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Summary Report: Third Party Complaint Regarding Estofel S.A., Guatemala

The FLA had been alerted about the closure of the factory shortly after it occurred by Guatemalan labor rights organization COVERCO (Commission for the Verification of Corporate Codes of Conduct). FLA-affiliated company Phillips-Van Heusen (PVH), who had sourced directly from the factory until a few months before the closure, was contacted by some of the workers and COVERCO shortly after the closure and pressed Estofel for full severance payments. PVH also pressed for the payment of full severance to Estofel workers with Singaporean company Ghim Li, a business partner of Estofel.