The WRC has confirmed severance theft during
the last 12 months at 31 garment factories in nine
countries. In the aggregate, these factories
deprived 37,637 workers of an estimated
$39.8 million in legally due compensation.
There are also several cases where worker organizations have signed agreements
accepting less than workers’ legal due, because they feared that if they held out for
full payment, workers would get nothing.
As previously noted, this is a common occurrence in the history of severance theft,
and it is important to understand that an
agreement purporting to absolve an employer of its obligation to meet minimum
legal standards is invalid on its face. Such
agreements have no more legal legitimacy
than an agreement calling for workers to be
paid less than the legal minimum wage or
granting an employer permission to violate
fire safety regulations.
The Process for Identifying
Brands and Retailers
The WRC identified the brands and retailers
that produce, or produced, clothing at these
factories using several methods. In many
cases, the information comes from the buyer itself: either the factory appears on the
brand’s or retailer’s own public list of suppliers, posted on its corporate website, or in a
public database (e.g., Open Apparel Registry55) that compiles supplier lists provided by
brands to third party organizations. In other
cases, the WRC confirmed the buyer-supplier relationship via official US government
customs records that document shipments
WRC
yz
from the factory to the buyer, accessed by
the WRC through the proprietary ImportGenius database.56 In some cases, the information comes from workers themselves, who
provided the WRC with credible testimony
that they manufactured the brand’s products.
Such testimony was accompanied occasionally by photographs of these products or of
brand labels, taken by workers inside the
factory, or by factory records documenting
the presence of the brand. In certain instances, a factory lists the brand or retailer as a
client on its website; when this is the original
data source, the WRC requires an additional
form of confirmation, since factories may list
a brand erroneously or continue to list it as a
client after the relationship has ended. With
respect to many of the buyer-supplier relationships we have enumerated, the brand or
retailer has acknowledged the relationship
through correspondence with the WRC (or
through correspondence with a third party
reviewed by the WRC). In any case where
the brand or retailer denies the relationship,
the WRC has not reported the relationship
unless we consider the available proof to be
definitive. Where explanation is required as
to the basis for the WRC’s determinations, it
appears in an endnote.
Because of the obvious interest brands and
retailers have in distancing themselves from
suppliers implicated in wage theft, it is com-
Fired, Then Robbed
zy
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