Specialized not doing the best it can?

[fourflys]

so I was watching the latest Cade Media podcast and they mentioned a story about a garment factory overseas that was shut down by the owners and that the workers hadn't been paid in a long time.. while the owners are 100% responsible for the payment of wages, some of the companies that had garments made at this factory came together to pitch in money to help pay the workers the earned backpay.. at least all of the companies except Specialized it seems.. to be fair, Hanes has paid very little, but has paid something it sounds like.. also, none of the companies have any legal obligation to pay these workers anything since it was a contract factory..

But, the question needs to asked if Specialized has a moral obligation to help to ensure these workers get all of the backpay they can.. how much profits has Specialized made from items produced in that factory?

I've really been eyeing a new Roubaix, but not sure with this latest news, as well as how they have treated some LBS competition in the past.. they do make some good bikes though!

story here: https://www.greenamerica.org/press-r...kers-2-million and here: https://cleanclothes.org/news/2024/c...age-theft-case

Thoughts?

[benb]

Specialized is supposedly in some financial trouble themselves so they might not be feeling their most generous.

I kept hearing about them and Trek, we know Trek did really get in trouble and is cutting a lot of models but Specialized it seems like we haven't seen anything that major I guess.

[deluz]

I recently purchased an SL8 frameset and there were no discounts available.
I actually had a hard time even finding one and colors are very limited. Maybe they are producing less and trying to keep the prices at MSRP. I don't think discounts are allowed unless the big S says so. The prices on a complete bike seems excessive to me, one reason I went the frameset route.
There are good discounts on SL7's and also Aethos. But I didn't want yesterday's groceries.

[prototoast]

So if I'm understanding the situation correctly, Specialized contracted with an unrelated company to manufacture equipment for them. Specialized paid the company and the company delivered the goods to Specialized. The company did not pay its workers. Now some folks want Specialized to pay the workers directly?

If that understanding is correct, I don't believe Specialized is under any obligation to provide additional compensation. It's surely an unfortunate situation for the workers who weren't paid, but implicitly guaranteeing the liabilities of every business you enter into a contract with is simply not a sustainable business practice, and could be easily abused if it became an established practice.

[fourflys]

Originally Posted by prototoast

So if I'm understanding the situation correctly, Specialized contracted with an unrelated company to manufacture equipment for them. Specialized paid the company and the company delivered the goods to Specialized. The company did not pay its workers. Now some folks want Specialized to pay the workers directly?

If that understanding is correct, I don't believe Specialized is under any obligation to provide additional compensation. It's surely an unfortunate situation for the workers who weren't paid, but implicitly guaranteeing the liabilities of every business you enter into a contract with is simply not a sustainable business practice, and could be easily abused if it became an established practice.

as I said in the original post, none of the companies have any legal obligation to pay any of the workers.. of the companies that had garments made at this facility, all of them except Specialized have provided some relief to these workers..

I don't know if Spesh has a moral obligation to help support these workers or not.. I have mixed feelings for sure..

[El Chaba]

I think that if you don’t make your products yourself and have them made under contract that you have some responsibility from a human rights standpoint for what goes on at the contracted facility.

[Elefantino]

Originally Posted by El Chaba

I think that if you don’t make your products yourself and have them made under contract that you have some responsibility from a human rights standpoint for what goes on at the contracted facility.

Agreed.

In the meantime, Specialized's clothing sales have tanked.

[jlwdm]

Not enough facts. Too much speculation.

Jeff

[nmrt]

The linked article mentioned that USD 2,000,000 was owed to 831 workers. This happened in El Salvador where, on average, workers make USD 370/month. So, it looks like they were not paid for seven months?!

Something does not add up.

[FastCanon]

The gov should also be involved. If someone is scamming, it needs to be investigated so that it doesn't happen again. Yes, too many speculations.

[fourflys]

Originally Posted by nmrt

The linked article mentioned that USD 2,000,000 was owed to 831 workers. This happened in El Salvador where, on average, workers make USD 370/month. So, it looks like they were not paid for seven months?!

Something does not add up.

yes, my understanding is the owner stopped paying them for a while..

and Specialized did give a statement back to Cade Media that seemed to acknowledge the issue and said they would look into it and decide what they might do..

again, I'm not saying Spesh owes anyone anything here.. just thought it was an interesting, bike-related story.. sucks for the workers any way you look at it though..

[HowardCosellsPR]

Unless the clothes you buy are manufactured in countries with strict (and enforced) labor laws... it's likely not going to live up to reasonable ethical/moral standards. So... that rules out most bicycle kits. Just sayin'.

Big shout out to Ornot and Pinebury!

[fourflys]

Originally Posted by FastCanon

The gov should also be involved. If someone is scamming, it needs to be investigated so that it doesn't happen again. Yes, too many speculations.

the govt is involved per the podcast.. the issue is the owners of the factory declared what is equivolent to bankruptcy and have no funds to pay the workers..

[deluz]

Originally Posted by fourflys

the govt is involved per the podcast.. the issue is the owners of the factory declared what is equivolent to bankruptcy and have no funds to pay the workers..

Hasn't that happened here in states before? Maybe by a former POTUS?
Sorry I could not help myself.

[ridethecliche]

Originally Posted by fourflys

the govt is involved per the podcast.. the issue is the owners of the factory declared what is equivolent to bankruptcy and have no funds to pay the workers..

If they could continue to get paid for contracts during that time and didn't pay their workers.... it's a shame they can hide behind bankruptcy proceedings. Same for things in the US.

Why should owners be able to hide behind the legalese when they've continued to pay themselves but not their workers?