Illegally dismissed workers at Tessival supplier accept severance after two-year struggle

Agitating Dhaka garment workers

After a two-year fight for justice, 50 workers at the A-One factory in Bangladesh finally received compensation from the Italian company Tessival, currently the factory's only remaining buyer. The workers, who received a lump sum of 5000 Taka (53,50 Euro) each, had been dismissed in October 2005 after they joined elections for a Worker Representation and Welfare Committee (WRWC) at A-One, located in the Dhaka Export Processing Zone (EPZ). Although the workers had demanded reinstatement at the factory, they finally felt obliged to accept the lump sum settlement in order to provide for their families. A-one supplied garments to a number of international companies, including Tessival, COIN, Tchibo, Miles and C&A.

The A-One workers and their advocates extend their gratitude to everyone who showed their support and took action. International support and campaigning helped the A-One workers win their settlement.

A-One's campaign against workers' rights Labour violations reported at A-One in 2005 included obstruction of freedom of association, forced overtime, extremely long working hours and wage violations. When A-One management dismissed members of the legally elected WRWC and 246 other workers, the workers engaged in ten months of peaceful protests. The dismissals were part of A-One's campaign to discourage organizing at the factory despite EPZ regulations that worker committees should be allowed to represent workers' interests.

In June 2006, garment workers in Bangladesh, include those at A-One, took to the streets to protest against appalling working conditions and repeated violations of workers' rights in Bangladeshi Export Processing Zones. After the Bangladeshi government promised to increase the minimum wage and to take measures against employers who failed to observe basic health and safety provisions, the labour unrest subdued. The A-One factory, which has closed during the protests, re-opened, but the 255 dismissed workers were not rehired. Fifty workers continued to fight for reinstatement while the rest felt financially compelled to accept an insufficient severance payment and look for new jobs.

Tessival pays severance, but fails to push for justice When A-One reopened, Tessival was the only European buyer left at the factory. Garments made at A-One were put on the market with the label Herod, a brand owned by Tessival, but also with labels sold at the Italian retailers COIN and Oviesse, who used Tessival as their agent. On February 15, 2007, the CCC met with Tessival to push for a solution for the remaining 50 workers. Tessival refused to put pressure on their supplier to rehire the unfairly dismissed workers, instead only offering money for compensation. Finally, the 50 workers felt they had no choice but to accept the severance payment and on October 25 the workers received their severance from Tessival.

The CCC is disappointed that none of the A-One buyers enforced respect for freedom of association, weak as it is, in the Dhaka EPZ. This is particularly problematic given that a preliminary agreement reached on March 7, 2006 between the German company Tchibo, their agent Systain, A-One management and the ITGLWF included reinstatement of the workers and installation of the WRWC. The agreement was never implemented. As the only remaining buyer at A-One, Tessival's refusal to use its leverage to push for reinstatement of the workers is unsatisfactory. However, the CCC recognizes the company's willingness to pay severance as a first step in the direction of taking responsibility for social compliance in its supply chain.