Last Updated: 2018.01.18
Regarding the bankruptcy of PT Jaba Garmindo, former UNIQLO supplier in Indonesia
FAST RETAILING CO., LTD.
UNIQLO Co., Ltd.
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PT Jaba Garmindo, a former UNIQLO supplier factory in Indonesia, filed for insolvency and became bankrupt in April 2015. Following its bankruptcy, several international NGOs have lobbied UNIQLO to financially compensate the former employees of PT Jaba Garmindo.
Fast Retailing Group sourced from PT Jaba Garmindo for its UNIQLO brand from October 2012 until October 2014. Following continuous quality issues and delivery delays, Fast Retailing consulted with PT Jaba Garmindo in early 2014 in an effort to remedy the situation, but PT Jaba Garmindo was unable to solve its issues.
At this point, Fast Retailing determined it could no longer maintain a business relationship characterized by trust and reliability with PT Jaba Garmindo - a critical determinant of its ability to meet global customer expectations. Accordingly, Fast Retailing decided to discontinue business with PT Jaba Garmindo and to exit its relationship with the company by October 2014, settling payment for all orders up to that date in a timely manner.
Fast Retailing has no legal obligation pertaining to this matter, including the responsibility to financially compensate former PT Jaba Garmindo employees.
Although Fast Retailing has no legal obligation, it empathizes with those affected by the PT Jaba Garmindo situation. Accordingly, the company has offered to work with the relevant parties to facilitate re-employment for any workers who remain unemployed. In addition, Fast Retailing is currently leading talks with stakeholders across its industry about methods that might protect apparel industry workers from similar scenarios in the future.
Fast Retailing is committed to the safeguarding of labor rights and continues working towards good working conditions at all of its manufacturing partners.
