BetterWork: 29yèm Rapò Sentèz Konfòmite anba HOPE - Ayiti

HAITI 2 9 th Compliance Synthesis Report January to December 2025 2 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Copyright © International Labor Organization (ILO) and International Finance Corporation (IFC) (202 6 ) First published (202 6 ) The ILO is acting on behalf of both organizations on copyright - related matters. This is an open access work distributed under the Creative Commons Attribution 4.0 International License ( https://creativecommons.org/licenses/by/4.0/ ). Users can reuse, share, adapt and build upon the original work, as detailed in the License. The ILO and IFC must be clearly credited as the owner o f the original work. The use of the emblem of the ILO and/or IFC, or the Better Work logo, is not permitted in connection with users’ work. 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ILO Cataloguing in Publication Data Better Work Haiti: apparel industry 2 9 th synthesis report under the HOPE II legislation / International Labor Office; International Finance Corporation. - Geneva: ILO, 202 6 1 v. International Labor Office; International Finance Corporation 3 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Clothing industry / textile industry / working conditions / workers’ rights / labor legislation / ILO Convention / international labor standards / comment / application / Haiti The designations employed in this publication , which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IFC or ILO concerning the legal status of any country, area or territory o r of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies, and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Information on ILO publications and digital products can be found at: www.ilo.org/publns . Visit our website: www.betterwork.org Acknowledgments/Disclaimer Earlier phases of Better Work Haiti received financial support from the United States Department of Labor (USDOL). The contents of this publication are the sole responsibility of Better Work Haiti and do not n ecessarily reflect the views or policies of the USDOL. The mention of trade names, commercial products, or organizations does not imply endorsement by the United States Government. 4 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Table of Contents Acknowledgments/Disclaimer ................................ ................................ ................................ ........... 3 List of Acronyms ................................ ................................ ................................ ................................ ....... 5 Executive Summary ................................ ................................ ................................ ................................ . 7 Section I: I ntroduction and Context ................................ ................................ ................................ . 8 1.1 Background ................................ ................................ ................................ ................................ .......... 8 Section II: Highlights of the reporting period July – December 2025 ................................ 11 Country Context ................................ ................................ ................................ ................................ ............... 11 Garment Industry Challenges ................................ ................................ ................................ .................. 12 Section III: Milestones and key takeaways ................................ ................................ ................. 14 Progress toward achieving results. ................................ ................................ ................................ ....... 14 Section IV: Compliance overview in the Haitian garment industry ................................ . 22 Section V: Core labor standards non - compliance findings of the reporting period 31 Section VI: Better Work Haiti: From Compliance Monitoring to Institutional Anchoring ................................ ................................ ................................ ................................ ................. 36 Annex 1: TAICNAR Framework and Reporting Requirements under HOPE II Legislation ................................ ................................ ................................ ................................ ................ 44 TAICNAR Program Component 1: Compliance Assessments and Remediation Support ................................ ................................ ................................ ................................ ............................. 45 TAICNAR Program Component 2: Technical assistance to strengthen the legal and administrative structures for improving compliance in the industry ................................ .. 45 Annex 2. Better Work’s Service Delivery Model ................................ ................................ ....... 48 Annex 3. The Better Work Compliance Assessment Methodology ................................ . 52 Better Work Compliance Assessment Framework ................................ ................................ ......... 52 Annex 4: Factory findings ................................ ................................ ................................ ................... 