Hanes Brand (HBI) Spin Off
Hanes Brand (HBI) was spun off from Sara Lee Corp. on September 6. The new company produces a variety of undergarments and related items including socks and underwear. It's brands include Hanes, Champion, Playtex, Bali, Just My Size, barely there, and Wonderbra, all relatively well-known and mid-priced.
If we look at Hanes Brand in terms of the desired criteria for a spinoff play, the best I could say is that it partly qualifies as a good spinoff candidate. Ideally what you are looking for is a number of conditions which depress the price but are based on short-term factors. Of course, this is always easier to analyze (and less useful) after the fact.
1) Sara Lee, it's parent company is in the dog-house. The company is currently trading at a level not seen since the early 90's. Some of this reputation may rub off on Hanes Brand. In spite of this, Hanes Brand has strong brand names and an independant management team. For what it's worth, Coach, which was spun-off of Sara Lee in late 2000 has gone up approximately 10 fold.
2) Independant management. This one is a bit tougher and I can't provide too much insight. The current CEO was in charge of the division under Sara Lee as well, so he's not completely independant but you rarely see that in spinoff's. The main thing is that the really senior management (e.g. the CEO) from Sara Lee is staying with Sara Lee and those indvidiuals who have moved to Hanes Brand, are now working for a separate company.
3) Management Incentives - Again this information is not readily available. I do know that some of the senior management held shares in Sara Lee prior to the spinoff. However, given the nature of executive compensation today, it is very likely that senior management has or will receive options.
4) Company differences - One of the theories behind spinoff selling is that institutions are not interested in the business line of the child company. While the clothing segment is certainly different from food products you may actually be seeing the opposite effect here. As a result of it's name brand products the new Hanes Brand could be drawing in new buyers who would have steered clear of the packaged foods and weaker brands of Sara Lee.
5) Index delisting. While Hanes Brand is not a member of the S&P 500 it does belong to the S&P 400 midcap index. As such you are not likely to see the large scale disinterest with a non-indexed equity.
So what we have is a company which does not have sufficient differences or scale to warrant large scale institutional selling. For new buyers that doesn't present a good entry point. The stock has actually been a benefit to Sara Lee shareholders (who purchased prior to the spinoff) as the combined value of SLE & the HBI received in the spinoff is ~$17.75, while Sara Lee was trading for below $17 the day before the spinoff. Essentially, this financial engineering resulted in a short term gain of ~5% to SLE.
So while Hanes Brand did not receive the pummelling I would have liked does it qualify as a buy on it's own merits? Well at this point I would say no. The company DOES have a tremendous debt load of $2.6 billion against operating profits of $400 million. Their debt is junk-rated and hence they face relatively high interest payments. It is not that the company is a sell or even that it won't perform but there is not sufficient margin of safety at this point to bother buying. It is a low growth industry and without knowing more about managements strategy, there seems little reason for optimism.
I will leave you with Hanes Brands' management's opinion on the merits of the spinoff. Link available here.
"Hanesbrands is a large, strong and successful company that is going to get better by benefiting from greater focus as an independent public company," Noll said. "Hanesbrands has tremendous opportunity for growth and improvement through steady and strong cash flow, cost-saving initiatives and investment in powerful brands and product lines. We intend to build our largest and strongest brands, such as Hanes, Champion, Playtex, Bali and others, in core categories through continued innovation of key products."
If we look at Hanes Brand in terms of the desired criteria for a spinoff play, the best I could say is that it partly qualifies as a good spinoff candidate. Ideally what you are looking for is a number of conditions which depress the price but are based on short-term factors. Of course, this is always easier to analyze (and less useful) after the fact.
1) Sara Lee, it's parent company is in the dog-house. The company is currently trading at a level not seen since the early 90's. Some of this reputation may rub off on Hanes Brand. In spite of this, Hanes Brand has strong brand names and an independant management team. For what it's worth, Coach, which was spun-off of Sara Lee in late 2000 has gone up approximately 10 fold.
