Thank you for reaching out to BESTSELLER regarding the recent reports of alleged labour and human rights abuses at factories in Myanmar. We appreciate the opportunity to provide clarification on these matters and reaffirm our commitment to responsible business conduct, particularly in high-risk contexts such as Myanmar.

Below is an overview of the specific allegations raised, alongside the actions we have taken to investigate and remediate these concerns:

Allegations and response

Tianjin Fashion Milestone

Allegations:

1. Workers photographed by security personnel when entering the toilets, and pay reductions for not meeting targets.
2. Management confiscating workers' phones and no access to medicine in the factory clinic.
3. 300 workers forced to walk home due to lack of arranged transport after overtime.

Response: Following unannounced site visits, worker and management interviews, and document reviews, we found some issues, including inadequate seating and unprofessional behaviour by a factory nurse, which have since been remediated. However, no evidence supported the claims of phone confiscation, forced work during lunch breaks, or unreasonable pay reductions. The factory has taken remediate action, namely by installing more dining chairs and providing the training to the factory nurse.

While no instances of verbal harassment or pressure on workers to work during lunch were confirmed, as a precaution, we have requested that the factory management train middle management on appropriate workplace communication to prevent any potential recurrence.

Regarding the allegation of insufficient transport for workers on 27 February, our investigation confirmed that transport for these workers had been scheduled for 4:30pm, in anticipation of work ending at 4.30pm. However, the order was completed early, and work day finished at 4.00pm, and the majority of workers left by their own means at that time. While not ideal, this does not represent a violation of our expectation that factory management provide safe and secure transport to their employees. Nevertheless, the factory management has been advised to conduct regular surveys to understand and best cater to their employees’ transport needs.

Shi An (Myanmar) Garment Co. Ltd

Allegations:

1. Workers denied leave, subjected to wage cuts for taking leave, and pressured to meet excessive production targets without proper breaks.

Response: Our investigation, including unannounced visits, interviews, and documentary reviews, found no evidence of denied leave or excessive production targets. However, to ensure continuous improvement, we have recommended training for factory management on workers' rights, including verbal harassment prevention and enhanced workplace dialogue. The factory has also implemented additional measures to ensure workers understand leave entitlements and available complaint mechanisms.

Dishang Fashion Garment

Allegation:

1. Workers demanded a wage increase due to the rising cost of living, leading to a strike in May 2024.

Response: BESTSELLER was aware of the planned strike and actively communicated with the supplier and factory management to express our expectation of constructive negotiations. An agreement was reached the following day to increase daily wages and overtime rates, alongside a monthly attendance bonus. Since then, the factory has strengthened its HR and compliance structures and, through participation in the MADE factory programme, successfully conducted a Workplace Coordinating Committee election. This process was observed by both the MADE team and BESTSELLER’s local team.

GTIG Guohua Glory Garment

Allegation:

1. Unjust termination of a security worker, hired as a day labourer, without overtime pay.

Response: BESTSELLER’s local team discovered this allegation on social media, following which we investigated and confirmed the unfair dismissal. We mandated that the worker receive appropriate compensation, be transitioned to permanent status with an employment contract, and receive full benefits. The factory has also implemented new termination policies and provided management training to prevent future occurrences. As part of our remediation efforts, the factory has been enrolled in the MADE factory programme, and we continue to monitor its compliance.

For more details about our heightened human rights due diligence processes in Myanmar, please review our bi-annual reporting on our comprehension and approach to promoting, protecting, and remedying human rights concerns in this country.

We hope this response provides clarity on how we have addressed each of these cases in line with our due diligence obligations. Should you require further information or clarification, please do not hesitate to get in touch. We value our ongoing engagement with the Business and Human Rights Resource Centre and remain committed to promoting responsible practices across our supply chain.

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