67 5 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I List of Acronyms ADIH Association des Industries d’Haïti (Haitian Industry Association) BMST Bureau de la Médiatrice Spéciale du Travail (Office of Ombudsperson) CAOSS Conseil d’Administration des Organes de Sécurité Sociale (Board of Social Security Bodies) CP Compliance point CSS Conseil Supérieur des Salaires (Wages High Council) CATH Central Autonome Travailleurs Haïtiens (Autonomous Central of Haitian Workers) CEDATHA Centrale Démocratique Autonome des Travailleurs Haïtiens (Autonomous Democratic Central of Haitian Workers ) CFOH Confédération des Forces Ouvrières Haïtiennes (Confederation of Haitian Workers Forces) CNOHA Centrale Nationale des Ouvriers Haïtiens (National Central of Haitian Workers) CSH Coordination Syndical Haïtienne ( Haitian Trade Union Coordination) CTH Confédération des Travailleurs Haïtiens (Confederation of Haitian Workers) CTSP Confédération des Travailleurs des secteurs Publics et Prives (Confederation of Workers from the Public and Private Sectors) CTMO - HOPE Commission Tripartite de Mise en œuvre de la loi HOPE ( Tripartite Commission for the Implementation of the HOPE Law) EA Enterprise Advisor ESPM - BO Entè Sendikal Premye Me - Batay Ouvriye GOSTTRA Groupement Syndical des Travailleurs - eusses du Textile pour Réexportation d'assemblage (Union Group of Textile Workers for Re - export of the Assembly) 6 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I SOHSA Syndicat des Ouvriers de HANSAE Haiti S.A (HANSAE Haiti S.A Workers Union) UTL Union des Travailleurs Libres (Union of Free Workers) HELP Haiti Economic Lift Program HOPE Haitian Hemispheric Opportunity through Partnership Encouragement Act IOE International Organization of Employers ITUC International Trade Union Confederation MSDS Material Safety Data Sheet MAST Ministère des Affaires Sociales et du Travail (Ministry of Social Affairs and Labor) OFATMA Office d’Assurance Accidents du Travail, Maladie et Maternité (Office for Work, Health and Maternity Insurance) ONA Office Nationale d’Assurance Vieillesse (National Office for Old - Age Insurance) OSH Occupational Safety and Health PAC Project Advisory Committee PAP Port - au - Prince, Haiti PIC Parc Industriel de Caracol (Industrial Park of Caracol) PICC Performance Improvement Consultative Committee PIM Parc Industriel Métropolitain (also referred to as SONAPI) PPE Personal Protective Equipment SC/AFL - CIO Solidarity Center/American Federation of Labor - Congress of Industrial Organizations SDT Table de Dialogue Social (Social Dialogue Table ) TAICNAR Technical Assistance Improvement and Compliance Needs Assessment and Remediation USDOL United States Department of Labor 7 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Executive Summary The Haitian garment sector remained under severe economic and security pressure throughout 2025. Employment levels, which stood at approximately 60,000 workers in 2021, have declined significantly in recent years, reflecting prolonged political instability , declining orders, and global market shifts. As of the end of the reporting period, 23 active factories participating in Better Work Haiti employed approximately 2 1 , 5 75 workers, of whom 5 1.1 percent are women. In September 2025, the expiration o f the HOPE II trade preferences introduced immediate disruption in the sector. Several factories halted shipments or reduced production in response to the imposition of tariffs. In early 2026, the United States Congress approved a one - year extension of the HOPE legislation through the end of 2026. While this extension has provided short - term stabilization and renewed market access, longer - term uncertainty regarding the future of trade preferences continues to influence buyer behavior and enterprise planning . Against this backdrop, Better Work Haiti operated with fewer financial and staffing resources following cuts in United States development assistance in 2025. Despite these limitations, the program fulfilled its core TAICNAR mandate, conducting 20 factory assessments and providing 68 advisory service visits to participating enterprises. Monitoring, remediation support, and social dialogue facilitation continued throughout the reporting period. 8 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Section I: Introduction and Context 1.1 Background Haiti's Apparel Industry in Numbers The apparel industry in Haiti has been a key driver of the country’s formal economy, and it has faced significant headwinds in recent years, including in 2025. As recently as 2021, the industry provided 60,000 jobs in the country, which has declined to around 20,000 . In 2025, a nd consistently account s for approximately 90 per cent of Haiti’s exports. In September 2025, the trade preference program enabling this significant economic sector , the Haitian Hemispheric Opport unity through Partnership Encouragement (HOPE) Act (expanded through HOPE II in 2008 and further enhanced by the Haiti Economic Lift Program (HELP) Act in 2010), expired. The HOPE legislation provided duty - free access to the U.S. market for Haitian - manufac tured apparel, and its 2025 expiration created further obstacles to the survival of this key industry in Haiti. The law's expiration was felt immediately, as some factories halted shipments and reduced production . This had a direct impact on the workers , who saw their income automatically reduced . The data published by OTEXA also reflected a decline in exports when compared to the previous year. As of September 2024, the estimated value of all textile and apparel exports was approximately $610 million, co mpared with current - year data of approximately $532 million, representing a 12.78 percent decrease 1 . As of early 2026, the US Congress approved appropriations that included a one - year extension of the HOPE legislation through the end of 2026. Negotiations are expected to take place on a longer - term extension of the preferential trade program. The long - ter m renewal of the HOPE II law remains critical for the survival of the Haitian textile and apparel sector. Without its provisions, tariffs estimated