With the demise of the import quota system at the beginning of 2005, companies began restructuring global supply chains with little regard for the workers, communities and countries that are affected. When the economic crisis hit in the latter half of 2008, the industry began a whole new wave of downsizing and restructuring.

While a few companies have been willing to discuss how to minimize the negative impacts of restructuring and consolidation, the vast majority refuse to even consider justifying their decisions to those they leave behind.

Responding to closures

MSN prepared some case studies of factory closures and drafted a list of demands for labour rights organizations to discuss.

• Case studies (pdf)
• Draft list of demands (pdf)

MSN has also been closely involved in drafting and building consensus on a set of guidelines for buyers, suppliers, governments, trade unions and NGOs on how to responsibly address factory closures and industry transition. These guidelines, published by the MFA Forum, are known as the Guidelines for Managing Responsible Transitions. They provide a set of minimum expectations and best practices that has been developed collaboratively by a working group comprised of companies, NGOs, trade unions and the ILO. MSN is encouraging companies and multi-stakeholder initiatives to formerly incorporate the guidelines into their policies and practices.

Also see:

• Case Study: the Hermosa Factory in El Salvador
• Gildan Activewear makes good on promises to laid off Mexican workers
• Expectations in relation to Factory Closures and Mass-Dismissals (Clean Clothes Campaign)