Cozi Knit Co., Ltd. (formerly, I.K. Apparel Co., Ltd.)

A WRC investigation found that Cozi Knit, located in Cambodia and formerly known as I.K. Apparel, violated workers’ associational rights when it interfered with the registration process of the newly formed union, threatened workers with dismissal if they persisted in establishing a union, and unlawfully terminated six worker union representatives, who, beginning in 2019, attempted—on three separate occasions—to establish the C.CAWDU-affiliated union, in violation of Cambodian law and buyer codes of conduct.

The factory produces apparel for several US and Canadian brands and retailers, including American Eagle Outfitters, Loblaws, Target Corporation, and Lolë.

After receiving a complaint from the C.CAWDU in 2023, the WRC investigated and shared our findings with the brands sourcing from the factory, asking the brands to press the factory to take the necessary remedial measures. These efforts, led by American Eagle Outfitters, resulted in a partial remediation of the violations, with Cozi Knit agreeing to reinstate four of the six terminated worker union leaders in May 2024 and providing partial back pay to these workers. Unfortunately, Cozi Knit further retaliated against the worker union leaders, by singling out the reinstated workers, requiring them to take a three-and-a-half month training course outside the factory, and by isolating them from the rest of the workforce in a small building adjacent to the main production building and placing them under constant CCTV surveillance once they returned to the factory. In September 2024, the factory again terminated the four reinstated workers, stating a lack of orders as the reason for their termination, in an attempt to cover up its retaliation against the workers for their union activities. 

Ultimately, the company and the union reached an agreement whereby the workers received additional compensation in lieu of reinstatement. This agreement does not resolve the violation of workers’ right to freedom of association; however, the workers communicated to the WRC that they no longer wish to pursue reinstatement. While the outcome in this case does not reverse the chilling effect of management’s actions on workers’ exercising their right to freedom of association, it would have been highly unlikely that the four worker union leaders would have received any compensation without the engagement by the WRC with the brand customers of the factory. The case also illustrates the many obstacles Cambodian workers increasingly face in exercising their associational rights. These obstacles include collusion between companies and authorities in preventing independent unions from being registered and approving terminations of union activists by the government authorities without conducting a proper investigation.

Read More:

• WRC Factory Assessment Cozi Knit Co., Ltd., formerly, I.K. Apparel Co., Ltd. (Cambodia): Findings, Recommendations, and Status – July 21, 2025