A March 2024 Worker Rights Consortium report implicated Hanesbrands and Gildan Activewear in a severe wage and severance dispute following the closure of the APS garment factory in Ilopango, El Salvador. The facility's 831 workers were reportedly left without back wages, severance payments, and other legally required benefits for roughly two years after the plant shut down. The total compensation allegedly withheld reached approximately $2 million. The Salvadoran Ministry of Labor confirmed that the workers had been unlawfully denied these payments, turning the case from a routine factory closure into a documented labor-rights violation. The report highlighted a recurring vulnerability in global apparel production: brands can source from factories while operations are profitable, yet workers may be left pursuing legally owed wages and benefits when a facility closes. The case placed Hanesbrands and Gildan under renewed scrutiny over supply-chain responsibility and the enforcement of worker protections in Central American garment manufacturing.
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AI concept artworkArchive Record · 2020s
The $2 Million Wage Dispute at Hanesbrands' Closed El Salvador Factory
Hanesbrands Inc., Gildan Activewear, and APS factory in Ilopango / 2020s
A March 2024 Worker Rights Consortium report implicated Hanesbrands and Gildan Activewear in a severe wage and severance dispute following the closure of the APS garment factory in Ilopango, El Salvador. The facility's 831 workers were reportedly left without back wages, severance payments, and other legally required benefits for roughly two years after the plant shut down. The total compensation allegedly withheld reached approximately $2 million. The Salvadoran Ministry of Labor confirmed that the workers had been unlawfully denied these payments, turning the case from a routine factory closure into a documented labor-rights violation. The report highlighted a recurring vulnerability in global apparel production: brands can source from factories while operations are profitable, yet workers may be left pursuing legally owed wages and benefits when a facility closes. The case placed Hanesbrands and Gildan under renewed scrutiny over supply-chain responsibility and the enforcement of worker protections in Central American garment manufacturing.
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