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20 Apr 2022

UNIQLO's Response

A thorough and independent investigation into this matter has already been concluded by the FLA in response to a formal complaint by the Clean Clothes Campaign and a labor union representing workers of PT Jaba Garmindo...

The FLA report finds unequivocally that the actions of UNIQLO, and its parent company Fast Retailing, did not contribute in any way to the PT Jaba Garmindo bankruptcy. Additionally, the investigation concluded that neither UNIQLO, nor Fast Retailing, has an obligation of any kind pertaining to this matter, including the responsibility to financially compensate former PT Jaba Garmindo employees.

The key findings of the report are as follows:

  • PT Jaba Garmindo's bankruptcy was caused by financial mismanagement of the factory, including irregular and irresponsible use of credit.
  • In view of the its order volume relative to factory production capacity, UNIQLO was not a dominant buyer from the factory. UNIQLO's order volume was approximately 10% of factory capacity in 2014, the year prior to bankruptcy.
  • UNIQLO suspended its business relationship with the factory appropriately, primarily due to production quality issues.
  • During its relationship with PT Jaba Garmindo, UNIQLO handled all ordering and payment appropriately. The investigation found no examples of late payments or return of completed products.
  • Neither UNIQLO nor Fast Retailing is responsible for unpaid wages or severance pay to former employees of PT Jaba Garmindo. In 2015, and as of today, no national or international regulation, or other widely recognized standard, holds companies sourcing from Indonesia responsible for unpaid wages or for termination payouts, including severance pay.

[The full response is attached]