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Global Forum Convenes Stakeholders to Explore Solutions to Nonpayment of Severance & Benefits

Thursday, October 4, 2012

On October 23, 2012, at the request of the adidas Group, the Global Forum for Sustainable Supply Chains will convene a multi-stakeholder meeting of companies, international institutions, insurance experts and civil society to discuss the possible creation of a private fund or insurance product that would provide additional coverage to workers affected by factory closures and non–payment of wages and benefits. The purpose of this meeting is to explore solutions to problems facing workers who do not receive the severance pay and benefits owed by their employers when a factory shuts down. Learn more about the Global Forum for Sustainable Supply Chains at http://www.fairlabor.org/global-forum-sustainable-supply-chains.


UPDATE 10/29/12: On October 23, 2012, the Global Forum for Sustainable Supply Chains convened a meeting for companies, universities, international institutions, insurance experts and civil society to discuss one of the most pressing issues still facing workers in global supply chains: the payment of severance when a factory closes down.

Though much work has been done around this issue over the years by civil society organizations including FLA, additional collaboration among all stakeholders – especially workers – is necessary to finding a long-term solution which ensures workers receive their legal severance entitlement. The issue of nonpayment of severance has been addressed inconsistently and on a case-by-case basis in global supply chains.

Convening this meeting is an attempt to unify some of these efforts and is a first step in a process of consultation with stakeholders and experts that will continue in the coming months. Any solution to the nonpayment of severance to workers will need to go beyond ad hoc measures and individual policies, and the Global Forum is encouraging the involvement of experts and initiatives who are already working in this space. For more information, visit www.fairlabor.org/global-forum-sustainable-supply-chains

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About the Global Forum for Sustainable Supply Chains: The Global Forum was established in 2011 to work independently with a wide range of industries including different agricultural products and pharmaceuticals on various labor, human rights and environmental issues at different intervention points in these supply chains. Learn more about the Global Forum for Sustainable Supply Chains at http://www.fairlabor.org/global-forum-sustainable-supply-chains.

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