Spring Break
Gap Inc. admits many of its overseas workers mistreated
Low pay, psychological abuse among problems disclosed in company report
By: MICHAEL LIEDTKE
Issue date: 5/13/04 Section: News
''Hopefully, this will be a wake-up call for Wal-Mart,'' Jeffcott said.
Gap's report provides a geographic breakdown on the workplace violations uncovered by a team of more than 90 inspectors.
The most frequent problems cropped up in China - a country that is expected to play an increasingly prominent role in the world economy.
Of the 241 China factories rated by Gap last year, 73 plants received the company's two lowest grades - ''needs improvement'' or ''immediate attention required.''
The listed troubles covered in the Gap report included psychological or verbal abuse - something that Gap said occurred at between 10 percent and 25 percent of the China factories that supply the company.
Unacceptably low pay is an especially widespread problem throughout the world, according to the Gap's statistics. The issue is becoming an increasingly thorny topic, with U.S. labor and political leaders arguing the country is losing thousands jobs as cost-conscious companies export work to take advantage of cheaper wages in other parts of the world.
Between 25 percent and 50 percent of the inspected factories supplying Gap from Mexico, Central America and the Caribbean paid their workers below the minimum wage at some point last year. Between 10 and 25 percent of the factories in Asia, Sub-Saharan Africa, Europe and South America shortchanged their workers, the report said.
Gap orders manufacturers to address all violations, including substandard pay, when the problems are discovered, said Anne Gust, the company's chief administrative and compliance officer.
If a factory repeatedly violates the rules, Gap said it dumps the offending manufacturer. Gap cut its ties with 136 factories last year, including 84 in China and Southeast Asia. The company pledged to become even more vigilant in its resolve to improve factory conditions.
''We believe that garment and other manufacturing workers around the world deserve better than reality that many unfortunately face,'' the Gap report said.
Gap's report provides a geographic breakdown on the workplace violations uncovered by a team of more than 90 inspectors.
The most frequent problems cropped up in China - a country that is expected to play an increasingly prominent role in the world economy.
Of the 241 China factories rated by Gap last year, 73 plants received the company's two lowest grades - ''needs improvement'' or ''immediate attention required.''
The listed troubles covered in the Gap report included psychological or verbal abuse - something that Gap said occurred at between 10 percent and 25 percent of the China factories that supply the company.
Unacceptably low pay is an especially widespread problem throughout the world, according to the Gap's statistics. The issue is becoming an increasingly thorny topic, with U.S. labor and political leaders arguing the country is losing thousands jobs as cost-conscious companies export work to take advantage of cheaper wages in other parts of the world.
Between 25 percent and 50 percent of the inspected factories supplying Gap from Mexico, Central America and the Caribbean paid their workers below the minimum wage at some point last year. Between 10 and 25 percent of the factories in Asia, Sub-Saharan Africa, Europe and South America shortchanged their workers, the report said.
Gap orders manufacturers to address all violations, including substandard pay, when the problems are discovered, said Anne Gust, the company's chief administrative and compliance officer.
If a factory repeatedly violates the rules, Gap said it dumps the offending manufacturer. Gap cut its ties with 136 factories last year, including 84 in China and Southeast Asia. The company pledged to become even more vigilant in its resolve to improve factory conditions.
''We believe that garment and other manufacturing workers around the world deserve better than reality that many unfortunately face,'' the Gap report said.
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