This section contains a selection of key portals curated by our global team. BANGKOK, May 27 (Reuters) - Thai workers who were sacked last year from a factory supplying global lingerie brands including Victoria's Secret will receive $8.3 million, in what labour activists say is the biggest settlement of its kind in the global garment industry. Questions companies investing in Neom should ask How import bans can help tackle forced labour in global supply chains, Victoria's Secret (part of Limited Brands), Thailand: Garment workers at former Victorias Secret supplier secure $8 million severance pay win after 13-month campaign, Thailand: Brilliant Alliance workers win $8 million in unpaid wages & severance pay, Thailand: Brilliant Alliance garment workers protesting unpaid wages face criminal charges. We regret they were not ultimately in a position to conclude this matter on their own, so to ensure the workers received their full severance amounts owed, Victorias Secret agreed to advance the severance funds to the factory owners.. in Germany (VR 38088 B). Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz- und Cookie-Einstellungen oder Datenschutz-Dashboard klicken. 1990 K Street, NW, Suite 410 Washington, DC 20006. Victoria's Secret pays $8.3 million to 1,250 laid-off Thai workers in Over a thousand sacked Thai garment workers who made bras for a factory supplying lingerie giant Victoria's Secret have received a landmark $8.3 million settlement, labour rights activists said Saturday. Over 1,000 Thai garment workers who lost their jobs at a factory supplying lingerie brand Victoria's Secret received a landmark $8.3 million settlement from the global fashion brand. Garment Workers Were 'Robbed' Of Millions In Benefits - Forbes If we hadnt fought for fair compensation, we wouldnt have received anything, Jitnawatcharee, who is also president of the Triumph International Workers Union of Thailand, told AFP. Clover refused, telling the factorys 1,250 low-wage workers it had no money and they should agree to wait 10 years to be paid in full. On 23 March, the provincial labour welfare and protection office of Samut Prakarn ruled that the company violated multiple sections of the Labour protection act and must pay THB242,689,862.71 (US$7.61 million) to 1,237 complainants. More than a thousand sacked Thai garment workers who made bras at a factory supplying lingerie giant Victoria's Secret have received a landmark $8.3 million settlement, labour rights activists said Lingerie company Victoria's Secret has given a 'wage theft ' payment of 8.3 million USD to 1,250 laid off Thai garment workers, who have been fighting for severance payments for over a year since their factory in Samut Prakan, central Thailand, went bankrupt and closed down in March 2021. Victorias Secret confirmed in a statement that an agreement had been reached, but did not disclose the amount involved. Leverage AI-based benchmarking to tackle production and pricing. Christina Hajagos-Clausen, director of textile and garment industry at IndustriALL Global Union, which supported the Brilliant workers campaign, hailed the decision but also said that wage theft will continue to plague the fashion supply chain until a stronger social safety net is in place. ; About 1,200 workers of . If you'd prefer to view all available content regardless of language, please change this switch. 1096664, 501(c)(3) non-profit organization in USA and registered charitable association (e.V.) Victoria's Secret pays $8.3 million after being fired from Thai workers Sycamore Partners, the parent of Lane Bryant and Torrid, did not contribute. The factory also produced underwear for plus-size American brands Lane Bryant and Torrid, owned by Sycamore Partners but only Victorias Secret contributed to the settlement via a loan arrangement with the factorys owners. For more information on severance theft, see. Disclaimer: Business & Human Rights Resource Centre and its collaborative partners take no position on the diverse views presented in linked material within the database, nor can we guarantee the factual accuracy of all the articles and reports we make available. Opinion pieces, interviews and blogs from across the business and human rights movement. Find out more about our impact, who we are and how we are funded. After months of efforts, including campaigning by Clean Clothes Campaign, Remake, and other nonprofit worker advocacy organizations participating in the global #PayYourWorkers coalition, Clover agreed to pay the workers and Victorias Secret committed to finance the payments, via a loan to Clover. I think its extremely unprecedented and represents a new model the scale of severance and interest paid on it as well as direct engagement by the brand, Solidarity Center Thailand country director, David Welsh, said. The Clover Groups customer Victoria Secret must intervene in the dispute to protect workers rights., Textile, leather, garment, shoes and textile services. 