PT Pungkook Indonesia One

A WRC investigation found that, after the formation of a new union to address failure to provide paid leave and protections for pregnant workers, Pungkook Indonesia One terminated the worker who was elected as the union secretary, discriminatorily transferred the job tasks of the three union representatives. One of the three union representatives was also publicly humiliated by factory management, forcing the worker to resign.

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.

After our engagement with the company and its brand customers, Pungkook Indonesia One took several remedial actions, including offering reinstatement and compensation to the terminated union leaders, both of whom declined reinstatement in favor of financial settlements to support personal business ventures. In cases of unlawful termination of worker union leaders, the preferred remedy is to reinstate the worker union leaders with full back pay to counter the chilling effect on workers’ associational rights. However, since the workers, who faced discriminatory treatment and harassment from factory management for their union activities, of their own volition decided not to return to the factory but instead accept compensation, the WRC finds that the violations of unlawful and constructive termination of the worker who was elected as the union secretary and worker union officer are remedied.

Read More:

• WRC Findings and Remediation at Pungkook Indonesia One (Indonesia) – February 18, 2025