Five years ago, Sweatshop Watch, Global Exchange, Asian Law Caucus, Unite, and Saipan garment workers filed three separate lawsuits against dozens of big-name retailers and Saipan garment factories alleging violations of U.S. labor laws and international human rights standards.
Saipan is the largest of a chain of fourteen islands in the Pacific Ocean known as the U.S. Commonwealth of the Northern Mariana Islands. It is home to a $1 billion garment industry, with about 30 garment factories employing more than 10,000 workers, almost all young women from China, the Philippines, Thailand, Vietnam, Bangladesh and other Asian countries. Plaintiffs in the lawsuit alleged that these workers live and toil in deplorable conditions, working up to 12 hours a day, seven days a week, and earning $3.05 an hour or less, often without overtime pay. With promises of high pay and quality work in the U.S., workers agreed to repay recruitment fees of thousands of dollars. Many workers also claimed that they signed "shadow contracts" waiving basic human rights, including the freedom to join unions, attend religious services, quit or marry. These circumstances, plaintiffs contended, trap Saipan garment workers in a state of indentured servitude. The retailers were also charged with misleading advertising by, among other things, using the "Made in the U.S.A" label and promoting their goods as sweatshop-free.
By the Fall of 2002, 26 retailers and 23 Saipan garment factories settled the lawsuit, leaving Levi's as the only hold-out. A federal judge approved the settlement in April 2003. The settling retailers include:
Abercrombie & Fitch, Brooks Brothers, Brylane L.P., Calvin Klein Inc., Cutter & Buck Inc., Donna Karan International, Dress Barn, Gap Inc. (Banana Republic, Old Navy), Gymboree Corp., J.C. Penney Company Inc., J. Crew Group Inc, Jones Apparel Group, Lane Bryant Inc., The Limited Inc., Liz Claiborne Inc., May Department Stores Company, Nordstrom Inc., Oshkosh B'Gosh Inc., Phillips-Van Heusen, Polo Ralph Lauren, Sears Roebuck and Company, Talbots Inc., Target Corp. (Target, Mervyn's, Marshall Fields, Dayton-Hudson), Tommy Hilfiger USA Inc., Warnaco Inc. and Woolrich, Inc.