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15 Jul 2022

Myanmar: Garment workers at GTIG Eastar factory supplying intl. brands denied compensation after factory closure; incl. co. responses

In October 2021, GTIG Eastar allegedly announced its closure, seven months after it was badly damaged by a fire. Over 1,900 workers were reportedly left without compensation.

In June 2022, Business & Human Rights Resource Centre invited C&A, KIABI, Lidl, OVS SpA and Tesco to respond.

C&A said that due to the fire in March 2021, C&A had no production at the facility and that GTIG Eastar was removed from their system in early August 2021. C&A also said the affected workers received subsidies with the support of SMART Myanmar in August/October 2021 and January 2022. KIABI said it did not have any production at the factory at the time of the incident, and its last order was in February 2021. Lidl said it has had no business relationship with the factory since September 2021. OVS SpA said the factory has not been a supplier for OVS SpA since December 2020. Tesco said it challenged GTIG Eastar on missed wages, and that GTIG Eastar had shared copies of documentation with Tesco to demonstrate wages were paid in accordance with Local Government requirements. The full responses are included below.

Company Responses