Workers’ union is asking Kohl’s to ‘pay up’ for canceled orders
A workers’ union is asking Kohl’s Corp. to “pay up” after it canceled orders during the coronavirus pandemic.
The union, Workers United, brought a letter to Kohl’s corporate headquarters in Menomonee Falls and to its design studio in New York City. Around a dozen people showed up in Menomonee Falls for the protest, according to pictures taken by the group.
Workers United wrote to Kohl’s CEO Michelle Gass and the company’s board of directors condemning the company canceling pending orders and withholding payment from apparel factories in its supply chain.
Workers United is an American and Canadian union with more than 80,000 members in hospitality, food service, laundry, manufacturing, distribution, apparel and textile industries.
“We hope that you will listen to our appeal to do the right thing and #PayUp, so garment workers that have made your products can be paid by their employers and maintain their employment,” Workers United President Lynne Fox wrote. “We ask that you meet with your suppliers, their associations, and with civil society organizations including trade unions to develop a plan to make restitution for the unjust losses your actions have imposed on these vulnerable workers.”
For now, Kohl’s is the only United States-based company that the campaign is targeting. Workers United is also launching a campaign against Primark and Top Shop in the United Kingdom. The group is considering a campaign against Gap Inc., which owns brands like Banana Republic, Old Navy and Athleta.
Kohl’s declined to comment on the campaign.
Kohl’s closed all of its 1,159 stores and 12 FILA outlets during the pandemic. Around 85,000 store and distribution center associates, and some corporate staff, were furloughed. The retailer saw a 43.5% decrease in net sales in the first fiscal quarter of 2020. It started reopening stores May 4.
Kohl’s has said it managed its inventory receipts to be “meaningfully lower” and reduced expenses across all areas of its business. Kohl’s reduced planned capital expenditures by around $500 million that does not include inventory receipts.
The company ended in 2019 with flat sales. For 2019, Kohl’s sales were down 1.3%. Kohl’s declared its last cash dividend Feb. 26, 2020. It has since suspended dividends during the pandemic.
Sarah Hauer can be reached at shauer@journalsentinel.com or on Instagram @HauerSarah and Twitter @SarahHauer. Subscribe to her weekly newsletter Be MKE at jsonline.com/bemke.