PVH Corp. Announces Landmark Agreement with Coalition of NGOs and Bangladesh Labor Unions on Fire and Building Safety

NEW YORK - Wednesday, March 21st 2012 [ME NewsWire]

PVH is the initial company to commit to this first-of-its-kind program

(BUSINESS WIRE)-- PVH Corp. [NYSE: PVH] announced today that it has entered into a Joint Memorandum of Understanding with a group of non-governmental organizations consisting of Clean Clothes Campaign, Worker Rights Consortium, The International Labor Rights Forum, and Maquila Solidarity Network, as well as a group of eight international and Bangladeshi trade unions, regarding fire and building safety in Bangladesh’s apparel factories.

The agreement recognizes the need for the Bangladeshi government, the Bangladeshi Ready-Made Garment (RMG) industry, brand owners and retailers, and labor to work together to create a safe and sustainable work environment within the Bangladeshi RMG industry. The agreement establishes a two-year program to be led by a multi-stakeholder task force for the purposes of establishing an in-factory training program; facilitating the creation of factory health and safety committees; reviewing existing building regulations and enforcement; developing a worker complaint process and mechanism for workers to report health and safety risks; and advising a Chief Inspector.

The Chief Inspector will design and implement a fire safety inspection program based on internationally recognized workplace safety standards. The Chief Inspector will also direct and oversee the various other elements of the program.

The program, which will be financed by the participating companies, will go into effect when at least three other well-known international brand owners or retailers sign onto the agreement. PVH has committed up to $1.0 million to underwrite the program.

PVH and the other participating brand owners and retailers will identify the RMG facilities they use in order to implement the various aspects of the program and will also require these facilities to create health and safety committees to reduce illness and injury. If a facility fails to remediate high safety risks or implement other aspects of the program after efforts of the companies, then, as a last resort, the companies will move production to a qualified, safe facility in Bangladesh. Efforts will be made to protect the workers displaced (if any) as the result of the move of production.

PVH has committed to using good faith efforts to advance the purposes of the agreement on its own if other brand owners and retailers do not join the agreement.

Emanuel Chirico, Chairman and Chief Executive Officer of PVH, said “We wish to commend Clean Clothes Campaign, Worker Rights Consortium, The International Labor Rights Forum, Maquila Solidarity Network and the international and Bangladeshi unions for their commitment and insight in helping to create this landmark agreement. We hope this agreement will find cooperation from the Bangladesh Manufacturers & Exporters Association, its members and the Bangladeshi Government to put into effect its terms and that it will result in safer factories and establish a benchmark for fire and building safety standards and practices throughout Bangladesh.”

PVH Corp., one of the world’s largest apparel companies, owns and markets the iconic Calvin Klein and Tommy Hilfiger brands worldwide. It is the world’s largest shirt and neckwear company and markets a variety of goods under its own brands, Van Heusen, Calvin Klein, Tommy Hilfiger, IZOD, ARROW, Bass and G.H. Bass & Co., and its licensed brands, including Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, MICHAEL Michael Kors, Sean John, Chaps, Donald J. Trump Signature Collection, JOE Joseph Abboud, DKNY, Ike Behar and John Varvatos.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Forward-looking statements made in this press release, including, without limitation, statements relating to the Company’s plans, objectives, expectations and intentions, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy, and some of which might not be anticipated, including, without limitation, the following: (i) the Company’s plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Memorandum of Understanding discussed in this release may not be implemented if other companies do not agree to be bound by its terms or the terms may be materially changed prior to their being implemented or afterwards; and (iii) other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to update publicly any forward-looking statement, including, without limitation, any estimate regarding earnings, whether as a result of the receipt of new information, future events or otherwise.

Contacts

Investors:

Dana Perlman, 212-381-3502

Treasurer, SVP – Business Development and Investor Relations



Media:

HL Group

Chris Giglio

Direct: 646-460-8901

Executive Vice-President

cgiglio@hlgrp.com