Call Eddie Bauer and the Fair Labor Association (FLA)Tell them they are responsible for PT Victoria!

Call Eddie Bauer and the Fair Labor Association (FLA)

Tell them they are responsible for PT Victoria!

Information for this alert comes from United Students Against Sweatshops (USAS)
Posted April 6, 2005.

At the PT Victoria in Indonesia, workers left jobless after the factory shut down in December, 2003 are still waiting for their back wages and their severance pay. Eddie Bauer has the power, and the responsibility, to help these former employees. Call Eddie Bauer today, as well as the FLA, with which it is associated, to insist they take immediate steps to address this labor violation. Eddie Bauer still has contracts with the parent company, giving it leverage to influence this situation.

Though USAS and allies have sent emails to Eddie Bauer and the Fair Labor Association expressing our concern about the PT Victoria case in Indonesia, we were met with dismissive emails that shirked our concerns! Let them know that we're not joking around!

Please find below --

Action: Call Eddie Bauer & the FLA today!
Next Steps
Background information
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Action:

Call Elizabeth Borrelli (with Eddie Bauer) at 425-755-6100 ext. 6643

Call Auret von Heerden (with FLA) at 202-898 1000 x201

Sample Script: Hello, My name is ______ (and I'm calling from [ organization/school]). I am very concerned about your disregard for the PT Victoria case in Indonesia. Victoria workers are owed over a million US dollars in back pay and severance. Eddie Bauer and the FLA need to take responsibility for this. You claim that the case was settled back in December -- however the sale of the assets from the factory amounted to less than 10% of what the workers are due by law. To date, the Victoria workers are still legally entitled to over a million US dollars. Please get back to me with your plans to resolve this, at [email address].

Next Steps:

If Eddie Bauer refuses to act by April 6th, USAS will be organizing actions in Eddie Bauer stores around the nation. Please contact USAS if you are interested in organizing one! Write to organize@usasnet.org or call 202 NO SWEAT.

Background:

Victoria Garment Indonesia, located in North Jakarta, was set up in December 1997 under a charter intended to bring in foreign investment. The company was founded by Mr. Pang Kai Man Joseph ( Singapore citizen), 90% owner, and Mr. Wilkin Ha ( Hong Kong citizen), 10% owner. Victoria factory produced clothes for Eddie Bauer, Talbots, Mast Industry, Liz Claiborn, Fila, Timberland, Cato/Colby and Celic. These products were exported to the US (80%), Canada (10%), Germany (5%) and Japan (5%). During its years of operation the company never received any serious complaints from its customers or any cancellation of orders. In fact, for its Eddie Bauer products, Victoria Company received a quality standard award for three years 1998-2000.

On May 4, 2000, the workers set up an independent trade union. The process was democratic and supported by the majority of the 1350 workers. However, the working conditions did not change significantly. Due to tight schedules for export, workers were forced to work many hours of overtime, including 24 hour shifts. Many workers had to resign due to health problems and fatigue. The trade union proposed an amendment to the Working Agreement but there was no consensus with management.

The factory suddenly closed down on December 31st, 2003, with only a few days' notice to the current 875 workers (782 female and 93 male).

From January 19th to 28th, the Victoria workers filed complaints with the Indonesia Manpower and Transmigration Department in North Jakarta, the police, the foreign affairs office, the Indonesian Consulate in Hong Kong, and the Investment Coordination Body.

PT Victoria's parent company's (Perdana Garment MFG Co. Ltd.) response to the union's demand for their due back-wages and severance pay was to say that the workers could keep the earnings from the sale of all the factory's remaining assets in Indonesia. However, the value of these assets turned out to be only about one fifteenth of the compensation that was legally owed to them.

On May 12, 2004, the workers received a decision from the Central Labor Dispute Settlement Committee that the company was obliged to pay the workers as follow:

a. Two times the compensation amount, according to article 156 (2) of Labor Act Number 13/2003. b. One time severance payment according to article 156 (3) of Labor Act 13/2003. c. Housing, Medical and treatment money of 15% from compensation and severance payment according to article 156(4c) Labor Act Number 13/2003. d. 12 days substitution money for annual leave. e. 100 % salary for January 2004.

The total amount that the company has to pay to the workers is 10,759,286,045 Rupiah (roughly USD $1,195,476.00). However, the company assets yielded only around Rp.700,000,000.00 or USD $77,778.

On June 21st, 2004, the Central Labor Court of Jakarta also ruled that PT Victoria's former 875 workers are due: Rp.10,000,000,000.00 (ten billion Rupiah) in severance and Rp.5,000,000,000.00 (five billion Rupiah) in back-wages, from the time period of the legal process, and for the lost of immaterial assets.

Thus, the Indonesian government has already ruled in favor of the workers but cannot enforce this decision because the company's owners have fled the country. Immediate pressure by Eddie Bauer and the FLA on the parent company is needed to see that this verdict is enforced. Eddie Bauer is in an extremely good position to influence the situation because they continue to do business with another branch of the same company in Cambodia. Tell them to take immediate steps to remedy this situation!