Gildan Activewear confirmed that the Solidarity Fund QFL had informed the Company of its intention to sell, in an orderly manner, its entire equity position in Gildan, amounting to close to 2.5 million class A subordinate voting shares.
The Solidarity Fund QFL, which is the investment arm of the Quebec Federation
of Labour, a large Quebec-based labour union, has indicated that it has
reached this decision due to its inability to reach a consensus with Gildan
regarding an isolated event involving a small group of workers at one of
Gildan's sewing facilities in Honduras in November 2002. The Solidarity Fund
QFL believes that Gildan engaged in actions to hinder union organization at
that time, an interpretation of events which Gildan vigorously contests.
Gildan appreciates the long and mutually beneficial relationship which it
has enjoyed with the Solidarity Fund QFL since 1996, when it first invested in
Gildan prior to the Company's initial public offering in 1998. Gildan wishes
to recognize that the Solidarity Fund QFL has been an important partner in
Gildan's growth and success over the past 7 years. Gildan also wishes to
express its appreciation for the contribution made by Daniel Laporte as the
representative of the Solidarity Fund QFL on its Board of Directors over the
past 5 years.
In responding to the announcement by the Solidarity Fund QFL, Gildan
emphasized that it is proud of the fact that it operates all of its facilities
in an ethical, stimulating work environment offering beneficial working
conditions to its employees, and that the Company complies with all applicable
legislation in every geographical location where it has operations. Gildan is
committed to continuing to set a high standard within its industry for
socially responsible behaviour. Gildan has recently become the first Canadian
company and the first manufacturer in the wholesale imprinted activewear
industry to become a Participating Company of the Fair Labor Association
(FLA), recognized internationally as one of the most highly respected
independent verification agencies. The FLA promotes adherence to international
labour standards and improving working conditions.
In addition, the Corporation has had its own code of conduct for a number
of years to monitor proper working conditions in Canada, the U.S. and abroad,
both in its own facilities and those of any sub-contractors. Furthermore, four
of Gildan's sewing plants have been certified by the Worldwide Responsible
Apparel Production (WRAP). Freedom of association is a core principle of the
FLA, WRAP and Gildan codes of conduct, and four of Gildan's Canadian
facilities are unionized. Gildan's contribution to corporate social
responsibility was recognized last February when the Canadian International
Development Agency (CIDA) presented the Company with its Award for Excellence
in Corporate Social and Ethical Responsibility.
