OECD Forum on Due Diligence in the Garment and Footwear Sector

Factory Closures and Worker Retrenchment: Lessons from Central America

Feb 20, 2024 | 3:15 PM - 4:30 PM


Organised by: Fair Labor Association The apparel and footwear industry is witnessing a disruption in demand due to the economic fallout from the coronavirus outbreak and the current global economic slowdown, putting jobs worldwide at risk. Apparel and footwear companies are restructuring their supply chains as they deal with oversupply and a decline or cancellation in orders from brands. This has resulted in closures, mass layoffs, suspended employment, and reduced working hours for apparel workers. Over the last few years, hundreds of thousands of workers in the industry have lost their jobs, often in countries where there are weak social protection systems, few alternative job opportunities, and often without receiving their legally owed severance. The Fair Labor Association will lead a panel of union representatives from El Salvador and Honduras, alongside international brands adidas and SanMar, to discuss appropriate due diligence for brands in addressing labor risks for workers during factory retrenchments and closures. Languages: English and Spanish Watch session on replay (EN) Watch session on replay (SP)

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