3 min read. This is a huge victory for the workers and a testament to the courage of their union and the strength of the international solidarity campaign that supported them, said David Welsh, Thailand country director of the Solidarity Center. Victorias Secret and Hong Kongs Clover Group have agreed to compensate the 1,388 former workers of Brilliant Alliance Thai Global following the factorys unexpected shutdown last March. The WRC conducts independent, in-depth investigations; issues public reports on factories producing for major brands; and aids workers at these factories in their efforts to end labor abuses and defend their workplace rights. Whats the lastet you can get paid from victoria secret? For all the hard work I put in doing double shifts and floor sets the pay was just horrible. The content is also available in the following languages: We regret they were not ultimately in a position to conclude this matter on their own so to ensure the workers received their full severance amounts owed, Victorias Secret agreed to advance the severance funds to the factory owners, it added. CEO Martin Waters is exploiting the workers who make clothes for Victorias Secret, union president Jitnawatcharee Phanat said. BANGKOK, May 27 (Reuters) - Thai workers who were sacked last year from a factory supplying global lingerie brands including Victoria's Secret will receive $8.3 million, in what labour activists . Victoria's Secret Pays $8.3M to Sacked Thai Workers in 'Unprecedented Combating Gender-Based Violence in Lesotho, Fired, Then Robbed: Fashion brands complicity in wage theft during Covid-19, While most garment-producing countries require severance, non-payment is a chronic problem in the apparel industry. At the time, the company and its Hong Kong-based owner, Clover Group, refused to pay their severance or outstanding wages. Retailer Victoria's Secret pays USD 8.3 million settlement to sacked The company said that it has been in active communication with the factory owners over several months to facilitate a resolution even though none of its merchandise was being produced by the factory at the time of its closure. Workers didnt mince words, either. Thai Workers Win Historic $8.3 Million in Back Pay, Financed by Victoria's Secret. Whats new is they did not accept their fateand won. May 25, 2022. The 300 workers held placards with messages like "where is our owner?" and "I will not run away as your previous owner". Hundreds of Thai garment workers 13-month battle to recover their unpaid salaries has finally come to a close. Victoria's Secret and Hong Kong's Clover Group have agreed to compensate the 1,388 former workers of Brilliant Alliance Thai Global following the factory's unexpected shutdown last March. He estimated garment workers worldwide were owed $500m as a result of factory closures and unpaid severance. Hundreds of trade unions, labor rights groups, and other civil society organizations, along with the Solidarity Center and the WRC, have endorsed. (modern). Over 1,000 Thai garment workers who lost their jobs at a factory supplying lingerie brand Victoria's Secret received a landmark $8.3 million settlement from the global fashion brand. Please check the captcha to verify you are not a robot. Cutting-edge new city or harmful vanity project? The WRC conducts independent, in-depth investigations; issues public reports on factories producing for major brands; and aids workers at these factories in their efforts to end labor abuses and defend their workplace rights. We will continue to hold ourselves and our partners accountable for the high standards we set for the fair treatment of workers. Victorias Secret and Hong Kongs Clover Group have agreed to compensate the 1,388 former workers of Brilliant Alliance Thai Global following the factorys unexpected shutdown last March. Agreement, the Largest Wage-Theft Settlement at a Garment Factory, Follows Year-Long Advocacy by International Labor Rights Advocates. WASHINGTON - More than 1,250 Thai workers who made garments Victoria's Secret, Lane Bryant, and Torrid, and who were fired in 2021 without their legally mandated severance, have received US$8.3m in compensation. Thanks for subscribing! Cutting-edge new city or harmful vanity project? The company said that it has been in active communication with the factory owners over several months to facilitate a resolution even though none of its merchandise was being produced by the factory at the time of its closure. All rights reserved. Victorias Secret confirmed in a statement that an agreement had been reached, but did not disclose the amount involved. Victoria's Secret and Clover Group have agreed to repay garment workers the $8 million they were owed following their factory's closure. 