$10 million in unpaid wages and severance
and, to date, have received next to nothing.
A contribution by one buyer, Jack Wolfskin,
owned at the time of the factory’s closure by
Blackstone Group, was so small that the average worker received about $10—not even
one percent of the money they are due.51
Meanwhile, these workers have yet to receive a single dollar from the factory’s largest buyer, Japan’s Fast Retailing (which owns
Uniqlo), despite years of appeals.52
The more than 800 workers at the LD factory in El Salvador, who were owed $2.3 million when the factory closed in 2018, have
since received $600,000 from Global Brands
Group (Li & Fung), which was a buying agent
from the factory for Levi Strauss, PVH, Ralph
Lauren, and Walmart. The remaining $1.7
million they are due remains unpaid53 (as is
often the case in such debacles within its
sprawling supply chain, Walmart has been
the most recalcitrant of LD’s buyers).
Not surprisingly, in some cases, unions representing workers who have been waiting
months or even years for severance may
sign agreements accepting, in lieu of full
payment of the amount legally owed, only a
modest portion of the arrears. However, the
legal right of workers to full payment of severance is, in most leading garment-exporting countries, a statutory entitlement, which
is not subject to waiver.54
In addition to these workers, who, despite
international efforts to secure remediation,
have been permanently cheated of funds
they legally earned, are the far greater number of workers whose losses to severance
theft have never come to public attention:
because they lacked collective representation and external advocates, because there
was no independent organization in a position to conduct an investigation and document the violations, or because no major
news outlet covered the story.
Garment factory in Indonesia. Photo: masuro
WRC
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Fired, Then Robbed
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