High street fashion retailer, Zara, has become embroiled in a slave labour investigation after a supplier was accused of adopting the practice.
The Spanish-owned company, owned by the world’s largest clothing retailer Inditex SA, is being scrutinised by the Brazilian labour ministry, according to a local seamstress union.
Four Sao Paulo sweatshops were raided by government investigators in late June and all the garments that were discovered had Zara labels.
The seamstress union said it had never received accusations about the chain before the discovery of the sweatshop where the workers are from neighbouring Bolivia and Peru.
Inditex said the case involved ‘unauthorised outsourcing’ by a Brazilian supplier but did not provide the name of the supplier.
Inditex confirmed an investigation had discovered 16 unregistered workers in violation of the company’s code of conduct, adding that the labour ministry is regularising the workers’ situation.
Inditex will make sure their working conditions comply with company standards.
‘The supplier was entirely responsible for the financial compensation of the workers, as established in Brazilian law and Inditex’s code of conduct,’ a company statement said.
Brazil recently launched a crackdown on slave labour in the logging, charcoal and sugar cane industries.
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