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22 Aug 2022

Indonesia: Garment factory supplying brands incl. Ann Taylor, Gap & Macy's accused of 'union-busting' & called on to reinstate dismissed leaders; incl. co. responses

In July 2022, it was alleged that anti-union practices were taking place at PT Tainan Enterprises Indonesia, reported to supply brands including Ann Taylor, Gap and Macy’s.

In August 2021, three union leaders, Ahmed Faisal, Tulam, and Hendra Radista, were allegedly dismissed after the formation of the Garteks union at the factory. While the three union leaders signed a settlement agreement with the company, accepting severance pay on the condition that the company stop its anti-union practices, workers reported further dismissals, forced resignations, demotions and transferrals of union leaders at the factory.

Reportedly, the factory has yet to reinstate the three union leaders dismissed in August 2021 with back pay and seniority, as recommended by the Indonesian Ministry of Manpower on 24 December 2021.

In August 2022, Business & Human Rights Resource Centre invited Ann Taylor, Gap and Macy’s to respond. Macy's said it was working with its third-party social compliance auditor to conduct an anonymous worker sentiment survey, and would require a corrective action plan with the supplier if the results deemed it appropriate. Gap said it had encouraged the factory to engage in constructive dialogue and establish positive relationships with all relevant unions, including Garteks. Gap also said the factory had committed to following the Ministry of Manpower's recommendation. Ann Taylor did not reply.

Company Responses

Macy's View Response
Ann Taylor

No Response