Target, Walmart and PriceSmart were singled out as “problematic” companies.
Central America’s apparel unions are demanding $1.7 billion in back wages and additional financial support from U.S. fashion brands and retailers that have canceled hundreds of millions of dollars in orders, leaving around 80,000 workers without work or pay in one of the world’s poorest regions.
Central American maquila operators’ rights to obtain fair wages and social and health-care benefits are enshrined in Chapter 16 of the DR-CAFTA free-trade accord that links the U.S. and Central America under a duty-free corridor. “Target is not paying its workers in Nicaragua,” claimed Ruiz, adding that the retailer did not pay subcontractor Sincotex for apparel orders that were already made. “Sincotex had to close operations and Target owes them $50 million.”
Target “is committed to our suppliers across the globe and will pay for orders already produced or in production, as we place great value on the relationships we have with our supplier partners and see them as part of our team,” Kitzman continued. “These are substantial buyers in the region and they need to pay or they will make a bad situation considerably worse,” said WRC executive director Scott Nova. He is supporting Coordinadora in Central America, as well as other efforts to get apparel brands to pay workers in textile hubs across Latin America, Asia and Africa.
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