Around 2,000 former employees who were legally owed US $ 5.5 million in severance compensation have been compensated, according to a report by Clean Clothes Campaign (CCC) on the eighth anniversary of the bankruptcy of the Jaba Garmindo garment factory.
Since the Jaba Garmindo manufacturer went out of business in April 2015, according to CCC, the employees have been fighting for the US $ 5.5m that is owed to them.
But according to the human rights group, despite being one of the most valuable apparel companies in the world, parent company Fast Retailing, which owns Uniqlo, has not yet made any payments toward the debt owed to these workers.
“S.Oliver’s payment is long overdue, but it doesn’t come close to what we are owed,” said Teddy Senadi Putra, worker representative from Labour Union PUK SPAI Federasi Serikat Pekerja Metal Indonesia (FSPMI), formerly at PT Jaba Garmindo.
The former Jaba Garmindo employees sought restitution from the bankruptcy through Indonesian courts, where it was shown that they were owed the money. However, courts lack the authority to order foreign corporations to make restitution.
A third-party complaint was submitted to the Fair Labour Association (FLA), a multistakeholder initiative (MSI) that Fast Retailing and s.Oliver were both members of, in October 2019 by the Clean Clothes Campaign and the Indonesian trade union FSPMI. Since leaving FLA, s.Oliver has joined the Fairwear Foundation.
The findings of the FLA inquiry were made public in July 2021, and the report suggested that Fast Retailing, s.Oliver, and other companies that purchased goods from the plant contribute to a fund for worker relief. Fast Retailing continues to be an active member of FLA, according to CCC, despite willfully rejecting this advice.
“The failure of FLA to ensure one of its member brands takes action in line with its own recommendations exemplifies the problem with MSIs when it comes to upholding ethical practices: as voluntary initiatives they hold no power and are unable to adequately protect workers’ rights,” CCC says.