at 1 The International Trade Administration, U.S. Department of Commerce : https://www.trade.gov/data - visualization/us - textile - apparel - imports - category - or - country) 9 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I 20 – 25 percent would increase costs for Haitian exporters, making their products less competitive with oth er low - cost suppliers in Asia and elsewhere, potentially leading to factory closures and job losses. At the same time, shifting global supply - chain dynamics create opportunities for Haiti. Increased interest from international brands in nearshoring produ ction closer to the US market, along with prospects for stronger regional integration within Caribbean value chains and CARICOM markets, could boost Haiti’s role in Western Hemisphere apparel supply chains if supported by stable governance, infrastructure upgrades, and ongoing trade preferences. In this context, strengthening national labour governance and compliance systems becomes increasingly important to maintain investor confidence and support Haiti’s competitiveness within regional and global supply chains. There are currently 23 factories, including one non - textile factory registered with Better Work Haiti , which together provide approximately 2 7 , 200 jobs . Although two factories closed in 2025, others reopened in the Northeast after a two - year hiatu s. Additionally, there is one factory in Port - au - Prince, which opened a branch in the Northeast. The program also expects the opening of another brand - operated factory in the Northeast at the beginning of 2026, while a factory currently operating is planning to expand, adding approximately 1,000 workers. 1 0 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I The apparel industry at a glanc e . 23 2 Active factories in the program ~ 22,000 3 Workers employed. (63% women) 4 4 Active industrial zones hosting 90% of the textile industry ~ $ 532 , 000 mi 5 Apparel exports in USD million ( Y E current Sep 2025 - 12 . 78 % ) 29 Brands and Retailers 7 Government Partners 11 Active workers’ organizations 2 The closure of some factories and production reduction of other causes some termination and significant loss of employment mostly among production workers . 3 . Approx imately, 4,125 jobs loss as two factories stopped operations due to challenges related to the country’s recent situation. 4 Multiple zones in the west department face difficult challenges due to gangs’ unrests. This situation affected industrial areas to remain fully active for factories to keep operating. 5 The security situation of the country severely affected production, receiving of raw materials and shipment of finished goods. 1 1 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Section II: Highlights of the reporting period July – December 202 5 Country Context Since Better Work Haiti’s last synthesis report, the country has experienced a further deterioration in its political, security, and economic environment, significantly constraining business operations. A prolonged governance crisis , combined with escalating gang violence, has deeply affected daily life across much of the country. United Nations reports in 2025 indicated that most of the Port - au - Prince metropolitan area was under the control of criminal groups, with alliances expanding beyond the ca pital. The violence has caused widespread displacement, and more than half of Haiti’s population of 12 million is estimated to require humanitarian assistance. These conditions have reinforced severe and prolonged economic contraction. According to a 2025 United Nations country analysis, Haiti’s economy has been shrinking steadily since 2018, driven by political instability, insecurity, and recurring natural disasters. Gross domestic product has recorded negative growth rates, reflecting contraction in cons truction, manufacturing, and services. Informality has expanded, with a growing share of the labour force engaged in precarious work without access to social protection. International efforts to stabilize Haiti have failed to meet the scale of the challenges in the country to date . Meanwhile, the Transitional Presidential Council (TPC) has failed to establish political stability in the country. The security and political challenges facing Haiti have led to a prolonged economic crisis. A United Natio ns country analysis from 2025 notes that Haiti's economy has been in steady contraction since 2018, exacerbated by political instability, insecurity, and recurring natural disasters. The report notes that gross domestic product recorded negative growth rat es, reflecting the severe contraction of key sectors such as construction, manufacturing, and services. Meanwhile, informality in the overall economy has 1 2 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I increased, with a growing share of the labo u r force engaged in precarious activities without social protection. 