Gildan Activewear will close its El Progresso plant in Honduras this month and in the process lay-off around 1,800 workers. The company has been accused of labor violations at the plant, but insists that its closure is not related. According to a local paper, the location of the plant is the main reason for closure.
The plant sits within an industrial complex with only one entrance, which is blocked one or two days a month. These work interruptions have apparently caused the company about $100,000 per year.
The Fair Labor Association has recently completed an independent audit of the plant because of the previously mentioned allegations. Gildan officials say that the results of the report will be available to the public in the next few weeks.
