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. 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. Victoria's Secret gives laid off Thai garment workers $8.3 million in Cutting-edge new city or harmful vanity project? Victoria's Secret agrees to finance $8.3 mln settlement for laid-off 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. Brilliant Alliance Thai closed down its Samut Prakan factory in March 2021 after going bankrupt. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz- und Cookie-Einstellungen oder Datenschutz-Dashboard klicken. We take up the fight for better working conditions and trade union rights around the world. 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. 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. Thanks for subscribing! But 1250 put-off workers - many of who worked in the factory for over Decade - Have not received severance pay under Thai law. We also hope this represents a model for the type of domestic, governmental, international and brand engagement to resolve future cases where garment workers are left in similarly desperate straits. Retailer Victoria's Secret pays USD 8.3 million settlement to sacked Opinion pieces, interviews and blogs from across the business and human rights movement. He estimated garment workers worldwide were owed $500m as a result of factory closures and unpaid severance. Business & Human Rights Resource Centre Registered Charity in England & Wales no. 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 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. Is Uzbekistan Ready for its CottonClose-Up? 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. The workers, many of them women aged 45 and over, faced criminal charges for protesting. The workers are represented by the Triumph International Union, affiliated with the Confederation of Industrial Labour of Thailand. Answered November 22, 2019. 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. The company claimed they had negotiated with the union, but in fact the company unilaterally asked the union to accept instalment payments lasting up to 10 years. Thai garment workers win U.S. $8.3 million wage theft - CorpWatch The 1,250 laid-off workers many of who had worked at the factory for more than a decade did not receive severance payouts mandated under Thai law. Whats new is they did not accept their fateand won. Clover Group International, which owned BAT, offered to pay this over 10-years, but the proposal was rejected by workers. If you'd prefer to view all available content regardless of language, please change this switch. On 11 March 2021, 1,388 workers were made jobless after the lingerie manufacturer Brilliant Alliance Thai Global Ltd (BAT) in Thailand, which supplied brands including Ascena Group, Lane Bryant and Victoria's Secret, suddenly closed without paying workers' unpaid wages or severance. . Asked November 22, 2019. Questions and Answers about Victoria's Secret Salaries Leverage AI-based benchmarking to tackle production and pricing. Victoria's Secret to pay B285m settlement to laid-off Thai workers 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. 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. Find out more about our impact, who we are and how we are funded. Thanks for subscribing! Events | Jobs | Media | Data Usage & Cookies | Contact Us. Its like the equivalent of a workers life savings and it [was] simply stolen, Nova said. 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 Solidarity Center and the Worker Rights Consortium (WRC) credited the decision of Victoria's Secret to finance the payments . 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 agrees to finance $8.3 million settlement for laid Many of the workers were at the factory for well over a decade and they earned very substantial severance, said Welsh, noting that the average Brilliant Alliance worker received the equivalent of more than two years wages and some received as much as four years pay. Union workers and leaders reported that the company had given them no warning, going against the Thai labor law, which requires employers to provide a month's notice and honor outstanding financial commitments including unpaid wages and unused annual leave. Worker Rights Consortium. The 1,250 laid-off workers many of who had worked at the factory for more than a decade did not receive severance payouts mandated under Thai law. 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. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft Weitere Informationen darber, wie wir Ihre personenbezogenen Daten nutzen, finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft The agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group Solidarity Centre said. 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. 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. This only benefits the company. 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. 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). The $8.3 million provided by Victorias Secret is also the most any brand has ever contributed to help resolve a wage theft case.. 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.. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft Sycamore Partners, which owns Lane Bryant and Torrid, did not contribute. and "I will not run away as your previous owner". David Welsh, the Thailand director for U.S.-based workers rights' advocacy group the Solidarity Center, hailed the potential impact of the deal. We are pleased to share that an agreement was reached with the workers representatives and [the] Thai government, and the workers have been paid all money owed to them by [Brilliant], including interest., 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. Last week, all workers received their severance, plus over one million dollars in interest, per Thai law. Thai Garment Workers Win Battle, But Global War Against Wage Theft franais, 25 May 2022 Its extremely unprecedented and represents a new modelthe scale of severance and interest paid on it as well as direct engagement by the brand, he said. The agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group Solidarity Centre said. Victoria's Secret pays US$8.3m to fired Thai workers BAT offered to pay back the owed amount over a 10-year period, which was rejected by the 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. 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.. On 24 March 2021, the labour protection and welfare office of Samut Prakan ruled that the factory had to pay THB242.22 ($7.4 million) to 1,2000 complainants within 30 days or risk interest of 15% per year or a lawsuit. Thai Workers Win Historic $8.3 Million in Back Pay, Financed by 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. Victoria's Secret To Finance Settlement For Thai Workers - Benzinga Copyright 2018 - IndustriALL - We care about your personal information and data. More than 1,000 sacked Thai garment workers who made bras at a factory supplying lingerie firm Victorias Secret have received a landmark $8.3m settlement, labour rights activists have said. 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.. 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The 300 workers held placards with messages like "where is our owner?" 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. 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). 14.00 An HR. It will extend a loan . Unpaid wages at Victoria's Secret supplier in Thailand Over several months we had been in active communication with the factory owners to facilitate a resolution, the company said. Thailand: Workers at closed lingerie factory supplying Victoria's The WRC identified other brands that did not use Brilliant Alliance, but had influence over Clover and over a key business partner, Brandix, a Sri Lankan apparel supplier: American Eagle Outfitters, Gap, and PVH. All Rights reserved. Find out more about our impact, who we are and how we are funded. Waters, the website pointed out, earns $4.3 million a year. Still, the lingerie giant came under tremendous activist pressure. 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. 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. (modern). 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 you'd prefer to view all available content regardless of language, please change this switch. 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. Low-wage garment workers left destitute by injustice meted out by global supply chains is nothing new, he added. (modern). Cutting-edge new city or harmful vanity project? Victoria's Secret has confirmed that it had reached an agreement to contribute to the settlement via a loan arrangement with the Thai garment factory owners where 1250 laid-off workers - many of whom had worked at the factory for over a decade - did not receive severance payouts mandated under Thai law. Brilliant, which is in the middle of bankruptcy and liquidation proceedings, previously offered to settle the debt in installment payments over 10 years. United for a just future - time to pay up! Alongside its core work providing a platform for Human Rights advocates, the Resource Centre runs several focused programme areas and regularly releases briefings and reports on areas of particular interest. Its an 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. 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. Please check your entries and try again. The agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group . 1990 K Street, NW, Suite 410 Washington, DC 20006. This was the largest theftand now the most back payweve ever seen at an individual garment factory. 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. Please check the captcha to verify you are not a robot. All rights reserved. 28 June, 2021300 garment workers producing for lingerie giant Victorias Secret protested against unpaid wages and severance pay in front of Brilliant Alliance Thai Global Ltd. (BAT) in Thailand.