Victoria’s Secret agrees to finance $8.3 million settlement for laid-off Thai workers

Melissa M. Taylor

BANGKOK, May 27 (Reuters) – Thai staff who were sacked final year from a factory providing world-wide lingerie brands together with Victoria’s Mystery will receive $8.3 million, in what labour activists say is the biggest settlement of its form in the international garment sector.

About 1,200 staff ended up laid off with no severance pay and wages owed to them by Good Alliance Thai International Co Ltd (BAT) right after it went bankrupt and shut down its factory in Samut Prakan province in March 2021.

The incident was 1 of “hundreds of situations of wage theft” that labour activists say took position in the garment business throughout the COVID-19 pandemic. The settlement, financed by Victoria’s Mystery in a mortgage arrangement with BAT’s owner, could established a precedent for international manufacturers to far better secure the legal rights of employees in their offer chains, according to Scott Nova, Executive Director of the Employee Legal rights Consortium, an international labour advocacy team.

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“World wide manufacturers need to have to realise that they are not passive investors, but development-setters in environment labour criteria,” reported David Welsh, the Thailand director for the Solidarity Middle, a U.S.-based mostly personnel rights’ advocacy group.

Extra than a calendar year after BAT and its Hong Kong-based proprietor Clover Team refused to shell out the laid-off Thai employees, Victoria’s Key & Co (VSCO.N)reported this 7 days in an emailed assertion. It will lengthen a loan to the owners of Clover to finance the settlement.

It was unclear how significantly of the settlement Victoria’s Secret would include, expressing in the assertion that BAT’s proprietor were being not “in a place to conclude this matter on their personal” so the organization “agreed to advance the severance funds to manufacturing facility proprietors,” without having revealing the amount.

A Thai labour ministry document observed by Reuters confirmed the total payment to the personnel such as associated expenses was in a full of 285.2 million baht ($8.36 million).

Clover experienced initially claimed the staff need to concur to wait 10 a long time to be paid in full.

Emily Lau, an government of Clover and a board member of the bankrupt BAT said on Friday the payment will be produced with “the personal methods of homeowners, Angie and Emily Lau” but did not mention the mortgage from Victoria’s Mystery.

($1 = 34.1500 baht)

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Reporting by Panu Wongcha-um and Panarat Thepgumpanat Enhancing by Kanupriya and Nick Zieminski

Our Expectations: The Thomson Reuters Rely on Principles.

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