In addition to the factories located in 24 countries, one of the supplier facilities is located in the autonomous territory of Hong Kong.

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1 Worker Rights Consortium Report of Supply Chain Study for the City of Los Angeles Sweat Free Ordinance Independent Monitor Agreement (Agreement No. C ) This report of the Worker Rights Consortium ( WRC ) to the City of Los Angeles ( City ), in keeping with the WRC s monitoring commitment, is an assessment of the supply chain that is currently providing goods to the City. Prior to the preparation of this report, the WRC collected factory disclosure information from City contractors and subcontractors. These companies, which are subject to the terms of the City s Sweat Free Ordinance, provided the names and locations of their supplier factories around the world that are providing goods sourced by the City. The list of all suppliers to the City s contractors and subcontractors is outlined in the WRC s Report on Initial Consultations, dated October 9, Having identified the countries where City supplier facilities are located, the WRC has prepared an overview of working conditions in the countries where these factories are located. The disclosure obtained from City contractors and subcontractors 1 includes a total of 158 facilities located in 24 countries 2 that currently supply apparel, footwear, and accessories to the City. Nine of the 158 factories are located in South Asia (Bangladesh, Pakistan, and Sri Lanka), 15 are located in Southeast Asia (Cambodia, Indonesia, and Vietnam), 64 production sites are located in North America (Canada and the United States), 21 are located in China and Hong Kong, 36 are located in Latin America (Costa Rica, the Dominican Republic, El Salvador, Haiti, Honduras, Mexico, and Nicaragua), nine are in East Asia (Japan, Korea, and Taiwan), two are located in Europe (Germany and the Netherlands), and two factories are located in Africa (Ethiopia and Egypt). A table that details the number of supplier factories in each country and the percentage of factories per country is included in Appendix 1 of this report. 1 As noted in the WRC s Report on Initial Consultations, one City contractor, Medico Professional Linen Services, failed to provide disclosure of its suppliers. This report does not, therefore, include the production facilities for this company. 2 In addition to the factories located in 24 countries, one of the supplier facilities is located in the autonomous territory of Hong Kong.

2 This report provides information about working conditions for garment workers and workers in similar sectors in the following countries and regions: Bangladesh, Cambodia, Canada, Central America and the Dominican Republic, China, Egypt, Ethiopia, Germany, Haiti, Indonesia, Japan, Korea, Mexico, the Netherlands, Pakistan, Sri Lanka, Taiwan, the United States, and Vietnam. The following sections provide an overview for each country or region that specifies the number of factories located in this country that are supplying to the City, a summary of general labor rights conditions in the country or region, and the current minimum wage. Each section concludes with the WRC s notes on prioritization of monitoring efforts for the current year. BANGLADESH Six factories located in Bangladesh were disclosed during the current monitoring period as suppliers to the City of Los Angeles. The factories were disclosed by Sanmar, Edwards Garment, Helmet House, Bates, and 5.11 Tactical, which disclosed a total of two factories. The factories are located in Dhaka, Chittagong, and Colmilla, all of which are important garment producing areas in the country. Labor Conditions The garment industry in Bangladesh is the largest industry in the country and Bangladesh is the second largest garment and textile producer in the world. Garment exports represent 80% of Bangladesh s total exports, employs approximately four million workers, and is sustained by close to 4,500 garment factories. In 2017, Bangladesh exported $5.3 billion in apparel to the United States. The International Labour Organization reports that Bangladesh s garment workers earn less than those in any other country and face some of the world s most serious violations of labor rights, including fatal safety and health hazards, verbal and sexual harassment, unpaid wages, and others. 3 The International Trade Union Confederation stated that Bangladesh is one of the 10 worst countries for workers in 2018 and, in its 2018 country ranking, grouped Bangladesh with other countries labeled for no guarantee of rights. 4 While the law in Bangladesh provides workers with the right to join and form a union, the requirements for registering a union are very cumbersome and serve to limit workers free exercise of freedom of association. The law requires a minimum of 30% of the enterprise s workforce to agree to join a union before the Ministry of Labor and Employment can grant approval for its registration. This requirement, deemed high by labor rights organizations when compared to the requirements in other countries, 3 International Labour Organization, Working conditions in Bangladesh, 4 International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, June 6, 2018, Page 2 of 48

