Victoria’s Secret pays sacked Thai workers $8.3m in ‘wage theft’ settlement

theguardian.com:

More than 1,000 sacked Thai garment workers who made bras at a factory supplying lingerie firm Victoria’s Secret have received a landmark $8.3m settlement, labour rights activists have said.

Brilliant Alliance Thai closed down its Samut Prakan factory in March 2021 after going bankrupt.

The 1,250 laid-off workers – many of who had worked at the factory for more than a decade – did not receive severance payouts mandated under Thai law. A workers’ rights group also claimed that some workers received the equivalent of more than four years’ wages under the settlement.

The factory also produced underwear for plus-size American brands Lane Bryant and Torrid, owned by Sycamore Partners – but only Victoria’s Secret contributed to the settlement via a loan arrangement with the factory’s owners.

Victoria’s Secret confirmed in a statement that an agreement had been reached, but did not disclose the amount involved.

“Over several months we had been in active communication with the factory owners to facilitate a resolution,” the company said.

“We regret they were not ultimately in a position to conclude this matter on their own so to ensure the workers received their full severance amounts owed, Victoria’s Secret agreed to advance the severance funds to the factory owners,” it added.

Former worker Jitnawatcharee Panad had clocked up 25 years at the factory and said more than a third of the sacked workers were women 45 and older.

“If we hadn’t fought for fair compensation, we wouldn’t have received anything,” Jitnawatcharee, who is also president of the Triumph International Workers’ Union of Thailand, told AFP.

“The doors of the labour ministry were locked when we went there to seek help and the minister didn’t seem to want to listen to our