Oct 5 2006
Keep Gina Form Open!
Your
action is urgently needed to help stop Clover Group's
attempt to shut down the Gina Form Bra factory in
Thailand, producing underwear for among others Victoria
Secret and Calvin Klein.
United
Students Against Sweatshops protest in Michigan
at The Limited -- for Gina Workers!
With the possible shutdown of Gina Form less than
a month away, buyers must not delay contacting Clover
Group with a demand that they keep Gina Form open
or face serious consequences.
Dear friends,
Many of you will recall the international campaign
in 2003 to support the Gina Relation Workers'
Union (GRWU) at a Thai factory producing underwear
for major international brands and retailers.
After a long struggle the dismissed union leaders
were reinstated and the union successfully negotiated
a collective contract with management. Conditions
improved greatly and Gina became one of the few
factories in Thailand providing decent wages and
conditions. The GRWU is a member to the Thai Federation
of Textile Workers, which is an ITGLWF affiliate.
For the past three years the union considered
Gina Form Bra to be "an exemplary factory
in terms of quality, efficiency, and code of conduct
compliance."
Gina
protest in front of US Embassy -- Bangkok - 8 October
2006
On August 29th, management announced they were
packing over 600 of the Thai factory's sewing
machines for shipment to their other facility
in China without a word of prior notice to the
workers or the trade union. Suddenly more than
a fifth of the workforce found themselves without
a machine to use and just a vague promise that
they would receive new "training". Only
after representative from GRWU demanded an explanation
and contacted the Ministry of Labour about the
situation were they given any information from
management about the company's real plans: Gina's
Hong Kong owner, Clover Group, plans to close
down the facility by October 31. Clover Group
originally claimed that their clients among the
brands requested that production be shifted to
China, but when challenged on that claim, they
changed their story and now say that production
costs at Gina are too high. Yet Gina management
refuses to divulge information about the financial
situation at the factory, nor has it be willing
to discuss with the union any alternatives to
closing the factory.
Gina
protest in front of US Embassy -- Bangkok - 8 October
2006
Workers and the union are questioning the reasons
that Clover Group has put forward to justify the
plans to shut down Gina Form and an international
solidarity campaign has been launched to support
their position. Your action is urgently needed
to help stop Clover Group's attempt to violate
workers' rights. The CCC believes that companies
producing their garments at Gina Form and at other
Clover Group facilities have a responsibility
to push management to keep Gina open and to respect
workers' rights at all their facilities. To support
efforts to keep this unionised workplace open,
please click here
Background
Local action to challenge management's plans
The GRWU organized a number of actions and took
the case directly to the Minister of Labour of
Thailand, who issued a Ministerial order to prevent
management from shipping assets out of Thailand.
Roughly half of the machines originally packed
were sent to the harbour for shipment but are
stuck there to date due to this order, the other
half have since been unpacked again and put into
use. The order also specifies that that sufficient
funds should be made available to ensure all legal
severance is paid. The union and management have
conflicting calculations as to the amounts due.
Since the coup in Thailand in September, the union
has been prevented from organizing public action
to support their case. Management has consistently
kept refusing to enter into dialogue with the
GRWU. Only after the union filed a complaint to
the Human Rights Commission, who called parties
to the table, did the company finally send its
lawyer to meet with the union on September 25th
at the Ministry of Labour. Nothing came out of
this meeting, but both parties agreed to meet
again on September 28, this meeting was subsequently
postponed until October 5th.
Gina
protest in front of US Embassy -- Bangkok - 8 October
2006
On September the 29th all workers received termination
letters. Management distributed these letters
on a Friday evening, presumably so that the union
could not immediately file a complaint at the
Ministry of Labour. In the days prior to this
management, using the prominent international
law firm Baker & Mackenzie, tried to get workers
to sign "updated employment contracts"
which in fact amounted to a (voluntary) resignation
letter, using vague language open to misinterpretation
by the workers. Should the factory close, workers
who had signed these resignation letters would
have lost their right to the severance pay they
have earned over the years. Union representatives
did manage to inform workers in time to prevent
most from signing these letters. The union has
gathered evidence that suggests that management
has plans to reopen in the future.
Buyers' deny they are behind
shutdown plan
CCC and allies in the United States have been
in regular communication with two of the three
key buyers sourcing at Gina Form (the Limited
and Warnaco) since the second week of September,
following a request from the GRWU. More recently
communication has been undertaken with the third
key buyer, US-based Charming Shoppes. The Gap,
La Senza and Lindex, who source their production
at Clover's factory in Cambodia, were also contacted.
