Back Pay and Remediation of Labor Rights Violations at a Collegiate Supplier in Ethiopia

Please find here a new report on the WRC’s findings, recommendations, and full remediation of labor rights violations at Everest Apparel (“Everest”), a factory located in the Hawassa Industrial Park in Hawassa, Ethiopia and owned by the Taiwanese company, Everest Textile. Everest Apparel was disclosed as a supplier of collegiate licensed apparel for Cutter & Buck. Everest also produces apparel for Decathlon and Nautica. The factory currently employs 2,440 workers. 

The violations that occurred and the appropriate remediation were as follows: 

• Unlawful deductions: Everest docked some workers’ wages to penalize them for failing to meet high production targets. Everest has committed to pay back wages to workers who had deductions made to their salaries and has already made two payments of back wages to workers. In total, Everest paid these workers ETB 618,707.61 (US$10,689.53) in unlawfully deducted wages. Everest will make additional payments to the workers this year.
   
• Rest days: Everest failed to reliably provide workers with a weekly rest day, which meant they were often working seven days a week. The factory has altered the work schedule to ensure all workers now receive at least one day of rest per week, as required by law.
   
• Forced overtime: In violation of Ethiopian law, workers were required to work overtime at the end of their shifts and/or on Sundays and were threatened with dismissal if they refused. In response to our findings, Everest ended its practice of forced overtime.
   
• Unlawful penalties for taking medical leave: Workers faced partial or full deduction of their monthly attendance bonuses for taking medical leave, such as injury and maternity leave. Everest has now amended its attendance bonus so that workers will no longer have partial or full deductions on their attendance bonuses for taking such leave.
   
• Verbal abuse: Supervisors verbally harassed workers for not making the production target or for taking “too long” in the restroom. The factory engaged a consultant to provide supervisors and managers with training on how to motivate workers without resorting to verbal abuse. Workers reported to the WRC that supervisors and managers are no longer verbally abusive.
   
• Unsafe factory temperatures: Factory temperatures in the ironing section were at an unsafe level. In response to our findings, Everest improved its ventilation system in the ironing section, and workers have reported lower temperatures.

At the time when the WRC communicated the findings to Cutter & Buck, the licensee informed the WRC that it had made the decision to discontinue its sourcing relationship with Everest Apparel prior to the WRC’s enquiry. In order to maintain leverage despite the licensee’s departure from the factory, Cutter & Buck agreed to withhold its final payment to the factory until management takes the necessary remedial action. The WRC will continue to monitor to ensure full remediation. Given the steps taken by Everest Apparel, the WRC considers that the violations of Ethiopian law and university codes of conduct to be remedied.

As always, please let us know if you have any questions.