The Labor Behind the Label (LBL) initiative is working to ensure that British fashion companies Next and Superdry pay the $500,000 they owe to Cambodian garment workers affected by the coronavirus-related shutdown of the Wai Full Textiles factory.
According to LBL, Next, Superdry and Asos were supplied by Wai Full Textiles. The factory ceased operations in May 2021, giving workers a portion of their annual vacation entitlement, but $500,000 in unpaid wages and severance pay remains outstanding.
With the factory owners bankrupt and the Hong Kong parent company dissolved, lawyers stress that these brands are the last resort for the former workers.
As the pandemic raged in January 2021, the Cambodian plant began laying off employees. In May 2021, the factory officially closed and workers received minimal vacation pay while the $500,000 debt remained.
In response, the women-led Cambodian trade union CATU called for justice and fair compensation for the factory workers. The bankruptcy of Wai Full Garments and the liquidation of assets, followed by the demise of the parent company in Hong Kong, left workers with limited options and prompted them to turn to the brands involved for help.
In the fall of 2021, LBL approached Superdry, Next and Asos on behalf of workers and the following year the brands proposed a confidential settlement, with distribution plans also discussed. According to LBL, to date, Next and Superdry have denied responsibility for compensation.
A new campaign is now underway asking Next and Superdry to reconsider their decision and contribute to the unsettled sum. This case reflects the broader inequalities surrounding Covid-19, with women workers in particular facing massive wage discrepancies in global supply chains. As the fashion industry moved forward, women workers bore the brunt.
Why should brands pay?
The LBL emphasizes that fashion giants often choose to produce their clothes in factories where, while they don’t directly employ workers, they enjoy the benefits of cheap labor and lax regulations. However, should problems arise, can these companies simply distance themselves from the problems?
The guiding principles for business aligned with human rights state that brands must make every effort to ensure the well-being of their makers and to correct situations where their activities have caused or contributed to harm. The complex aspect stems from a lack of financial transparency. The workers lack the financial information to prove that in this case, the collective group of brands directly “caused or contributed to” the closure of the factory by withdrawing their support.
This translated post previously appeared on FashionUnited.com