At the start of the new year, four fashion companies agreed to compensate garment workers for workplace abuses: Californian supplier Good Cash will pay over $1 million to 165 workers in back wages and compensation, and three major fashion companies – Tommy Hilfiger parent company PVH, YogaJeans parent Second Clothing and traditional British brand Barbour have agreed to pay almost $420,600 (around $384,140) in compensation to garment workers in Mauritius.
The companies do not do this voluntarily – in both cases, investigations were carried out that identified irregularities in the manufacturing plants. In California, it was the Department of Labor itself that found that Good Cash LLC, along with its subsidiaries Good Cash Inc., Premium Quality Apparel LLC and Premium Quality Apparel Inc., “willfully failed to provide employees with an average of 52 hours per week to pay overtime premiums for more than 40 hours per week”. The department also found that “payroll records were falsified and counterfeit checks were issued” to conceal illegal pay practices.
Unpaid overtime, forced labor and forged documents
Migrant workers at REAL Garments Ltd in Mauritius, which makes clothing for brands such as Diesel and Armani, are said to be under pressure from PVH, Barbour, after the publication of an investigation by Transparentem, a US non-profit organization that investigates labor rights and Second Clothing will receive a refund of the placement fees and associated costs.
In the East African nation, usually known for its beaches and coral reefs, the US non-profit organization also discovered numerous indicators of forced labor at REAL Likewise, the organization dedicated to the study of labor rights uncovered several human rights violations, including unlawful ones Recruitment fees paid by workers, fraudulent practices, intimidation and poor living conditions such as lack of clean drinking water and cockroaches and bed bugs.
This emerged from interviews with 83 workers at five garment factories in 2022 and 2023. Transparentem published its findings in the report “I Came Here with So Many Dreams”: Labor Rights Abuses & the Need for Change in Mauritius’ Apparel Factories” and reached out to 18 buyers, including companies such as Asos, Armani, Boden, PVH, Diesel and the Foschini Group, the parent company of British brands Whistles and Hobbs.
Nonprofit Transparentem is aimed at fashion companies
PVH, Second Clothing and Barbour then agreed to compensate REAL Garments workers for the illegal agency fees they incurred after conducting independent assessments of factory conditions. PVH committed to repay around $390,000 (around 356,000 euros), while Barbour took over around 19,500 US dollars (around 17,800 euros) and Second Clothing around 10,600 US dollars (just under 9,700 euros).
Seven of the brands contacted by Transparentem – Armani, Asos, Boardriders, Foxcroft/The Apparel Group, John Lewis Partnership, Kontoor Brands and Western Glove Works – declined to participate, some saying they would no longer source from REAL; However, none of the companies denied having previously used its services.
“The migrant workers have shown great courage by bearing witness through banners. So far, only three brands have shown through their actions that they have truly listened. The costs of reform are high. But the costs of failing to reform are even higher,” Transparent President Ben Skinner commented to the Guardian.
“Garment industry workers are often subject to strict production requirements and receive some of the lowest wages in the country. The employment model in the garment industry involves multiple layers of contractors and subcontractors, leaving workers vulnerable to wage theft and exploitation. This case shows that the Wages and Hours Department will hold employers accountable throughout the supply chain to ensure that workers receive the wages they deserve and the rights they are legally entitled to said California Department of Labor Wage and Conditions Official Jessica Looman.
The agreement is considered the largest settlement ever for California garment workers.