3 means that only 10% of Bangladesh s 4,500 garment factories are working at a factory where a union has been registered. 5 This is further complicated by the fact that workers operating inside the Export Processing Zones are not allowed, by law, to form a union. The U.S. State Department cites a figure provided by the Solidarity Center that a significant number of the garment worker unions that do exist, as many as 122, were no longer active in 2017 as a result of factory closures or repressive actions by factory employers. 6 Trade unionists suffer from severe repression at the hands of industrial police and employers. In December of 2016, the state authorities were quick to punish garment workers during their week-long strike in the Ashulia garment production district. The Prime Minister issued a directive ordering the strikers back to work, 35 union leaders and labor rights advocates were detained in the weeks following the strikes, and criminal complaints were filed against more than 1,000 workers. In January 2017, more than 1,600 workers were suspended. 7 In 2018, there have been countless reports of threats to the physical integrity of workers and their families, especially by the police. 8 At the Orchid Sweater Factory, local thugs threatened workers after they attempted to register their newly-formed union. These thugs resorted to threatening workers families in their homes and kidnapping one leader s brother before releasing him. In August 2017, more than 50 workers employed at the Haesong Corporation, most of whom were women, were attacked by local thugs after attempting to perform a peaceful protest against management. A union organizer from the National Garment Workers Federation was kidnapped for the day, and the local police failed to prosecute the thugs. Previously, in April 2017, the factory had suspended 218 workers who were demanding payment for unused leave in The majority of garment workers in Bangladesh are women and they face numerous violations of their rights. Women workers frequently encounter sexual harassment perpetrated by middle managers and executives, most of whom are male. Reports documented cases of female workers who face unwanted sexual advances, the rejection of which results in retaliation in the forms of less overtime, refusal of breaks, and verbal harassment. 10 With regard to hours of work and overtime, the law states that the standard workday is eight hours and may only be extended to 60 hours if the worker is in agreement; by law overtime hours are paid at a rate of two times the regular wage. 11 The government, however, did not effectively 5 6 United States Department of State, Country Reports on Human Rights Practices for 2017: Bangladesh, International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, June 6, 2018, 10 Human Rights Watch, Tackling Sexual Harassment in the Garment Industry, 11 United States Department of State, Country Reports on Human Rights Practices for 2017: Bangladesh, Page 3 of 48

4 enforce these laws and reports indicate that garment workers are often forced to work overtime in order to meet unrealistic production targets. The law dictates that the minimum age for work is 14 and that the minimum age for hazardous work is 18, with exceptions that allow children ages to do what is considered light work. The Ministry of Labor failed to enforce these laws, especially with regard to workers in the informal sector and at unregistered garment factories. A study by the Implementation, Monitoring, and Evaluation Division reported that 24% of working children were involved in workplace accidents and 26% work in unhygienic conditions. 12 A study done by the Overseas Development Institute found that child workers from slums worked an average of 64 hours a week and that two-thirds of girls from slum areas were working full-time at garment factories. 13 The law prohibits wage discrimination on the basis of sex or disability but does not prohibit other forms of discrimination on the basis of sex, disability, social status, caste, sexual orientation, or religion. 14 Labor laws exist under a separate legal framework under the authority of the Bangladesh Export Processing Zone Authority (BEPZA) for Economic Processing Zones (EPZs), which employs approximately 458,000 workers. Freedom of association and bargaining rights are greatly restricted under these laws, as they prohibit unions from forming within EPZs. The law provides strict limits on the right to strike and connections to outside political parties, unions, federations, and NGOs are prohibited. The BEPZA governs its own labor standards. 15 Frequent occurence of serious building and safety issues in factories in Bangladesh, including the fatal collapse of the Rana Plaza factory in April 2013 that killed more than 1,100 people, prompted international and Bangladesh labor rights organizations, global unions, and international apparel brands to address the systemic fire and building safety hazards that plague workers with the formation of the Accord on Fire and Building Safety in Bangladesh ( the Accord ), a legally binding labor-industry agreement signed by more than 180 global apparel retailers and brands and two global union federations. The Accord covers 1,660 factories and more than two million workers. 16 Signed in May 2013, the Accord was initially set to last five years. Having achieved sweeping progress on building safety in Bangladesh s apparel sector since its inception, the Accord was The Guardian, Child labour rampant in Bangladesh factories, study reveals, December 7, 2016, 14 United States Department of State, Country Reports on Human Rights Practices for 2017: Bangladesh, Accord on Fire and Building Safety in Bangladesh, Page 4 of 48