28 June, 2021 300 garment workers producing for lingerie giant Victoria's Secret protested against unpaid wages and severance pay in front of Brilliant Alliance Thai Global Ltd. (BAT) in Thailand. If we hadnt fought for fair compensation, we wouldnt have received anything, she said. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. With the Solidarity Centers support and advocacy, the union launched a campaign demanding their severance pay. A Worker Rights Consortium report from April last year said it had documented similar wage theft cases at 31 garment factories in nine countries. Victorias Secret previously said that it did not place any orders with Brilliant in 2021 and in previous years made up only a fraction of the manufacturers production. He estimated garment workers worldwide were owed $500m as a result of factory closures and unpaid severance. (modern). - insideretail.asia pic, May 28, 2022 Still, the lingerie giant came under tremendous activist pressure. Why This Lawmaker Wants to Stop Gusher of Cheap ChineseProducts, How Asics and Tapestry Took onTraceability, 4 Gildan Union Leaders Die in Honduras Shooting, Boss Denies Factory 'Hired Goons' Who Beat Bangladeshi Union Leader to Death, Gaslighting on Top of Greenwashing: Shein Influencer Trip UnderFire, UPS Concedes to Make-or-Break TeamstersDemand, Teamsters Declare #HotUnionSummer in Testy UPSClash, Embrace Data-Driven Production: Sell the Right Product to the Right Customer with AI. David Welsh, the Thailand director for U.S.-based workers rights' advocacy group the Solidarity Center, hailed the potential impact of the deal. Clover owned Brilliant until it shuttered, while Victorias Secret was a former customer alongside Ann Taylor owner Ascena Group, Torrid and Lane Bryant. The factory closed on 10 March without prior warning and 1,388 workers were dismissed. Jitnawatcharee Panad, a former worker at the factory who is also president of the Triumph International Workers Union of Thailand, told Agence France-Presse that more than a third of the sacked workers were women aged 45 and older. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. A Worker Rights Consortium report from April last year said it had documented similar wage theft cases at 31 garment factories in nine countries. We regret they were not ultimately in a position to conclude this matter on their own so to ensure the workers received their full severance amounts owed, Victorias Secret agreed to advance the severance funds to the factory owners, Victorias Secret said. Victoria's Secret Intervenes in Thai Workers' 13-Month Wage Struggle in Germany (VR 38088 B). Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft ($1 = 34.1500 baht) (Reporting by Panu Wongcha-um and Panarat Thepgumpanat; Editing by Kanupriya and Nick Zieminski). Victorias Secret was one of several clothing retailers supplied by the factory inThailand, which closed in 2021 after the company that owned it went bankrupt. Thailand: Workers at closed lingerie factory supplying Victoria's Victoria's Secret is set to fund a US$8.3 million worth of compensation to Thai workers who were laid off last year without their legally mandated severance, according to the Solidarity Center and the Worker Rights Consortium (WRC). 1990 K Street, NW, Suite 410 Washington, DC 20006. All Rights reserved. All rights reserved. We will continue to hold ourselves and our partners accountable for the high standards we set for the fair treatment of workers.. A Myanmar migrant works in a Taiwanese-owned garment factory in the northwestern Thai town of Mae Sot. A Myanmar migrant works in a Taiwanese-owned garment factory in the northwestern Thai town of Mae Sot. Something went wrong. The factory also produced underwear for plus-size American brands Lane Bryant and Torrid, owned by Sycamore Partners but only Victorias Secret contributed to the settlement via a loan arrangement with the factorys owners. If we hadnt fought for fair compensation, we wouldnt have received anything, Jitnawatcharee, who is also president of the Triumph International Workers Union of Thailand, told AFP. The sacked garment workers had fought for fair compensation since the factory closed in March 2021. Join the WRC mailing list to stay updated on our work. We remain deeply committed to