Viewing all content tagged: Wage Theft

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L&Y Embroidery

Country: Bangladesh
Issues: Wage Theft

The WRC’s investigation found that L&Y, a subcontractor to college logo cap factory, Han Apparel (Han), violated Bangladeshi labor law and university codes of conduct by terminating at least seven employees without providing them legally required notice and severance benefits. After engagement by the WRC with Han’s buyer for collegiate products, university licensee Zephyr Headwear…

League Central America

Country: El Salvador
Issues: Abuse and Harassment, Health & Safety Violations, Overtime Violations, Wage Theft, Wrongful Termination

The WRC conducted an assessment of compliance with labor rights standards at League Central America (LCA), a garment factory located El Salvador that is owned and operated by the U.S. apparel brand known as League Collegiate Wear, Inc.  The assessment found violations of Salvadoran law in the following areas: Wages and Hours of Work. The WRC…

Posmi Sweaters Ltd.

Country: Bangladesh
Issues: Wage and hour violations, Wage Theft, Wrongful Termination

The WRC initiated an investigation in response to a complaint from the Akota Garment Workers Federation (AGWF), brought on behalf of seven Posmi employees, alleging their retaliatory and illegal termination. While investigating the termination of the seven workers, the WRC found a number of violations of university codes and Bangladeshi law, including severe wage and…

PT Kukdong International

Country: Indonesia
Issues: Wage Theft

In September 2019, PT Kukdong International, which was located in Bekasi City, West Java, Indonesia, closed its doors, ending the employment of 1,021 workers. The factory paid these workers the full severance that they were owed under Indonesian law, totaling more than nine million dollars. While the closure was a sad event for these workers,…

Largest Sum Ever: WRC recovers US$4.5 Million in unpaid severance

Country: Indonesia
Issues: Wage Theft

In the fall of 2019, two thousand Indonesian workers received what the WRC believes to be the largest amount workers have won in a single case of illegally denied severance. On July 2, 2018, the management of PT Kahoindah Citragarment (Kahoindah), an Indonesian garment factory owned by the Korean firm Hojeon LLC, had announced that…

PT Kahoindah Citragarment Tambun-Bekasi

Country: Indonesia
Issues: Wage Theft

The WRC conducted an investigation of the PT Kahoindah Citragarment Tambun-Bekasi factory, which was owned and operated by Hojeon Ltd. (Hojeon), a South Korea-based factory conglomerate.  The investigation was undertaken in response to complaints from workers received by the WRC after the factory announced its intention to close on July 2, 2018. From 2009 until…

Pure Cotton

Country: United States
Issues: Wage and hour violations, Wage Theft

The WRC investigated violations of university codes of conduct by Pure Cotton, a company located in Los Angeles, California, that supplied collegiate apparel to the licensee, Hype & Vice, LLC (Hype & Vice). In September 2018, California state inspectors cited Pure Cotton, and a small subcontract factory operating at the same address, Union Supply, for…

LD El Salvador

Country: El Salvador
Issues: Wage Theft

LD El Salvador, a garment factory located in El Salvador, unexpectedly closed down operations in March 2018 and failed to pay its 824 employees approximately $2.3 million dollars in compensation that they were legally entitled to receive for terminal benefits. The factory was owned by a Korean businessman, Young Ryul Kim, and was a key…

“Organized theft on a massive scale”: the reality of severance theft in Indonesia

Country: Indonesia
Issues: Wage Theft

Abruptly and without warning, the Indonesian garment company Jaba Garmindo shut down operations at its two factories in April of 2015, leaving over 4,000 workers without their legally mandated severance. The sudden departure reflects a consistent trend within garment factories around the globe; in response to intense market pressure to cut production costs, many factories…

Direct Ship Americas

Country: Honduras
Issues: Wage Theft

In January 2019, the university licensee Fanatics, the WRC, and other stakeholders worked together to ensure compliance with university codes of conduct following the closure of Direct Ship Americas (DSA), a factory located in Choloma, Honduras. Fanatics informed the WRC about the closure before it occurred and reported that the factory, which owed its 240…