5 renewed in May 2018 for an additional three years. As the WRC has reported, factories in Bangladesh are significantly safer as a result of the work of the Accord. 17 Wages Bangladesh s minimum wage is among the lowest of any garment-producing country in the world. The National Minimum Wage Board establishes minimum monthly wages on a sector-bysector basis. On January 1, 2014, the Board approved the existing monthly minimum wage of BDT 5,300 ($62.63) for garment industry workers. According to the BEPZA, wages in the garment sector were often higher than the minimum wage and wages in the EPZs were higher than the general wage levels per month. 18 The Asia Floor Wage Alliance calculated a living wage for Bangladesh at BDT 37,661 ($445.02) per month, 19 which is more than seven times the current minimum wage. Monitoring Notes and Priorities Given the severe and persistent labor violations that have occured in Bangladesh, including, as the WRC has reported, at factories that are supplying to the City of Los Angeles, the WRC will continue to consider as high priority its monitoring and outreach efforts in Bangladesh. CAMBODIA As in years past, one factory located in Cambodia is currently supplying to the City of Los Angeles. This factory, known as Roo Hsing Garment Company, is disclosed by the Galls subcontractor 5.11 Tactical. Roo Hsing is located in Phnom Penh, the capital of Cambodia and an important hub for garment production. Labor Conditions In 2017, the garment industry of Cambodia employed approximately 850,000 workers, equal to 86% of all of the country s industrial workers. 20 Human rights and labor organizations, including the WRC, CARE Cambodia, and Human Rights Watch (HRW), report persistent violations of garment workers rights in Cambodia, including hazardous factory conditions, sexual and verbal 17 Worker Rights Consortium, Accord Update: Progress at Collegiate Factories and the Road Ahead, July 2, 2018, 18 bdnews24, Bangladesh moves to revise minimum wage for garment workers, 19 Asia Floor Wage, Bangladesh, 20 The Phnom Penh Post, Industrial sector grows, but still reliant on garment factories, February 26, 2018, Page 5 of 48

6 harassment, unpaid overtime, violations of freedom of association, and a lack of benefits for workers. Cambodian garment factories are frequently cited for the widespread use of illegal short-term contracts, known in Cambodia as fixed duration contracts (FDCs), which strip long-term workers of the benefits to which they are legally entitled. 21 According to recent estimates published by HRW, almost 80% of garment workers are employed under an illegal short-term contract. 22 The use of short-term contracts leads to the perpetration of many violations of workers rights, including forced overtime, low wages, mass and consistent fainting, lack of maternity leave for women workers, restriction of freedom of association and collective bargaining, and precarious work. 23 A study by CARE International reports that 85-90% of workers in the Cambodian garment industry are women and that sexual harassment including inappropriate looks, noises, and gestures as well as coercive behavior and physical harassment were experienced by one-third of all female garment workers in According to the National Social Security Fund (NSSF) of the Ministry of Labor in Cambodia, 1,603 workers, of which 1,599 were women, fainted in 22 garment factories in 2017, an increase of more than 400 faintings reported during the previous year. 25 The NSSF reported that factory conditions that lead or contribute to the faintings included poor ventilation, mechanical problems, psychosocial problems, chemical exposure, blocked air flow, irregular consumption of food, intensive labor, and inadequate lighting. Factory temperatures have been documented at levels as high as 100 degrees Farenheit. According to the Cambodia Federation of Employers and Business Associations (CFEBA), there is an average of seven registered trade unions in each of the country s more than 600 garment and textile factories. However, the Solidarity Center of the AFL-CIO reported that a significant percentage of these unions are sponsored by employers and, rather than promoting freedom of 21 See, for example, Business & Human Rights Resource Centre, Cambodia: H&M suppliers linked to illegal use of short-term fixed-duration contracts; H&M responds, October 2015, 22 Fair Action, A Short-Term Solution, September 2018, Term-Solution_Fair-Action.pdf. 23 Clean Clothes Campaign, 10 Years of Better Factories Cambodia Project, August 2012, 24 CARE Insights, Gender-based violence in the workplace why a new ILO Convention can help, August 25, 2017, 25 Khmer Times, Jump in fainting cases in 2017 for garment workers, February 5, 2018, Page 6 of 48

7 association, serve to undermine it. 26 In April 2016, the Cambodian National Assembly passed a trade union law and the International Labour Organization (ILO) has flagged many of the clauses of this law as violations of its conventions on workers rights. This includes clauses that limit freedom of association, affect workers rights to hold strikes, and curtail workers ability to form representative associations and unions. Since the beginning of 2018, union leaders have been imprisoned for organizing strikes and workers engaging in union activity are frequently subjected to fatal police brutality. 27 Anti-union harassment is prevalent within the garment industry and multiple reports noted the illegal dismissal of several union leaders within garment factories. 28 In 2018, 588 workers were fired after a strike at the Gawon Apparel factory in Cambodia. 29 In June of 2017, in the Southland garment factory, ten union leaders that represented the independent Collective Union Movement of Workers (CUMW) were suspended following a strike by 1,500 workers. The workers were pressured to join a government-aligned union instead of supporting the workers demands. Following this, strike action in the country was severely restricted and a 700,000-member coalition of trade unions known as CUMW was banned from participating in the May 1 international workers day march. 30 Cambodian law establishes that the minimum age of employment is 15 years and 18 is the minimum age for what is considered hazardous work. The law also allows children ages 12 to 15 to engage in light work. The Ministry of Labor and Vocational Training in Cambodia reportedly conducts routine inspections in registered garment factories, where it has documented a low incidence of child labor, with four cases of child labor in garment factories reported from May 2016 to April Wages In January of 2018, the minimum monthly wage for garment workers rose by 11%, from its previous rate of 622,863 riels (US $153) to 692,070 riels ($170), equivalent to a minimum hourly wage increase from 2,727 riels ($0.67) to 2,971 riels ($0.73). 32 The Asia Floor Wage Alliance 26 The Phnom Penh Post, Too many unions: owners, September 3, 2015, 27 Asia Times, How Cambodia killed its unions, May 2, 2018, 28 See, for example: The Phnom Penh Post, Union reps charged for organising illegal strike, 29 International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, Trading Economics, Cambodia Minimum Wages, Page 7 of 48

