Gap, Wal-Mart, Nike, and Tommy Hilfiger continue to use Sweatshops in Thailand

Posted March 1, 2003

Find out how you can help!

Thai Garment workers are asking for your help. In December 2000, 149 Par Garment factory workers were dismissed from their jobs-- with compensation,salary and overtime unpaid after their workplace was suddenly shut down. Par Garment, located near Bangkok, produced garments for such international brands as Gap, Wal-Mart, Nike, and Tommy Hilfiger.

Following much local and international campaigning, the 30 union members and leaders dismissed at that time eventually won compensation, and the five who wanted reinstatement also won this. However, in violation of the court order, the factory paid the five union leaders but never allowed them to work in the factory since winning reinstatement.

Now, reports the union, the factory has decided to file for bankruptcy, close down Par Garment and relocate production to two other factories (which are not unionized) in the provinces far from Bangkok, which the Par Garment owner has a financial interest in.

The union is requesting pressure be put on the brand label companies and the Thai Government to accept responsibility and intervene to pressure the company to ensure that the workers demands are met. They are demanding compensation and back pay for the workers, and jobs for any workers who are willing to relocate at the two other companies.

More details on this case follow below, as well as names and addresses to write protest letters to. Please take action on this case today!

This case is exceptional in that far too often, workers don't bother to use labor courts, not trusting that any government process will protect their rights. Here, workers have won the case -- after several years -- and they have stayed attentive to the company's actions (The Thai Labour Campaign fighting side-by-side with them).

Source: TIE-Asia, February 18, 2003
Additional sources: Jeff Ballinger, Press for Change and Sweatshop Watch

'Runaway' employer at Thailand's Par Garments

Tommy Hilfiger, Gymboree, Wal-Mart, and the Gap challenged to comply with the law.

One hundred and forty nine Thai garment factory workers have been left without jobs or compensation, with salary and overtime unpaid after their employer 'ran away' from his responsibilities to his workers and to his loan payments to the Bangkok Bank in December last year (2002). The Par Garments factory in Pathum Tanee an industrial area on the northern outskirts of Bangkok - produced garments for international brand names Gap, Wal-Mart, Nike, and Tommy Hilfiger.

On the morning of 18 December 2002 the workers arrived at work to find the factory gates locked. A Bankruptcy Court notice on the gates stated that the Par Garments factory had been put into liquidation by the Bangkok Bank the day before. Factory owner Apiwat Latinat Mongalat (Mr. A) had failed to make loan repayments to the bank on time.

Following the December closure, Mr. A continues to manufacture for the international brands at two other factories in which he owns shares in provinces far from Bangkok.

In the weeks before the sudden closure of the Par Garments factory the workers had been forced to work five hours overtime each day and then for the last week given no work to do. The workers saw that some equipment was already being removed from the factory during this time. Although there were rumours about the future of the factory, the owner, Mr A, told the workers nothing.

They now believe that Mr A knew the factory would close, and that he was removing equipment that would otherwise have been taken by the Bangkok Bank following Mr A's failure to honour his loan repayments.

When the factory closed the workers were not paid for the last two and a half weeks at work including the forced overtime to finish orders.

The 149 Par Garments workers are now challenging the international brand name companies to pressure Mr A to pay the salary and overtime payments owed along with providing jobs in either of the two factories operating in the province (for those who are willing to relocate) and compensation for those who are unable to relocate. They believe that as the international companies are actively benefiting from Mr A's use of low-wage non-union workers in provincial Thailand. These companies must accept their share of responsibility to the workers who make their products.

Since the sudden closure of the Eden garment factory in 1996, Thailand's labour law now provides that where employers close their factories and fail to pay compensation the Ministry of Labour can make compensation payment to the workers. It is then the Ministry of Labour who sues the employer for the money owed. The workers then receive their entitlement without having to take perhaps long and expensive legal action. The Par Garment union is calling upon the Ministry of Labour to pay the full compensation owed to the workers from the compensation fund; the Ministry can then take action to recover the money from Mr. A. Those who have worked for more than 10 years at Par Garments are entitled to 10 months salary as compensation for loss of their jobs.

Many of the Par Garments workers are already over 40 years old and will find it very difficult to get another job. The Par Garments workers recognise that the liquidators for the Bangkok Bank now own their Pathum Thanee factory. However their employer continues to have a financial interest in two other factories making garments for the same international brand names. The union is demanding that workers be given the option of taking jobs at the two other factories that Mr. A has an interest in.

Par Garment workers are continuing to demand their right to compensation and held a rally at the Ministry of Labour on 15th February 2003.

