Nov 29, 2006
Clover group reaches settlement with Gina Form Bra factory workers
After
lengthy negotiations, The Clover Group agreed to
pay all outstanding bonuses and legally required
severance pay and approximately three-and-a-half
months additional salary above the legal minimum
severance pay for each worker.
Despite that the Ministry of Labour had decided on
an obscure location, more
than 300 members found their way and showed that even a month after the
factory shutdown, the union has strength to be counted
On Friday, November
17, the Gina Relations Workers Union (GRWU) met
with representatives of the Clover Group, owners
of the Gina Form Bra Factory in Bangkok, Thailand.
Representatives from The Limited (makers of Victorias
Secret brand lingerie and buyers from the Gina factory)
also attended.
Gina workers have been fighting to keep their
unionized factory open after receiving word in
early September that the Clover Group was going
to close the factory and shift orders to China
or Cambodia.
After lengthy negotiations, The Clover Group
agreed to pay all outstanding bonuses and legally
required severance pay and approximately three-and-a-half
months additional salary above the legal minimum
severance pay for each worker. The package, worth
approximately $1.6 million US Dollar, is an exceptional
agreement in a country where even legal obligations
are routinely ignored when factories close. It
is the hope of the union that this settlement
will set a positive precedent.
Though Clover Group always claimed to have offered
and/or paid legally-mandated severance, the union
has insisted that the company also needed to fulfill
its outstanding contractual obligations, such
as annual bonuses and seniority awards. These
obligations would be approximately 20% of the
mandatory severance that the workers had already
received. The union also requested additional
severance above and beyond the legal minimum as
compensation for the fact that many of the employees
are older and will likely not be able to find
work in other factories due to hiring preferences
in the garment industry.
Although the union initially fought to keep the
Gina Form Bra factory open, the factory was closed
on October 20. Even then, the unionized Gina workers
did not give up. Despite the recent military coup
in Thailand, which brought the country under Martial
Law, Gina workers mounted regular protests on
to press for their rights. These protests were
supported by sustained international pressure
on brands buying from Clover Group from solidarity
networks in the US, Europe, Hong Kong, and Canada.
Thanks to these efforts, the workers have succeeded
in winning a substantial severance package well
above the norm in Thailand.
Thank you to everyone who wrote a letter or participated
in action towards the buyers or Clover Group.
We hope to send a more detailed statement from
the union itself shortly.