A March 2024 Worker Rights Consortium report accused Hanesbrands and Gildan Activewear of failing to ensure that workers at the APS garment factory in Ilopango, El Salvador, received legally owed compensation after the facility closed. According to the report and findings cited from El Salvador's Ministry of Labor, 831 employees were denied back wages, severance payments, and other benefits, with the total unpaid compensation estimated at approximately $2 million. The workers had produced clothing for companies operating within the global apparel supply chain, yet the factory's shutdown left them pursuing money that labor authorities considered legally due. The case highlighted a recurring vulnerability in outsourced fashion manufacturing: brands may source from factories without directly employing the people who make their products, while workers can be left without wages or severance when a supplier collapses or disappears. The report placed pressure on Hanesbrands and Gildan to remedy the shortfall and renewed scrutiny of brand responsibility for labor violations at contractor facilities, even when the brands themselves do not own the factory.
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AI concept artworkArchive Record · 2020s
The Ilopango Wage Disaster: 831 Salvadoran Garment Workers Left Unpaid After a Factory Closure
Hanesbrands Inc., Gildan Activewear, and the APS factory / 2020s
A March 2024 Worker Rights Consortium report accused Hanesbrands and Gildan Activewear of failing to ensure that workers at the APS garment factory in Ilopango, El Salvador, received legally owed compensation after the facility closed. According to the report and findings cited from El Salvador's Ministry of Labor, 831 employees were denied back wages, severance payments, and other benefits, with the total unpaid compensation estimated at approximately $2 million. The workers had produced clothing for companies operating within the global apparel supply chain, yet the factory's shutdown left them pursuing money that labor authorities considered legally due. The case highlighted a recurring vulnerability in outsourced fashion manufacturing: brands may source from factories without directly employing the people who make their products, while workers can be left without wages or severance when a supplier collapses or disappears. The report placed pressure on Hanesbrands and Gildan to remedy the shortfall and renewed scrutiny of brand responsibility for labor violations at contractor facilities, even when the brands themselves do not own the factory.
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