2) Independant management. This one is a bit tougher and I can't provide too much insight. The current CEO was in charge of the division under Sara Lee as well, so he's not completely independant but you rarely see that in spinoff's. The main thing is that the really senior management (e.g. the CEO) from Sara Lee is staying with Sara Lee and those indvidiuals who have moved to Hanes Brand, are now working for a separate company.
3) Management Incentives - Again this information is not readily available. I do know that some of the senior management held shares in Sara Lee prior to the spinoff. However, given the nature of executive compensation today, it is very likely that senior management has or will receive options.
4) Company differences - One of the theories behind spinoff selling is that institutions are not interested in the business line of the child company. While the clothing segment is certainly different from food products you may actually be seeing the opposite effect here. As a result of it's name brand products the new Hanes Brand could be drawing in new buyers who would have steered clear of the packaged foods and weaker brands of Sara Lee.
5) Index delisting. While Hanes Brand is not a member of the S&P 500 it does belong to the S&P 400 midcap index. As such you are not likely to see the large scale disinterest with a non-indexed equity.
So what we have is a company which does not have sufficient differences or scale to warrant large scale institutional selling. For new buyers that doesn't present a good entry point. The stock has actually been a benefit to Sara Lee shareholders (who purchased prior to the spinoff) as the combined value of SLE & the HBI received in the spinoff is ~$17.75, while Sara Lee was trading for below $17 the day before the spinoff. Essentially, this financial engineering resulted in a short term gain of ~5% to SLE.
So while Hanes Brand did not receive the pummelling I would have liked does it qualify as a buy on it's own merits? Well at this point I would say no. The company DOES have a tremendous debt load of $2.6 billion against operating profits of $400 million. Their debt is junk-rated and hence they face relatively high interest payments. It is not that the company is a sell or even that it won't perform but there is not sufficient margin of safety at this point to bother buying. It is a low growth industry and without knowing more about managements strategy, there seems little reason for optimism.
I will leave you with Hanes Brands' management's opinion on the merits of the spinoff. Link available here.
"Hanesbrands is a large, strong and successful company that is going to get better by benefiting from greater focus as an independent public company," Noll said. "Hanesbrands has tremendous opportunity for growth and improvement through steady and strong cash flow, cost-saving initiatives and investment in powerful brands and product lines. We intend to build our largest and strongest brands, such as Hanes, Champion, Playtex, Bali and others, in core categories through continued innovation of key products."
posted by spinoff at
1:29 PM
8 Comments:
If a private equity firm can't find suitable investment opportunities, it will not draw on an investor's commitment. Given the risks associated with Los Angeles equity investment , an investor can lose all of its investment if the fund invests in failing companies. The risk of loss of capital is typically higher in venture capital funds, which invest in companies during the earliest phases of their development, and lower in mezzanine capital funds, which provide interim investments to companies which have already proven their viability but have yet to raise money from public markets.
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Anonymous, at 4:23 AM
3-Responsibles of the Hanes brands,
The comitee of workers of CD Apparel, at building #31, parc industrial (sonapi) HAITI joins their lawer, Jorice Oremil to greet the differences national organization and international for their help and to their enterprise fight by the said workers realize to damages.
Note that the boss of CD Apparel Frantz Pilorge came in Haiti after some meetings with the leaders responsible of Hanes and he has made the workers know that the bosses of Hanes,such as : Richard noll, Gerald evens,Micheal Jordand ………
Are vampires who don’t cease to exploit the workers around the word.
Speaking of Haiti he make understand that the Haitians workers are victims of racial discrimination. This enterprise “CD Apparel” has been congratulated by the same leaders for its efficiency and it’s products without any others .
The Haitians bosses put themselves to the bosses of Hanes side to exploit more the poor Haitian workers .
Lots of companies around the wold have been compensated with discussion such as:
Dominican Republic :3millions dollars us
Porto-Rico =$18.000000 US
Mexico :=$ 27.000000US
Canada : big millions
USA : big millions
And Haitians workers suffer until now and the workers of this company are left to their own devices.
