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Allegation:

Discrimination of union leaders/members, labor activists and elder workers connected to the closing of production lines due to decreasing orders, with dismissal of workforce as a result. Also when rehiring, discrimination of the same groups were claimed.

Dayworkers are said being laid off one day prior six month of service, for the company to avoid having to offer a contract. Furthermore, dayworkers has little or no possibility to call for overtime compensation and are actively instructed not to join the union.

Blåkläder response:

In cooperation with Amava Apparel, we have conducted an investigation and believe that we have identified the events that could have lead to the allegations in the Myanmar Labor News post.

Due to decreasing orders over time, the factory had to close production lines to adapt to the lower production demands. In December 2022, April 2023 and in July 2023 lines were stopped, with the consequence that workforce had to be dismissed. Since then, 14 employees has been rehired, based on skill tests conducted by the IE Department.

Concerning day labors, all depending on current work force needs, day workers are sometime only requested to come for a few days at a time. However, in Amava Apparel any day laborer that has worked for six month are automatically promoted as a permanent employee. Even so, the majority of day laborers are promoted as permanent employees within three months of work.

There is no evidence of discriminating acts to be found, but instead documentation supporting a correct and regular process both when decreasing the workforce and rehiring personnel.

There are also records providing evidence that day laborers are promoted to permanent employees within three month or even earlier.

Allegation:

Union leaders, member of the union and union line representatives are discriminated in various ways and kept separated from other employees, whom are told not to address or talk to any union representatives.

Blåkläder response:

Amava Apparel is committed to the Amfori BSCI Code of Conduct, which includes Freedom of association and the right to collective bargaining. This is honored in the daily business of Amava, and it is made sure that all employees are treated with respect and equity, regardless if union members or not.

Some key features of this commitment;

- WCC, Workplace coordination meeting every second month. Participants are worker representatives, union leaders and employer representatives. Meeting minutes, replated actions and continuous improvement plans etc. are documented

- All employees are offered the same opportunities and privileges, for examples to receive donations from the company, advanced salary in connection to major holidays, leave

allowance and more.

- Work assignments, labor organization and similar are all based on the skill matrix system used in the factory, to keep an updated overview of every employees’ competence

development and to identify the need for additional training.

These are just a few of the actions taken to provide a safe and respectful workplace, characterized by the strive to continuously improve and develop the conditions for all employees.

Furthermore, the everyday business in the factory is a joint activity; the work is conducted with colleagues side by side, during lunch- and snack breaks all employees are gathered in the canteen and the at the end of the day a majority of coworkers travel home together, using the complimentary buses. There is a lack of evidence to support the allegations concerning isolation of union representatives in everyday operations and, perhaps even more relevant, it is an impossibility.

Allegation: On July 29, 2019, labor rights were violated. Because of being oppressed and sexually harassed in the workplace, about a thousand workers gathered in front of the factory to negotiate 19 demands. The employer, workers and the local government signed a contract agreeing to these demands. The employer was accused of violating the terms of the contract, on May 4, 2023.

Blåkläder response: Amava is following the agreement of 19 demands which was set on July 29, 2019. In May of 2023, management decided to introduce the new atendance bonus which will benefit the workers even further. Previously hired workers are free to choose which atendance bonus system their agreement should refer to. Worth noting in this context is that the original event in 2019, that led to the agreement including the 19 demands, was addressed with highest concern by the employer. The situation was isolated to an individual, which was dismissed without further a due when the abuse and misconduct was revealed. There is zero tolerance in Amava Apparel for the type of transgressions that was uncovered during the events in July, 2019. In the aftermaths, this area has been given even further attention in the preventative health/safety work in the factory.

Allegation: The employer told the Social Security Board not to provide employees with medical allowance in case of sick leave.

Blåkläder response: The factory has not engaged in dialog with the Social Security Board in the atempt to prevent employees from receiving medical allowance. All sick leaves are approved and atendance records supports this.

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[The full response is attached]