WRC Factory Investigation

June Textile Company (Gimmill Industrial, Pte Ltd.)

Factory: June Textile Company (Gimmill Industrial, Pte Ltd.)

Key Buyers: Carter’s, Gap, H&M, OshKosh, Russell, Under Armour, Vantage Custom Classics

Last Updated: 2011

Case Summary

On July 24, 2011, June Textile Company, a factory in Cambodia that formerly produced collegiate apparel for Vantage Custom Classics, and non-college garments for Russell Athletic, Carter’s (maker of OshKosh brand apparel) and H&M, agreed to pay legally owed severance to 4,000 employees who lost their jobs when the plant was destroyed by a fire on March 30, 2011. While, fortunately, the fire caused no major injuries to employees, June Textile had terminated the workforce and, in defiance of Cambodian law and a ruling of the country’s Arbitration Council, refused to make the legally required severance payments.

The WRC engaged extensively with buyers from June and its parent company, Gimmill Industrial Pte. Ltd., which also produces garments for Gap and Under Armour, with worker and industry representatives in Cambodia, and with the ILO, for several months, urging them to pressure the company to properly compensate its former workers. In late July 2011, June Textile reversed its position and committed to pay all of the legally mandated severance benefits, estimated at roughly $2.6 million or US $600-700 per employee – equal to about six months wages per workers. The WRC will continue to monitor the situation closely to ensure that June Textile’s owners live up to this commitment by providing all legally due compensation to the former employees.

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