These workers can’t send their children to school , pay the rent not to say sanitary cares about fity thousand (50000) workers arrange themselves already for a strike which aims at two objectives:
1-Ask Hanes Brands to compensate the workers of CD Apparel
2-Ask the Haitian parliamentaries to note the law on minimum wage.
We, workers of the cd apparel let us learn that some bosses of the company Hanes Brands such as: Richard Noll, Gerard Evens, Jorge Oliva from WRAP and others ally themselves with the haitians employers to know: the Bakers, the Apaids, and Richard Coles to prevent to the employees of CD Apparel to obtain their damages and repairs as Hanes does it always for the others plants.For your information, we say that :
Haitian government for the coming days will arrest certain other bosses for corruption and contreband , after the brandt , the Boulos , it will be the Baker’s and Richard Coles, the Apaid’s , Madsen, Acra, Meuz turn . This is the reason we want to ask the persons in charge of hanes to divorce with these employers in order not to to be considered as accomplice in the file of the workers of cd apparel because the state haitian [René Preval] will follow: authors and accomplices in this so national one as international file if hanes refuses, she will be considered as social danger for all the workers of the entire world.
We are waiting fo Hanes investigation in Haiti to release this crisis.
We write the American congress to take action to close the Hanes enterprises.
The workers of CD Apparel have been waiting and expecting that the leaders of Hanes will not shut the door in their face and will satisfy the workes
By
Anonymous, at 11:42 AM
NOTE : FRANTZ PILORGE AND REGINALD BAKER ARE OWNER OF CD APPAREL S.A IN HAITI OF MORE, CONTRACTORS OF SARALEE/ HANESBRANDS [HBI] THEREFORE, THE HAVE GOT A DIRECT CONTRACT WITH THIS AMARICAN COMPANY [HANESBRANDS] THAT MEANS : SO WHEN AN INTERNATIONAL COMPANY GET DIRECT CONTRACT WITH AN OWNER IN ANY COUNTRY THE INTERNATIONAL SOCIAL LEGISLATION AND THE CODE OF CONDUCT ABOUT WORK MAKE OBLIGATION TO THE DIRECTION OF THE COMPANY AFTER THE CLOSING OF ANY PLANT TO DAMAGE AND REPAIR THE EMPLOYEES .IT'S FOR THAT THE WORKERS OF CD APPAREL S.A [PLANT NAME, HG] IN HAITI INVITE THE PRINCIPAL OF TRADE UNION ORGANISATION, THE RESPONSIBLES OF PROTECTION AND HUMAN RIGHTS, THE LAWER'S MEN AND THE LEADERS OF SARALEE/ HANESBRANDS [HBI] TO COME INTO HAITI AT SONAPI INDUSTRIAL PARK OF TOUSSAINT LOUVERTURE AVENUE BUILDING # 31 TO MEET WITH THE WORKERS SO THAT THIS CRISIS COULD BE UNLOCK . DO NOT FORGET THAT THE LEADERS OF HANES GET DAMAGED THE EMPLOYEES OF DOMINICAN REPUBLIC, PUERTO- RICO, MEXICO, CANADA AND U.S.A ETC... FOR WHAT NOT THE HAITIAN'S EMPLOYEES AT CD APPAREL S.A . BY THIS FACT IF HANES CONTINUE REFUSING TO DAMAGE THE WORKERS EVERY BODY CAN CONSIDERS THIS ACTION LIKE BEING OF EXPLOITATION, CRIMINAL, ABUSING, RACE DISCRIMINATION , INJUSTICE OR BECAUSE OF THE WORKERS ARE THE BLACK PEOPLE . TO NOT THAT CD APPAREL S.A [HG] IS CERTIFIED BY WRAP ORGANISATION AS A PLANT OR ENTERPRISE IN HAITI LEGITIMATE AND LEGAL TO BE WORKING FOR SARALEE/ HANESBRANDS [HBI] AND THEN THE CERTIFICATION NUMBER FOR CD APPAREL S.A IS 5382 . TO REMIND THAT CD APPAREL S.A HAS BEEN AND STILL LIVES THE NUMBER ONE FROM ALL OF PLANT PRODUCING BETTER AND GIVING THE BEST EFFICIENCY ABOUT PRODUCTION AND QUALITY IT'S FOR SO THIS PLANT IN HAITI CONSIDERED TOWARDS THEIR EYES LIKE BEEING THE BEST IN THE CARIBBEAN . ALL PEOPLE CAN VERIFY THIS INFORMATION IN THE YEARBOOK OF SARALEE / HANESBRANDS . IF IT'S SO ACCORDING TO THE LEADERS OF HANESBRANDS [HBI] THEY HAVE TO FIXE THEIR POSITION SO THAT THE RESPONSIBLES OF HUMAN RIGHTS, THE TRADE UNION ORGANISATION AND THE LAWER'S MEN COULD TAKE ACTION ON THIS BAD SITUATION AGAINST THE POOR HAITIAN WORKERS. GOD BLESSES THE WORKERS IN THE WORLD!!!
