20 YEARS OF
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Desigual and AKR Industries terminated their contractual relationship in October 2020, and they did so gradually to mitigate the impact of COVID-19. In compliance with the ruling from the Karnataka court, AKR informed the company about the payment plan, which has been closely monitored to verify it is being duly followed.
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Shahi Exports, India’s largest garment manufacturer, announced it will immediately begin paying its 80,000 workers in Karnataka the correct minimum wage and will provide them with full back pay for the prior underpayment, which the WRC estimates to total $10 million for Shahi's workers alone.
Shahi Exports confirmed they will pay VDA arrears to workers, with the first instalment to be made on 10 February and the remainder paid on 10 May (with April wages).
On 19 January 2022, the American Apparel & Footwear Association wrote a letter to the Clothing Manufacturer's Association of India, urging its members to pay workers in Karnataka the legally mandated increases in the Variable Dearness Allowance (VDA) and any arrears owed to workers by March 2022.