6 Garment Industry Challenges The Haitian garment industry, the most important source of formal employment, is currently facing severe challenges that threaten its viability and the livelihoods of tens of thousands of workers. These challenges are linked to structural weaknesses in security, changes in trade policy, and broader economic factors . The expiration in September 2025 of the HOPE II law , which allowed Haitian apparel exports to enter the U.S. market duty - free, is one of the biggest and immediate threats facing the Haitian garment sector. It affected production in 2025, as some factories halted exports to the US due to a 14 - 30% tariff increase . Although legislation was passed in the US in early 2026 to extend the HOPE provisions throu gh the end of the year, the uncertainty around the long - term prospects of the HOPE II law means buyers may hesitate to commit to long - term contracts and therefore look elsewhere to stay competitive. Better Work Haiti, a partnership between the Internation al Labor Organization (ILO) and the International Finance Corporation, serves as the supervising arm of the HOPE II law. Program funding was mainly supported by the United States Department of Labor, which was directly affected by cuts in U.S. foreign aid and development assistance implemented in 2025. While the program continued to operate with a smaller, more constrained team in the country through the end of 2025, it focused on essential services , including advisories and factory assessments. Despite funding cuts, Better Work Haiti continued to engage stakeholders in promoting social dialogue. In 2026, Better Work Haiti is exploring new sources of financing to rebuild and continue supporting the garment sector and the jobs it provides. 6 United Nations Haiti. (2025). Analyse commune de pays - Haïti: Mise à jour au 31 Mars 2025 [Common Country Analysis - Haiti: Update as of March 31, 2025]. United Nations. haiti.un.org 1 3 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I 1 4 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Section III: Milestones and key takeaways Progress toward achieving results. FACTORY - LEVEL SOCIAL DIALOGUE MECHANISMS GENERATE ACTIONS TO REDUCE NON - COMPLIANC E WITH HAITIAN LABO U R LAW AND INTERNATIONAL LABO U R STANDARDS, INCLUDI NG NON - COMPLIANCE ISSUES AFFECTING WOMEN. In 2025, Better Work Haiti continued to adjust its operational model in response to a changing resource environment, focusing more on sustainability and institutional ownership. As part of this shift, program leadership, in consultation with the Program Advisory Committee (PAC), prioritized delivering core TAICNAR functions, especially factory - level compliance assessments and advisory services, to maintain monitoring, remediation support, and enterprise engagement during a period of financial and institutional change. Training activities during the reporting period were therefore implemented in a targeted and strategic manner. With a streamlined team structure, training delivery focused on interventions with immediate relevance to workplace governa nce and compliance. In this context, Better Work Haiti delivered a bipartite committee training for one factory in the Northeast, aimed at strengthening the functioning of the Performance Improvement Consultative Committee (PICC) under t he revised Service Model . The two - day training enhanced the capacity of management and worker representatives to:  Understand the objectives of the Better Work Service Model and the role of the PICC within it.  Clarify the respective roles and responsibilities of PICC members; and  Engage constructively in joint problem - solving to support continuous workplace improvement. 1 5 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I In parallel, Better Work Haiti delivered an Occupational Safety and Health (OSH) training for the same factory, focusing on strengthening internal capa city to manage workplace risks. The training supported improved understanding of OSH principles, appropriate use of personal protective equipment (PPE), and practical approaches to hazard identification and prevention. By the end of the OSH training, parti cipants were better equipped to:  Establish and strengthen key elements of an OSH management system, including policies and health and safety committees.  Identify common workplace OSH risks and apply practical mitigation measures; and  Develop a realistic, f actory - level OSH action plan for ongoing implementation. ASSESSMENTS AND ADVI SORY SERVICES In the first quarter of 2025, Better Work Haiti conducted five out the seven assessments that were scheduled, four hybrid and one virtual. During hybrid assessments, inspectors from the Ministry of Social Affairs and Labor (MAST) were on site at the factor y, while Better Work assessors participated online. T wo factories scheduled for assessments were temporarily closed during the first quarter and were not assessed . Better Work Haiti had to curtail its activities between March and June due to uncertainty a bout the program's future. As a result, the staff were unable to conduct assessment s but continued with virtual services. From July 2025 to December 2025, Better Work Haiti conducted 13 on - site assessments, 1 virtual, and 2 hybrids, totaling 21 ass essments for the year (including a non - textile factory). One factory in Port - au - Prince declined the assessment due to early closure at the end of the year, and another in the Northeast is not yet eligible for assessment. Non - compliance issues identified we re addressed in advisory sessions, where factories developed improvement plans, including training initiatives and corrective actions. In addition, Better Work Haiti conducted 68 advisory visits to participating factories, focusing on: 1 6 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I  Enhancing Occupational Safety and Health (OSH) management systems  Improving human resources (HR) practices  Proper application of the labor law articles related to compensation  Addressing industrial relations issues , such as employee dismissals Discussions also addressed how the country’s security situation affects the garment industry. Workers voiced increasing worries about job losses and looked for ways to boost industry stability and safety. 