The objective of our walkout towards consists of you it's to inform you of a position criticizes that we lived in Haiti, we the workers victims of the CD APPAREL S.A since May 4, 2007 this is that: FRANTZ PILORGE [owner of the cd apparel] of complicity with the private sector Haiti, the middle class haitian and the leaders of hanes [HBI] do all to maintain the workers in discrimination and the misery after the brutal closing and illegal of the plant CD APPAREL by Hanes without previous notice, refuse of us damage and repair. Of more FRANTZ PILORGE informed the workers than Hanes does not want to pay the workers by motive of racial discrimination and the color question, and course the workers are black haitian of more, he says, that to every closing of a plant, the persons in charge of Hanes do themselves always the duty of damage and pay charge to all of employees according to the requirement of the social international legislation of the work and the CODE OF CONDUCT from Hanes Therefore, PILORGE says if Hanes does not want repair the workers of cd apparel in Haiti this is a crime against humanity and a flagrant violation of the right of the workers. For more of informations, we invite yourself to click on these links. We are at sonapi, parc industial # 31. in here the address of our lawyer/ attorney : 509/34297129; 509/37548022; 22133089.We already get informed all People in the World by that means: The Trade Union Organisation , the ResponsiBles of Human Right ,the Social Group and the Lawer's Men, if the Leaders of Saralee / Hanesbrands [Hbi] could take an other way different than the only one to damage the poor Haitian Workers to take note against them and sentence that nasty action against the protection and the Right of the Workers in the World . In sum Pilorge and Reginald Baker note for example Hanes pays charges and damage the employees of D.R, Puerto Rico; Mexico; Canada and the U.S.A Plant for what according to him Hanes refuse to dame the workers of CD APPAREL S.A [HG] for this : The responsibles of human right and the lawer’s men must demand to the responsibles of Hanes to pay the workers after 4 years of excellent works for the company Hanes !!! HE TERMINATES BY TELLING THAT THE LEADERS OF HANESBRANDS EXPLOIT THE POORS HAITIANS WORKERS [SAYS FRANTZ PILORGE ]
