WRC Factory Investigation

KGG Garments, Plc

Factory: KGG Garments, Plc

Key Buyers: Cutter & Buck

Last Updated: 2022

Case Summary

In March 2022, the WRC secured a commitment from the university licensee, Cutter & Buck, to provide the equivalent of more than four months’ wages to over 1,300 workers, to remedy violations of law at a factory in Ethiopia producing university logo apparel. The breaches of law—nonpayment of legally mandated severance and terminal benefits—were committed by KGG Garments, Plc, which ceased operations in October 2021 without paying employees more than US$135,000. By end of December, the vast majority of the former KGG workers (1,297 workers in total) had received the legally mandated severance payments that were stolen from them by the factory, remedying the violation of university codes of conduct. Workers received the equivalent of about three months’ wages after taxes.

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