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(More on The Saipan workers' lawsuit)

From: sweatwatch@igc.org

5 more companies settle Saipan lawsuit

October 7, 1999

Additional U.S. Retailers Agree to Join Settlement of Class Action Lawsuit Requiring Independent Monitoring of Factory Conditions

Lawsuit Still Pending Against The Gap, JC Penney, Sears and Others Making "Made in the USA" Garments in Saipan

The Dress Barn, Inc. agreed today to settle claims brought in a federal
class action lawsuit contesting conditions in the garment industry on the
Western Pacific Island of Saipan. This brings the number of parties that
have settled in related actions to nine..

The litigation is still pending against other major U.S. retailers,
including The Gap, Tommy Hilfiger, and Wal-Mart, which have thus far
refused to settle the case.

Under the settlements, U.S. retailers have agreed to require independent
monitoring of their Saipan contractors in their future contracts. The
monitoring is a further step in working towards compliance in Saipan with
U.S. labor laws and binding international treaties established to protect
human rights. The settlement also prohibits the use of unlawful
"recruitment fees" in Saipan factories making apparel for U.S. retailers.

The settlements put in place detailed strict employment standards for
Saipan-based contractors whom the settling companies hire to produce their
clothing. Under the terms of the settlements, the retailers must ensure
that all their Saipan-based contractors pay overtime, provide safe food and
drinking water and observe basic civil rights.

Dress Barn, along with the other companies previously announced to be
settling - Nordstrom, Cutter & Buck, Gymboree, Brylane L.P., DonnaKaran
International, Phillips-Van Heusen, Polo Ralph Lauren, and J. Crew - will
contribute to a fund that will finance the independent monitoring program,
as well as payments to workers, public education administration costs and
attorneys' fees. These settlements will bring the total fund to
approximately $3 million.

An Amherst, Massachusetts-based non-profit firm, Verité, will monitor
compliance with the standards outlined in the settlements, including
establishing an "ombudsman" on Saipan. The settlements give Verité
far-reaching powers to oversee the conduct of contractors doing business
with the settling retailers including surveillance, announced and unannounced
visits to facilities andinvestigations of worker complaints.

Verité will report jointly to the retailers and plaintiffs in the two
settled lawsuits, including UNITE!, Asian Law Caucus and international
human rights groups, Global Exchange and Sweatshop Watch. The monitoring
body is empowered to require payment of back wages, reimbursement of
illegal recruitment fees and termination of contracts where a pattern and
practice of such violations exists.

The litigation will continue to be prosecuted against more than a dozen
other major U.S. retailers, including The Gap, Tommy Hilfiger, Wal-Mart and
more than a dozen Saipan garment manufacturers. The litigation was filed
on behalf of more than 50,000 workers from China, the Philippines,
Bangladesh and Thailand. Plaintiffs are represented by the San Diego firm
of Milberg Weiss Bershad Hynes & Lerach LLP and the San Francisco firm of
Altshuler Berzon, Nussbaum, Berzon & Rubin.

**********************
Nikki F. Bas, Program Coordinator
SWEATSHOP WATCH
310 Eighth Street, Suite 309, Oakland CA 94607, USA
(510) 834-8990 * sweatwatch@igc.org
For more info in this case please visit: http://www.sweatshopwatch.org

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