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Archived News Release--Caution:
information may be out of date.
For more information call: 202/219-8211.
U.S. Labor Secretary Robert B. Reich today announced a
sweeping agreement with some of the nation's largest garment manufacturers that
is expected to significantly boost industry compliance with federal labor laws.
Reich also said his department's aggressive enforcement of existing labor laws
can level the "wage playing field," effectively removing a major incentive for
hiring low-wage undocumented workers.
Reich and nine garment manufacturers in the Los Angeles
area jointly signed an agreement to create the Los Angeles Compliance Alliance.
The manufacturers have agreed to monitor their contractor's compliance with the
Fair Labor Standards Act (FLSA). The law protects workers' rights to a minimum
wage, overtime compensation and other important pay issues.
The agreement will allow the department unprecedented
enforcement leverage to protect from labor law abuses up to 50,000 garment
workers in about 2,000 contracting shops.
"This is an historic agreement that makes great progress
in ensuring that workers in the nation's largest garment manufacturing city
will win unparalleled protection from abuse," Reich said at a ceremony today in
Los Angeles. "We have taken an important step forward in eliminating the word
sweatshop from the American garment industry lexicon, thus reducing the magnet
for undocumented workers that sweatshops represent."
Reich announced in September 1994 that the department
would use aggressive enforcement efforts on manufacturers, saying he would
focus "on the top of the garment industry food chain" to force changes by
evasive contractors. Since his announcement, the department's Los Angeles Wage
& Hour Enforcement office has made personal contact with more than 150
manufacturers and collected fines of more than $1 million for labor law
violations.
Most significantly, the Department of Labor has increased
its use of a powerful enforcement tool known as "hot goods." Under the
provisions of the law, manufacturers are prohibited from shipping garments they
have reason to believe were made in violation of labor laws.
Interrupting the critical on-time shipment demands of
retailers and manufacturers with the hot goods enforcement efforts has gotten
the industry's attention, Reich said.
"Aggressively enforcing hot goods, something no previous
administration had done to this extent, allowed us to leverage market forces in
our enforcement efforts," Reich said. "We allowed market forces to do the
enforcing for us. Manufacturers can't afford to have their shipments delayed by
unscrupulous contractors and retailers can't risk empty shelves because the law
was ignored."
Reich said the manufacturers approached the Labor
Department earlier this year with an offer to join forces against unscrupulous
contractors. Under the terms of the agreement signed today, the Department of
Labor will agree to notify retailers that the signees are participating in
cleaning up the industry.
Firms signing today's agreement included Podell
Industries, Koral Industries, Laura Little of California, Jalate, Paris Blues,
Maxine of Hollywood, Joni Blair, Sauci and CMG Inc. which produces the Chazz
line.
"These manufacturers get the Labor Department's seal of
approval," Reich said. "If they follow the terms of this agreement we will make
unprecedented headway in ending labor abuses in the area garment industry."
When combined with a dozen manufacturers who have signed
similar agreements, the department has gained historic enforcement penetration
among the more than 4,000 contract shops in the area. The 21 manufacturers
represent almost 40 percent of total garment sales and hold contracts with
almost half the area's contractors.
Wage and Hour Administrator Maria Echaveste applauded
today's developments and pledged continued aggressive enforcement. An
enforcement sweep of about 50 area contractors is scheduled to begin
Thursday.
"This alliance is not the panacea, the answer to all the
abuse that is occurring in the industry," she said. "But it represents an
important step forward and is evidence of our success in enforcing the law. We
will remain vigilant in our efforts to punish contractors who abuse garment
workers."
Echaveste said a department compliance survey conducted in
April 1994 found that almost half of the area's contractors were in violation
of the law. An enforcement sweep just last month resulted in $420,000 in fines
for 45 contractors and four received additional penalties for employing
children as young as 12.
Echaveste said cooperative efforts have already proven
successful. Last year, the department collected more than $500,000 in back
wages from investigations undertaken by manufacturers. In addition, Reich said,
back wage settlements that used to take up to 10 months to complete are now
accomplished in 10 to 20 days.
Archived News Release--Caution:
information may be out of date.
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