WE, THE EMPLOYEES OF CD APPAREL IN HAITI AT SONAPI INDUSTRIAL PARC # 31 LET SHOW TO ALL OVER IN THE WORLD : THE LOGO, CARTON , MOON WORKS FOR THE COMPANY SARALEE/ HANESBRANDS [HBI] AFTER 4 YEARS OF EXCELLENT JOB FOR THEM . THEY REFUSE TO REPAIR US AS THE COMPANY HAS BEEN ALREADY DOING IT FOR ANY PLANT THAT SHE CLOSES IN ANY COUNTRY.SINCE MAI 4 2007 , FRANTZ PILORGE USED THE WORKERS VERY BADLY WITHOUT MONEY AND SAYS TO HANES THAT HE GET PAID FULL COMPENSATION HE LIES ! HE LIES ! HE LIES ! IT'S FOR SO THAT WE INVITE THE RESPONSIBLES OF HUMAN RIGHTS TO COME IN HAITI TO DO THE LIGHT ON THIS CRISIS !!! AS PILORGE SAYS THAT HE IS WILLING TO FORGE THE RESPONSIBLES OF HANES TO DAMAGE THE WORKERS BECAUSE THE WAY FROM HANES TO CLOSE CD APPAREL [HG] HAS BEEN BRUTAL AND ILLEGAL BUT THEY REFUSE TO DO IT AS RICHARD NOLL AND GERALD EVANS GET DONE IT FOR EACH PLANT CLOSED IN ANY COUNTRY . FOR THAT PILORGE FRANTZ PUSH THE WORKERS TO FIGHT HANES UNTIL THE VICTORY CAUSE THE ACT OF HANES IS A DISCRIMATION AND CRIMINAL !!! GOD BLESSES THE WORKERS IN THE WORLD ! ... WE KEEP SINCE 4 MAI 2007 : 6 CONTENERS OF FINISHED GOOD, LOGO OF HANES, 2 CONTENERS CARTONS, 480.000 PIECES T- SHIRTS, MACHINES WITHOUT FORGETING MOON WORK LOTS IN DEVIATION FOR SARALEE !!! YOU HAVE TO KNOW THAT FRANTZ PILORGE LET US UNDERSTAND WHAT ALL OF YOU ARE MERCHANT CRIMINAL MAKING DISCRIMINATION AGAINST HAITI'S WORKERS SO, HE GET WILLING TO DEMAND YOU PAYING THE WORKERS BUT YOU REFUSE .BY THIS ACT HE CONSIDERS THAT IS VERY ABUSING AGAINST THE RIGHT AND PROTECTION OF THE WORKERS CAUSE THEY'RE EXPLOITING THE POOR HAITIANS WORKERS !!! DO NOT FORGET THE BRANDS AND STYLE OF T-SHIRTS THAT WE KEEP[BY HAITIAN LAW] FOR HANES [HBI] ARE : PRINTABLES, CASUAL WEAR, 5250, 5280, SM80, 5170. UNTIL WE GET DAMAGE AND REPAIRS ON HANESBRANDS !!! GOD BLESSES THE WORKERS IN THE WORLD !
By
Anonymous, at 1:24 PM
1- WE NEED THAT THE AMERICAN DEMOCRATIC PARTY, THE REPUBLICAN PARTY, THE TRADE UNION ORGANISATION AND THE DEFENDERS OF HUMAN RIGHTS TO DEMAND BY ACT TO THE LEADERS OF HANES[HBI] TO COMPENSATE AND REPAIR THE WORKERS OF CD APPAREL.S.A IN HAITI AFTER THE BRUTAL CLOSURE AND NASTY RESILIATION OF OUR PLANT ON MAI,4,2007 AT SONAPI # 31. NOTE THAT WE'RE WILLING TO UNLOCK THIS CRISIS CAUSE THE AMERICAN ELECTIONS ARE COMING SOON THE TIME IS FOR JUSTICE AND PEACE AND RESPECT OF HUMAN RIGHTS. GOD BLESS ALL OF YOU !!!
2- WE THINK THAT THE PERSON IN DEMOCRARIC PARTY AND THE REPUBLICAN ONE WHO ARE ALWAYS WORKING FOR PEACE, JUSTICE ,SECURITY AND THE RESPECT OF HUMAN RIGHTS SHOULD PAY THEIR ATTENTION TO DEMAND TO THE LEADERS OF HANES [HBI] TO PAY CD APPAREL'S WORKERS AFTER 4 YEARS OF EXPLOITATION FOR THEM CAUSE THE AMERICAN ELECTIONS ARE COMING SOON AND WE HAVE WILLING TO UNLOCK THIS CRISIS . GOD BLESS ALL OF YOU !!!