8 has determined that a living wage for Cambodian garment workers would be 1,152,093 riels per month ($283), almost two times the current minimum wage. 33 Monitoring Notes and Priorities Based on the WRC s substantial experience and monitoring work in Cambodia, there continues to be a high probability of extensive labor rights violations and abuses occurring in the country. The WRC will continue to prioritize its monitoring of Cambodia. CANADA Nordica Plastics, a factory that is located in Mississauga, Ontario, is the only factory that is currently disclosed for the production of goods for the City of Los Angeles in Canada. The factory is disclosed by the Galls subcontractor Fox 40. Labor Conditions Canada s labor law grants workers in both the public and private sector the right to form unions, conduct legal strikes, and bargain collectively. However, federal employees who provide an essential service, as determined by the government, do not have the right to strike. 34 The government generally respects freedom of association and collective bargaining in practice, with some exceptions in the provinces of Alberta, Ontario, and New Brunswick where agricultural workers do not have the right to organize or bargain collectively. 35 The law prohbitis anti-union discrimination and provides for the reinstatement of workers fired for union activity. According to the U.S. Department of State, in 2017, there were no reports of anti-union discrimination or employer interference. Under Canadian federal law, employers must uphold health and safety standards and the U.S. Department of State reports that authorities adequately enforced these standards in The government allows for workers with reasonable cause to refuse tasks that they deem dangerous and to remove themselves from hazardous working conditions Labour Behind the Label, Living Wage: A Living Wage is a Human Right, May 24, 2018, 34 United States Department of State, Country Reports on Human Rights Practices for 2017: Canada, Page 8 of 48

9 In March 2018, the government announced its plan to amend the Canada Labour Code in order to include five days of paid domestic violence leave for workers. These ratifications and amendments reflect a growing number of benefits afforded to Canadian workers. 38 While migrant, immigrant, unskilled, young, and indigenous workers have the same labor rights as citizens and permanent residents, sources have indicated that these groups of people are more vulnerable to violations of the law, including underpayment of minimum wage and overtime, unpaid wages, and excessive hours of work. Reports also indicate that there are restrictions on the types of labor complaints that are considered legitimate by the government, which serves to discourage workers from airing grievances with management. 39 Wages The minimum wage in Canada ranges from C$10.96 (US $8.45) to C$15.00 (US $11.57) per hour, depending on the province and territory. 40 While this is wage is substantially higher than that of other countries listed in this report, it does not necessarily represent a living wage. Monitoring Notes and Priorities Reports on labor rights conditions in Canada indicate that there is a high degree of complaince with national and international labor standards. The WRC considers that there is a low probability of encountering labor rights violations in this country and, therefore, Canada will be a low priority for the WRC s monitoring and outreach efforts. CENTRAL AMERICA AND THE DOMINICAN REPUBLIC There is a total of 19 factories located in Central America and the Dominican Republic that are disclosed for the production of goods for the City of Los Angeles. There is one factory disclosed in Costa Rica, two in the Dominican Republic, four in El Salvador, ten in Honduras, and two in Nicaragua. The factories are disclosed by BUI and Hot Shots and by the Galls subcontractors Edwards Garment, Lion Apparel, Fechheimer, Dickies, Ameripride, Atlanco, Sanmar, and Red Kap. 38 International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, Retail Council of Canada, Minimum Wage by Province, Page 9 of 48

