Gap Labor Problems
Major ethical issues:
• Gap Inc. is a multinational casual apparel chain retail store with “3000 supplier in 50 different countries”. The manufacturing environment, human right treatment and labour policy vary substantially among suppliers from substandard to appalling.
• Gap Inc.’s customer were deceived to assume the products were “Made in USA”, under United States labour standards and human right policies; whilst, manufacturing factories were located in Saipan –a U.S. protectorate in Southeast Asia. Although Saipan conformed to majority of U.S labour laws, it was exempt from federal minimum wage laws. Furthermore, the majority of the manufacturing factories located in Saipan are foreign companies from such countries as china and Thailand.
• Workers’ rights have been systematically violated in supplier factories in other localities such as Central America, Thailand, Cambodia, Bangladesh, Indonesia and Mexico.
• Workers were misled into entering contracts, advertised as a well-paying job in USA. In fact the jobs were located in Saipan and paid $3 an hour, moreover, the contract required workers to pay a hefty recruiting fee.
• Significant human right violation has been committed by suppliers contracted by Gap and other major retailer. Basic human right violation occurred ranging from subjection to sexual harassment, lack of clean water, not being able to use bathrooms and harsh and cruel punishment as a method of discipline. Furthermore, employees were forced into consenting to a contract prohibiting marital arrangements and political or religious activities.
• Fair labour policy violation came to light upon the employment of minors to fulltime positions. Additionally, employees failed to pay for overtime. Rampant harassment used as anti-union initiatives. Pregnancy test was required prior to employment. Underage teens have been hired as young as 13 with full time schedule and minimum pay. In one instance a 14 years old girl died of exhaustion after working
• Gap Inc. is a multinational casual apparel chain retail store with “3000 supplier in 50 different countries”. The manufacturing environment, human right treatment and labour policy vary substantially among suppliers from substandard to appalling.
• Gap Inc.’s customer were deceived to assume the products were “Made in USA”, under United States labour standards and human right policies; whilst, manufacturing factories were located in Saipan –a U.S. protectorate in Southeast Asia. Although Saipan conformed to majority of U.S labour laws, it was exempt from federal minimum wage laws. Furthermore, the majority of the manufacturing factories located in Saipan are foreign companies from such countries as china and Thailand.
• Workers’ rights have been systematically violated in supplier factories in other localities such as Central America, Thailand, Cambodia, Bangladesh, Indonesia and Mexico.
• Workers were misled into entering contracts, advertised as a well-paying job in USA. In fact the jobs were located in Saipan and paid $3 an hour, moreover, the contract required workers to pay a hefty recruiting fee.
• Significant human right violation has been committed by suppliers contracted by Gap and other major retailer. Basic human right violation occurred ranging from subjection to sexual harassment, lack of clean water, not being able to use bathrooms and harsh and cruel punishment as a method of discipline. Furthermore, employees were forced into consenting to a contract prohibiting marital arrangements and political or religious activities.
• Fair labour policy violation came to light upon the employment of minors to fulltime positions. Additionally, employees failed to pay for overtime. Rampant harassment used as anti-union initiatives. Pregnancy test was required prior to employment. Underage teens have been hired as young as 13 with full time schedule and minimum pay. In one instance a 14 years old girl died of exhaustion after working