News Details

RUSSELL ATHLETIC DEFENDS ITS REPUTATION WITH FACTS

Strong Positive Response from Schools Seeking Information About Honduran Operations

March 2009

ATLANTA, March 09 – Russell Athletic is receiving favorable responses from colleges and universities across North America to the newly-released information it is providing to answer questions about the 2008 closure of its Jerzees de Honduras (JDH) manufacturing plant.

“For a number of months Russell Athletic kept silent as we worked with the Fair Labor Association (FLA) and several Honduran social service groups to help our displaced employees and implement a series of policy and procedural actions included in an FLA-approved Action Plan,” said Russell Executive Vice President Gary Barfield. “Unfortunately, Russell came under attack by advocacy groups that ignore the facts and are in effect slandering our company with false charges. We felt it necessary to respond to protect our company’s positive reputation.”

“No one has ever disputed the economic facts – which we’ve repeatedly cited and that have been independently confirmed – that the global recession forced us to close one unionized plant – our JDH plant – and eight other non-union facilities,” Barfield continued. “The groups attacking us are concerned only about the union employees, not the 10,000 employees from the other 8 plants whose livelihoods have been affected to the economic downturn. Russell is concerned about all of our displaced employees.”

The steps being taken by Russell amount to a new level of openness between apparel manufacturers and colleges. Russell has invited a number of schools to tour its factories in Honduras to get a firsthand look at the conditions and have the chance to talk to workers. Details on this fact-finding trip, expected to take place in April, are now being finalized.

Russell management also attended and answered questions at the recent FLA University Advisory Board Annual Meeting. In addition, the company has requested to meet with administrators at any school at their convenience to tell its side of the story and share the facts about Russell’s commitment to its employees. Several schools have invited Russell to on campus meetings, which are taking place during March and April. Russell has also established a website, www.russellsocialresponsibility.com, as a way to fulfill its promise to schools to keep them posted about the progress being made on the FLA recommendations.

Barfield said activists frustrated by the JDH closure are deliberately making false charges that:

  • “Russell targeted JDH as the sole factory in Central America it closed only because it was unionized.” In fact, apparel manufacturers around the world are suffering from the worst economic downturn in modern times – which began after the union was already recognized – and more than a year before the JDH closure became necessary. The JDH factory suffered a dramatic decline in orders for the fleece products it made, leaving less demand for products sewn there than at any of our other Honduran factories. And it was the only one with a lease we could vacate immediately, avoiding costs of more than $2 million. JDH is one of nine plants Russell has closed in the past year, in addition to cutbacks at other facilities. All of the other plants have been non-union. Again, no one has ever refuted these facts.
  • ”Russell workers toil in sweatshop conditions.” The truth is that all Russell factories in Central America are modern facilities and fully air conditioned. Our plants offer our people such benefits as medical care, health fairs, prenatal classes, and cafeterias offering healthy meals. More than 1,800 employees in Central America have over 10 years of continuous service with our company. People are loyal to companies that treat them with dignity and respect.
  • ”Russell did not pay workers at JDH their full salaries or severance.” The truth is that all workers at our closed plants received all salary, severance and other benefits owed to them under corporate policy and Honduran law. In fact, they each signed forms indicating that they received payments from the company. This can be verified with the Honduras Department of Labor. Additionally, Russell has gone well beyond the basics to offer technical training and job placement counseling to its displaced employees, even offering paid time off so they could attend job interviews.
  • “Russell has been involved in death threats against union leaders.” The truth is the Workers Rights Consortium acknowledges that there is absolutely no evidence connecting Russell to these alleged threats, and in fact we have joined the WRC in requesting the Honduran government, as well as the Inter-American Commission on Human Rights, to take precautionary measures for union leaders’ safety.
Barfield explained many of the current activists’ attacks use information based on events that happened in 2007 and extrapolating them forward to 2009 as if nothing changed in the interim.

Russell has taken full responsibility to correct those 2007 issues and took steps to remedy them. In January 2008, the Worker Rights Consortium sent a memo to all its member schools praising the company for making “very substantial progress.” The memo highlighted the fact that Russell’s efforts to fix the problems had been “unusually successful” and that, “This was accomplished as a result of effective cooperation between management and the union.”

“Russell Athletic has received a great deal of positive feedback from our customers since we started responding to these outrageous charges – including support from schools that had cancelled contracts with Russell based on the allegations. We had a very strong CAMEX Show in California last week, meeting and doing business with customers,” Barfield said. “We have nothing to hide and we think the truth speaks for itself. No matter how much the more extreme advocacy groups protest, we will continue to protect our good name by countering these false allegations with the facts.”

“Russell believes we can comply with the FLA recommendations and show the progress made on our Continuous Improvement Process report, while at the same time setting the record straight and correcting false charges,” Barfield said. “The proof is in the progress reports we’ve made to the FLA – three since the start of March – and in the other steps we’ve taken to make sure our customers have a comfort level with how we do business. Allowing the false charges to go uncorrected not only damages our company’s reputation, it places at risk the jobs of our valued employees.”


For more information please contact:
Chad Currah, Division Manager – Russell Athletic (Canada)
HD Brown Enterprises Ltd.
Tel: 519-448-1381 Ext. 335
Fax: 519-448-3159
E-mail: ccurrah@hdbrown.com
website: www.russellathletic.ca