A social victory.

More than a thousand Thai workers from a bra factory supplying the Victoria's Secret lingerie brand in particular have received a total compensation of 8.3 million dollars (7.3 million euros) after being dismissed , workers' rights advocates said on Saturday.

Brilliant Alliance Thai closed its factory in Samut Prakan, south of Bangkok, in March 2021 after going bankrupt.

But the 1,250 workers laid off – many of whom had worked at the factory for more than a decade – had not received the severance pay required by Thai law.

The factory also produced underwear for American plus-size clothing brands Lane Bryant and Torrid, owned by the Sycamore Partners fund, but only Victoria's Secret contributed financially to the deal.

The brand confirms the agreement

In a press release, the lingerie brand confirmed the signing of an agreement, the amount of which it did not specify.

“For several months, we have been in contact with the owners of the factory to find a solution”.

“We regret that they were unable to resolve this matter on their own.

To ensure that the workers receive the full severance package due to them, Victoria's Secret has agreed to advance the funds to the owners of the factory,” the brand said in its statement.

Contacted by AFP, Sycamore Partners declined to comment.

Hundreds of millions of dollars outstanding?

The settlement is the largest ever reached by a garment factory for non-payment for work performed, according to the international workers' rights group Solidarity Centre.

For a year, these dismissed workers and Thai union representatives have been demonstrating in front of the government headquarters in Bangkok to obtain the compensation due.

According to an April 2021 report by workers' advocacy group, Worker Rights Consortium, similar cases of non-payment of wages were recorded at 31 garment factories in nine countries.

Worker Rights Consortium executive director Scott Nova said the cases were just the “tip of the iceberg” and that the problem exploded during the Covid-19 pandemic, due to a drop in orders. clothes.

He estimated that some $500 million is owed to garment workers around the world as a result of factory closures and unpaid severance pay.

Some workers at the Samut Prakan factory received the equivalent of more than four years' wages last week, he said.

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