In 2021 OVS decided not to interrupt production in Myanmar and maintained its commitment to intensify the monitoring procedures of factories as well as initiatives for remediation of non compliance issues. Thanks to our audit and monitoring system, we are able to provide an accurate response to each of the allegations, which we report below.

We take into great account the individual issues however those cases do not necessarily represent a structural problem of the supplier on which we have the possibility to act directly. Those cases are often solved though a local dispute resolution system like in many other countries in the world.

• Myanmar Bestex Garment

In the past months, we have already identified some cases of delayed payment. We intervened and the cases were solved. The situation reported does not refer to a structural problem, but is a critical issue that has been detected and resolved.

We have no evidence of this situation. We have evidence to the contrary: people holding Sagaing Division (5/) or Magway Division (8/) ID cards are still employed at the facility.

• G&B Manufacturing Garment

The allegations may be inaccurate since it refers to a production period when the factory does not allow overtime due to an off-peak production time. We have no evidence of recent excessive use of overtime, as shown in the most recent audit reports.

• Honor Apparel

We confirm that it has no longer been our supplier for some time. We see as positive that the factory recognizes the right to strike and, basing on information we collected locally, the workers achieved a salary increase.