In 2018, Impactt conducted an in-depth investigation at a small Malaysia-based garment factory on behalf of a buyer. The investigation identified worker-paid recruitment fees and related costs. The buyer convened a coalition of 5 buyers (“Buyers’ Group”) to drive leverage and consistency in the remediation process and requested the factory reimburse fees to all workers.
- The company reimbursed a total of USD 480,966 to 191 workers over 12 months.
- Each worker received an amount ranging between USD 582 – 3,362 per nationality, based on the averages reported during the investigation.
- Workers reported appreciating the payment overall. Worker comments include:
- “I am so happy we received the money (for recruitment fees). This makes me want to continue working here!
- “I have used the money to pay off my loans and family expenses.
- “This money has been hugely helpful. Hardly any of us had any savings after working here for 10 years. With this money, I have bought a few machines and have started a small garment production making clothes for babies. Thank you so much!”
- A social bond could have supported faster repayment to workers in this case.
