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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>

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More info:Please read the update of Nov 29, 2006!
Clover group reaches settlement with Gina Form Bra factory workers





Local action to challenge management's plans

Buyers' deny they are behind shutdown plan

Clover Group not transparent, provides no evidence to justify move


OCT 25 UPDATE: Gina Form Bra closed down: action needed today!