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Tianjin's factory team had informed BESTSELLER’s merchandiser team that the factory would be laying off staff, and BESTSELLER's social and labour team followed the proposed layoffs on social media.

Workers were not satisfied with the lay-off criteria which was set by Tianjin, which was initially “under 6 months service time for sewing section and under 1 year service time for other sections”. The factory management, WCC members, and workers representatives from finishing, packing, and ironing held a series of nine meetings between 4th and 11th October to negotiate a mutual agreement on the lay-off criteria. The mutual agreement set the layoff selection criteria as: “under 6 months service time for all sections”, with provision of October salary and notification money for laid-off workers.

On 12 October, BESTSELLER's social and labour team visited the factory to assess and verify that the lay-off procedure abided by the local laws and regulations. BESTSELLER found that the legal requirements and BETSELLER's guidance had been met for the to lay-offs. We also observed that the lay-off negotiation process went smoothly after interviewing management and WCC workers. Please note that Tianjin's factory management team received training by BESTSELLER local team on layoff procedures in July,2022.

BESTSELLER introduced Tianjin's factory management with the EU funded “Myan Ku Emergency Cash Fund” to support workers’ livelihoods in the first months after lay-off. Based on the latest update from the factory, the Myan Ku project has approved factory’s application for the laid-off workers. Workers will be contacted by the Myan Ku Fund coordinators to arrange direct delivery of financial aid.

[The full response is attached]