Former Style Avenue and APS factory workers request tax exemption (FEASIES).
Former Style Avenue and APS workers receive back wages and severance pay
As a result of lengthy campaigns by Salvadoran unions and international labour rights organizations, hundreds of workers formerly employed by the Style Avenue and APS garment factories in El Salvador are receiving legally owed back wages, severance and other terminal benefits.
In the case of the May 2023 Style Avenue closure, after months of pressure, the main buyer, Outerstuff, committed to full remediation with a contribution of US$1.8 million, the first two-thirds of which was paid out to the workers in early August.
APS El Salvador closed two years ago in August 2022. Following a series of negotiations, Kellwood, Alwants and Gildan agreed to pay “humanitarian contributions” totaling US$1.34 million, leaving US$659,000 (approximately 33%) still owed to the workers. In the last month, Hanesbrands, one of two brands named as owing funds in a March 2024 WRC report, proposed to contribute $100,000, which was accepted by the three unions representing former APS workers.
Despite significant public campaigning, the other brand buyer, Specialized Bicycle Components, has made no financial commitment to date.
According to Carmen Urquilla of the Salvadoran women’s organization ORMUSA that is responsible, in coordination with the three unions, for the disbursement of funds, former APS workers should receive their payments in early September.
In both cases, ORMUSA and the unions petitioned the government to allow the former workers to receive the total amount owed without a 10% tax. The government did not respond to their request.
ORMUSA and the unions are continuing to provide support on outstanding legal cases and the factory inventory that could result in further payments if they can sell these goods in the future.
Reflecting on the lengthy process to achieve just compensation in these cases, Marta Zaldaña of the union federation FEASIES said: “We believe brands are jointly responsible with their suppliers for ensuring that workers are paid what they are owed when factories close. Why does it always seem to take international pressure to force brands to live up to that responsibility?”
With further factory closures rumored, announced or in process in El Salvador and Honduras, and given the prevalence of wage theft in the industry, brands must take responsibility and ensure workers in their supply chain are paid what they are legally owed. |