1 7 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Coordinated consultation helps secure severance payments amid factory closures. Due to the June 2025 closure of two factories in Haiti’s West Department , both owned by the same corporate group . Better Work Haiti played a central role in safeguarding severance entitlements for affected worker s. In coordination with the Office of the Ombudsperson and the Ministry of Social Affairs and Labor (MAST), the program engaged directly with factory management, worker representatives, and the international buyer to ensure transparency and legal complianc e in the calculation and disbursement of severance payments. At the buyer's request, Better Work Haiti conducted an independent technical review of the proposed compensation calculations, complementing MAST's oversight . Through a series of bilateral and trilateral consultations, the program facilitated structured dialogue among all parties to define clear payment modalities and timelines. By November 2025, this coordinated effort led to the successful distribution of severance payments to about 2,500 wor kers, totaling over $2.25 million — making sure affected employees received their legal entitlements during a time of economic hardship. 1 8 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I REVIEW OF ALLEGATION S RELATED TO A 2024 ENTERPRISE CLOSURE In November 2025, Better Work Haiti received a request from an international buyer to review allegations regardi ng the closure of two production buildings in July 2024. At the time of the closure, one international brand sourced from the facility. The allegations involved the separation of four pregnant workers and nine union - affiliated workers. Better Work Haiti wa s informed of the closure in advance. It reviewed the retrenchment procedures in collaboration with the Ministry of Social Affairs and Labor (MAST) and the Special Labor Mediation Office (BMST). Following the request, Better Work Haiti obtained the list of referenced workers and conducted follow - up outreach and document review. Advisors were able to establish contact with three of the four pregnant workers. The workers confirmed they received their legal severance payments, and two confirmed receiving mat ernity benefits through OFATMA. Subsequent document reviews regarding the third worker confirm that she received her OFATMA payment in February 2026. The three workers also indicated that management had communicated potential reemployment opportunities; ho wever, they could not return to work at that time due to personal circumstances, including childcare responsibilities. One of the workers has since returned to work at a sister factory. Better Work Haiti reviewed documentation related to the nine workers identified as union members and the factory’s restructuring process. The closure affected 644 workers as part of broader downsizing. Records showed that 24 union members were offered reassignments within the company. Nine members from one of the unions in the factory chose not to be reassigned. The other 15 (some from this union federation, and some from other union federations) were reassigned to another company facility. The review confirmed that those terminated received their full legal severance pay and signed separation agreements agreeing to the terms of termination. These agreements were signed in the presence of union representatives and officials from the Ministry of Social Affairs and Labour (MAST). Better Work Haiti found no evidence of non - com pliance with national labor laws or international labor standards. 1 9 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I In collaboration with MAST, Better Work Haiti continues to monitor enterprise closures and retrenchment processes to ensure that they are conducted in accordance with Haitian labor legisla tion, international labor standards, and the transparency objectives under HOPE II. GOVERNMENT INSTITUTI ONS SUCH AS THE MAST LABOR INSPECTORATE, ONA, AND OFATMA HAVE INCREASED ORGA NIZATIONAL CAPACITY TO PROVIDE SERVICES TO ELIGIBLE WORKERS . Better Work Haiti continued to assist the Ministry of Labor and the Office of the Ombudsperson for the Textile Sector in enhancing their ability to serve constituents e ffectively. Under the guidance of the Office of the Ombudsperson and with support from Better Work Haiti, the Ministry of Labor’s inspectorate division organized a workshop for representatives from the regional offices of ONA and OFATMA to help them improv e the delivery of services to their constituents. The main objective of the workshop, which lasted two days, was to discuss the role and responsibilities of the social services entities in the region and focus on ways to improve the services delivered to the factories. This workshop followed a similar one organized in Port - au - Prince in October 2024. The discussions, led by the Ministry of Labor’s chief legal advisor, focused on calculating social security contributions. Participants aligned a standardized method for these deductions, ensuring consistency w ith the labor code and the legal framework governing social security contributions. Additionally, they clarified their roles and responsibilities as collecting agents, improving compliance with social security requirements across the sector. Following the workshop, the Labor Inspectorate division organized several joint inspections with inspectors from ONA and OFATMA at various factories in the region to apply the techniques learned in the workshop. PROMOTING SOCIAL DIALOGUE IN THE GARMENT SECTO R. During this reporting period, Better Work Haiti continued to support the tripartite actors by encouraging them to engage in social dialogue and to find solutions to the issues facing the Haitian textile sector. In June of 2025, Better Work Haiti organized 2 0 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I a hybrid meeting, with the participation of the Office of the