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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information may be out of date.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 released the
first-ever national report on garment worker abuse that shows, in a six-month
snapshot, that almost half the nation's garment contractors investigated in
this fiscal year were found to be violating federal minimum wage or overtime
laws.
Reich said the scope and rate of violation demonstrates
far too many garment assembly firms are routinely violating the nation's labor
laws.
"At a time when the country is crying for an increase in
the minimum wage, we are witnessing the erosion of minimum wage rights for the
nation's garment workers," Reich said. "This report demonstrates that far too
few sewing shops are paying even the basic minimum wage for a hard hour's work,
and far too many manufacturers are doing business with those firms."
The compliance report was compiled at the request of the
nation's retailers who met with the Secretary last year as part of his ongoing
effort to solicit their help in improving the industry labor law compliance
track record. Retail executives told Reich they needed more information about
manufacturers and contractors violating labor laws in order to assist in
efforts to improve compliance.
The 30-page report was provided to the National Retail
Federation, the national trade association which represents the country's
largest clothing retailers. It is also being made available on the Department's
"No Sweat" Internet site, www.dol.gov.
"Many manufacturers on this list are now working with us
to improve compliance in the industry," Reich said. "They are identified with
asterisks on this list. But these asterisks indicate more than a footnote. They
indicate these manufacturers are working with us to stem the history of abuse
in this industry."
The report covers back wages paid and fines assessed in
the first half of fiscal year 1996, the period from Oct. 1, 1995 to March 31,
1996. During this period, the department's Wage and Hour Division conducted 472
garment investigations that revealed 222 violations, a violation rate
nationally of about 47 percent. More than $1.3 million in back wages was
recovered for about 3,600 garment workers.
"I want to invite the industry to take note of this list
today and in the future," Reich said. "Contractors who repeatedly violate the
law are building a record that ought to set off warning bells in the
manufacturing and retail community."
The department plans to release this information
quarterly. By regularly reporting on those contractors it finds in violation,
and the manufacturers with whom they have done business, the department will
enable retailers, manufacturers and consumers to identify firms that repeatedly
violate minimum wage and overtime laws. The report identifies which
manufacturers among those notified of contractor violations have agreed to
monitor contractors for future violations.
Regular reports will also help retailers and consumers
identify firms which make efforts to comply with the law. For example, while
contractors cited for first-time violations will be included in the report,
those who come into compliance when notified by Wage and Hour and remain in
compliance will not appear in subsequent reports.
In addition to back-wage assessments, the report reveals
sweatshops continue to plague the nation's largest garment manufacturing
centers in New York, California and Texas. Investigations of contractors and
manufacturers in New York and California alone resulted in more than 3,000
workers recovering almost $1 million in lost wages.
New York led the nation both in rate of violations and in
total back wages collected with 60 percent and $593,327 respectively.
California logged a violation rate of 51 percent and investigators recovered
$447,532 in lost wages for more 1,353 workers. Dallas' violation rate of 71
percent was the highest in the nation.
The largest single violation occurred in Santa Ana, Calif.
Garment manufacturer Fantasy paid more than $78,000 in back wages and
fines.
Federal law allows recovery of back wages owed to workers
for a maximum of 3 years. All manufacturers who were determined to have done
business with the contractor during the period of investigation were contacted
by investigators.
Reich said the government shutdowns and the report's
complexity delayed its release.
"This information is critical to retailers, manufacturers
and the public," Reich said. "Everyone should be interested in helping
eradicate sweatshops."
The Labor Department, under Reich's leadership, stepped up
garment enforcement in 1993. The Wage and Hour division adopted an aggressive
strategy intended to encourage manufacturers and retailers to assist
enforcement efforts.
The report indicates this strategy is paying dividends.
According to enforcement figures, back wages collected and the number of
employees receiving those wages has substantially increased per 1,000
enforcement hours. Last year, investigators recovered $85,843 in back wages for
280 employees for every 1,000 investigative hours invested. Those figures have
soared this year despite budget constraints and shutdowns to $128,793 and 308
employees.
In the last three years, the department has recovered more
than $7.3 million in wages for some 25,000 garment workers.
Archived News Release--Caution:
information may be out of date.
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