Zara Research free essay sample

According to Reporter Brasil, who broke the story, and Made in Brazil (who translated the report), AHA Industria e Comercio de Roupas Ltda. , a supplier that Zara uses to contract with factories to produce their garments in Brazil, has been under investigation by Sao Paulo’s Bureau of Labor and Employment since May. The Bureau of Labor and Employment found that 52 people were working in unsafe and unsanitary conditions at one of the factories contracted by AHA Industria to produce pants for Zara Brazil. Workers were made to work 16-hour shifts in windowless factories, earning only between R$274 and R$460 a month (that’s $170 to $286), which is below Brazil’s minimum wage of R$545 ($339) . In another inspection, a 14-year-old girl was found working â€Å"under slave-like conditions† at another factory in Sao Paulo contracted by AHA Industria for Zara. Made in Brazil reports that 91% of of AHA Industria’s production was contracted by Zara Brazil and that AHA was in direct contact with Zara’s headquarters in Spain, sending them samples for approval. Zara has been charged with 52 infractions by the Ministry of Labor and Employment in Brazil. Fiscal auditor Giuliana Cassiano Orlandi, who is involved in the investigation, told Reporter Brasil that Zara â€Å"should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. † The report also suggests that there are 30 other factories with similar working conditions producing for Zara in Brazil. Inditex, the group that owns Zara, has issued a statement in which they deny knowledge that their supplier, AHA Industria, contracted with factories that employed workers illegally. This action goes against Inditex’s Code of Conduct and the company has zero tolerance for infringements of this kind,† the release states. â€Å"This case constitutes a grave infringement of the Inditex Code of Conduct for External Manufacturers and Workshops, a code with which this supplier was contractually obligated to comply with. The Code of Conduct stipulates the requirements with which all suppliers, whether di rect or subcontracted, must comply, and aims to safeguard workers’ rights to the fullest extent. † Zara has since taken action to â€Å"immediately rectify the situation. It has been reported that one of Inditex’s Brazilian suppliers engaged in unauthorised subcontracting of work to a factory in Brazil. 15 workers were found to be employed illegally by a subcontractor, without Inditex’s knowledge. This action goes against Inditex’s Code of Conduct and the company has zero tolerance for infringements of this kind. Inditex Group wishes to state the following: -This case constitutes a grave infringement of the Inditex Code of Conduct for External Manufacturers and Workshops, a code with which this supplier was contractually obligated to comply with. The Code of Conduct stipulates the requirements with which all suppliers, whether direct or subcontracted, must comply, and aims to safeguard workers’ rights to the fullest extent. Action to be taken: -Upon learning of the case, Inditex demanded that the supplier responsible for the fraudulent subcontracting arrangement immediately rectify the situation. The supplier has accepted full responsibility, and is paying financial compensation to the workers as required by Brazilian law and the Inditex Code of Conduct. Meanwhile, the supplier will upgrade the subcontractor’s working conditions in order to bring them into line with those at facilities audited and approved by the Inditex Group’s inspection process. Brazil’s Ministry of Labour and Employment has moved to legalise the workers’ employment status. Inditex, in conjunction with the Brazilian Ministry of Labour and Employment, will strengthen oversight of its production system, both at this supplier and at the other companies with which it works in Brazil, for the purpose of preventing similar cases in the future. Inditex in Brazil has a stable supplier base of approximately 50 companies, which together account for more than 7,000 workers. The Inditex social audit system enables the company to guarantee that overall working conditions throughout Inditex’s Brazilian production chain, which manufactures several million garments each year, meet optimum standards. Inditex annually conducts more than 1,000 audits of its suppliers worldwide to enforce compliance with its Code of Conduct. In cases in which auditors detect non-compliance issues, Corrective Action Plans are implemented. A cornerstone of this is activation of a dialogue with all agents involved in the