II. History of Severance Theft in Brand Supply Chains and
Efforts to Achieve Remedy
Wage theft associated with closure of factories and other large-scale dismissals of
workers, in the form of failure to pay legally
required severance, is pervasive and longstanding in the global apparel industry.
Because severance theft impacts workers
at the very moment when they have lost
their source of income and because the
amounts unpaid are usually equivalent to
at least several months of workers’ wages,
the impact on workers and their families is
often devastating.
Causes of Severance Theft and
Its Harm to Workers
The impact of severance theft on garment
workers is severely exacerbated by the
sourcing strategies employed by major apparel brands over the past several decades.
As advances in logistics and information
technology have enabled brands to continually shift production to countries with lower
wages, the industry’s labor force has been
increasingly comprised of workers who live
Former Industrias Florenzi employees stand guard in front of the closed factory in Soyapango, El Salvador.
Photo: Emerson Flores/Gato Encerrado (CC BY-NC 4.0)