PLEASE NOTE THAT THE CD APPAREL'S WORKERS ARE STANDING FOR DAMAGE AND REPAIRS AFTER THE BRUTAL CLOSURE AND RESILIATION OF CD APPAREL [HG] BY THE LEADERS OF HANEBRANDS[HBI] ON MAI,4,2007 .THEY SAID NOTHING FOR US : IT'S FOR THAT WE CONSIDER THAT DECISION HAS BEEN A DISCRIMINATION, INJUSTICE,ILLEGAL OR BECAUSE OF WE'RE THE BLACK PEOPLE THEY REFUSE TO PAY US OUR DUE !!!
3- WE , THE WORKERS OF CD APPAREL S.A IN HAITI AT SONAPI INDUSTRIAL PARK BUILDING # 31 [ CELL PHONE :509/36353007] WANT TO KNOW WHAT GERALD. EVANS, RICHARD. NOLL, LEE CHADDEN AND ELLY WHAT WHO ARE THE CURRENT LEADERS OF SARALEE/ HANESBRANDS WIIL DECIDE FOR US AFTER THE HURRICANE PLANED ON HAITI , WE'RE STILL STANDING FOR DAMAGE AND REPAIRS ON THEM !!!
THE CD APPAREL'S WORKERS IN AT SONAPI INDUSTRIAL PARK BUILDING # 31 ON TOUSSAINT LOUVERTURE AVENUE DECIDE TO ATTRACT THE NATIONAL OPINION AND INTERNATIONAL ABOUT THE NASTY RESILIATION AND THE BRUTAL CLOSURE OF OUR PLANT ON MAI,4,2007 BY THE LEADERS OF SARALEE/ HANESBRANDS COMPANY SUCH AS :RICHARD A. NOLL;E.LEE WYATT.JR;DALES W. BOYLE;WILLIAM J. NICTAKIS;JOIA M. JOHNSON;GERALD W.EVANS,JR.;MICHAEL FLATOW;KEVIN D. HALL WHERE 500 POOR WORKERS ARE ON THE COBBLED WITHOUT MONEY; HOME; GETTING A LOT MONEY FOR BANK AND CHILDREN TO SEND TO SCHOOL AFTER THE HARD CROSSING OF HURRICANE " GUSTAV AND IKE. AND NOW THEY REFUSE TO COMPENSATE AND REPAIR US AS THE OTHERS PLANT IN THE OTHERS COUNTRY. THE POOR HAITIAN WORKERS PUT A QUESTION TO : THE DEMOCRATIC PARTY AND THE REPUBLICAN PARTY; THE TRADE UNION RESPONSIBLES AND THE DEFENDERS OF HUMAN RIGHTS TO PAY THEIR ATTENTION TO DEMAND BY ACT TO THE PERSON IN CHARGE OF HANES [INC] TO LISTEN TO THE REASON TO PAY THE WORKERS CAUSE ALL AMERICAN PEOPLE ARE ALWAYS BEEN WORKING FOR PEACE;JUSTICE;SECURITY AND RESPECT OF HUMAN RIGHTS BECAUSE THE AMERICAN ELECTIONS ARE COMING SOON AND THE WORKERS ARE WILLING TO UNLOCK THIS CRISIS AND SHIP THE 480.000 PIECES OF T-SHIRTS AND MATERIALS WHICH HAVE BEEN SEAL BY THE LAW AND JUSTICE. NOTE THAT THE LABORS HAVE BEEN COMPENSATED BY THE SAYING OF : CODE OF CONDUCT AND THE INTERNATIONAL SOCIAL LEGISLATION CONCERN WORK BECAUSE OF FRANTZ J. PILORGE IS OWNER OF CD APPAREL S.A AND THE DIRECT CONTRACTOR OF THE COMPANY HANESBRANDS[HBI] BY HIS WRAP CERTIFICATION NUMBER 5382!!!
