Responsible exit, mass dismissal and factory closure: how to ensure workers get paid?

In times of crisis, workers - especially those in the textile, garment, shoes, and leather (TGSL) industry - are laid off in large numbers. These workers often lose both their jobs and the severance to which they are entitled, threatening an immediate descent into poverty in operating contexts where state-backed social security is lacking. This guide from the Clean Clothes Campaign can help you to better understand the Pay Your Workers - Respect Labour Rights (PYW-RLR) Agreement: a sector-wide, cost-advantageous mechanism that enables workers to receive their severance payments after a factory closure or mass dismissal. The PYW-RLR Agreement offers a bridging solution that enables brands to implement a robust and responsible exit policy that can handle crises. The guide highlights the details of such an agreement, which features a global guarantee fund and a mechanism to identify, investigate, and remedy non-compliance and worker grievances in cases of failure of payment, anti-union retaliation or harassment, gender-based violence and harassment, or occupational health and safety violations. The guide also explains the benefits to businesses in supporting a PYW-RLR Agreement and features a comprehensive FAQ section.

Although written with the textiles industry in mind, this guidance contains concepts that are worth exploring and putting into practice in other industries and sectors. Specifically, this guidance will be relevant to companies with supply chains that face growing impacts of climate, ecological, and/or geopolitical emergencies, and where social safety nets are insufficient.