BONDS owner Pacific Brands has paid up to $500,000 to sponsor the Melbourne Fashion Festival despite axing 1850 jobs.
The event's organisers are in crisis talks with the disgraced company on how to minimise the damage to one of Australia's biggest fashion events.
Mass protests are expected in response to Pacific Brands' decision to axe jobs and shift its manufacturing to China.
"The fashion festival is still talking to Pacific Brands about the most appropriate and responsible course of action regarding their involvement," said a spokesman for the organisers.
A spokesman from Pacific Brands told AAP this morning the figure was closer to $100,000, which, he said was "a longstanding trend with the fashion festival which has been going on for many years".
"This (is) an essential part of our support for the industry and for our business which still employs 7000 people," he said.
Tony Sheldon, of the Transport Workers Union (TWU), said he was arranging for people to dress as rats to protest against Pacific Brand's CEO Sue Morphet.
"We will have dozens of life-size rats at the event - we're busy sourcing costumes right now," Mr Sheldon said.
"We will have lots of employees present who are facing the sack and we want her (Ms Morphet) to look these people in the eye, these people she is throwing on the scrap heap."
Mr Sheldon is also liaising with workers who wear Bonds gear as uniforms. They have vowed to stop wearing Pacific Brands goods once they are no longer made in Australia.
Michele O'Neil, of the Textile, Clothing and Footwear Union, said she was shocked at the decision to sponsor the event.
"We've already seen there's been a substantial increase in their expenditure on marketing and advertising in the past 12-month period - the same time as they have been increasing (their) salaries and bonuses," she said.
Pacific Brands also shows no sign of easing up on its huge advertising expenditure to promote brands that are to be made overseas.
As well as paying for the endorsement of tennis player Pat Rafter and cricketer Michael Clarke, subsidiary Bonds has launched a colourful new series of ads for its Art Attack range of women's underwear.
Meanwhile, Innovation Minister Kim Carr is trying to broker a deal to save as many jobs as possible. While Pacific Brands has made it clear it will proceed with sacking the 1850 workers, Mr Carr is believed to be trying to arrange the sale of the company's factories so another manufacturer could use them and employ at least some of the Bonds workers.
"A number of proposals have been put to the Government by Pacific Brands and other players. Discussions with all parties including the Pacific Brands CEO and board chair are ongoing," a spokesman for Mr Carr said.
Yesterday, fashion show organisers were busy trying to distance themselves from Pacific Brands. Organisers removed the most prominent references to Bonds and Pacific Brands from the show's website.
The company has appointed expensive public relations company Cato Counsel to handle the fallout.
However, when The Sunday Telegraph gave Cato Counsel's Matt Horan the opportunity to respond, he refused to comment.
