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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information may be out of date.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 announced today some
of the nation's largest retailers have agreed to join a Retail Summit meeting
next month to "work together to identify ways to protect the industry, workers
and consumers from abusive contractors."
Sears, Roebuck and Co., The May Co. and Federated
Department Stores, three of the nation's largest clothing retailers, have
committed to join the summit. The meeting is tentatively scheduled for Sept. 7
in Washington. Other national retailers have been invited and are considering
participating in the event.
"We fully support the retail industry's participation in
the planned September meeting," said a written statement from the May Co. "We
will fully cooperate with all authorities in this investigation."
A statement from Sears said, "A representatives of Sears,
Roebuck and Co. would be delighted to participate in this summit. Sears is
eager to participate in a group which is working toward the establishment of
procedures which protect retailers from purchasing merchandise manufactured in
violation of applicable U.S. laws."
The action comes in the wake of the discovery of a
contract shop in the Los Angeles area where up to 60 workers toiled up to 22
hours a day under slave labor conditions. The garments they produced were sold
to some of the nation's most prominent retailers.
"It is my hope that this retail summit will result in an
alliance whose efforts can help us build on the success of our hot goods
enforcement," Reich said. "With the cooperation of retailers and manufacturers,
we have reduced abuses in the industry. When we have discovered abuses, the
industry has helped us more rapidly collect millions of dollars in wages for
hundreds of workers."
The retailers -- which include such prominent names as
Sears, Macy's and Neiman-Marcus -- have been notified that a preliminary
investigation indicates they may have received goods from the El Monte
contractor. In addition to attending the summit, they have been asked to assist
labor department Wage & Hour investigators in the continuing investigation
of the El Monte operation.
"It is clear from our investigation that this merchandise
found its way to the racks and shelves of some of this nation's most prominent
retailers," Reich said. "The evidence certainly shatters any perception that
this operation produced merchandise only for back alley operations."
In addition, Reich said department investigators have
contacted a dozen manufacturers who contracted for goods with the El Monte
shop. Those manufacturers will be asked to voluntarily sign agreements that
require strict monitoring of contract shops. The manufacturers will also be
asked to accept responsibility for a share of the $5 million in wages owed to
the Thai workers.
"As we have for several years, we will demand that
manufacturers make good on the wages these workers were denied," Reich said.
"We expect most will voluntarily comply with this request."
Invoices found at the El Monte site pointed investigators
toward the manufacturers and retailers. The exact level of business generated
for each of the parties has not yet been determined. Most of the invoices are
written in Thai and deciphering the parties may take some time, Reich said.
On Aug. 2, department wage & hour investigators
working jointly with state officials raided an El Monte garment contractor.
More than 70 Thai workers held in peonage were found to be working up to 22
hours a day for as little as 70-cents an hour. The workers were threatened with
rape or murder if they tried to flee the compound.
Reich said the hot goods provision of the Fair Labor
Standards Act allows his department to seek wage settlements with manufacturers
who contract with operations that violate wage laws.
"The significance of these back wages goes beyond this
case," Reich said. "When these contractors stoop to hiring illegal workers held
in bondage, they also steal wages from the pockets of working Americans. We're
going to do everything the law allows to recoup these wages."
In June, Reich unveiled an unprecedented agreement with a
several large Los Angeles manufacturers. The manufacturers agreed to join a Los
Angeles Garment Compliance Alliance, a government industry association that
would require all its members to monitor contractor compliance. Each of the
manufacturers assumed responsibility for paying back wages and civil money
penalties if their contractors were found in violation of labor laws.
"This type of enforcement works," Reich said. "We have
effectively used the leverage of market intervention to gain enforcement
cooperation from more than two dozen manufacturers in Los Angeles. I'm
confident we will add more manufacturers in the wake of this latest
incident."
Reich began strictly enforcing "hot goods" provision in
the Los Angeles area shortly after taking office. About 50,000 workers are
employed in contract shops monitored by manufacturers for labor law
compliance.
Today, more than 4,000 contractors operate in the Los
Angeles area employing more than 100,000 workers. Los Angeles is now recognized
as the fastest growing garment production market in the nation, surpassing New
York as the center of garment production.
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Retailers contacted by the Department of Labor include:
Foley's Petite, Macy's West, Meier & Frank, Robinson's May, Hecht's,
Filene's, Kaufman's, Neiman Marcus, Dayton Hudson, Mervyn's, Broadwway, Rich's,
Speciality Retailers Inc., Montgomery Ward, Sears, Fred Meyer, Venture and
Lerner.
Manufacturers contacted by the Department of Labor
include: F40 California Inc., Tomato Inc., L.F. Sportswear, Ms. Tops of
California, Balmara, Inc., New Boys, Inc./Voltage, Inc., Point Zero, Excuses
Sportswear, Paragraff Clothing Co., Bermo Enterprises, A&M Casuals, US
Boys, B.U.M. International and Diane Samandi ("Jonquil" Label).
Archived News Release--Caution:
information may be out of date.
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