10 Labor Conditions The garment and textile industry makes up 46% of El Salvador s exports, employs more than 73,000 workers, and represents half of all manufacturing jobs in the country. 41 Honduras is the third largest exporter of apparel to the US market and employs almost 110,000 workers, 53% of whom are women. 42 In 2017, Nicaragua s garment and textile industry exported $1.5 billion worth of goods, accounting for more than 30% of the nation s total exports. The Dominican Republic s garment exports were valued at $1.42 billion in Many of the clothing factories in Central America and the Caribbean exist in the region s Export Processing Zones (EPZs) and Free Trade Zones (FTZs), which are industrial areas with fewer labor laws and nonexistent taxes, designed to create tax incentives and spur foreign investment. The International Trade Union Confederation s ratings for Central America in 2018 varied by country. Costa Rica and the Dominican Republic were rated with a better score of two, which indicates repeated violations of rights, while El Salvador earned a rating of three indicating regular violations of rights and Honduras was rated as a five, which indicates no guarantee of rights. 44 Across Central America and the Caribbean, sweatshops or apparel factories, known as maquilas, are known for the failure to enforce labor laws, precarious employment, and exploitation. Throughout the region, the law provides for the right of workers, usually with the exception of law enforcement and the military, to form and join unions, bargain collectively, and conduct legal strikes. However, each country places restrictions on these rights. The Dominican Republic, for example, restricts trade union rights by requiring 50% plus one of the workers in a union in order to bargain collectively. The law also prohibits strikes until the mandatory mediation requirements have been met, such as written notification to the Ministry of Labor and a 10-day waiting period before proceeding with the strike. 45 The government of Honduras requires that a recognized trade union represent at least 30 workers and prohibits foreign nationals from holding union offices. The law also requires an employer to begin collective bargaining once workers establish a union and, if there are more than one union, the employer must negotiate with the largest one. 46 In El Salvador, unions must meet several complex requirements that allow them to 41 Labor Notes, More Repression, More Fightback! El Salvador's Labor Movement Defends the Minimum Wage, February 17, 2017, 42 War on Want, Women Factory Workers in Honduras, 43 The Observatory of Economic Complexity, Dominican Republic, 44 International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, 45 United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, 46 United States Department of State, Country Reports on Human Rights Practices for 2017: Honduras, Page 10 of 48

11 register legally and have the right to bargain collectively, with a minimum membership of 35 workers. If union registration is denied by the Ministry of Labor, the union must wait up to six months to attempt again. 47 Most of the countries in the region have laws that prohibit anti-union discrimination. The government of the Dominican Republic forbids employers from dismissing a worker on the basis of union activity, which includes being part of a committee that seeks to form a union. The law also provides an automatic recognition of a union if the Ministry of Labor does not act on the union s application for registration within a period of 30 days. The law also applies to all workers, including foreign workers, domestic workers, undocumented workers, and workers in FTZs. 48 Nicaraguan and Costa Rican law prohibit anti-union discrimination and the Costa Rican government prohibits employer interference in union activities, requiring employers to reinstate workers that are wrongfully dismissed. El Salvador also prohibits anti-union discrimination but does not require reinstatement of workers on the basis of union activity. 49 Most of the countries in the region have been reported to have poor and inconsistent enforcement of labor laws, often times with insufficient penalties to deter future violations from occuring or lengthy delays and appeals on complaints. Honduras, however, passed a new law in 2017 that substantially increased fines for labor law violations. 50 Anti-union violence is prevalent in the region. The Dominican Republic had reports of intimidation, threats, and blackmail by employers in order to prevent workers from forming or joining a union. The Dominican Republic, Honduras, El Salvador, Nicaragua, and Costa Rica have all had incidents of anti-union discrimination, including threats against labor union members, blacklisting, dismissals, threats of violence, and others. All countries prohibit all forms of forced or compulsory labor, with varying degrees of stringency and enforcement. The government of the Dominican Republic prosecutes forced labor with imprisonment and fines and claimed that they received no reports of forced labor during However, labor organizations reported that forced labor has occured, including forced labor of children. This includes workers who have been forced to work overtime, induced indebtedness, false promises of work, or wage theft. 51 Haitian workers in the Dominican Republic were vulnerable to forced labor as they lack documentation and legal status. The 47 United States Department of State, Country Reports on Human Rights Practices for 2017: El Salvador, 48 United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, 49 United States Department of State, Country Reports on Human Rights Practices for 2017: El Salvador, 50 United States Department of State, Country Reports on Human Rights Practices for 2017: Honduras, 51 United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, Page 11 of 48

