RESPONSIBLE RETRENCHMENT POLICY

负责任的紧缩政策

WHAT DOSE IT MEAN?

Retrenchment occurs when the employer has bona fide economic, technological, structural or similar reasons to reduce the size of the workforce PVH requires suppliers to have a formal policy regarding all aspects and modes of termination and retrenchment.

WHAT DO YOU NEED TO DO?

PVH suppliers must meet the following requirements in regards to retrenchment

• factory shall have in place a formal written policy governing all aspects and modes of termination and retrenchment

• factory shall maintain proper and accurate records in relation to termination and retrenchment

• When factories are faced with major changes in production, program, organization, structure, or technology and those changes are likely to result in temporary or permanent layoffs, employers shall communicate any alternatives to retrenchment that have been considered and consult any workers’ representatives as early as possible with a view to averting or minimizing layoffs

• Where temporary or permanent layoffs are unavoidable, a plan should be developed and implemented that mitigates the adverse effects of such changes on workers and their communities

• the plan should be clearly communicated and posted, and include feedback channels for workers to ask questions and seek clarifications factories should give retrenched workers opportunity to transfer to other owned facilities in the countryat a comparable wage and make all efforts to facilitate re- employment in other enterprises in the country

ACHIEVING AND MAINTAINING STANDARDS

How do you do it?

When both sourcing and the factory have come to a general mutual agreement on the exit strategy/timeline the following general information will be requested from the factory:

• Determination and report regarding impacts of exit on workforce (i.e., partial terminations, full closure, etc.).

• Report on whether the factory will look for new customers to fill the space.

• If a closure is anticipated, provide the estimated date of closure.

• If terminations only, disclosure of number of workers that will be terminated. A retrenchment plan regardless of terminations vs. full closure. Note: This is not the same as a production exit strategy –this is specific to workers.

• Timeline for notification of the workers.

• Determination of financial implications of terminating the workers legally (exact amounts on what the workers are entitled to and/or owed).

• Determination whether the factory has the financial capacity to meet all requirements.

• Report on whether the factory owner will agree to have regular updates with the PVH Compliance and Sourcing point persons on whether the strategy is working or not. This includes being proactive about challenges they are facing.

• Report on whether the factory owner will agree to an exit interview with the PVH CSR team about the factory’s relationship with PVH.

• Confirmation that all amounts due to workers have been paid.