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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-8211.
Labor Secretary Robert B. Reich today ordered
investigators to serve a subpoena against a Colorado garment manufacturer
seeking information about retailers and others expecting to receive goods
produced by about 40 exploited workers denied about $76,000 in overtime
wages.
"We cannot allow these manufacturers to profit from the
abuse of American workers," Reich said. "It is critical that all the parties
who benefit from this exploitation be held accountable."
Investigators discovered the sewing operation, doing
business as Y&S Sewing, last week in the Dallas suburb of Garland. The
investigation revealed that for at least the past two years none of the workers
had been paid overtime despite working 10 hours a day, at least six days a
week, Reich said.
Part of the department's garment enforcement initiative,
this is the first instance in which the department has been forced to subpoena
documents. Reich's decision to seek the subpoena follows Monday's temporary
restraining order granted by a federal judge to prohibit shipment in interstate
commerce of the illegally produced goods.
The restraining order will temporarily prevent the
shipping of hundreds of garments produced for sale in the upcoming holiday
shopping season. Under the hot goods provision of the Fair Labor Standards Act,
the department is empowered to seek a court order to prevent the shipment in
interstate commerce of goods it believes have been produced illegally.
According to the subpoena the manufacturer is required to
surrender to the department all records that would indicate the destination of
the illegally produced goods. In addition, the manufacturer must disclose the
location of all the merchandise it has received from the Dallas garment shop
that employed the workers.
Investigators notified the responsible manufacturer Karman
Inc., a well-known clothing maker under the Roper label, and asked the company
to suspend shipment of the illegally produced merchandise. Karman employed
Y&S to produce an undetermined number of garments. A federal judge granted
the department the temporary restraining order after finding that the company
had refused to cooperate in the investigation.
"Given the lack of cooperation demonstrated initially by
the manufacturer and in the interest of protecting and preserving documents at
the business, we decided to serve the subpoena," Reich said. "We must act
swiftly in the interest of these workers and to protect consumers who might
unknowingly purchase other goods produced illegally."
Usually, manufacturers voluntarily cooperate with the
labor department without a restraining order and agree not to ship hot goods.
Companies often agree to pay back wages owed to workers in order to permit for
future shipment. Reich said it was highly unusual for the department to seek a
restraining order.
"We prefer to use the carrot in these matters, but we will
use the stick when we have to," Reich said. "This does not have to happen and
these incidents certainly make our point that we need greater assistance from
retailers and manufacturers to prevent this worker exploitation."
Reich will announce Nov. 24, the busiest shopping day of
the year, a list of "Fair Labor Fashion Trendsetters," retailers and
manufacturers who are helping the department eradicate domestic sweatshops.
Consumers will be encouraged to support the retailers and clothing lines that
the department recognizes for programs and systems that support law enforcement
initiatives that protect garment workers.
Archived News Release--Caution:
information may be out of date.
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