By
Anonymous, at 6:17 AM
By the presente, we want to attract the attention of the national opinion and international, the representants of the trade union organizations, the defenders of the human rights, the organizations of women for the respect and the protection of the workers, representants on the democratic party, the representants on the democratic party, the black cocus and inform all of an improper and mean position that we are liveliness to undergo in Haiti to The people party being part of the middle class haitian and private haitian sector without forgetting verbal threats on our persons through cell phone that they are in the process of utter to our place. We know very clearly that Mr. Frantz J. Pilorge being, owner of Cd Apparel S.a and principal contractor of the company Saralee/ Hanesbrands[Hbi] has, of by his certification of recognition legale obtained from the international organization "WRAP APPAREL" the full permission and guarantee to seize the law and the justice regarding to seal the materials and equipments of Hanesbrands[Inc] regarding to demand "justice and repair" for the 500 employees victims at the time of the improper and nasty resiliation of Cd Apparel S.a by the leaders of Hanes on May 4 2007. This is for that that we warn yourself of all eventual maneuver that he would have plotted with the complicity of Mr. Richard Coles, Mr. Andy Jr. Apaid, Jn Paul Faubert and Mr. Sassine against the right of the victims that claim: justice and repair for price of the 4 years of misery, of injustice, of exploitation and of discrimination that they returned to the company Hanes [inc]. To the look of the law and justice only Frantz Pilorge [owner and direct contractor] is able and get full access to undertake walk and step with the national and international instances and ask Hanes to pay the employees and to allow the workers to unlock the merchandise of saralee / Hanes .For the direct implication of all other sector in the matter would be qualified flagrant offence[ infraction] which is strictly punished by the law and justice [penal].. Only Frantz pilorge can deliver the secrets of Cd Apparel [his enterprise] and allow all intervention inside of the building # 31. For, the workers understand the game and keep to explain to Mr. Pilorge all bad action in the matter he will be responsible and then the employees will take action against all the complicity !!! "Justice and respect of the rights of all the workers of the entire world!!!
By
Anonymous, at 4:59 AM
In solidarity,
Joseph Lapp II / Ryan Reetz
Rich Noll, CEO
Hanes Brands, Inc.
1000 East Hanes Mill Rd.
Winston Salem, NC 27105
Mr. Rich Noll:
After taking part in a recent delegation to Haiti sent by the
Industrial Workers of the World, a rank-and-file union representing
workers in a number of nations and a variety of industries, I became
aware of the ongoing struggle of 500 factory workers from cd apparel in sonapi who lost their
jobs as a result of actions taken by your company adding to their bad situation after the heartquake destroyed the poor Haiti on Jan 12,2011. In this case you are
unaware of the circumstances, these workers were employed by a company
called CD Apparel which was under direct contract with Hanes Brands,
Inc. In May of 2007 Hanes Brands withdrew its contract from CD
Apparel,without any kind of notice as demand the code of conduct and the international socio-legislation on work forcing its closure very brutally, and moving that contract to another
plant in Haiti. While these workers are standing to claim full compensation for price of 4 years of excellents jobs made for the profit of the leaders of hanes and theone of cd apparel's contractor but nothing for these poor workers living in a dark misery very special! Of more i need the kind support of all international organisation to demand from hanes/inc " Damages and Repairs for these poor employees and thier high cost of living must be taken into
consideration, they have not been compensated in the by any employer for whom
that workers employed under contract by your company in other parts of
the world have been compensated, when in a similar situations.
It is my belief that this amounts to discrimination against the people
of Haiti who deserve far better treatment. Haiti is a nation gripped
by rampant hunger and unimaginable poverty. Rather than corporations
such as yours taking advantage of this terrible situation to increase
their profits on the backs of an already brutalized people, it is
their responsibility to use some of those profits to make life better
for the people they employ. While these workers were not directly
employed by Hanes Brands/hbi, it was the decision of your company that
caused them to lose their jobs, and your company should take
responsibility for that fact.
I strongly urge you to look into the facts of this case, to carefully
consider the demands being made by these workers, and give them their
due by that means " Full Compensation". It is my intention, and that of the Industrial Workers of the
World, to build bridges of solidarity with the workers of Haiti, and
to aid them in their struggles. We hope that you will live up to your
social contract in this case, if not we will take further action as we
find appropriate.
Sincerely,
Joseph Lapp II / Ryan Reetz !
