NEWS

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.

2011/08/19 10:08 PM

By: Jeff

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.

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