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. Worker Rights Consortium. Sycamore Partners, the parent of Lane Bryant and Torrid, did not contribute. Still, the lingerie giant came under tremendous activist pressure. 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. Asked November 22, 2019. 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. The people who run Sycamore Partners should hang their heads in shame.. Worker Rights Consortium executive director, Scott Nova, said those cases were just the tip of the iceberg and that the issue of wage theft in the garment industry had exploded during the pandemic as clothing orders declined. 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. What it means to lose that and get it back is difficult to capture in words.. 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. 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. Just energy transition principles for human rights in business and investment, Transition minerals and renewable energy in the Andes, Unpacking clean energy: Human rights impacts of Chinese overseas investment in transition minerals, Human rights abuses linked to Chinese investment in transition mineral projects overseas, Operating in conflict-affected contexts: An introduction to good practice, Duty failure: Scant evidence of effective due diligence by companies operating in Russia. Thai Workers Win Historic $8.3 Million in Back Pay, Financed by The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. 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. Sycamore Partners, which owns Lane Bryant and Torrid, did not contribute. Union workers and leaders reported that the company had given . Something went wrong. Victoria's Secret agrees to finance $8.3 million settlement for laid A Thai labour ministry document seen by Reuters showed the total payment to the workers including related costs was in a total of 285.2 million baht ($8.36 million). Victoria's Secret pays $8.3m settlement to sacked Thai workers Whats new is they did not accept their fateand won. If you'd prefer to view all available content regardless of language, please change this switch. 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. 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. Over several months we had been in active communication with the factory owners to facilitate a resolution, the company said. 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 Samut Prakan lingerie factory also produced underwear for plus-size American brands Lane Bryant and Torrid, but only Victorias Secret contributed to the settlement. A Myanmar migrant works in a Taiwanese-owned garment factory in the northwestern Thai town of Mae Sot. 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 agreement is the largest-ever wage theft settlement at an individual garment factory, the international workers rights group . Brilliant, which is in the middle of bankruptcy and liquidation proceedings, previously offered to settle the debt in installment payments over 10 years. A workers rights group also claimed that some workers received the equivalent of more than four years wages under the settlement. 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. After the Brilliant Alliance factory closed in March 2021, the Thai government ordered its owner, Hong Kong-based Clover Group, to pay severance within 30 days. He estimated garment workers worldwide were owed $500m as a result of factory closures and unpaid severance. Victorias Secret Intervenes in Thai Workers 13-Month Wage Struggle. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. United for a just future - time to pay up! Unpaid wages at Victoria's Secret supplier in Thailand Please check your email for further instructions. You're browsing our English site, so by default we are only showing content in English. The US$8.3 million compensation settlement by American lingerie giant Victoria's Secret for 1,388 Thai workers who were fired in 2021 without their legally mandated severance has been a landmark victory in the campaign against wage theft. The factory closed on 10 March without prior warning and 1,388 workers were dismissed. 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. All rights reserved. Victoria's Secret gives laid off Thai garment workers $8.3 million in Annie Adviento, IndustriALL South East Asia regional secretary says: We call on the company to immediately pay the workers in full, according to the order of the provincial labour office. Eastern Europe, Central Asia and the Caucasus. 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. Explore the big challenges, opportunities, debates and frameworks for business and human rights. 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. The 300 workers held placards with messages like "where is our owner?" and "I will not run away as your previous owner". Thai Garment Workers Finally Receive Unpaid Wages 13 Months Later - Sourcing Journal 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. 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. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft 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.. 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. | May 25, 2022 Thai garment workers laid off from Brilliant Alliance factory will receive an historic $8.3 million in back pay. We take no responsibility for the accuracy of the translation. 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, which helped negotiate the deal. 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. Hundreds of Thai garment workers 13-month battle to recover their unpaid salaries has finally come to a close. The union says the proposal of giving payment over 10-year period is unacceptable. The sacked garment workers had fought for fair compensation since the factory closed in March 2021. The $8.3 million provided by Victorias Secret is also the most any brand has ever contributed to help resolve a wage theft case.. 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. Low-wage garment workers left destitute by injustice meted out by global supply chains is nothing new, he added. May 25, 2022. Over several months we had been in active communication with the factory owners to facilitate a resolution, the company said. Victoria's Secret Thailand supplier faces labour abuse by laid off workers Now is the time for a global and enforceable agreement between trade unions, global brands and their suppliers on social protection., Receive Our Daily Newsletter & Special Offers. Agreement, the Largest Wage-Theft Settlement at a Garment Factory, Follows Year-Long Advocacy by International Labor Rights Advocates. Copyright 2023 Penske Business Media, LLC. The workers, many of them women aged 45 and over, faced criminal charges for protesting. Victoria's Secret agrees to finance $8.3 mln settlement for laid-off Thailand: Workers at closed lingerie factory supplying Victoria's 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 As female entrepreneurs, they completely empathize with the workers and took it on themselves as their personal responsibility to fulfill the obligations of the bankrupt company, a spokesperson told Sourcing Journal. Whats the lastet you can get paid from victoria secret? The WRC and Solidarity Center engaged Victorias Secret and Sycamore, pressing them to ensure the workers were paid. 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. Thai Workers Win Historic $8.3 Million in Back Pay, Financed by The workers are represented by the Triumph International Union, affiliated with the Confederation of Industrial Labour of Thailand. 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. Victoria's Secret pays $8.3 million to 1,250 laid-off Thai workers in Thai Garment Workers Win Battle, But Global War Against Wage Theft 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. He estimated garment workers worldwide were owed $500m as a result of factory closures and unpaid severance. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. Brilliant, which is in the middle of bankruptcy and liquidation proceedings, previously offered to settle the debt in installment payments over 10 years. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. Victoria's Secret pays $8.3 million after being fired from Thai workers Hundreds of trade unions, labor rights groups, and other civil society organizations, along with the Solidarity Center and the WRC, have endorsed. Victoria's Secret and Clover Group have agreed to repay garment workers the $8 million they were owed following their factory's closure. 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. 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. and "I will not run away as your previous owner". As female entrepreneurs, they completely empathize with the workers and took it on themselves as their personal responsibility to fulfill the obligations of the bankrupt company, a Clover spokesperson told Sourcing Journal. Victoria's Secret pays sacked Thai workers $8.3m in 'wage theft' settlement | Workers' rights | The Guardian. The $8 million settlement comprises wages, benefits and severance, plus 15 percent in annual interest. 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. 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. With the Solidarity Centers support and advocacy, the union launched a campaign demanding their severance pay. 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. 3 min read. Author:Jasmin Malik Chua, Sourcing Journal, Workers didnt mince words, either. Events | Jobs | Media | Data Usage & Cookies | Contact Us. The workers are demanding that the lingerie company immediately settle the payment in accordance to Thai law. Victoria's Secret pays $8.3 million to 1,250 laid-off Thai workers in Something went wrong. Thai Workers Win Historic $8.3 Million in Back Pay, Financed by Victoria's Secret. Cutting-edge new city or harmful vanity project?