Zara Is Accused Of Poor Performance And May Face Government Claims.
Spain Inditex group's leading brand
Zara
Accused by the Brazil authorities, it thought it did not perform well in improving local production conditions.
The Ministry of labour of Brazil issued a report pointing out 7000 employees' bad treatment in the past three years.
The government is likely to offer compensation of up to 7 million 300 thousand euros, which is described by Brazil NGOs Reporter Brasil and Somo as "modern slavery".
Inditex group spokesman denied this. He gave the opposite interpretation of the report, emphasizing the group's efforts to improve outsourced factories.
Production conditions
The efforts taken.
Since 2012, there have been more than 2800 audits of Brazil suppliers.
This is so sensitive because it was in late 2011.
Brazil
A great controversy broke out in the society.
At that time, an official media in St Paul reported that a black factory found more than fifty workers living and working in Bolivia illegally.
Inditex has signed a formal agreement after that, but is now accused of failing to comply with its commitments.
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