"Workers' rights groups pursue Specialized for portion of $650K unpaid wages and benefits to factory workers", March 30 2024

US bike brand Specialized is being asked to pay part of $659,000 owed to former workers of a factory in El Salvador....

The closure of the APS Salvador factory in August 2022 allegedly left around $2 million unpaid in severance packages, terminal benefits, and wages. The majority of this has now been repaid through contributions from several companies that used the factory as a supplier.

Specialized is being asked to contribute to the remaining outstanding sum, which the Worker Rights Consortium (WRC) describes as "money these workers legally earned while making apparel for these brands and money they and their families still desperately need."

[...]

The report detailed several North American brands that had [directly and indirectly] used the factory as a supplier ....[including] HanesBrands International (for its Champion brand), Gildan Activewear, Kellwood Company, and Specialized Bicycle Components.

The report acknowledged that of the outstanding $2 million, approximately 67% had now been paid by Kellwood, Gilden and a buying agent, Alwants, to compensate the workers from APS. 

[...]

The WRC believes that Specialized and HanesBrands should contribute the remaining 33% of the outstanding funds.

[...]

In testimony given to the WRC, workers affected have been "unable to pay rent, utility bills and children’s school fees", and were "not able to pay for medical care or buy enough food to eat for their families".

...Specialized, in a written statement, described ongoing discussions with its “supplier that utilized this El Salvador factory,” suggesting that the company did not directly engage APC as a supplier. It is also not clear what the split of the requested contribution is between HanesBrands and Specialized.

The report explains that HanesBrands has offered a ‘token amount’ of compensation but that WRC does not consider this sufficient.

While there is no obvious legal obligation for Specialized or HanesBrands to contribute to the workers of the factory, WRC stressed that the failure to make a substantial contribution is at odds with the code of conduct for labour practices outlined by both brands. 

[...]

In a statement to Cyclingnews, Specialized responded to the report from WRC. 

[...]

Cyclingnews has also approached HanesBrand for comment.