The Solidarity Fund and Gildan Activewear, Inc
The case talks about the deliemma faced by the Solidarity Fund, a sophisticated retiriement fund operated by the Qubec Federation of Labor. The goal of QFL was to extend access to managed retirement account for its members and to instill job growth in the Qubec region. Another focus of the QFL was to support socially responsible companies that carried out their due delligence process sucuessfully and paid special attention to employee working conditions. The controversy stemmed from the fact the Gildan Activewear and Montreal based textile and Garment that started in 1984 managed and operated three factories. Gildan Activewear is a Montreal-based textile and garment company that started in 1984. Gildan ownd and operated three factories and in effort to compete with Hanes and Fruit of the Loom, Gildan began to expand in 1995, Gildan contacted the Solidarity Fund for help in financing its expansion
Gildan grew drastically and even expanded some production to Honduras Gildan believed that Honduras was the reason for its success as80% of the jobs were held by women between the ages of 18 and 25.In 2002, the basic minimun hourly wage was 63 cents. An employee in Montreal earned more in one hour than an Honduran did in one day.The Solidarity Fund's conducted an audit on Gildan and discovered that there were many issues with factories In Hunduras. Some of the issues were dilapadated facilities, substandard working conditions like illegal firings, poor procution conditions and a high level of cotton dust. On ef the main criteras of The Solidarity Fund was to help socially responsible companies exband and grow globally. The Solidarity Fund tried giving Gildan some advice and ways to better the company instead of keeping the harsh working conditions.The Fund also wanted to sell its investment because Gildan did not respect the