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NEWSLETTER 17, December 2003

Thailand

Bed & Bath Workers Receive Compensation and Start Cooperative

In late January 2003, approximately 200 workers at Bed & Bath, a Thai garment factory producing for such brands as Nike, Levi Strauss, adidas and Reebok won a victory in their struggle to receive the back pay and severance pay they were owed.

The workers at the factory, Company, located in Prapadaeng, had been demonstrating since October 21st when they showed up at work and found the factory locked. Husband-and-wife owners Chaiyapat Phothikamjorn and Uayporn Songpornprasert had vanished without giving their employees any warning, owing them a total of approximately US$ 400,000 (16 million baht) in back wages and compensation. The workers camped out at the offices of the Thai Ministry of Labour to demand that the government take action in this case. An international solidarity campaign, involving the Clean Clothes Campaign in Europe and a number of organizations in the United States and Canada, put pressure on the brands sourcing at Bed & Bath to play a role in getting the workers the money they were owed.

After a three month struggle the workers received compensation from the government's Employee Support Fund. Due to the efforts of the Bed & Bath workers a landmark change was enacted in Thai compensation laws, so that workers employed for more than six years now receive 60 day compensation when laid off instead of the 30 day compensation they were previously entitled to. The owners of Bed & Bath have yet to be arrested for illegally laying off a total of 850 workers without notice or compensation. About 40 of the former Bed & Bath workers took loans from the Government Savings Bank, which they pooled together to open a small garment factory cooperative in Bangkok know as "The Solidarity Group." Currently they produce garments on a subcontract basis and also produce campaign T-shirts under the "Dignity Returns" trademark for trade unions and other organizations working on social issues.

For background information on this case please see
Appeal for action: Bed & Bath, Thailand or
http://www.thailabour.org/campaigns/bnb/index.html

The Solidarity Group cooperative can be found at:
38/87 - 88 Ake-kachai Road 64/2 Bang-bon,
Bang-khuntien District, Bangkok 10150
Tel: +66 (0)2 899 0445
Fax: +66 (0)2 899 0446

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