South Asian Business news and information

Gap Inc. bosses are now very busy indeed about finding a way out from the recent media criticism about use of child labor in India to produce clothes for Gap. This matter has again put the spotlight on child labor in India. India has the highest number of child labor in the world and despite the fact that Indian government is trying to abolish child labor, things have not improved for children in this country.

The Gap scandal has created a lot of attention about the child labor issue.

Dan McDougall wrote:

Amitosh concentrates as he pulls the loops of thread through tiny plastic beads and sequins on the toddler's blouse he is making. Dripping with sweat, his hair is thinly coated in dust. In Hindi his name means 'happiness'. The hand-embroidered garment on which his tiny needle is working bears the distinctive logo of international fashion chain Gap. Amitosh is 10.

The hardships that blight his young life, exposed by an undercover Observer investigation in the back streets of New Delhi, reveal a tragic consequence of the West's demand for cheap clothing. It exposes how, despite Gap's rigorous social audit systems launched in 2004 to weed out child labour in its production processes, the system is being abused by unscrupulous subcontractors. The result is that children, in this case working in conditions close to slavery, appear to still be making some of its clothes.

In the same report, I found that this boy was working for free and it was a tragic thing. These children had to work for nearly 14-15 hours a day. 14 children were lucky that they got rescued with the help of an NGO.

AFP wrote:

Fourteen children working in a textiles factory have been rescued after media reports said an Indian clothing supplier to US retailer Gap was employing underage workers, an activist said Tuesday.

Police carried out the raid after alerts by a non-profit organisation which acted on a British newspaper report that Indian children as young as 10 were working for a Gap supplier in New Delhi.

The children who were rescued late Monday worked in the building that houses the Gap supplier, but did not produce clothes for the US label, said the Save the Childhood Foundation, which works to rehabilitate child workers.

This news has surely tarnished the image of Gap and has put the company in back foot. Gap has issued a media statement and I am giving it here:

In response to media reports issued today, Gap Inc. (NYSE: GPS) issued a statement clarifying information surrounding a UK media report on the use of child labor in an unauthorized facility that produced a single product for Gap.

Earlier this week, the company was informed about an allegation of child labor at a facility in India that was working on one product for GapKids. An investigation was immediately launched. The company noted that a very small portion of a particular order placed with one of its vendors was apparently subcontracted to an unauthorized subcontractor without the company’s knowledge or approval. This is in direct violation of the company’s agreement with the vendor under its Code of Vendor Conduct.

Marka Hansen, president of Gap North America, made the following statement today:

 

“We strictly prohibit the use of child labor. This is a non-negotiable for us – and we are deeply concerned and upset by this allegation. As we’ve demonstrated in the past, Gap has a history of addressing challenges like this head-on, and our approach to this situation will be no exception.

“In 2006, Gap Inc. ceased business with 23 factories due to code violations.  We have 90 people located around the world whose job is to ensure compliance with our Code of Vendor Conduct. 

“As soon as we were alerted to this situation, we stopped the work order and prevented the product from being sold in stores. While violations of our strict prohibition on child labor in factories that produce product for the company are extremely rare, we have called an urgent meeting with our suppliers in the region to reinforce our policies.

“Gap Inc. has one of the industry’s most comprehensive programs in place to fight for workers’ rights overseas. We will continue to work with the government, NGOs, trade unions, and other stakeholder organizations in an effort to end the use of child labor.”

For more information on Gap Inc.’s social responsibility efforts, including detailed information on its ethical sourcing program, please see gapinc.com.

This issue has also put Indian government in the back foot. Indian decision makers often complain that western countries try to create problem for exports of products produced in India.

AP wrote:

India's trade minister insisted Tuesday that activists were hyping accusations of child labor in the country, taking a defensive stand following a report that Gap Inc. had sold clothes made by children in a New Delhi sweatshop.

Commerce Minister Kamal Nath warned the result of the bad publicity could be rich countries limiting exports from poor nations such as India, which has a well-documented problem with child labor.

Nath did not comment specifically on the report about Gap, but spoke in broader terms.

Well, the interesting thing is that the media reports I could find so far mainly criticized Gap and Indian government. I feel that the main persons to be blamed are the western consumers. They want very cheap clothes and very cheap products don’t come cheaply. They have a price tag associated with it- child labor. As long as western consumers are addicted to cheap products child labor will continue to exist in third world countries.

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