Ombudsperson, representatives from MAST, the general directorate of the Office of Work - Related accident, Maternity and Health Insurance (OFATMA), representatives of an industrial park in the Nor theast , as well as representatives of several union groups. The main objective of the meeting was to discuss the delivery of services by OFATMA itself and by OFATMA - contracted service providers in the Northeast. The main complaint was that the service prov ider in Ouanaminthe was withholding delivery of services due to a delay in payment from OFATMA. Following the meeting, OFATMA and the service provider agreed to continue delivering services to the workers while payments are being processed. Once again , in October of 2025, Better Work Haiti, under the auspices of the Office for the Ombudsperson (BMST), intervened by organizing a tripartite meeting to diffuse a tension brewing in an industrial park in the Northeast. Workers decided to go on strike after t he announcement that employers would begin deducting taxes from them, in accordance with regulations issued by the General Directorate of Taxes (DGI). The workers were protesting the park’s decision to start withholding certain portions of their wages , as their salaries had not increased in three years. The protests spread from one factory to another; consequently, no production took place that morning, as the workers went on strike to demand the immediate suspension of the tax. Faced with this social cris is and to avoid any lasting disruption to operations, the park's management requested that the Office of the Ombudsperson for the Garment Manufacturing Industry (BMST) arrange a meeting with the General Directorate of Taxes (DGI). Since the issue involved tax collection, the Ministry of Economy and Finance (MEF), the Ministry of Commerce and Industry, and the Ministry of Social Affairs and Labor (MAST) were also invited and participated in the meeting. During the meeting, the workers’ representatives took the opportunity to raise once again their dissatisfaction with the services provided by OFATMA, the lack of support from the Office for Retirement Insurance and Old Age (ONA), and the government's failure to publish an increase in the minimum salary. 2 1 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I At the end of the meeting and following a closed consultation between the government authorities, the Minister of Finance announced that, after a conversation with the Prime Minister, the following measures were agreed upon:  The immediate and temporary suspension of tax deductions made by the DGI (General Directorate of Taxes) on the wages of the workers concerned, until a new minimum salary is published.  The organization of a tripartite meeting to discuss the minimum wage. Factory closures and worker t ransition management During the reporting period, the Haitian garment sector experienced the permanent closure of several factories, reflecting the combined effects of prolonged security instability, declining orders, and uncertainty surrounding the renew al of trade preferences. These closures resulted in large - scale terminations affecting several thousand workers and represented a significant stress test for labor administration, social dialogue mechanisms, and worker protection frameworks. In response, Better Work Haiti worked in close coordination with the Ministry of Social Affairs and Labor (MAST), the Office of the Special Labor Ombudsperson (BMST), employers, and representative trade unions to support the orderly management of these closures. This i ncluded facilitating dialogue among the parties, verifying severance calculations in line with national labor law, and overseeing transparent payment processes. Where applicable, workers were informed of available options, including reassignment within the same enterprise group or voluntary separation with legal severance. These interventions helped mitigate the risk of unpaid entitlements, unmanaged conflict, and escalation during a period of heighte ned social and economic vulnerability. While factory closures fall outside the program 's direct control, Better Work Haiti’s engagement helped safeguard workers’ rights during enterprise exits . It reinforced the role of established tripartite mechanisms in managing industrial transitions. 2 2 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Section IV: Compliance overview in the Haitian garment industry The overall trend of non - compliance in the Haitian garment industry Compliance assessments remain a central component of Better Work Haiti’s mandate under the TAICNAR framework. In 2025, the program conducted 20 factory assessments in the wearing apparel manufacturing sector (including hybrid and virtual modalities where necessary). The findings from this reporting cycle reveal three overarching patterns: 1. Pe rsistent structural non - compliance in compensation and social security administration 2. High prevalence of occupational safety and health (OSH) gaps, particularly in emergency preparedness 3. Relative stability in core fundamental labor rights, with limited and procedural freedom of association findings These patterns indicate that many of the compliance issues identified through factory assessments relate to weaknesses in administrative processes, calculation methodologies, and preventive management systems. However, these findings should be interpreted with caution, as certain issues, particularly those related to freedom of association and gender - based violence and harassment, may be under - reported in workplace monitoring. The sectoral grievance mechanism established with the BMST provides workers with accessible reporting channels in multiple languages, yet relatively few complaints on these issues have been formally recorded. While administrative and management system gaps account for a significant share of the issues identified, this does not exclude the presence of more sensitive labour rights concerns that may require continued attention through multiple monitoring and reporting channels. 