US Brands on the Spot over Factory Closure in Cambodia
Tuesday, 20 July 2010 14:32

10_pdc_cambodia

Support dismissed garment workers and make sure that Abercrombie & Fitch and Target take their responsibility. Both companies outsourced production to a Cambodian factory when it closed down unexpectedly in 2008. Over 590 employees hadn't been paid their last months of salary, and hadn't received any notification or severance dues.

Write to these companies now and tell them to pay the Cambodian workers what they are entitled to.

Cambodian trade unions ensured that the salary arrears were eventually paid out of part of bankruptcy sales of factory equipment, but the severance payments for the employees, in accordance with Cambodian law, were never recovered. Some of these employees, most of them women, had been working at the factory for over ten years.

Efforts to recover the money from the factory owners or to get the Cambodian Ministries of Labour and of Social Affairs involved led to nothing. The owners disappeared without a trace, and the Ministries undertook nothing.

The Clean Clothes Campaign became involved last year, and initiated dialogue with the factory's foreign buyers: fashion houses Abercrombie & Fitch and Gap, and retail giant Target. These companies have codes of conduct that say that they will ensure that labour rights are upheld in their supply chains. By implication, if others fail, these companies have a responsibility towards these workers.

Gap acknowledged their responsibility and ensured that a large part of the outstanding severance compensation was paid to the former employees.

Abercrombie & Fitch, however, has consistently refused any communications on the matter. Target did acknowledge responsibility, but offered a paltry US$ 5.= per former employee in severance compensation, an offer that the former PDC workers turned down.

Abercrombie & Fitch and Target both refuse to take full responsibility for the severance compensation of the PDC workers where others fail.

This demonstrates that when it comes to crunch time, they don't really care about ensuring the rights of the people in their supply chain after all. They are keen to enjoy the benefits of producing in low-income countries and don't take responsibility for the more shadowy sides, such as how weak labour-rights enforcement, weak judicial systems and weak governance reflect on their own business. If the problems can eventually be solved by making the weakest in the production chain pay the price, they have no hesitations to do so.

In terms of corporate social responsibility, Abercrombie & Fitch is one of the most conservative amongst the western fashion brands. The trendy brand has no public code of conduct governing relations with the factories where they outsource their production, and generally lacks transparency when it comes to social supply-chain policies. The firm has also refused to enter into dialogue with the CCC on matters relating to corporate social responsibility.

Write to Abercrombie & Fitch and Target today and demand that they ensure that the dismissed Cambodian employees get what they are entitled to:


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LETTER TO ABERCROMBIE & FITCH


Dear Mr. Ramsden, Ms. Harr,

I have learned from the Clean Clothes Campaign (CCC) that over 590 former workers of the PDC garment factory in Phnom Penh, Cambodia, have been dismissed without the required notice period, without payment of their last salaries and without the payment of the required severance compensations.

Abercrombie & Fitch has been a long-standing buyer at the PDC factory, and one of their most important clients throughout the years. As per current notions about corporate social responsibility, and in line with your own code of conduct, A&F has undeniable responsibilities towards these employees. If other responsible parties fail, A&F has an obligation to step in.

I have also been informed that your company has refused to work together with the CCC to ensure that the former PDC employees get their severance compensations in accordance with Cambodian law. As one of your potential customers, I expect that your company does the up-most to ensure that the rights of the people in your supply chains are respected, and if that is not the case, that you will take up responsibility to correct that. This in line with how I understand your code of conduct for company suppliers.

I sincerely hope that you will be willing to give up your firm's position not to engage with the CCC, open up for reasonable dialogue, and ensure that the former PDC employees get what they are entitled to.

Yours sincerely,

LETTER TO TARGET


Dear Madam, Sir,

I have learned from the Clean Clothes Campaign (CCC) that over 590 former workers of the PDC garment factory in Phnom Penh, Cambodia, have been dismissed without the required notice period, without payment of their last salaries and without the payment of the required severance compensations.

Target has been a long-standing buyer at the PDC factory, and one of their most important clients throughout the years. As per current notions about corporate social responsibility, and in line with the values laid down in your own code of conduct, Target has responsibilities towards these employees. If other responsible parties fail to honour their own duties, Target has an obligation to step in.

I have been informed that your company has refused to work together with the CCC to ensure that the former PDC employees get their severance compensations in accordance with Cambodian law. As one of your potential customers, I expect that your company does the up-most to ensure that the rights of the workers in your supply chains are respected, and if that is not the case, that you will take up responsibility to correct that. This in line with Target's own Standards of Vendor
Engagement and your Vendor Conduct Guide.

I urge you to review your current position on Target's responsibilities with regards to compensation for the former PDC employees and to ensure that these people get what they are entitled to.

Yours sincerely,

 

 

 
 

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