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18 Oct 2021

Thailand: Workers at closed lingerie factory supplying Victoria's Secret, Ascena Group & Lane Bryant demand unpaid wages & severance pay

On 11 March 2021, 1,388 workers were made jobless after the lingerie manufacturer Brilliant Alliance Thai Global Ltd (BAT) in Thailand, which supplied brands including Ascena Group, Lane Bryant and Victoria's Secret, suddenly closed without paying workers' unpaid wages or severance.

Union workers and leaders reported that the company had given them no warning, going against the Thai labor law, which requires employers to provide a month's notice and honor outstanding financial commitments including unpaid wages and unused annual leave.

According to the company, it had been directly impacted by both the economic slump from 2019 and the COVID-19 pandemic, with its exports dramatically dropping.

On 24 March 2021, the labour protection and welfare office of Samut Prakan ruled that the factory had to pay THB242.22 ($7.4 million) to 1,2000 complainants within 30 days or risk interest of 15% per year or a lawsuit.

Clover Group International, which owned BAT, offered to pay this over 10-years, but the proposal was rejected by workers.

In October 2021, the Confederation of Industrial Labour of Thailand called for the Thai government to take legal action against BAT, and to use the employee welfare fund to provide THB242,689,862.71 (US$7.61 million) to the workers. The workers also urged the government to prosecute BAT under the criminal law.

In May 2022, it was announced that Victoria's Secret and Clover Group had agreed to compensate the 1,388 former workers $8 million in total, covering workers' unpaid wages, benefits, severance pay and 15% annual interest.

Company comments can be found below.

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