U.S. bicycle brand Specialized is being asked to pay a portion of the $659,000 owed to former workers at a factory in El Salvador that produced Specialized-branded apparel.

The APS Salvador factory closed in August 2022, and approximately $2 million in severance, termination benefits, and wages were reportedly unpaid. Most of this is currently being repaid through contributions from several companies that used the plant as a supplier.

Specialized is required to contribute to the remaining outstanding payments. The Workers' Rights Consortium (WRC) explains that this is "money that these workers legally earned while manufacturing these brands of apparel, money that they and their families still desperately need."

The request is contained in a WRC report compiled by the Salvadoran Ministry of Labor detailing outstanding payments to 831 employees of the APS El Salvador plant, owned by the APS plant, a subsidiary of Shangying Global, a Chinese company that was once listed and no longer exists. identified as Oneworld Star International, a subsidiary of Shangying Global, which is no longer in existence.

With the closure of the parent company, the factory workers lost the means to receive immediate payment, and the WRC pursued the brands and companies that used products manufactured at the APS factory. [The report details several North American brands that used the plant as a supplier. Those brands included HanesBrands International (Champion brand), Gildan Activewear, Kellwood Company, and Specialized Bicycle Components.

The report acknowledged that of the $2 million outstanding, approximately 67% was paid by Kellwood, Gildan, and the buying agent, Alwanz, to compensate workers from APS.

The WRC believes that Specialized and HanesBrands should contribute the remaining 33% of the unpaid amount.

"Because HanesBrands and Specialized have failed to make meaningful contributions to assist the APS workers to date, the workers are unlikely to immediately receive the approximately 33% of the compensation they were legally owed at the time their employment was terminated, an amount equal to approximately $659,000 The WRC outlines in its report that "there is no expectation that the workers will immediately receive the approximately 33% of the compensation they were legally owed at the time their employment was terminated.

In testimony submitted to the WRC, affected workers were "unable to pay rent, utilities, and school fees for their children" and "unable to pay medical bills or buy enough food for their families."

The WRC did not disclose whether Specialized contracted directly with the factory or through a buyer. However, Specialized stated in writing that it is in ongoing discussions with "suppliers using this El Salvador factory," suggesting that the company is not directly involved with APC as a supplier. It is also unclear how the requested contribution was split between HanesBrands and Specialized.

The report explains that HanesBrands offered "token" compensation, but the WRC does not believe this is sufficient.

While Specialized and HanesBrands have no apparent legal obligation to contribute to factory workers, the WRC stressed that not making a substantive contribution is inconsistent with the code of conduct on labor practices outlined by both brands.

In the case of Specialized, the WRC stated that Specialized should "promote human rights in the supply chain ... . should be promoted" and noted value claims on Specialized's website suggesting that the company believes it should "actively work to improve the social and environmental performance of its suppliers."

Labor rights group Green America has also been vocal in its criticism of Haynes (HanesBrands) and Specialized.

"We stand in solidarity with the garment workers in El Salvador and advocate for fair wages," says Jean Tong, labor justice campaign director for Green America. Green America believes in the power of the consumer." By choosing where to spend their money, we can encourage companies to adopt fair labor practices. We urge Specialized and Haynes to immediately join other companies that have committed to being accountable and paying workers for their labor."

The WRC claims that it has made numerous attempts to engage with Specialized regarding the requested contributions, but that at the time of the report's release, Specialized "has never responded to any of these communications."

In a statement to Cycling News, Specialized refuted the WRC report.

"Specialized takes its commitment to responsible manufacturing very seriously. We have been in constant contact with suppliers who have used this El Salvador factory in the past and have made it clear that we expect worker complaints to be properly addressed and resolved."

"While we are not involved in the details of the ongoing legal process involving the workers and the factory, we are monitoring this issue in close cooperation with the supplier and will continue to monitor it and expect it to be resolved through the local process in line with our expectations."

And the statement underscored Specialized's commitment to responsible manufacturing." For strategically important manufacturing partners, we conduct comprehensive audits covering occupational health and safety, compliance with labor laws, and compliance with environmental regulations."

The statement also stated.

Cycling News also reached out to HanesBrand for comment.