Buyers were asked to contact Clover and inquire
into the company's reasons for wanting to shut
down the Gina Form Bra facility in Thailand, especially
given management's claim that the move was requested
by the buyers. The buyers were also asked to become
and remain engaged in monitoring the possible
factory closure process, and make a public statement
that they will continue to source from Gina Form
Bra in Thailand and that they do not prefer to
source from China at the expense of shutting down
a factory in Thailand that has made outstanding
progress towards code compliance. Finally, buyers
were asked to make it unmistakably clear to the
entire management team at Clover Group, Hong Kong
and Gina Form Bra, Thailand that they will discontinue
business relations with the Clover Group (wherever
they are located in the world) if they shut down
the Gina Form Bra facility in Thailand.
When The Limited, Warnaco and Gap contacted Clover
Group, and confronted them with the claim that
buyers were pushing for the move to China, Clover
Group changed their story: they now claim the
Gina factory is operating at a big loss. Despite
repeated requests from both union and buyers,
management has not provided any evidence to support
such a claim, either to the union or, to our knowledge,
to any of the buyers. The union has reasons to
doubt the claims of financial trouble, and to
believe the move is in fact motivated by management's
anti-union position and possible management to
re-open under another name. In the CCC's experience,
closing down a reopening under another name is
a common tactic for busting a union.
Clover Group not transparent,
provides no evidence to justify move
In a letter to all the brands sourcing from Gina
on September 23, the union expressed their surprise
at management's claim of financial loss, since
only the year before large increases in employees
benefits were part of a renegotiated collective
bargaining agreement in 2005. The company never
informed the union that the factory is operating
at a great financial loss. The GRWU also questions
the company's threat to close down operations
in Thailand, given that they are currently subcontracting
orders for Victoria's Secret and Calvin Klein
to other facilities in Thailand, leaving Gina
Form staff without any work to do. In the CCC's
experience diverting orders from a unionised workplace
to non-unionised subcontractors is a common management
tactic to break a union.
The GRWU requested the following from Clover
Group International Co. Ltd. and all brands sourcing
from Clover Group International Ltd: the company
should provide the reasons for closing down the
operations in Thailand given that the company
has never informed the union about its plan to
close down the factory. The company should also
clearly state whether they intend to continue
production in Thailand in the form of a new subsidiary
or use of subcontractors. Clover Group International
Co. Ltd. should provide following information:
- Access to all accounting books and production
information of Gina Form Bra Co. Ltd.
- Provide all shipping cost data from all subsidiaries
of Clover Group International Co. Ltd. in Thailand,
Cambodia and China.
- Provide all salary information of all employees
at Gina Form Bra Co. Ltd. (including for daily
salaried, monthly salaried and management employees)
The union also requests that all brands sourcing
from Clover Group International Ltd. disclose
information about the price paid and order volume
that it has placed at Clover Group's subsidiaries
in Thailand, Cambodia and China since 2003.
So far none of this information
has been provided.
The CCC condemns management's lack of transparency
regarding the proposed Gina Form shutdown. Workers
and their representatives have a clear right to
know what the financial situation is in their
workplace; therefore the CCC supports their call
for full disclosure of the financial condition
of Gina Form so that they can participate in informed
decision-making about the future of this facility.
In recent years, Gina Form has been a positive
example of industrial relations where workers,
management and buyers have come together to see
that standards are improved. The CCC stands behind
the Gina workers in their attempt to keep this
workplace open. Should the facility shut down
management must observe all legal obligations
to provide appropriate compensation to workers.
Companies producing their goods at Gina Form will
also be held responsible for ensuring that management
makes good on these obligations. Buyers need to
make it clear to management what the consequences
will be of their failure to follow up now, before
it's too late. Time is limited
Action Request
Please read the update of
this appeal:
Oct 25, 2006 - Gina Form
Bra closed down: action needed today!
Please send a letter of
concern to the companies sourcing at Gina Form.
With the possible shutdown of Gina Form less than
a month away, buyers must not delay contacting
Clover Group with a demand that they keep Gina
Form open or face serious consequences.
1:
Sample letter to Buyers
Dear
I am disappointed to learn
from the Clean Clothes Campaign that Gina Form
factory in Thailand, owned by the Clover Group
in Hong Kong, which produces underwear for your
company, has announced plans to workers to close
the factory. I urge you to look into this possible
closure immediately and do all that you can to
prevent his outstanding factory from being shut
down.
