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6 Mar 2023

Guatemala: Target supplier illegally dismisses workers after refusal to sign contracts denying workers' severance & seniority rights

In November 2020, the garment supplier JNB Global, based in Guatemala, demanded all employees sign new contracts which falsified their dates of hire, denying them accrued severance and seniority rights. Workers reported that they were threatened with dismissal without severance if they did not sign the contract. In February 2021, eight workers who refused to sign the contracts were dismissed without severance pay.

According to Worker Rights Consortium (WRC), who investigated the case on behalf of seven of the dismissed workers, JNB Global owed them a total of $62,000. However, the company paid the workers less than $4,000 in small instalments, after one of the workers filed a complaint with the Ministry of Labour and Social Welfare.

Target, one of the buyers of JNB Global, reportedly told WRC in response to their investigation that the company had conducted its own audit, which found JNB Global had fully remedied the violations it was guilty of. The workers continued to call on Target to remedy the situation and pay the remaining severance.

In March 2023, WRC reported that JNB Global had given two years' worth of severance and back pay to the seven dismissed workers, and restored severance and seniority rights for all 400 workers at the factory.

According to WRC, Target commissioned an external audit, which confirmed the supplier had violated workers' rights.

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