12 Honduran government also failed to implement these laws effectively, with penalties of up to HNL 100,000 ($4,163.50), which are considered to be too low to deter violations. The government investigated several cases of forced labor, which occurred mostly to women, men, and children under the poverty line. 52 The governments of El Salvador, Nicaragua, and Costa Rica also failed to effectively enforce these laws, with cases of human trafficking found during the year. Every country prohibits child labor for all minors under the age of 14 except for Costa Rica, whose minimum age for labor is In the Dominican Republic, there are restrictions put on employment of children under 16, such as a limit to the number of hours of work. For those under 18, the law prohibits work in hazardous conditions. While the Ministry of Labor was generally effective in enforcing these laws, child labor in the informal sector was still a major problem. 54 In Honduras, fines for child labor were HNL 100,000 ($4,163.50) for a first violation, and as high as HNL 228,000 ($9,492.78) for a repeat violation. 55 The government of El Salvador reported that, as of September 2017, the Ministry of Labor had conducted 596 inspections related to child labor and estimated that 140,700 children were employed, of which 91,257 were engaged in hazardous work, indicating poor enforcement of the law. 56 Nicaragua and Costa Rica also reported the prevalence of child labor; Nicaragua alone reported 320,000 children employed in the country. 57 Many garment workers in Central America and the Domincian Republic are employed in Free Trade Zones (FTZs). Even though workers in FTZs are usually protected by national labor laws, they still are vulnerable to labor violations and poor working conditions. For example, trade union leaders and labor organizations report that workers are required to work overtime without legally mandated premium pay and the employers use manipulation to force workers to work overtime. This is exacerbated by the fact that the workers have limted transportaion options between their homes and the FTZs. The law of each of the countries in the region includes a set of occupational health and safety standards. However, in 2017 these laws were not enforced and there were multiple reports that a significant number of factories were not in compliance with health and safety standards. Workers 52 United States Department of State, Country Reports on Human Rights Practices for 2017: Honduras, 53 United States Department of State, Country Reports on Human Rights Practices for 2017: Costa Rica, 54 United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, 55 United States Department of State, Country Reports on Human Rights Practices for 2017: Honduras, 56 United States Department of State, Country Reports on Human Rights Practices for 2017: El Salvador, 57 United States Department of State, Country Reports on Human Rights Practices for 2017: Nicaragua, Page 12 of 48

13 were, in some factories, forced to work in high temperatures with little or no ventilation and inadequate access to restroom facilities. The National Confederation of Trade Unions Unity in the Dominican Republic reported inadequate health and safety conditions, noting the lack of appropriate work attire and safety gear, lack of first aid kids and properly functioning windows, and unsafe eating areas. 58 Workers in Central America and the Dominican Republic also face systemic discrimination. Although the laws in many of these countries include prohibition on discriminatory employment practices, the U.S. State Department reports that discrimination on the basis of gender, sex, sexual orientation, HIV status, disability, migrant status, and nationality does occur and that, for example, in the Dominican Republic, employers face no penalties for including pregnancy testing in their hiring practices. 59 Wages The minimum wage varies across the region, but most are below the poverty level. In the Dominican Republic, there are 14 different minimum wages, depending on the industry and zone. In September of 2017, the minimum monthly wage for workers in FTZs increased by 20.33% to DOP 10,000 ($202.33). 60 The minimum wage for areas outside FTZs in the Dominican Republic ranged from DOP 9,412 ($190.43) to DOP 15,448 ($312.55). 61 The wage for the garment workers in Honduras is HNL 7, ($292.19) per month. 62 The minimum wage for garment workers in El Salvador is US $ per month. Nicaragua established a statutory minimum wage for 10 economic sectors. According to the Ministry of Labor, the average legal minimum wage covers only 35% of the cost of basic goods. For manufacturing, the monthly minimum wage was set at NIO 5, ($160.99). 63 The government of Costa Rica sets the minimum wage scale for the public and private sectors twice a year. According to the INEC, the poverty line was CRC 105,937 ($186.58) in urban areas and CRC 81,685 ($143.86) in rural areas. The minimum wage ranges from CRC 286, ($504.53) for unskilled workers to 615, ($ ) for specialized workers United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, IndustriALL, Workers in the Dominican Republic Free Trade Zones achieve historic increase in minimum wage, September 12, 2017, 61 United States Department of State, Country Reports on Human Rights Practices for 2017: Dominican Republic, 62 El Heraldo, Honduras: Presentan nueva tabla de salario mínimo por rubro y cantidad de empleados, January 29, 2018, 63 United States Department of State, Country Reports on Human Rights Practices for 2017: Nicaragua, 64 United States Department of State, Country Reports on Human Rights Practices for 2017: Costa Rica, Page 13 of 48

14 Monitoring Notes and Priorities Central America and the Dominican Republic are home to a number of suppliers of goods to the City of Los Angeles and countries in which the WRC has frequently documented violations of workers labor rights for this reason, these countries will continue to be a high priority for monitoring and outreach efforts. CHINA A total of 21 factories located in China have been disclosed during the current monitoring period for production of goods for the City of Los Angeles. One of these factories was disclosed by two contractors. These factories, which are located in diverse locations around the country, were disclosed by the Galls subcontractors Helmet House (three factories), Hero s Pride (one factory), Elbeco (one factory), Edwards Garment (one factory), Tact Squad (one factory), Lion Apparel (one factory), Danner Footwear (one factory), SanMar (one factory), M.L. Kishigo (one factory), Neese (two factories), Thorogood (three factories), LaCrosse (one factory), Bates (one factory), Otto Caps (one factory), Tri-Mountain (one factory), and Patch Supply (one factory). Labor Conditions China is the largest garment producer in the world, accounting for 35% of all apparel imported into the United States and a workforce of more than 15 million garment workers. 65 These figures have been declining, however, in the past five years due to higher wages and land costs, as the demand for labor has moved to other locations such as Bangladesh, India, and Vietnam. 66 The government-controlled All China Federation of Trade Unions (ACFTU) is the only union that is recognized under law and any and all union activity is only permitted under approval from ACFTU. 67 This system functions as a top down system, where worker representatives are appointed rather than elected to protect both the rights of workers and the goals of the political party. 68 The law does not allow for freedom of association, the formation of independent unions, or the right to strike. However, the law does allow for collective wage bargaining in some 65 Schnug, Ricardo-Raymond, University of Applied Science, Enschede, The Netherlands, The Migrant Sitution in China s Garment Manufacturing Sector 2025, February June 2013, 66 Textile Focus, Is textile industry shifting from China?, July 9, 2017, 67 United States Department of State, Country Reports on Human Rights Practices for 2017: China, 68 Clean Clothes Campaign, Facts on China s Garment Industry, Page 14 of 48

