On August 31, 2017, the Fair Labor Association (FLA) initiated a Third Party Complaint regarding the factory Sawbwa VT, located in Myanmar. The Fair Wear Foundation (FWF), a non-profit organization based in the Netherlands engaged in improving workplace conditions for garment workers, informed the FLA of allegations concerning violations of freedom of association at the referenced factory, which is owned by VT Group, a Participating Supplier of the FLA.
The report below reviews the positive steps taken by management to address the allegations of freedom of association violations, including with respect to dismissals of workers in late 2016. Moreover, a multi-part agreement by management and the union signed on October 10, 2017, provides a useful framework for the improved conduct of labor-management relations going forward.
The FLA recognizes the positive role played by the FWF and its local representatives in addressing the freedom of association issues at Sawbwa VT and calls on VT Group to continue to promote cooperative and constructive relations between Sawbwa VT management and the union.