Workers at a Thai factory that supplied global lingerie labels such as Victoria’s Secret & Co (VSCO.N) were laid off last year and will earn $8.3 million in what labor activists claim is the largest settlement of its type in the worldwide garment business.
Brilliant Alliance Thai Global Co Ltd (BAT) lay off over 1,200 workers without severance pay or payments promised to them after the company went bankrupt and closed its facility in Samut Prakan province in March 2021.
The settlement could set a precedent for global brands to better protect the rights of workers in their supply chains.
The incident was one of “hundreds of cases of wage theft” that labour activists say took place in the garment industry during the COVID-19 pandemic.
Victoria’s Secret said it will extend a loan to the owners of Clover to finance the settlement.
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