2 3 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Figure 1 summarizes the percentage of factories found to be non - compliant with at least one question for each of the 38 compliance points among the apparel factories assessed by BWH in 2025. A discussion of these findings and detailed observations for a subset of compliance areas follows. 2 4 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I 45% 95% 95% 100% 85% 85% 90% 60% 45% 90% 80% 40% 10% 5% 75% 80% 45% 60% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Child Labourers Documentation and Protection of Young Workers Hazardous Work and other Worst Forms Gender Race and Origin Religion and Political Opinion Bonded Labour Coercion Forced Labour and Overtime Prison Labour Collective Bargaining Freedom to Associate Interference and Discrimination Strikes Union Operations Chemicals and Hazardous Substances Emergency Preparedness Health Services and First Aid OSH Management Systems Welfare Facilities Worker Accommodation Worker Protection Working Environment Method of Payment Minimum Wages/Piece Rate Wages Overtime Wages Paid Leave Premium Pay Social Security and Other Benefits Wage Information, Use and Deduction Contracting Procedures Dialogue, Discipline and Disputes Employment Contracts Termination Leave Overtime Regular Hours Child Labour Discrimin ation Forced Labour Freedom of Association and Collective Bargaining Occupational Safety and Health Compensation Contracts and Human Resources Working Time Figure 1: Non - compliance by Compliance Point in 2025 % of factories with at least one NC found, n=20 2 5 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Working conditions clusters Compensation ( Recurrent Calculation Errors Rather Than Denial of Entitlements) The compensation cluster continues to exhibit high rates of non - compliance, particularly in areas related to paid leave and social security contributions. In 2025:  75% of factories calculated annual leave payments incorrectly  65% incorrectly calculated maternity leave payments.  60% incorrectly calculated sick leave payments.  80% were non - compliant in at least one aspect of collecting or forwarding social security contributions. Importantly, these findings do not indicate widespread refusal to grant leave or to enroll workers in social protection systems. Rather, the predominant issue is the incorrect calculation and inconsistent application of statutory formulas, often failing to account for average earnings, including overtime and other wage components. This recurring pattern indicates that compliance challenges are closely linked to gaps in legal interpretation and inconsistent alignment between enterprises and public institutions responsible for social security oversight. The issue is therefore administrative and systemic, reinforcing the importance of institutional coordination and standardized guidance. Table 1 . Paid leave Non - compliance # of factories % Does the employer pay workers correctly for annual leave? 15 75% Are eligible workers paid correctly for maternity leave? 13 65% Are eligible workers paid correctly for sick leave? 12 60% Does the employer pay workers correctly for weekly rest days? 10 50% 2 6 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Workers are found to receive payments for various types of paid leave to which they are entitled by law, but these payments are frequently incorrectly calculated, resulting in non - compliance.  Workers are entitled to payment for annual leave, and generally, factories are found to make these payments. However, a review of documentation and interviews with workers and managers shows that the calculations for these payments are often incorrect and do not reflect workers' average daily earnings, including overtime. Of the 20 factories assessed in 2025, 15 were found non - compliant with this requirement.  Similarly, about two - thirds of factories were found to be non - compliant with maternity leave paym ents . A review of documentation and interviews with workers and managers reveals that the calculations for these payments are frequently incorrect and do not reflect workers' average daily earnings. They are found to be paid incorrectly for maternity leave . As with paid leave, maternity leave payments were not denied outright; rather, they were found to be based on incorrect calculations, resulting in payments misaligned with the requirements of the law. Similar dynamics were observed in the factories found non - compliant with sick leave payments. Better Work Haiti has recently strengthened its advisory services to help factories correctly interpret legal requirements for the payment of various leave entitlements. This targeted focus addresses recurring compliance findings and aims to improve employers’ understanding of applicable legal provisions and calculation methodologies. Better Work has continued to document mixed success regarding legally mandated social security payments in 2025. The first step to ensuring correct payment of these benefits is ensuring workers are registered with the Office d'Assurance Accidents du Travail, Maladie et Maternité (OFATMA), which provides health care and benefits for occupational injuries, illness , and maternity, and the Office National d'Assurance - Vieillesse (ONA), which manages retirement and pension payments for workers. 