supply chain: local and international trade unions, suppliers, business management organisations, governments, non-governmental organisations, etc. The Inditex Group is grateful to the Brazilian Ministry of Labour and Employment for its work on this case and for its willingness to collaborate with Inditex to foster the best conditions possible in the Brazilian textile industry. http://www. dailymail. co. uk/femail/article-2028041/Zara-accused-employing-children-young-14-slave-labour-factories-Brazil. tml Zara accused of employing children as young as 14 in slave labour factories in Brazil By DAISY DUMAS UPDATED: 19:25 GMT, 19 August 2011 Comments (5) Share Spanish fashion chain Zara is at the centre of accusations of slave labour and child labour. A report by Reporter Brasil throws a damning spotlight on the retail giants main supplier in Brazil. It reveals the company has been under investigation since May, when 52 people were found to be working under unsanitary conditions in a factory that produces trousers for Zara. Fast fashion: Zara is accused of slave labour and child labour in two of its Sao Paulo factories. It said the labourers had been illegally sub-contracted Made In Brazil says that a subsequent inspection in July exposed foreign workers labouring under slave-like conditions. The 15 labourers, from Bolivia and Peru, included a 14-year-old girl and were set free from two factories in Brazils largest city, Sao Paolo, the report said. It was revealed that the girl and her peers laboured for more than 16 hours a day in the unsanitary and hazardous work environment and were not allowed to leave the windowless factories. They were reportedly paid between R$274 ($171) and R$460 ($288) a month, less than Brazils legal minimum wage of R$545 ($341). The Ministry of Labor and Employment in Brazil has charged Zara with 52 infractions, says Made in Brazil. Zara is owned by the worlds largest fashion group, Inditex. According to The Telegraph, Inditex said the 15 labourers were employed illegally by a subcontractor without Inditexs knowledge and that it has zero tolerance for infringements of this kind. According to the report, the factories were the responsibility of sub-contractor, AHA Industria e Comercio de Roupas Ltda. Zaras Spanish headquarters was reportedly in direct contact with AHA over the period of the alleged slave labour, often receiving samples from Sao Paolo for approval. Giuliana Cassiano Orlandi, who is involved in the investigation, says that Zara should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. AHA was Zara Brazils fastest growing supplier over the last year. Zara accounted for 91 per cent of AHAs production between April and June, the report says. We should be under no illusions that incidences like this will arise when you dont have complete control over sourcing Made in Brazil says: In spite of its growth, however, the supplier drastically cut down its number of employees and workers from 100 to 20 from June of 2010 to May of this year. The report reveals that that there are a suspected 30 more factories producing Zara clothes in Brazil that also operate under slave-like conditions. In a stateme nt released yesterday, Inditex said the case represented a serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex. Jimmy Greer, founder of research consultancy Brazilintel, said: Companies like Inditex are well aware of the difficulties of outsourcing their production and do work hard to ensure that standards are upheld. However, we should be under no illusions as they no doubt are, that incidences like this will always arise when you dont have complete control over sourcing. The fashion megalith, which also owns chains Massimo Dutti and Berksha, said the group, along with Brazil’s Ministry of Work, will strengthen the supervision of the production system of all its suppliers in the country to ensure that such cases do not occur again. Inditex is owned by Spains richest man, Amancio Ortega. He is ranked seventh in Forbes billionaires list, with an estimated fortune of $31billion, according to The Telegraph. Read more: http:/ /www. dailymail. co. uk/femail/article-2028041/Zara-accused-employing-children-young-14-slave-labour-factories-Brazil. html#ixzz1rX8m9EcT http://www. hollywoodlife. com/2011/08/19/zara-child-labor-unfair-unsafe-working-conditions-brazil-factories-kate-middleton/ Zara Is Accused Of Child Labor! What Would Kate Middleton Say? Tags: Kate Middleton Zara, Zara, Zara Child Labor One of the Duchess’ favorite brands has found itself in the headlines for all the