WRC Factory Investigation

Han Embroidery Ltd.

Factory: Han Embroidery Ltd.

Key Buyers: Zephyr

Last Updated: 2016

Case Summary

A subcontracted factory that embellished collegiate caps for licensee Zephyr Graf-X (Zephyr) closed on October 25, 2015, without paying legally required severance to its workers. On average, workers were owed the equivalent of six months’ wages in unpaid compensation. The workers filed a complaint with the WRC.

While the factory had not been disclosed as a supplier of collegiate apparel, the WRC was able to quickly confirm that the factory had, in fact, been a supplier of university licensed goods. After conducting an investigation that confirmed that the workers had been denied legally required compensation, the WRC contacted Zephyr.

Zephyr agreed to work with the WRC to ensure that the violations were remedied. Zephyr sought a commitment from its direct supplier, Han Apparel, to make the workers whole and succeeded in persuading Han Apparel to agree. The WRC then worked with Zephyr and the workers’ union to organize the distribution of the funds.

Between April 29 and July 14, all of the workers received the compensation they were owed. The WRC and Zephyr supervised the distribution onsite, at Han Apparel.

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