New Report: Remediation of Illegal Firings at Lululemon Supplier in Indonesia

Please find here a new report on the WRC’s investigation and remediation of labor rights violations at Pungkook Indonesia One, a supplier of collegiate apparel to lululemon.
 
In response to concerns about working conditions, including treatment of pregnant workers and the ability of workers to use statutory leave, workers at Pungkook Indonesia One formed a new labor union.

Factory management responded with a campaign of unlawful retaliation against workers active in the new body, including discrimination in job assignments, psychological abuse including public humiliation, and unlawful firings. For example:

• Management installed purple flags by the machines of workers outspoken in the union, to publicly mark them as “troublemakers,” then exposed them to intense surveillance.
• The factory unlawfully terminated the new union’s Secretary.
• Management demoted another union leader without cause and then used out-of-context CCTV footage in a concerted effort to humiliate him publicly. Claiming falsely that the video showed him being “lazy”, managers called him to a meeting of 50 workers and showed the video to the group while disparaging and ridiculing him. They then continued to hound him, including circulating the video widely on WhatsApp and demoting him a second time. Finally, they drove him to quit.

After the factory refused to take adequate corrective action, we asked the licensee, lululemon, and several buyers of non-collegiate goods to intervene. The level of engagement varied among the buyers. Lululemon agreed to look into the matter and actively engaged with Pungkook Indonesia One, along with other brands, including adidas and VF Corporation.

This resulted in the factory agreeing to adequate remedies, including ending its retaliatory actions, disciplining managers responsible for abuse, and offering reinstatement to the two workers it had unlawfully fired or forced to quit. The workers ultimately chose not to return and received severance and full back pay.

Labor relations at the factory have improved as a result of the remediation effort. There has been no further retaliation and the factory is engaging with the union on issues of concern, which the union reports has led to improvements in working conditions. The WRC is continuing to monitor progress, including the pending implementation of other remedial steps, as outlined in our report.

As always, please let us know if you have any questions.