wrong reasons! A new report claims they’re responsible for unfair labor practices — and they’ve hired a girl as young as 14-years-old! According to a new investigative report out of Brazil, Zara’s Brazilian suppliers and factories are being accused of subjecting workers to â€Å"slave-like† conditions — and hiring minors. The factory has employed at least one girl who is only 14-years-old. I’m sure Catherine, the Duchess of Cambridge and her sister, Pippa Middleton would be shocked and disappointed with the news. According to the Reporter Brasil story, (where the news broke), Zara’s supplier AHA Industria e Comercio de Roupas Ltda. , has been under investigation by Sao Paulo’s Bureau of Labor and Employment since May. The Bureau deemed working conditions for 52 people unsafe and unsanitary at one of the factories that was responsible for producing pants for Zara Brazil. Workers were working 16-hour shifts in windowless factories, earning R$274 and R$460 a month (which is $170 to $286). This figure falls way below Brazil’s minimum wage, which is R$545 ($339). In yet another factory in Sao Paulo, a 14-year-old girl was found working under â€Å"slave-like conditions. † So far, Zara has been charged with 52 infractions by the Ministry of Labor and Employment in Brazil. Giuliana Cassiano Orlandi, an auditor who is involved in the investigation, told Reporter Brasil Zara, â€Å"should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. † Apparently that’s not all — the report addresses the fact that 30 other factories are producing for Zara with similar conditions. With all the accusations, the group that owns Zara, Inditex, issued a statement denying any knowledge that their supplier contracted factories that employed workers under illegal or unsound conditions. â€Å"This action goes against Inditex’s Code of Conduct and the company has zero tolerance for infringements of this kind,† the release stated. â€Å"This case constitutes a grave infringement of the Inditex Code of Conduct for External Manufacturers and Workshops, a code with which this supplier was contractually obligated to comply with. The Code of Conduct stipulates the requirements with which all suppliers, whether direct or subcontracted, must comply, and aims to safeguard workers’ rights to the fullest extent. † They go on to say that Zara is taking action to â€Å"immediately rectify the situation. † What do you make of the whole situation? Katrina Mitzeliotis http://www. madeinbrazilblog. com/blog/zara-accused-of-alleged-slave-labor-and-child-labor-in-brazil/ Zara Accused Of Alleged Slave Labor And Child Labor In Brazil Aug 17, 2011 /7 comments POSTED IN APPAREL, FASHION, NEWS, ZARA Zara is leading the trending topics on twitter in Brazil today because of an investigation made public last night by Reporter Brasil which involves accusations of slave labor and child labor. According to the article published by Reporter Brasil, Zara’s national suppliers started to be investigated by Sao Paulo’s Bureau of Labor and Employment in May of this year, when 52 people were found working at a factory under unsanitary conditions, producing pants for Zara Brazil. In another inspection last month, 15 foreign workers from Bolivia and Peru, including a 14-year-old girl, working under slave-like conditions, were set free from two factories in Sao Paulo. Aside from the unsanitary and hazardous work environment, workers faced over 16-hour shifts, were prohibited from leaving the factories, in this case homes with almost no windows, and were paid a salary in between R$274 and R$460, less than the legal minimum wage of R$545. The supplier responsible for contracting the two factories investigated and filed for slave labor is AHA Industria e Comercio de Roupas Ltda. , and in between April and June of this year, 91% of its production was contracted by Zara Brazil. According to the investigation, AHA was the Zara supplier in the country which most grew in revenue and number of pieces manufactured over the last year. In spite of its growth, however, the supplier drastically cut down its number of employees and workers from 100 to 20 from June of 2010 to May of this year. Also according to the investigation, AHA was in direct contact with Zara’s headquarters in Spain, sending samples directly to Spain for approval. The Ministry of Labor and Employment in Brazil has charged Zara with 52 infractions for the two factories inspected in July. According to fiscal auditor Giuliana Cassiano Orlandi, who is involved in the investigation, Zara â€Å"should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. It