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Company Response

8 Jun 2020


Inditex response

... We understand from the Myanmode garment factory management that a dispute occurred as a result of downsizing and to maintain social distancing due to the Covid-19 pandemic. We are pleased that the dispute at this supplier factory has now been resolved through social dialogue and that management has agreed to reinstate the affected workers following Inditex mediation. Specifically, the agreement includes the following relevant points: - Management has agreed to reinstate 75 of the affected workers retaining their previous positions, benefits, wages and service years and the remaining 545 dismissed workers will be rehired progressively once the company resumes normal business and the COVID-19 situation stabilises. - The management commits not to discriminate against the union. - If the factory needs to reduce workforce for credible reasons again, the union or Workplace Coordinating Committee organization members will be consulted and Myanmar Labor Law rules and regulations will be followed. - The workers commit to cooperate to improve the factory’s productivity and quality level and wear PPE for their workplace safety. - The factory will establish an external “Monitoring Committee” in cooperation with entities such as the ILO to supervise the factory through the agreement process. 

We understand from the Rui-Ning garment factory management that a dispute occurred as a result of downsizing and to maintain social distancing due to the Covid-19 pandemic. We have been informed by the factory that this was done in accordance with Myanmar Labour Law and with prior consultation with the factory union, with whom the factory management shared the criteria used to determine which workers would be included in the downsize process – less than 1 year in service. In spite of being one of many customers of the factory, we are working hard to support a solution through social dialogue with the help of IndustriALL Global Union with which we have a longstanding framework agreement. As part of these efforts, the factory has committed to reinstate the worker representative involved in the downsizing. We will continue to monitor and support the situation through to its resolution...

[The full response is attached]