With leaders of the long-running anti-sweatshop movement heralding it as their biggest victory to date, Russell Athletic agreed to open a plant in Honduras as a unionized factory and rehire 1,200 workers who had lost their jobs when Russell closed a factory in January 2009. Activists asserted that the plant was closed due to unionizing efforts while Russell long contended the economic downturn was the reason.


While reopening the plant was seen as unprecedented in its own right, workers rights groups were particularly ecstatic that Fruit of the Loom, Russell's parent and the largest private employer in Honduras, also pledged not to fight unionization at its other seven existing factories there.

 

Since Russell announced intentions to close the factory, Jerzees de Honduras (JDH) in late 2008, United Students Against Sweatshops has initiated a nationwide campaign across college campuses against Russell. The boycott led to a reported 96 colleges and universities to sever or suspend their licensing agreements with Russell. Besides protests across campuses, flyers calling for a boycott of Russell were distributed at Target, Dick's SG, TSA and other stores and picketers demonstrated outside the NBA finals in Los Angeles and Orlando to protest the leagues agreement with Russell.


 

The agreement was reached on Nov. 14 by Russell, the Worker Rights Consortium (WRC) and union leaders. A joint statement from Russell and the union said the agreement was “intended to foster workers' rights in Honduras and establish a harmonious” relationship.


 

“This agreement represents a significant achievement in the history of the apparel sector in Honduras and Central America,” the joint statement said.


 

Russell and FTL, both owned by Berkshire Hathaway, declined to discuss its change in positioning.


 

“We are very pleased with the progress between Russell Athletic and the WRC, and look forward to the implementation of the Memorandum of Agreement,” said John Shivel, a spokesman for Russell and FTL.   


Under the terms of the agreement Russell will:


  • Open a unionized factory near the former site of the closed factory and employ former JDH workers at the facility;

  • Offer positions to all former JDH workers at the new factory or other facilities;

  • Immediately recognize the union of JDH workers as the representative of the workers of the new factory and a collective bargaining agreement will be promptly negotiated;

  • Make a sizable contribution to a social welfare fund to assist former JDH workers;

  • Work with Honduran union officials to establish a cooperative framework for ensuring respect for freedom of association at all Russell and FTL facilities in Honduras. This includes a joint company-union worker education program on associational rights and union access to the company’s facilities;

  • Phase out collective pacts now in place in its facilities;

  • Develop an oversight process involving an ombudsman; and a process for mediation where necessary has been developed.


Russell has long claimed the plant closed solely because of the “sudden and extensive” global downturn that led to the closing of nine plants since the beginning of 2008. Of the factories closed, only JDH was unionized. But as the activist movement gained momentum, allegations against Russell went beyond union busting to include sweatshops conditions, death threats, and denying child and health care.

 

In late June, the Fair Labor Association (FLA) put Russell Athletic on “Special Review,” requiring the company to address violations of workers' freedom of association or have its FLA membership revoked. The only other company ever placed under such review was Gildan Activewear.


But worker's right groups roundly hailed the new agreement.


A statement from the Workers Rights Consortium called the agreement “one of the most significant advances for fundamental workplace rights in the twenty-year history of apparel industry codes of conduct.”


“It's a significant development,” said Jorge Perez-Lopez, executive director of the FLA, in an interview with Sports Executive Weekly. “It shows that the company and the union sat down and worked out their differences. It is exactly consistent with what we asked the company to do through the remediation plan.”


“An agreement of this scale and scope is completely unprecedented,” added Kevin Thomas, director of advocacy at the Maquila Solidarity Network, a labor and women's rights organization. “It's been a long-time coming from Russell so we're very pleased that they've taken this step.”

Thomas was particularly pleased that Russell and FTL had promised to create a positive climate for freedom of association in all their Honduran plants. Typically, companies just react to factory-specific violations after they occur rather than work on labor issues across the company.  “I think colleges should reward the company for taking this move and start renewing contracts with Russell,” said Thomas. “As long as they follow the remediation terms in the agreement, they've done what's being asked of them.”


Kyle Winters, executive director of advancement partnerships at the University of Toronto, called the agreement “a very progressive resolution to a really complicated problem. I'm happy with the direction Russell has taken.”


The particular challenge for Russell, according to Winters, was dealing with a country where unionization isn't common. But he praised Russell for reaching out to universities, union representatives, and labor groups to better understand the situation. This consultative process ultimately led to a commitment to change their labor practices.                                 

 

“It's pretty incredible to think about a company actually starting up a new factory to ensure that displaced workers have a place to come to work,” said Winters. “Add to that the fact that Russell will now allow unions in all their factories and you have to conclude that they’ve opted to change the entire apparel manufacturing industry in Honduras.”


Although Winters believes that Russell's business might have been hurt by the negative publicity of the campaign, he states, “I think the consumer response they'll get from this will be very positive. I think Russell realized that it’s smart business to listen to your customers, consult with your stakeholders and create a workplace that is humane, transparent and accountable.”


Thomas believes that with FTL taking this step, other companies operating in the region will have to adopt better, proactive policies towards unions. Gildan and Hanesbrands, the parent of Champion, are also major employers in Honduras. Nike and adidas use contractors in the region. Apparel is the biggest export product for the country.

Winters likewise believes other apparel manufacturers in the country need to assess their labor practices to avoid similar negative press down the road.  “Russell has raised the bar, and other Honduran manufacturers are going to have to meet that standard if they hope to be competitive.” said Winters.


But Thomas also believes the agreement's implications go beyond Honduras and Central America. Said Thomas, “Garment workers around the world who have faced factory closures and layoffs usually have to fight tooth and nail just to get their legal severance pay. This campaign suggests they can fight for a lot more. And win.”


Winters is also hopeful that the wide media coverage will convince other international manufacturers to emulate what Russell has done in Honduras.


“This is a great outcome and I really hope it has a ripple effect through the entire apparel industry,” said Winters.


>>> What type of ripple effect, that’s the question.  Will students now get involved if they don’t think a football team’s helmet is “green” enough?  Hey, they have now helped elect a President and forced the world’s second-richest man to capitulate; why not harass a company into changing its board to reflect more politically-correct views…