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Last Updated: 2018.02.21

Statement on labor dispute at Zhong Yin (Cambodia) B Textile, a former UNIQLO supplier in Cambodia

UNIQLO Co., Ltd.
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A labor dispute occurred in September 2015 at Zhong Yin (Cambodia) B Textile Co., Ltd., after some employees were dismissed following a strike. The company was one of UNIQLO's supplier factories in Cambodia.

Fast Retailing urged the factory to reach an amicable settlement through dialogue, and by rehiring employees where possible. As the dispute continued, however, Fast Retailing suspended production of its items at that site in August 2016. Fast Retailing thereafter received a letter from a Cambodian labor union representing the dismissed employees that stated that an agreement had been reached with the factory in October 2016.

The settlement between the union and factory encompassed the following terms. These were for the reemployment of all those dismissed in September 2015 and seeking reemployment, payment of 80% of wages for the period of dismissal, and for both parties to comply with an Arbitration Council decision after deliberations as legally binding for any future labor-management disputes.

Several international nongovernment organizations contended that the same factory dismissed some employees in February 2016. In an open letter dated September 29, 2016, the organizations asked Fast Retailing to request the factory to reemploy the dismissed workers. Following discussions between Zhong Yin (Cambodia) B Textile Co., Ltd., and its labor union, both parties agreed to comply with an arbitration council decision, treating it as legally binding.

Fast Retailing requires manufacturing partners in its supply chain to safeguard human and labor rights and good working conditions, to comply with relevant laws and systems, and to resolve labor disputes through dialogue.


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