Factory: Gina Form Bra
Key Buyers: Calvin Klein, Gap, La Senza, Limited, PVH, Victoria's Secret
Last Updated: 2006
Case Summary
In response to a request from worker representatives in Thailand, the WRC has been working to address issues surrounding the closure of a factory known as Gina Form Bra (hereafter referred to as “Gina”). The factory closed on October 20, 2006 and production was shifted to a new facility in China operated by Gina’s parent company. Gina is a factory widely recognized within labor rights circles as a rare example of fair working conditions and positive industrial relations in the export apparel industry.
Following a labor dispute that brought the factory to international attention in 2003, Gina made unprecedented improvements in the level of respect for labor rights. Most notably, following a decision by the majority of the workforce to affiliate with an independent trade union, factory management recognized the union and engaged in a process of good faith negotiations, leading to substantial improvements in conditions at the factory. Despite the efforts of workers and the WRC the factory closed on October 20, 2006 and workers were forcibly removed from the premises and pressured to sign letters of resignation enabling management to limit their obligation to pay severance.
The WRC engaged with Limited Brands in late October and early November, pressing the company to insist that Clover fulfill to the letter its legal obligations to the workers and that there also be consideration of compensation beyond that mandated by law. Overall, the results of the Gina case are mixed. Limited’s role in conjunction with the WRC was instrumental in achieving terminal benefits for workers along with other unpaid compensation. On the other hand, had Limited applied greater pressure the parent company may have been compelled to keep the Gina Facility open.
Read More:
- WRC Case Summary re Gina Form Bra – November 19, 2006