is believed that there are other 30 factories producing for Zara in Brazil also operating under slave-like conditions. Inditex, the Spanish corporation which owns Zara and is also the world’s largest fashion group, released a statement today saying that the case represents a â€Å"serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex,† and that â€Å"the Inditex group, along with Brazil’s Ministry of Work, will strengthen the supervision of the production system of all its suppliers in the country to ensure that such cases do not occur again. Ok, so the bad guy is Spanish Zara and not the Brazilian supplier? Or suppliers, as it’s probably not an isolated case and other? And no way Brazilian where among the brands using shady suppliers? Or the headline is just sexier when a wellknown brand is accused, and not the actual offender no-one’s never heard of? http://www. retail-week. com/zara-faces-child-labour-allegations/103236. article Zara faces child labour allegations (in Portugal) 6 June, 2006 Portuguese magazine claims children are made to sew Zara shoes Spanish fast fashion giant Zara has been linked with allegations of using child labour in Portugal. An article in Portugese magazine Expresso alleged that children as young as 11 have been employed by a Zara supplier to sew Zara-branded shoes. The article was illustrated with photographs showing the children at work, according to reports. Zara parent Inditex said in a statement that, if true, the allegations would be a serious breach of Inditexs code of conduct for external workshops and suppliers. It said:The alleged breaches of the code of conduct would entail if confirmed the immediate termination of any commercial relationship with that supplier, subject to any further actions stemming from the breach of the contract. Inditex said it thought it had identified the supplier, which had not been named in the report. The company performed an audit of the supplier in question last year and found nothing untoward. http://wishididntknow. com/2011/08/20/zara-accused-of-child-slave-labor-in-brazil/ Zara Accused Of Child Slave Labor In Brazil AUGUST 20, 2011 Submitted to WIDK by Emily Moore (Daisy Dumas, Daily Mail) – Spanish fashion chain Zara is at the center of accusations of slave labor and child labor. A report by Reporter Brasil throws a damning spotlight on the retail giant’s main supplier in Brazil. It reveals the company has been under investigation since May, when 52 people were found to be working under ‘unsanitary conditions’ in a factory that produces trousers for Zara. Made In Brazil says that a subsequent inspection in July exposed foreign workers labouring under ‘slave-like conditions. The 15 labourers, from Bolivia and Peru, included a 14-year-old girl and were ‘set free’ from two factories in Brazil’s largest city, Sao Paolo, the report said. It was revealed that the girl and her peers laboured for more than 16 hours a day in the ‘unsanitary and hazardous work environment’ and were not allowed to leave the windowless factories. They were r eportedly paid between $171 and $288 a month, less than Brazil’s legal minimum wage of $341. The Ministry of Labor and Employment in Brazil has charged Zara with 52 infractions, says Made in Brazil. Zara is owned by the world’s largest fashion group, Inditex. According to The Telegraph, Inditex said the 15 labourers were ‘employed illegally by a subcontractor without Inditex’s knowledge’ and that it has ‘zero tolerance for infringements of this kind. ’ According to the report, the factories were the responsibility of sub-contractor, AHA Industria e Comercio de Roupas Ltda. Zara’s Spanish headquarters was reportedly in direct contact with AHA over the period of the alleged slave labour, often receiving samples from Sao Paolo for approval. Giuliana Cassiano Orlandi, who is involved in the investigation, says that Zara ‘should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. ’ AHA was Zara Brazil’s fastest growing supplier over the last year. Zara accounted for 91 per cent of AHA’s production between April and June, the report says. ‘We should be under no illusions that incidences like this will arise when you don’t have complete control over sourcing’ Made in Brazil says: ‘In spite of its growth, however, the supplier drastically cut down its number of employees and workers from 100 to 20 from June of 2010 to May of this year. ’ The report reveals that that there are a suspected 30 more factories producing Zara clothes in Brazil that also operate under slave-like conditions. In