By
HAITIANSWORKER, at 8:15 AM
Tuesday, Jan 04, 2011
To Mr. Jorge Perez Lopez,
President of FLA (Fair Labor Association)
Dear Perez, by the special present we write you as representatives of the Haitian victim workers from Cd Apparel S.A in the Sonapi, industrial park of the Port-au-Prince Bldg # 31. As you already know on May 04, 2007 the Leaders of Hanes brands INC with the complicity of the Haitian employers ended their contract with the Cd Apparel’s Plant without any warning throwing into jeopardy the livelihoods of 500 poor’s workers and their families join with the worst tragedy of the Haitian people caused by the Earthquake taken place on January 12 , 2010 that which get worse the economic and social situation of the workers. Note that the illegal closure of our plant violates the Haitian labor law requires an employer to give damages and full compensation to the victim workers because this injustice impede the international social legislation on work which demand you as defender of the human rights to fix your position so that a solution can be done. For the truth and the history, we’re paid to tell you Mr. Lopez that we keep for Hanes by the law 420.000 pieces of T-shirts without forgetting a lot of materials finishing goods at Sonapi Bldg #31 ( six containers ) we please you to let us know your position on this case and your staff one ??? Of more, you had informed the committee of Cd Apparel on a declaration from Hanes pretending that all the victim of this Plant got already obtained “Full Compensation” but without any proof on this lie! For the knowledge of Humanity, we want to declare that the workers did not receive any compensation and damages from an employer in Haiti explaining the critical situation of the victims after the brutal earthquake … To make light on this case we need have a copy of the payroll’s file (doc of payroll) showing how many employees who have been paid? When? The sum for each one of them? In what currency? Like this the truth should be at the main of the international public opinion and demand to the leaders of Hanes to compensate and repair the poor Haitian workers after 4 years of excellent services for their profit and the one of Cd Apparel’s employer but nothing for the victims: What injustice!!!
We look forward to your response for an immediately resolution to this case.
From the committee of Cd Apparel in Haiti at Sonapi Bldg # 31 !
By
VICTIMSWORKERS IN HAITI, at 8:19 AM
Tuesday , Jan 03, 2011
To Mr. C. Ryan Reetz,
member of ICC Arbitration Commission Task Forces on Amiable Solution
Dear / Sir Ryan, as a law man and political, by this special present, the committee of the victims from Cd Apparel at Sonapi is paid to inform your staff and you about a nasty action very brutal which is providing currently in the Sonapi against the poor victims of Cd Apparel’s workers by the contractors of Hanes /HBI in Haiti with the random support of the Haitian’s employer on 30,December 2010 where they came with a International delegation and smash the padlock of the containers holding 420,000 pieces of T-shirts finishing goods without including a lot of materials blocked on May 4,2007 to demand from the leaders of Hanes :“ Damages and repairs “ for the victims as they got done it for the employees of Puerto-Rico, Mexico city, Dominican republic etc… But for what not the same arrangement for the workers of Cd Apparerel after five years of excellent jobs for the profit of the leaders of Hanes brands and his Contractors in Haiti! Note that we keep informing the national and international public opinion, the defenders of human rights, and the trade union sector about the nasty plan to take away the containers hidely for Hanes without any disposal to compensate the victims as you know their critical situation in Haiti after the earthquake on January, 12, 2010 which has been destroying Haiti. For this right reason Mr. Ryan, the poor’s workers please you to fix your position against this crime and pray you to: 1) question Mr. Frantz Joseph Pilorge, owner of Cd Apparel and contractor of Hanes brands / Hbi about this matter to get his position on the bad ecomical situation which is jeopardize every day the past, the current and future of these poor wretch (be 500) and their family. 2) Join the support of your staff and the one of others organization to demand from the deciders of Hanes / HBI: Justice and full compensation for those poor workers in sonapi Bldg # 31 as they get to do it for any plant cancelled!!!
We look forward to your response for an immediately resolution to this case.
From the committee of Cd Apparel in Haiti at Sonapi Bldg # 31!
For the committee: Medna César -----James Moise -----Lonel Henry
By
VICTIMS OF CD APPAREL/HANES, at 8:21 AM
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