serving as a strong corporate body and ensuring our products continue to be ethically sourced and manufactured with the highest supplier standards, the Pink purveyor continued. Victoria's Secret pays $8.3 million to 1,250 laid-off Thai workers in Sign up to First Edition, our free daily newsletter every weekday morning at 7am BST, Original reporting and incisive analysis, direct from the Guardian every morning, 2023 Guardian News & Media Limited or its affiliated companies. What can be done now to build a sustainable future? Its a historic case given the amount of the settlement and again, hopefully, a model for the global garment industry going forward in terms of direct brand involvement., Our organization has documented hundreds of cases of wage theft in the apparel supply chain, said Scott Nova, executive director of the Worker Rights Consortium, which also assisted with negotiations. The settlement, financed by Victoria's Secret in a loan arrangement with BAT's owner, could set a precedent for global brands to better protect the rights of workers in their supply chains, according to Scott Nova, Executive Director of the Worker Rights Consortium, an international labour advocacy group. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. What it means to lose that and get it back is difficult to capture in words, Nova added. We cannot accept the offer and call on the company to comply with the labour inspectors order by expediting payments to employees as quickly as possible.. A workers rights group also claimed that some workers received the equivalent of more than four years wages under the settlement. franais, 25 May 2022 Please check your email for further instructions. United for a just future - time to pay up! Thailand: Workers at closed lingerie factory supplying Victoria's Its like the equivalent of a workers life savings and its simply stolen. Its like the equivalent of a workers life savings and it [was] simply stolen, Nova said. The agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group Solidarity Centre said. I think its extremely unprecedented and represents a new model the scale of severance and interest paid on it as well as direct engagement by the brand, Solidarity Center Thailand country director, David Welsh, said. The $8.3 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. Although Victorias Secret did not disclose the amount involved in the agreement, a Thai labour ministry document seen by Reuters showed that the total payment amounted to 285.2 million baht ($8.36 million). Victorias Secret previously said that it did not place any orders with Brilliant in 2021 and in previous years made up only a fraction of the manufacturers production. The money derives in part from the personal coffers of Clover Group owners Angie and Emily Lau, who worked ceaselessly together with the support from Victorias Secret to raise the necessary funding, the company said. Waters, the website pointed out, earns $4.3 million a year. Over several months we had been in active communication with the factory owners to facilitate a resolution, Victorias Secret said in a statement last week. Copyright 2023 Penske Business Media, LLC. Low-wage garment workers left destitute by injustice meted out by global supply chains is nothing new, he added. The appearance of such links does not constitute endorsement of the websites they lead to or the information contained therein, over which we exercise no editorial control. Confederation of Industrial Labour of Thailand president, Prasit Prasopsuk, said some protesting workers had been charged with criminal offences, including violating public gathering rules during the pandemic. More than 1,000 workers who were sacked from a garment factory in Thailand are set to receive an $8.3 million payout financed by Victorias Secret, in the biggest ever settlement of its kind that could set a precedent for brands to better protect workers rights in the developing world. It will extend a loan . The Solidarity Center and the Worker Rights Consortium (WRC) announced today that more than 1,250 Thai workers who sewed bras for Victorias Secret, Lane Bryant, and Torridand who were fired in 2021 without their legally mandated severancehave received $8.3 million (281 million baht) in compensation. Victoria's Secret Thailand supplier faces labour abuse by laid off workers The groups credited the decision of Victorias Secret to finance the payments, via a loan arrangement with the workers former employer. Emily Lau, an executive of Clover and a board member of the bankrupt BAT said on Friday the payment will be made with "the personal resources of owners, Angie and Emily Lau" but did