15 industries. 69 The government is reported to have made limited progress in recent years by allowing some strikes to occur. 70 However, the majority of workers generally do not see ACFTU as an advocate; migrant workers, who report the least interaction with ACTFU, are among the most exploited. 71 In order to make sure that the Chinese garment industry stays competitive, factories established in coastal areas are facing mass closures and relocation to inland locations. They close their coastal facilities with no prior warning to workers, who report to work only to find the gates locked and no payment of compensation they are due for wages and pension. 72 Increasing strikes and protests in coastal regions of China have led to some of the factory shut downs, including those in the garment-producing province of Guangdong. The China Labor Bulletin reported that, during the past three years, the majority of the strikes that have occurred have been due to underpaid or unpaid wages. During the first 10 weeks of 2018, there were 400 publicly-reported strikes, more than twice as many as those reported from the same period in the previous year. 73 In 2018, many labor activists were arbitrarily arrested and sentenced. Migrant workers in China are more likely to face labor abuses and violations within garment factories and often work for many hours of unpaid overtime during each working day. The Fair Wear Foundation approximates that 80% of garment workers in China are migrant workers, making most workers in the industry vulnerable to these violations. In China, the hukou system, which is a system of household registration, greatly impacts migrant workers and their material well-being. With the introduction of this system, the government has been able to exert greater control over internal migration in urban and rural areas. If rural citizens migrate out of their hometowns for more than three months, they are required to apply for a permit for work and a permit for residence, which has to be approved by the local police. Residents of rural areas are not able to maintain social security protections or benefits if they migrate to an urban area. 74 Migrant garment workers, therefore, can often not afford services such as healthcare, welfare, and housing. As many as 70% of garment workers in China are women and the majority of them are migrant women. 75 A study released by the China Labor Bulletin reported that a survey of female garment workers in Guangzhou revealed that 70% of them had been sexually harassed, either through War on Want, This Way to Dystopia: Exposing UNIQLO s abuse of Chinese garment workers, October 2016, 73 The New York Times, China s Communist Party Is Abandoning Workers, April 2, 2018, 74 The Diplomat, China s Hukou Reforms and the Urbanization Challenge, February 22, 2017, 75 Fashion Revolution, Exploitation or emancipation? Women workers in the garment industry, Page 15 of 48

16 offensive comments, lewd jokes, whistling, obscene calls or messages, or indecent exposure. 76 The same survey reports that women workers are also faced with a lack of protections during menstruation, pregnancy, and maternity leave. Labor laws also dictate that the retirement age for women is set at 50 years, which means that women who work beyond the age of 50 do not receive employer contributions to their pensions. 77 Students and Scholars Against Corporate Misbehaviour (SACOM) investigated several garment factories owned by Dongguan Tomwell Garment Co. and found that workers were subject to working conditions that included very high temperatures, no protective gear, poor ventilation with high cotton dust concentration in the air, exposure to toxic chemicals, and a high risk of electricity leakages. 78 It was also observed that workers had to stand on stepladders that were two meters high while working with yarn rolls and that falls from this height were common, especially under high pressure to hit productivity targets. When workers sought to organize a strike in 2009, management hired people to physically assault worker leaders in order to suppress the strike; those who complained were dismissed. 79 While the State Administration for Work Safety is meant to set and enforce occupational health and safety regulations, the Chinese government did not effectively enforce the law and penalties that were imposed did not deter the violations. 80 Workers were at risk for scoliosis and lung cancer as a result of intense long-term exposure and inhalation of silica dust through the process of sandblasting denim. Health and safety hazards remain invisible and underreported, despite the fact that employers are required by law to provide health examinations for workers exposed to hazardous working conditions. Workers in the garment industry are even more vulnerable to these hazards given that many workers are informally employed or are migrant workers, making them ineligible for an official medical examination. 81 There have been some improvements, reflected by the fact that worker deaths in all industries were at a low: 38, Under Chinese law, the employment of children under the age of 16 is prohibited, however, this has not been properly enforced by the government. In 2016, it was reported that the majority of 76 China Labour Bulletin, Up to 70% of women factory workers in Guangzhou sexually harassed, June 12, 2013, War on Want, This Way to Dystopia: Exposing UNIQLO s abuse of Chinese garment workers, December 6, 2016, War on Want, Breathless for Blue Jeans: Health hazards in China s denim factories, June 2013, 82 China Labour Bulletin, Employment and Wages, Page 16 of 48

