Former APS workers meet regarding the payment process (FEASIES).
Former Style Avenue workers receive payments (WRC).
Former APS workers will continue to call on Specialized to #PayYourWorkers.
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. The remaining $600,000 will be paid to workers in January 2025.
According to the Worker Rights Consortium (WRC), the former Style Avenue workers were owed, on average, two years’ worth of wages and many took on considerable debts to pay for food, education, housing and medical care after the factory closed. As one former worker told the WRC after receiving the first payment, “Many of us are single mothers and now we will be able to pay our debts, including money we owe for rent.”
In September, the former APS El Salvador workers also received a portion of what they are legally owed two years after the factory closed in August 2022. According to a March WRC 2024 report, three brands that sourced from APS, Kellwood, Alwants and Gildan Activewear, agreed to pay “humanitarian contributions” totaling US$1.34 million, leaving US$659,000 (approximately 33%) still owed to the workers. Hanesbrands, one of two brands named in the March report as still owing funds, later proposed to make a modest contribution, 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.
The unions will continue to advocate for former APS workers to be paid the full amount they are legally owed. Public campaigning continues, currently targeting Specialized.
In both the Style Avenue and APS factory closure cases, the WRC, the Salvadoran women’s organization ORMUSA and the unions coordinated efforts to disburse the funds. Although ORMUSA and the unions petitioned the government to allow the former workers to receive the total amount owed without imposing 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 additional 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.
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