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Archived News Release--Caution:
information may be out of date.
For more information call: 202-219-8211
A New York garment contractor making goods for Wal-Mart has
been fined $22,000 for repeat violations of federal labor laws and is being
held liable for more than $47,000 in back wages to 45 garment workers. The shop
produced goods with the Kathie Lee label, a line sold exclusively at
Wal-Mart.
"The abuses in this industry against America's most
vulnerable workers calls for an industry solution, not just a government
prescription," Labor Secretary Robert B. Reich said. "We will never have the
enforcement resources needed to protect the nation's one million garment
workers. Retailers and manufacturers must do more."
Some of the workers were offered $300 last week when
sports legend Frank Gifford, husband of celebrity Kathie Lee, brought cash to
the worksite after learning of the sweatshop conditions there. The workers at
the shop were assembling blouses carrying the Kathie Lee labels. The Kathie Lee
line is sold exclusively in Wal-Mart stores.
The labor department has collected about $10,000 of the
total wages owed to the workers. Contractor Kyung Seo has not committed to
paying the balance owed the workers and has refused requests for records that
might indicate other manufacturers or retailers who benefitted from the
sweatshop labor.
Seo failed to meet with investigators on Wednesday at his
Manhattan shop. The Giffords and Wal-Mart have both said they would pay wages
owed to the workers. Reich said he would first seek compensation from Seo or
the manufacturer who ordered the goods.
"We are committed to ensuring that each of these workers
is paid the wages they have been denied," Reich said. "We have contacted the
manufacturer. We have contacted Wal-Mart. Kathie Lee and I plan to discuss this
issue when we meet Friday in New York. We're going to use every means available
to make this situation right for these workers."
Upon learning of the conditions at Seo Fashions, Kathie
Lee contacted Reich and offered her help in championing the cause of garment
worker rights. The two will announce a major initiative on Friday at New York's
Fashion Cafe.
The labor department is seeking $29,348 in back wages for
the missed payroll. In addition, the department says the workers were cheated
of $18,062 for 13 weeks of overtime.
Seo Fashions was cited last year by the department for
overtime violations. The firm was working under contract for manufacturer
Bonewco Fashions, 1450 Broadway.
Archived News Release--Caution:
information may be out of date.
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