s.Oliver's Response
In 2019...the Fair Labor Association (FLA) informed s.Oliver Group that it was initiating a third party complaint investigation in response to a complaint from Clean Clothes Campaign and other parties. Similar to the earlier result of a mediation conducted by the German Federal Ministry for Economic Cooperation and Development (BMZ), the third party investigation concluded 2021 that the s.Oliver Group has not contributed to the bankruptcy of the Jaba Garmindo factory through its sourcing activities, but remained to act as a responsible business partner during its business relationship with Jaba Garmindo.
- According to the FLA report, the reason for the bankruptcy was financial mismanagement, including irregular and irresponsible credit use;
- s.Oliver Group continued its business relationship until the factory closure in 2015, although being aware of financial difficulties that the factory was experiencing;
- s.Oliver Group was not a dominant buyer of the factory;
- s.Oliver Group handled all ordering and payment;
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Nonetheless, the s.Oliver Group recognizes a general responsibility towards everyone working in its value chain, including in this particular case. Therefore, the company has been in close contact with FLA and Fair Wear Foundation to discuss the process and engagement with the former workers of the Jaba Garmindo factory to contribute to a relief fund for them .
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[Full response is attached]