a statement released yesterday, Inditex said the case represented a ‘serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex. ’ Jimmy Greer, founder of research consultancy Brazilintel, said: ‘Companies like Inditex are well aware of the difficulties of outsourcing their production and do work hard to ensure that standards are upheld. ‘However, we should be under no illusions as they no doubt are, that incidences like this will always arise when you don’t have complete control over sourcing. ’ The fashion megalith, which also owns chains Massimo Dutti and Berksha, said the ‘group, along with Brazil’s Ministry of Work, will strengthen the supervision of the production system of all its suppliers in the country to ensure that such cases do not occur again. Inditex is owned by Spain’s richest man, Amancio Ortega. He is ranked seventh in Forbes’ billionaires list, with an estimated fortune of $31billion, according to The Telegraph. http://www. thefrisky. com/2011-08-20/retail-giant-zara-accused-of-violating-child-labor-practices/ Retail Giant Zara Accused Of Ag e Old Practice Of Slave Labor Julie GersteinAugust 20, 2011 2 Comments // style Just a little reminder for us to think about where our clothes come from. Spanish retailer Zara has been accused of child labor and violating fair labor practices by Brazil’s Ministry of Labour and Employment. According to the agency, 52 workers in one of the company’s Sao Paulo factories were being held in â€Å"slave-like† conditions, and at least one underage girl was found working there, violating child labor laws. Workers were required to work 16-hour shifts in windowless factories, and were paid significantly below Brazil’s minimum wage, earning between $170 to $286 a month. As a result of Brazil’s several months’ long investigation, Zara’s been charged with 52 infractions. Notes the Brazilian fiscal auditor, Zara â€Å"should be responsible for all of its suppliers, and it is a duty of the company to be aware of how its merchandise is being produced. † But that’s often not the case. And when retailers fail to follow the long tail of their supply chain down to their factory workers, everyone loses. Zara is hardly the only offender. In 2007, Topshop came under fire for using what amounted to slave labor in Mauritius to produce its line of pricey high street fashions. And more recently Target, Walmart and Macy’s have been pressured to stop using a factory in Jordan where incidences of sexual abuse are common. These large corporations often claim that they’re unaware of the labor practices in their factories, but shouldn’t they be? After all, they profit directly of what their factory workers do. And to a large extent, we benefit as consumers when corporate retailers turn a blind eye to what’s happening in their factories. Slave labor and unfair labor practices often translates directly to cheap price tags for consumers. There are some organizations advocating on behalf of workers. Social Accountability International is a nonprofit organization that developed a series of standards for fair labor. Their SA8000 certification–which is as of now still a voluntary certification program–offers a method of auditing factories for fair trade labor practices that protect workers. And the Institute for Global Labour and Human Rights But what about Zara? Inditex, Zara’s parent company, denied any knowledge of the working conditions in its Sao Paulo factory, and in fact issued a statement claiming, â€Å"This case constitutes a grave nfringement of the Inditex Code of Conduct for External Manufacturers and Workshops, a code with which this supplier was contractually obligated to comply with. The Code of Conduct stipulates the requirements with which all suppliers, whether direct or subcontracted, must comply, and aims to safeguard workers’ rights to the fullest extent. † Which i s a start. But it makes you wonder if Zara would care if they — like so many other retail chains — hadn’t gotten caught. Want to contact the author of this post? {encode=†[emailprotected] com† title=†Email her†}! ttp://www. google. de/imgres? imgurl=http://www. ecouterre. com/wp-content/uploads/2011/05/captured-by-cotton-1-537402. jpgimgrefurl=http://www. ecouterre. com/high-street-retailer-zara-accused-of-alleged-slave-labor-in-brazil/h=402w=537sz=54tbnid=bf58KyxonKGgHM:tbnh=94tbnw=126prev=/search%3Fq%3Dzara%2Bchild%2Bwork%26tbm%3Disch%26tbo%3Duzoom=1q=zara+child+workdocid=Tk2m6hQKMonPJMhl=plsa=Xei=s6aCT9X8Ls7UsgawxMHABAved=0CGUQ9QEwCAdur=5872 High-Street Retailer Zara Accused of Alleged â€Å"Slave