PAR GARMENT WORKERS DEMANDS:

• Their entitlement to 10 months salary as compensation for the loss of their jobs;
  
• Jobs, for those who chose employment rather than compensation, in one of the two other factories in which Mr A has shares in and has responsibility for operations of;
  
• That the Ministry of Labour pays the full compensation owed to the workers from the Compensation Fund;
  
• That the Ministry of Labour takes action to recover the money from Mr A;
  
• That Mr. A face criminal charges in court for refusing to pay bonuses, wages, and overtime to the workers;
  
• That international brands Gap, Wal-Mart, Tommy Hilfiger, and Gymboree use their on-going business relationship with Mr A to pressure him to pay compensation to the 149 dismissed Par Garment workers in Pathum Thanee.

ACTION REQUEST

Please write letters to:

Prime Minister of Thailand
Prime Minister of Thailand
The Hon Mr Thaksin Shinawatra
Office of the Prime Minister
Pitsanuloke Rd
Bangkok 10300
Thailand
Fax: +66 22 82 8631

Labour Minister:
Minister of Labour
Mr. Suwat Lipatapallop
Fax: +66 22 45 2260

Par Garment Management:
Apiwat Latinat Mongalat
Par Garment Company Limited
9/4, Moo 3, Paholyothin Rd
Klong-nung, Klong-luang
Pathumthani
Thailand

Major Brand label buyers:

GAP
Sean Ansett
Manager, Global Partnerships
Gap
2 Folsom St.
San Francisco, CA 94105
United States
Fax: +1 415-427-6620
e-mail: sean_ansett@gap.com

TOMMY HILFIGER
Joel Horowitz
CEO and President
Tommy Hilfiger Corporation
11/F Novel Industrial Building
850-870 Lai Chi Kok Rd.,
Cheung Sha Wan
Kowloon, Hong Kong
Phone: +852-2216-0668
Fax: +852-2312-1368

GYMBOREE
Lisa M. Harper
Chairperson and CEO
Gymboree
700 Airport Blvd., Ste. 200
Burlingame, CA 94010-1912
United States
Phone: +1 650-579-0600
Fax: +1 650-696-2920

WAL-MART
H. Lee Scott
President and Chief Executive Officer,
Wal-Mart Stores, Inc.
702 SW Eighth St
Bentonville
AR 72716
United States
Phone: +1 479 273 4000

SOLIDARITY MESSAGES and copies of letters can be sent to:

ADDITIONAL BACKGROUND ON PAR GARMENTS

Par Garments was established on 24 February 1987 with a capital of 180 million baht. Par Garments workers established a union in 1990.

Factory owner, Mr A, has been refusing to pay his workers at the Pathum Thanee factory their annual bonus every year since 1998. Each year the workers have had to sue their employer for unpaid annual bonus. Mr A told the courts that he had lost business and that he could not pay the bonuses. In 1997 and 1998 the workers won their bonus payments through the court.

The annual bonuses for 1999 and 2000 are still before the court.

On December 2000, 30 union members were dismissed. When the workers won an "unfair labour practice" case against Par Garments in the Labour Court the company was required to pay compensation to 25 of the workers who did not want to return to Par Garments. The other five workers were ordered by the court to be reinstated to their jobs.

However the employer refused to allow the reinstated workers inside the factory. Instead, for two years, the five workers would sign in and out every day at the factory gates. Although the factory owner continued to pay the wages of the reinstated workers, they were never again allowed to enter the factory to their jobs.

In 2001 the workers took their unpaid bonus case to the police. Mr A was arrested and released after payment of bail and the matter referred by the police to the court again.

Sometimes the workers' pay would be delayed for two or three days without explanation.

Mr. A maintains a financial interest in at least two other garment factories in provinces outside Bangkok. The Montini factory employs 700 workers in Korat in Ratjasima province 300kms north east of Bangkok and Par Consortium in Ubon Utijani province employs 500 workers.

In 1992, five years after establishing Par Garments, Mr A was involved in establishing Montini Garments in Ratjasima province. Montini produces Walmart, Gymboree and Tommy Hilfiger brands. Of the 60 million bath 600 million share capital, Mr A owns 11,880 shares. His brother-in law owns 545,121 shares.

Workers at the Montini factory are paid the local legal minimum wage of 145 baht a day (US$4). They can also receive a further 160 200 baht (US$5 $7) a month if they do not miss a single days work for sickness or leave. They can lose their monthly 'bonus' if they are late for work on one day. They do not have a union.

Workers can be forced to work overtime by the management refusing to provide return transport to the rural areas from which the workers travel each day to work. They can also be required to punch out on their time cards hours before actually finishing overtime. They then continue to work unpaid overtime or face the risk of lay-off. Such working conditions have lead to workers fainting on the job.