17 1,000 apparel manufacturers in the Changshu, Jiangsu province have been utilizing workers under the age of 16 for more than 16 hours a day. 83 Many international and local organizations play a role in maintaining and fighting for labor rights. According to the Ministry of Civil Affairs in China, by June 2017, there were more than 670,000 legally registered non-governmental organizations, though there are estimated to be more organizations that are not registered. 84 The government has sought to maintain control and scrutiny over independent non-governmental organizations working in the area of labor rights. In 2016, three labor activists, Zeng Feiyang, Zhu Xiamei, and Tang Huanxing were suspended and arrested for gathering a crowd to disturb social order and the Panyu Workers Centre in Guangdong, the organization for which they work, was shut down. Labor leaders and the organizations to which they are affiliated are often subject to intimidation by the government. 85 Wages Wage setting in China takes place in a decentralized manner and city and provincial governments have the authority to set the minimum wage, which results in substantial differences in minimum wages across the country. 86 This ranges from a minimum wage of RMB 1,500 ($234.37) per month in the province of Guangxi, to RMB 2,420 ($378.11) in the province of Shanghai. 87 In 2017, the Asia Wage Floor Alliance calculated that a monthly living wage for China would be RMB 4,547 ($709.49), almost two times the minimum wage of the highest paid province of Shanghai. 88 Monitoring Notes and Priorities Given the persistent violations of labor rights in China, the WRC will continue its monitoring and outreach in its monitoring efforts for the City of Los Angeles. 83 South China Morning Post, Under 16 and working 16 hours a day...chinese clothes factories import cheap child labour from across China, November 22, 2016, 84 United States Department of State, Country Reports on Human Rights Practices for 2017: China, 85 China Policy Institute: Analysis, What do Labour NGOs in China do?, October 17, 2016, 86 War on Want, This Way to Dystopia: Exposing UNIQLO s abuse of Chinese garment workers, October 2016, 87 Minimum-Wage, China Minimum Wage, Labor Law, and Employment Data Sheet China Minimum Wage Rate 2018, 88 Asia Floor Wage, Stitching a decent wage across borders, s. Page 17 of 48

18 EGYPT In Egypt, the Ruby Red Garment SAE factory, located in Alexandria, was disclosed by the Galls subcontractor Edwards Garment. Labor Conditions The garment and textile industry is the second largest sector in Egypt s economy following agriculture, and accounts for 25% of the country s industrial production and employs more than one million workers. 89 Given that labor is inexpensive when compared to many other countries, its role in the international apparel production industry is on the rise. However, with regards to labor rights, Egypt scored a five on the 2018 International Trade Union Confederation (IUTC) scale of Global Rights, indicating that there is no guarantee of rights. 90 The law provides workers the right to form and join independent unions, the ability to bargain collectively, and to strike, all with significant restrictions. In December 2017, the government passed a law regulating labor unions, which included the elimination of independent trade union organizations. The law mandates imprisonment and fines against trade union workers and anyone associated with a trade union. 91 It also allows for peaceful strikes but imposes several restrictions for strikes to be considered legal. 92 The law prohibits anti-union discrimination and provides for the reinstatement of wrongfully fired workers. Human Rights Watch reported that government enforcement of these union protections was rare during 2017 and that no new unions have been able to register since Union leaders continue to suffer state repression, police brutality, and severe discrimination in Egypt. In September 2016, leaders of the Cairo bus workers union were arrested for incitement to strike. As a result of the strike, dozens of activists affiliated with a union were arrested by Egyptian security forces and strikers were violently attacked by police forces. 94 The law establishes a 48-hour work week and payment of an overtime premium for hours beyond this limit; compulsory overtime is prohibited. National health and safety standards dictate that the workplace must be free of hazardous conditions. The Ministry of Manpower is responsible for enforcing labor laws and maintaining the standards for working conditions but, in 89 International Labour Organization, ILO improves working conditions in 30 factories in Egypt, July 11, 2017, 90 International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, June 6, 2018, 91 United States Department of State, Country Reports on Human Rights Practices for 2017: Egypt, International Trade Union Confederation (ITUC), ITUC Global Rights Index 2018, June 6, 2018, Page 18 of 48