The Daily Tar Heel

A University committee decided Thursday to evaluate whether Gildan Activewear, a major supplier of blank T-shirts, will remain a supplier to UNC licensees.

The Licensing Labor Code Advisory Committee considered the results of recent investigations by the Worker Rights Consortium and the Fair Labor Association, which revealed several violations of the University's code of conduct.

Gildan, which supplies T-shirts to more than 55 universities, was cited by the groups for violating workers' rights. The company reportedly denied workers their right to freedom of association, in addition to harassing employees and refusing to pay them.

UNC, a member of both labor rights associations, recently condemned the actions of Gildan. The FLA announced that it will retain Gildan's membership but that the company will remain under special review.

"There are issues here that captivate all of our attention," said Jack Evans, committee member and professor in the Kenan-Flagler Business School.

In December 2003, workers at Gildan's El Progreso factory, located in Honduras, filed complaints seeking unpaid wages, better working hours and an end to harassment and abuse.

Investigations by the WRC and the FLA revealed that Gildan had violated a number of Honduran laws as well as other universities' codes of conduct.

"We have prime evidence of a violation of our code. ... This has crossed our threshold and will not go unheard," said committee member Donald Hornstein, a professor in the UNC School of Law.

Gildan shut down its Honduran factory Sept. 24, days before the expected date of the factory's close.

The closure caused 1,000 workers to lose their jobs, the committee said.

Committee members expressed concern with the violations and the mistreatment of factory employees.

"The workers are the ones who suffer," said committee member Jim Peacock, a professor of anthropology. "They are the ones who lose."

Committee members decided to collect further information from the WRC and the FLA and then assess how to deal with the situation.

Hornstein proposed that if UNC licensees continue to work with Gildan, the University's financial relations with those groups should be severed.

Students from the UNC-based Students United for a Responsible Global Environment decided to take matters into their own hands.

The students are asking UNC licensees who source from Gildan to end that business relationship until Gildan reverses the decision to close the El Progreso factory, rehires all workers and complies with all WRC recommendations for the plant.

"If UNC would take a strong stance and sever ties with licensees that source from Gildan, I would be impressed," SURGE member Melanie Stratton said.

Derek Lochbaum, director of trademarks and licensing, stressed that this is a unique situation.

"We have to remember that Gildan is a supplier and not a licensee to UNC."

Contact the University Editor at udesk@unc.edu.

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