Gap Closes Factories Breaching Labour Standards

Gap Inc. has cancelled contracts with 42 of its clothing manufacturers in China this year for breaches of Gap's labour standards. Gap Inc. announced the changes in its Social Responsibility Report, which described Gap's internal investigations into the labour practices of its factories worldwide in 2003.

The dropped factories accounted for 9 percent of the 464 factories producing merchandise for Gap in China, the highest rate of any other nation for Gap compliance violations.

China is one of the 50 countries that Gap Inc. outsources its labour to, and is Gap's largest source, producing 16 percent of its merchandise in 2003. The report stated that China provides some "unique and complex compliance challenges," such as the difficulty of addressing workers' needs and grievances "in a country that does not recognize workers' right to associate freely outside of government approved organizations."

The report said the reason such a high number of factories were dropped as Gap's suppliers is due to the "concealment of overtime and unwillingness to share complete and accurate information."

More than 50 percent of the factories failed to fully comply with local laws. Twenty-five to 50 percent had poor records of the age of their workers, unclear wage statements and poor working environments, such as a lack of first-aid kits, personal protective equipment, operational safety devices on machines and proper means of storage for flammable and hazardous materials. Investigators found physiological coercion and verbal abuse violations occurred in as much as 25 percent of the factories. Also common were violations of local legal working conditions and restricted access to Gap internal inspectors.

Since the release of the report, human rights groups such as Sweatshop Watch have praised Gap Inc. for its openness and its effort to improve the working conditions in its factories. The positive feedback contrasts with the accusations of labour abuses Gap Inc. received in recent years. Human rights activists are putting pressure on other apparel and manufacturing companies with factories abroad to follow suit. Companies like Wal-Mart are reconsidering the amount of information they should report on labour conditions in its factories worldwide.