Anti-sweatshop groups have named Hudson's Bay and Wal-Mart as "Sweatshop Retailers of the Year."

The Maquila Solidarity Network (MSN) of Toronto has been presenting its award for three years. MSN invited consumers to vote online.

"This year, Canada's own Hudson's Bay Company has joined the ranks of world-class worker rights abusers. It deserves to share the award with Wal-Mart," said Bob Jeffcott of MSN.




Jeffcott says the Bay decided to cut ties with three factories in Lesotho after workers reported human rights abuses.

"Cutting off suppliers whenever workers report abuses discourages workers from acting as whistleblowers, and virtually guarantees that sweatshop practices will be buried rather than addressed," says Jeffcott.

"It's frankly appalling that they have said this about companies like Hudson's Bay and Wal-Mart," says Sharon Maloney of the Retail Council. "(They) have been working with us for the past four or five years to develop guidelines for our members."

Andrew Pelletier of Wal-Mart Canada says the company has spent $40 million to certify every North American plant and requires vendors around the world to adhere to a strict code of conduct. Hudson's Bay officials say they have similar policies.

The Bay had agreements with Nien Hsing of Taiwan for producing its ""Cherokee" brand jeans at factories in Lesotho.

When the Bay was confronted with evidence of serious worker rights abuses at the Nien Hsing factories and a third factory called Sun Textiles, officials decided to stop orders rather than work to improve conditions.

MSN says that was not the case with the Gap which also deals with other Nien Hsing factories. The company facilitated dialogue between union and management, convincing Nien Hsing to allow union representatives access to the factories.

Jeffcott calls Wal-Mart a "perennial" for Sweatshop Retailer of the Year. He cited the company for its treatment of its North American employees.

The US federal labour board has charged Wal-Mart with illegal intimidation and harassment of employees seeking union representation. The company also profited from employee deaths by taking out life insurance policies on its employees, payable to the company.

Jeffcott says Wal-Mart clothes are made in over 20 factories in Lesotho alone, and there are reports of serious worker rights abuses in most of those factories.

The Lesotho Clothing and Allied Workers Union (LECAWU) has released information on violations in 21 factories producing for Wal-Mart. Sweatshop abuses include:

  • excessive hours of compulsory overtime
  • poverty wages that don't meet workers' basic needs
  • verbal and physical abuse and sexual harassment
  • humiliating strip searches
  • unfair treatment of pregnant workers
  • inadequate washroom facilities and restrictions on their use

"Wal-Mart's domination of the global industry and its constant pressure on suppliers to lower production costs is encouraging sweatshop abuses," says Jeffcott.