2 7 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Better Work has collaborated with technical specialists in the ILO, using data from assessments and enterprise engagement to identify gaps in compliance and opportunities to improve the functioning of the overall insurance system. Better Work also engages directly with enterprises and public labor inspectors to identify where employers may have lacked knowledge of the requiremen t to enroll in these two systems, and to clarify the correct employer contribution s on behalf of workers. As of March 2025, all Better Work Haiti factories are enrolled in OFATMA and ONA, marking a significant achievement given the importance of the appare l sector to workers and their dependent family members in Haiti . Nevertheless, compliance challenges remain in ensuring correct contributions are made on behalf of workers. For example, even though all factories are paying employer contributions on behalf of workers and collecting and forwarding workers’ contributions to OFATMA and ONA, as with paid leave, document review in assessments found incorrect contribution amounts due to faulty calculations. In many cases of non - compliance, factories fail to pay forward the contributions monthly as required by law. These issues with correct and on - time payment are cited in 16 of 20 factories (Table 2 ). Table 2 . Social Security and Other Benefits Non - compliance # of factories % Does the employer collect and forward workers' contributions to OFATMA? 16 80% Does the employer collect and forward workers' contributions to ONA? 16 80% Does the employer pay 3% of workers' basic salary to OFATMA for maternity and health insurance? 16 80% Does the employer pay the required employer contribution to ONA? 16 80% Non - compliance was less prominent for other issues related to social security, including paying workers their annual salary supplement/bonus, contributing to OFATMA’s worker - related accident insurance, and sending workers ’ pay slips to OFATMA as required. 2 8 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I Overtime wages. The 28 th BWH synthesis report noted that nearly half of the factories in 2024 failed to pay workers correctly, including 6 factories that recorded working hours after 6 pm and calculated overtime based on an incorrect interpretation of a worker’s base wage. As seen in Table 3 , the issues with cor rect overtime wage payment appear to have improved in 2025. Just six of 20 factories (30 per cent) were found to pay workers in correctly for overtime hours worked at night. Instances of non - compliance with other aspects of overtime wage payments were less prominent. Table 3 . Overtime wages Non - compliance # of factories % Does the employer pay workers 50% above the night shift wage for all overtime hours worked at night? 6 30% Does the employer pay workers 50% above the normal wage for overtime hours worked on weekly rest days? 3 15% Does the employer pay workers 50% above the normal wage for all ordinary overtime hours worked? 2 10% Does the employer pay workers 50% above the legally mandated holiday or weekly rest day rate for hours worked during the night shift? 2 10% Does the employer pay workers 50% above the normal wage for overtime hours worked on legally mandated holidays? 1 5% Contracts and human resources Relatively few factories were found non - compliant across a range of questions in the contracts and human resources cluster. The most prominent non - compliance issue in this cluster concerns payments to terminated workers for their unused annual leave. As with paid leave and contrib utory social security payments, the issue leading to non - compliance concerns the incorrect calculation of payments due, rather than the denial of these termination payments. Sixteen of 20 (80 per cent) factories assessed were found to have incorrectly calc ulated these payments, including instances where the average daily pay used in the calculation was incorrect, or where the average salary did not include payments for weekly days off 2 9 2 9 T H C O M P L I A N C E S Y N T H E S I S R E P O R T U N D E R H O P E - H A I T I or overtime worked at night. Similarly, 12 of 20 factories (60 per cent) were found non - compliant with correctly paying an annual salary supplement/bonus to workers upon termination. Instances of non - compliance across five questions in the employment contracts compliance area were relatively low in 2025. Workers were mostly f ound to have contracts and understand their terms. However, about two - thirds of factories were found to be non - compliant with the requirement that work rules in these contracts meet legal standards. For example, in some cases, employment contracts were not signed by both parties and lacked essential information, such as workers’ salaries. Working time The working time cluster comprises 17 questions covering three compliance points: regular hours , overtime , and leave . Within regular hours , no instances of non - compliance were found across five of the eight compliance questions, including compliance with daily break periods, posting factory working hours, and legally mandated breaks for pregnant and breastfeeding workers. In contrast, nine f actories (45 per cent) were found non - compliant with some aspects of the question examining whether regular daily or weekly working hours exceed legal limits. Most commonly, regular daily working hours consisted of a nine - hour shift, Monday through Friday, exceeding the regulation for regular hours allowed in the Haitian labor code. Six factories (30 per cent) failed to obtain authorization from the Ministry of Labor before instituting night shifts. Similar authorization from the Ministry of Labor is required before implementing overtime shifts. In 2025, 10 factories (50