Labor† in Brazil by Jasmin Malik Chua, 08/18/11 Spanish fast-fashion retailer Zara, known for its affordable knockoffs of runway designs, has been accused of allegedly using slave labor in more than 30 of its outsourced plants in Brazil. On an episode of the investigative TV show, A Liga, reporters visited a factory where Bolivian immigrant garment workers were caught in â€Å"slave-like conditions,† according to Forbes on Wednesday. Zara, a subsidiary of Inditex, one of the world’s largest apparel distributors, is now under investigation by Brazil’s labor ministry, which is cracking down on slave labor in the logging, charcoal, and sugarcane industries. SLAVE SCANDAL In addition to unsafe work conditions—a fire extinguisher was found to have expired in 1998—a huge divide exists between a garment’s cost and the employees compensation. A pair of Zara jeans that sells for R$200 ($126 in American dollars), according to one Bolivian worker, has a working cost of R$1,80 ($1. 14). That sum is divvied equally among the individuals involved in its production—seven people in all. Workers who labor no less than 12 hours per day make an average of R$900 ($569) per month. Workers who labor no less than 12 hours per day make an average of R$900 ($569) per month. Zara, once referred to by Daniel Piette, Louis Vuitton’s fashion director, as â€Å"possibly the most innovative and devastating retailers in the world,† produces an average of 11,000 distinct designs every year. Only 50 percent of their products is actually manufactured in Spain; 26 percent is produced in other parts of Europe, while another 24 percent is made in countries in Asia, Africa, and South America where labor is inevitably cheaper, like Brazil. Although Amancio Ortega, the company’s founder and Spain’s richest man, recently stepped down from his post as chairman of Inditex last month, he still remains a large shareholder. In a statement today, Zara says that the accusations represent a â€Å"serious breach in accordance with the Code of Conduct for External Manufacturers and Workshops of Inditex,† adding that it’s asked factories responsible for illegal outsourcing to comply with company standards. â€Å"The Inditex group, along with Brazil’s Ministry of Work,† a representative notes, â€Å"will strengthen the supervision of the production system of all its suppliers in the country to ensure that such cases do not occur again. † We’re keeping our fingers crossed. ttp://www. irtk. org/child-labor-are-children-a-part-of-overseas-operations. html Child Labor: Are Children a Part of Overseas Operations? Image via Wikipedia Child labor is illegal in most developed countries, but in third world countries it’s a different story. In certain parts of the world, children do factory work, help their parents with the family business, work on farms, work as prostitu tes and so forth. Contrary to popular belief, most child labor is informal: not the stuff that people see on T. V. of children hidden in factories. So, most likely, a child did not make those Nike shoes after all. On the other hand, a few cases have suggested that children are still at work for first world countries. For example, the Firestone Tire Company had a metal plantation in Liberia, and their workers were required to meet a certain quota or they would not receive their wages. As a result, many of the employees brought their children to work. In the 2005 case, The International Labor Fund vs. The Firestone Tire and Rubber Company, the International Labor fund fought on behalf of the child laborers and Indiana did not allow Firestone to dismiss the case. Gap Inc. , the clothing company, has also been accused of child labor. However, unlike Firestone, Gap was openly upset and concerned about the accusation. They shut down 23 factories due to problems with child labor and other violations. H M and Zara were accused by the Environmental Justice Foundation for selling clothing made with cotton from Bangladesh, because that cotton may have been picked by children. H M and Zara both responded that they did not support child labor, and H M claimed that they sought to avoid cotton from Uzbekistan (where the Bangladesh cotton originally came from). However, H M also admitted that they had no way of tracing their material. Sadly, child labor still does occur, formally and informally. Excluding child labor in the household (children helping their parents, or perhaps doing all the domestic chores), UNICEF estimates that there are 158 million children (under the age of 14), who are employed informally or formally.