We have communicated to our suppliers that they are expected to comply with the legal requirements on Variable Dearness Allowance (VDA) payments immediately. We have been following up with each supplier individually to monitor their plans to make those payments. Our goal is to ensure that all VDA back payments for 2020-2021 are made as soon as possible.

In parallel, we have been working with our peers and industry associations to understand how we can be effective in ensuring that the legally mandated worker payments are made in a timely manner. On January 18, the American Apparel and Footwear Association (AAFA) sent a second letter to the Clothing and Manufacturers Association of India urging them to ensure that their members make full VDA back payments to workers no later than March 2022.