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Archived News Release--Caution:
information may be out of date.
For more information call: 202/219-8211
U.S. Secretary of Labor Robert B. Reich put on notice some of the
nation's major retailers, distributors and manufacturers. Reich cited Sears,
Roebuck and Co., Macy's West, Hub Distributing, Inc., and Guess, Inc. as having
received merchandise made in sweatshops. The companies received apparel goods
manufactured by Chums Casual (a/k/a Steven K. Corporation) of Los Angeles,
Calif.
A Labor Department investigation of Chums revealed that its cutters,
sewers and trimmers were paid $170 for working 50 to 55 hours a week. The
hourly wage averaged as low as $3.10 in some cases. The firm paid $80,000 in
back wages to 72 workers and was assessed $12,240 in fines for repeat
violations of the Fair Labor Standards Act. After the department cited and
fined Chums, the company hired an outside firm to monitor its own cutting and
sewing practices and ensure FLSA compliance.
Labor Department officials contacted Sears, Macy's West (a division of
Federated Stores, Inc.), Hub Distributing and Guess over a three-week period in
late September following the manufacturer's submission of additional sales
records forced by a Department of Labor subpoena. The records helped the Labor
Department trace the merchandise to these retailers so that the labor
department could inform them of the investigation of Chums. This is the first
time in the history of the department's "No Sweat" initiative that a subpoena
was used to obtain records to trace goods from a manufacturer to a retailer.
Previously, on May 20, the department announced that J.C. Penney, Macy's
East and Specialty Retailers, Inc., had also received illegally made goods from
Chums.
"The sweatshop food chain is intricate and often difficult for labor
department investigators to navigate. Nonetheless, it is essential to continue
to involve retailers in our efforts to eradicate worker abuse in the garment
industry throughout this country," stated Reich. "But make no mistake, we will
continue to use every tool in our law enforcement arsenal--including
subpoenas--to trace sweatshop-made goods to retailers."
Reich also noted that one of the retailers, Guess, Inc. is included
among the department's "Trendsetters"--a list of retailers and manufacturers
who have pledged to go above and beyond the law to insure that their
merchandise is not made in sweatshops. Reich stated that, "Guess has provided
the department with a copy of its monitoring program and we are reviewing their
efforts. After a thorough review, we will make a decision on whether Guess will
remain on the Trendsetter list."
Reich added that education is a key element for retailers and
manufacturers to do their part to eradicate sweatshops and he reissued his
invitation to the fashion industry to attend the department's three compliance
monitoring workshops. The day-long education events, on October 9 in New York
City, October 16 in Chicago and October 23 in Los Angeles, will provide
retailers, manufacturers and industry associations with practical information
on the components of an effective and fair monitoring program.
Archived News Release--Caution:
information may be out of date.
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