not mention the loan from Victoria's Secret. Sycamore Partners ignored entreaties and did nothing to support the workers. Hundreds of Thai garment workers 13-month battle to recover their unpaid salaries has finally come to a close. Brilliant Alliance Thai closed down its Samut Prakan factory in March 2021 after going bankrupt. Victoria's Secret agrees to finance $8.3 mln settlement for laid-off 1096664, 501(c)(3) non-profit organization in USA and registered charitable association (e.V.) About 1,200 workers were laid off without severance pay and wages owed to them by Brilliant Alliance Thai Global Co Ltd (BAT) after it went bankrupt and shut down its factory in Samut Prakan province in March 2021. The doors of the labour ministry were locked when we went there to seek help and the minister didnt seem to want to listen to our problem.. By signing up, you agree to the Terms of Use and Privacy Policy & to receive electronic communications from Vice Media Group, which may include marketing promotions, advertisements and sponsored content. the factory also Lingerie produced for US plus-size brands Lane Bryant and Torrid, owned by Sycamore Partners - but only Victoria's Secret contributed to the settlement via loan arrangement with Factory owners. Earlier this year, a website called Victorias Dirty Secret featured a quote by CEO Martin Waters about his bold ambition to turn the lingerie giant into the worlds biggest and best advocate for women. The implication was obvious: If Victorias Secret is all about womens empowerment, it should start with the women who need help the most. Join the WRC mailing list to stay updated on our work. BAT offered to pay back the owed amount over a 10-year period, which was rejected by the workers. Sycamore Partners, which owns Lane Bryant and Torrid, did not contribute. Copyright 2018 - IndustriALL - We care about your personal information and data. Credit: #PayYourWorkers Solidarity Center Thai Workers Win Historic $8.3 Million in Back Pay, Financed by Victoria's Secret BANGKOK : Thai workers who were sacked last year from a factory supplying global lingerie brands including Victoria's Secret will receive $8.3 million, in what labour activists say is the. Brilliant, which is in the middle of bankruptcy and liquidation proceedings, previously offered to settle the debt in installment payments over 10 years. The sacked garment workers had fought for fair compensation since the factory closed in March 2021. This only benefits the company. Photo by Cezary Kowalski/SOPA Images/LightRocket via Getty Images, Zara, Nike, and Abercrombies Indian Factories Werent Fully Paying Workers, COVID is Exposing How the Global Fashion Industry Values Workers, Violence Spikes As Myanmar Garment Workers Say Factories Are Colluding With the Junta. Victoria's Secret Angel Barbara Palvin introduces Incredible by Victoria's Secret at the 5th Avenue store on Tuesday, April 16, 2019, in New York. The sacked garment workers had fought for fair compensation since the factory . Victoria's Secret pays $8.3m settlement to sacked Thai workers Business & Human Rights Resource Centre Registered Charity in England & Wales no. Victoria's Secret pays $8.3 mn settlement to sacked Thai workers This case serves as a lesson in the future for the government to ensure that foreign companies doing business in Thailand allocate some portion of monthly profit for fair compensation when these companies cease domestic operations, he said. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft Garment workers from Victoria's Secret supplier Brilliant Alliance Thai Global filed a complaint yesterday with the National Human Rights Commission at the Government Complex in Bangkok. Workers representatives at Triumph International Thailand Labour Union rejected this, however, citing the economic hardship such a scheme would inflict while a pandemic was still raging. The people who run Sycamore Partners should hang their heads in shame.. For the past year, sacked workers and Thai union representatives have protested outside Government House in Bangkok calling for their pay. Questions companies investing in Neom should ask How import bans can help tackle forced labour in global supply chains, Victoria's Secret (part of Limited Brands), Thailand: Garment workers at former Victorias Secret supplier secure $8 million severance pay win after 13-month campaign, Thailand: Brilliant Alliance workers win $8 million in unpaid wages & severance pay, Thailand: Brilliant Alliance garment workers protesting unpaid wages face criminal charges. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest.
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