Thursday, November 10, 2016

Gap does not confirm claim of lack of orders for Faremo’s closure

In Gap’s response regarding the labor dispute over the permanent closure of its supplier factory Faremo International Inc., it cites that the mother company Hansoll made such a “business decision” due to its “global business strategy.” This is in glaring contradiction to the allegation of Faremo management that it shutdown due to lack of orders from its buyers, among them Gap.

The legality of Faremo's closure is contingent on the veracity of its claim that it lacks orders from Gap, among others. In its notice of closure, in the mediation hearings, and in its meetings with the union, and even in Faremo general manager's letter to PM--they all say that Faremo lacks orders.

Now Hansoll says Faremo's closure is part of "global business strategy." This is in conflict with this claim of lack of orders. Gap is silent on the claim that they don't have any more orders from Faremo or Hansoll.

This lends credence to the assertion of the Faremo labor union that there are orders and yet Hansoll closed Faremo in order to bust the one-year old union and destroy the collective bargaining agreement concluded five months ago.

The Faremo labor union calls on Gap to remediate the violations of its supplier Faremo according to the provisions of its code of conduct. The complaints of the Faremo labor union of union busting and blacklisting of unionists are in breach of Gap’s commitment to respect freedom of association and non-discrimination.

Further the Faremo labor union wishes to inform Gap that the Faremo management had already notified its workers it will not pay their wages from Oct. 27 to Nov. 21 because of the “no work, no pay” principle even though it filed a notice of permanent closure only on Oct. 21 and thus is obligated to pay workers up to Nov. 21 based on the 30-day notice rule.

Finally, the Faremo labor union seeks to notify Gap that Faremo continues to operate to this day as admitted by management in the latest mediation hearing of Nov. 8. Although most workers were locked out on Oct. 26, scores of workers are still entering the factory to work. Faremo declared in the mediation that all work will cease only on Nov. 12.

November 10, 2016

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