life program. That program allows workers to propose community projects that they would like Gildan to invest in.
“Gildan is committed to being a responsible corporate citizen, and one of the ways we ensure this is by encouraging our people to speak up about the needs in their community and recommend ways to address them,” says Claudia Sandoval, vice president, Global Social Compliance and Environmental Affairs at Gildan.
Gildan Closing San Miguel Factory
The positive news of this initiative comes after the company experienced the heart-breaking loss of the San Miguel union president, Xiomara Cocas, and union leaders Delmer Garcia, Lesther Almendarez, and José Rufino Ortiz. The union members died in a mass shooting in the La Victoria neighborhood, as shared in an article from Sourcing Journal.
The article notes that following the tragedy, its employees in Honduras observed a three-day mourning period. Psychological support was also offered across the sewing, screen printing, dyeing, and distribution units that it owns in the country.
Currently, Gildan doesn’t have much information regarding the circumstances surrounding the deaths.
Additionally, Gildan also announced it will close its San Miguel sewing factory, located in Choloma, Honduras. The company told Sourcing Journal that it will “gradually ramp down” at the end of July.
Apparelist has been unable to reach Gildan for additional comments; however, the company told Sourcing Journal that it will ensure that all 2,700 affected workers are paid all termination entitlements owed under Honduran law.
“It is with a heavy heart that we announced this decision to employees mid-June as we wanted to provide as much notice as possible and work collaboratively with the union to facilitate the transition for employees,” a Gildan spokesperson told Sourcing Journal. “The company is genuinely committed to making every effort possible to alleviate the impact of this difficult decision on its San Miguel employees.”
