Gildan Activewear, from Haiti to Honduras

dawn — Wed, 01 Jul 2009 00:03:56 +0000

Following a media blip after the 2004 coup in Haiti, Montreal's Gildan Activewear has again scored media attention in Canada, this time for its operations in post-coup Honduras.

The National Post reported today that:

While the day-to-day operations of Gildan’s manufacturing facilities are unlikely to be affected, an estimated 60% of its activewear and more than 50% of its socks are made in Honduras.

So after 30 years of peaceful democracy, [Desjardins Securities analyst Martin Landry] now believes investors will apply a geopolitical risk discount to Gildan. The analyst sees little risk that the country’s assets will be nationalized and suggested the coup may turn out to be a positive for Gildan if it brings back a more business-friendly government.

(Emphasis mine). I think it's time to set the Canada Haiti Action Network's team of intrepid researchers on Honduras, following the scent of a sweatshop-made t-shirt.

[Photo of street fighting in Tegucigalpa immediately following the coup by Oswaldo Rivas.]

The Dominion - sweatshop

Gildan Activewear, from Haiti to Honduras