Workers at Zara, Nike, and C&A factories have not received minimum wage since 2020.
Indian suppliers are being denounced for refusing to pay employees properly.
247 - The independent organization Worker Rights Consortium (WRC), which monitors the state of labor rights worldwide, has identified what they consider "the biggest wage theft ever to occur in the fashion industry." The group published a study accusing Indian garment factories of not paying the minimum wage to their employees.
According to Metrópoles columnist Ilca Maria Estevão, the Indian state of Karnataka is recognized as one of the world's largest fashion production centers and supplies brands such as... Zara, H&M, Puma, Nike, C&A, GAP, Marks&Spencer and Tesco.
The fashion industries located in southwest India have been denounced by the WRC for failing to pay adequate wages, with salaries below the national minimum wage for more than 400 employees since 2020. The study estimates that the value of unpaid wages to date has exceeded £41 million (approximately R$308 million).
Several brands have spoken out about it. C&A demanded that factories comply with the court order, with the recommended remuneration in India. Nike said it expects all suppliers to comply with local legal requirements and code of conduct. A spokesperson for Inditex, owner of Zara, stated that the brand follows a strict code of conduct, which requires all factories in the supply chain to pay at least the legal wages.
According to the WRC, this is a large-scale violation of human rights. "It has been almost two years since suppliers refused to pay the minimum wage, and brands have allowed this to continue when they know they are the only ones with the power to stop this widespread theft," the organization stated.
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