Collegiate Supplier on Better Factories Cambodia’s “Low Compliance” List
|To:||WRC Affiliate Universities and Colleges|
|From:||Scott Nova and Ben Hensler|
|Date:||June 16, 2015|
|Re:||Collegiate Supplier on Better Factories Cambodia’s “Low Compliance” List|
Please find here a new WRC memo regarding H2 Garment Co., Ltd (“H2 Garment”), also known as Yong Hui, a factory in Phnom Penh, Cambodia. Better Factories Cambodia (“BFC”) has identified this factory as committing, and failing to remedy, a number of workers’ rights violations, including failure to pay appropriate wages, discrimination, excessive overtime, and several health and safety violations, and has placed the factory on the “least compliant list.” H2 Garment is disclosed by Lakeshirts, which produces collegiate apparel under its private label Blue 84. The factory also produces non-collegiate apparel for Youngchen Enterprise, Planet Gold (a brand sold at Macy’s and Sears) and Ikeddi.
The WRC has contacted both H2 Garment and Lakeshirts regarding the BFC findings. H2 Garment has failed to respond to communications from the WRC. Instead, the factory has changed its name to Sigil Garment, raising concerns that the factory is attempting to avoid pressure to improve its practices. Lakeshirts has reported that any production at Lakeshirts would have been sourced through the firm Leonard A. Feinberg, Inc., and shared with the WRC a letter from Leonard Feinberg stating that the company had never dealt with H2 Garment. The Licensing Resource Group (LRG), which represents a number of WRC affiliate universities and had provided the relevant disclosure data to the WRC, reports that Lakeshirts acknowledged production in the factory in 2013.
It is unclear whether Lakeshirts and H2 Garment have a current relationship. By disclosing this factory as producing collegiate apparel, however, Lakeshirts has created an expectation by workers that the company will act to prevent and remedy violations of its code of conduct. Given this, the WRC expects Lakeshirts to take action to ensure that these violations are remedied, including, but not limited to, engaging with other buyers and considering returning production to the factory if it addresses the violations identified by BFC. The WRC will also contact other buyers sourcing from H2 Garment.