It has come to the attention of the Brazilian authorities that Zara, the Spanish fashion chain and one of the largest in the world, has been using a contractor in São Paulo that was subjecting garment workers to sweatshop conditions. According to ‘The Guardian’ newspaper…”The Brazilian government has listed 52 charges against Inditex, Zara’s parent company, after it “rescued” 15 workers from a factory sub-contracted by AHA, the company responsible for 90% of Zara’s Brazilian production. Fourteen of the workers were Bolivians and one was from Peru. One was only 14 years old.”

Inditex released a statement saying that they can not be held accountable for “unauthorized outsourcing” but would compensate the workers because AHA had violated Inditex’s code of conduct. The response has not satisfied Brazilian authorities and they released a statement of their own by the lead prosecutor in the case. “AHA is a logistical extension of its main client, Zara Brasil,” said the prosecutor, Giuliana Cassiano Orlandi. “The company is responsible for its employees. Its raison d’être is making clothes and it follows that it must know who is producing its garments.”

Renato Bignami, who led the investigation, said the workers – who lived on the premises – worked 12-hour shifts in dangerous and unhealthy conditions. One Bolivian migrant worker stated that the labor component of a pair of Zara jeans selling at $126 (£76) was $1.14, which was divided between the seven people involved in the process. The workers earned between $156 and $290 a month. The minimum wage in Brazil is $344. The investigation began after unions reported last June that sweatshops in São Paulo were producing garments for Zara.

The following is a statement by lead investigator Renato Bignami: “They work 16 or even 18 hours a day,” he said. “It is extremely exhausting work, from Monday to Saturday, sometimes even Sunday depending on demand. I’ve seen workers who have taken home R$150-250 (£57-94) at the end of the month – after paying off housing debt, food debt, telephone card debt, debt [to people traffickers] for the journey here. Many have to work for three or four months to pay off the “coyotes” who have smuggled them into the country.” “These are classic cases of immigrant sweatshops,” Bignami said, adding that he had no doubt that such labor conditions characterized modern-day slavery. Workers often face “threats, coercion, physical violence. All this to increase productivity,” he added. To read the full article on ‘The Guardian’, published online on August 18th, 2011 please visit the following link: http://www.guardian.co.uk/world/2011/aug/18/zara-brazil-sweatshop-accusation
There have been some recent developments to this case since the accusations were first leveled at Zara.

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The plight of women workers suffering from sexual abuse and rape at Jordan’s largest garment factory, Classic Fashion Apparel, has been occurring for several years now. The Classic Fashion Apparel factory produces labels for Wal-Mart, Hanes, Kohl’s, Target, and Macy’s…with Wal-Mart being the largest producer at Classic. According to the Institute for Global Labour and Human Rights (IGLHR) there are over 4,000 foreign guest workers from Sri Lanka, Bangladesh, India, Nepal and Egypt sewing garments at Classic for duty-free export to the U.S. The story of these women guest workers being sexually abused and raped over the years by their male managers, as well as suffering from physical punishment and deportation for refusing sexual advances, was first broken by Charles Kernaghan, Director of IGLHR, on June 9, 2011 as an alert titled ‘Sexual predators and serial rapists run wild at Wal-Mart supplier in Jordan’. The alert can be found at the following link: http://www.globallabourrights.org/alerts?id=0339

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Michael Blanding recently posted an article on the Harvard Business School – Working Knowledge website about new research by George Serafeim of Harvard Business School and Ioannis Ioannou of London Business School that demonstrates that mandatory CSR reporting works on several different levels and offers a model in which to measure it. Here is the link to the article: http://hbswk.hbs.edu/item/6701.html

The article itself has a link to the working paper.

Some key points from the executive summary:
- “In the past 10 years, corporate investors have shown an increasing interest in the social responsibility of the companies whose stocks they pick.”
- “The researchers compared 16 countries that required sustainability reporting with a sample of 42 countries that didn’t. Using several measures, they found that the social responsibility of business leaders and managerial credibility increased in those countries with reporting mandates.”
- “The data provide the first concrete evidence that mandating social responsibility reporting actually makes a positive difference.”

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According to Verité.org, over 85% of the workers in the global apparel and footwear sectors are women.  In Mexico alone more than 4,500 foreign-owned assembly plants with low-tariff benefits employ some 1.3 million workers, 75 percent of them young women between the ages of 16 and 24.  In some not-so-unique cases these women are treated very poorly in the workplace.  One Mexican woman thought that being sexually harassed by both her supervisors and her peers was “just part of being a female working at the assembly plant.”  The full Verité Works Report, Advancing Women’s Rights and Social Responsibility: Capacity Building in Mexico is available here.

Such behavior is unacceptable.  Even more unacceptable is for the textile industry to continue ignoring such heinous acts against humanity.  The situation in the textile industry comes even more into focus when we consider that women make up 70% of the world’s poor, as per the International Labour Organization.  It is difficult for these women to climb out of poverty since they often earn less.  For example, the United Nations reports women wage earners in Sri Lanka earn 20% less per day than their male counterparts.

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