Zara Fashion Linked to 'Slave Labour' in Brazil
Subcontracted company responsible for some of Zara's woes, as the parent company faces accusations of operating with workers under poor conditions.
By: Jeff Gill - Friday, Aug 19, 2011 - 10:08:49 PM
ZARA, a clothing and accessories retailer based in Spain is being accused of links with "slave labour" in Brazil. A contractor being used in Brazil is now under investigation by that country's ministry of labour, which has a list of 52 charges against Inditex, Zara's parent company, after it found 15 workers from a factory subcontracted by AHA, the company responsible for some of Zara's production, working in sweatshop conditions.
It is the flagship chain store of the Inditex group; the fashion group also owns brands such as Massimo Dutti, Pull and Bear, Oysho, UterqÜe, Stradivarius and Bershka. 50% of the products Zara sells are manufactured in Spain, 26% in the rest of Europe, and 24% in Asian and African countries and the rest of the world.
Zara's representatives said that the accusations of slave-labor made against the retailer represent a "serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex." - wikipedia
According to Inditex group website, under code of conduct. Inditex shall not allow any form of forced or involuntary labour in the production centres and/or facilities of its external manufacturers, suppliers and their subcontractors.
Zara, after becoming aware of the situation released a statement. It said that the workers had been employed illegally by a subcontractor and that it was accepting full responsibility, paying financial compensation to the workers as required by Brazilian law and the Inditex Code of Conduct.