As you will know, after
a long struggle in 2003 by the Gina Relation Workers'
Union (GRWU), dismissed union leaders were reinstated
and the union successfully negotiated a collective
contract with management. Conditions improved
greatly and Gina became one of the few factories
in Thailand providing decent wages and conditions.
For the past three years the union considered
Gina Form Bra to be "an exemplary factory
in terms of quality, efficiency, and code of conduct
compliance." Unfortunately, all these gains
could soon be lost as management has recently
announced a plan to shut down the Thai facility
as of October 31st and move all production to
China or Cambodia.
Representatives from Gina
management have cited rising costs as the main
reason for their plans to relocate, the union
however believes the planned closure is an attempt
of management to cut out the union. Management
has refused to divulge information about the financial
situation at the factory, nor has it been willing
to discuss with the union any alternatives to
closing the factory.
The closure of Gina will
make 1600 workers unemployed and put their families
in economic uncertainty. Many of the Gina employees
bear the brunt of the financial responsibility
for their parents and/or children in the countryside.
I call on you to:
1. Immediately communicate
in clear and unmistakable terms to Clover Group
that they wish the factory to remain open, and
that if Clover Group proceeds with the closure
as planned you will discontinue all business relations
with the Clover Group (wherever they are located
in the world) .
2. Request the Clover Group
to provide evidence of the financial reasons for
the planned closure directly to the Gina Relations
Workers Union, and state your willingness to work
with Clover Group and the union to investigate
alternatives.
I look forward to hearing
your plan of action on this urgent case.
Yours sincerely
Please read the update
of this appeal:
Oct 25, 2006 - Gina Form
Bra closed down: action needed today!
2:
Sample Letter to the Owner
Dear Mr. Lau
I am disappointed to learn
from the Clean Clothes Campaign that you have
announced plans to close down the Gina Form factory
in Thailand and move production to China and Cambodia.
I urge you to reconsider this decision, and to
keep this outstanding factory from being shut
down.
I understand that after
Gina is one of the few factories in Thailand providing
decent wages and conditions. For the past three
years the union considered Gina Form Bra to be
"an exemplary factory in terms of quality,
efficiency, and code of conduct compliance."
I understand that, though you have cited rising
costs as the main reason your plans to shut down
the factory, you have refused to divulge information
about the financial situation at the factory,
nor have you been willing to discuss with the
union any alternatives to closing the factory.
The closure of Gina will
make 1600 workers unemployed and put their families
in economic uncertainty. Many of the Gina employees
bear the brunt of the financial responsibility
for their parents and/or children in the countryside.
I call on you to provide evidence of the financial
reasons for the planned closure directly to the
Gina Relations Workers Union, and work directly
with the union to investigate alternatives. For
your information, I am also contacting the main
buyers of the Clover Group to express my concern
on this case.
Yours sincerely
Contact details:
The Limited Brands (Owner of Victoria's Secret):
Limited Brands
Three Limited Parkway
Columbus, OH 43230
614-415-7000
www.LimitedBrands.com
Doug Williams < dwilliams@limitedbrands.com
> Compliance representative of the Limited
Amie Preston < apreston@limitedbrands.com
> Investor Relations Limited
Sharen Turney < sturney@limitedbrands.com
> CEO Victoria's Secret
Leslie Wexner < lwexner@limitedbrands.com
> CEO Limited
Service@victoriassecret.com
Warnaco Group (Owner of Calvin
Klein Underwear):
Warnaco Inc.
Joseph R. Gromek
President and Chief Executive Officer
Ericka Alford, Vice President,
Associate General Counsel Ealford@warnaco.com
Tom Ostendorp, <TOstendorp@warnaco.com>
Warnaco Inc.
501 Seventh Avenue
New York, NY 10018
212-287-8280 (tel)
212-287-8511 (fax)
Calvin Klein Underwear Europe:
Warnaco BV
Fazantweg 4
4791 RR Klundert
Nederland
e-mail: euinfo@cku.com
eupress@cku.com
Charming Shoppes:
Corporate Headquarters
450 Winks Lane
Bensalem, PA 19020
215-245-9100
CEO Dorrit J. Bern
dorrit.bern@charming.com
Tony DeSabato <Tony.DeSabato@charming.com>