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TRADE WARS
Uniqlo pledges to improve factory conditions in China
by Staff Writers
Tokyo (AFP) Jan 15, 2015


Sillicon Valley firms in agreement over non-poaching accord
New York (AFP) Jan 15, 2015 - Apple, Google, Intel and Adobe are prepared to reach a $415 million settlement with several plaintiffs over charges they colluded not to hire each others' employees, the New York Times reported Thursday.

In order to prevent a trial and the release of a myriad of incriminating emails, the firms, the four remaining defendants in the case, are offering to pay $415 million, the Times said, quoting an anonymous source with knowledge of the negotiations.

It said the sum is acceptable to the 64,000 plaintiffs and that court papers could be filed as early as Thursday. If a judge accepts the conditions, the case would be closed.

In a class action suit filed in 2011, the titans of the tech industry were accused of hindering the mobility and salaries of the plaintiffs by agreeing not to poach each others' workers.

A first settlement offering $324.5 million in exchange for the dropping of the suit was signed in April 2014. But one of the plaintiffs argued it was not enough money for some of the country's richest firms, and a judge agreed.

Three other companies targeted in the suit -- Intuit, Lucasfilm and Pixar -- had settled in 2013 for $20 million.

Japanese clothing giant Uniqlo on Thursday pledged to improve working conditions at its Chinese suppliers and beef up monitoring following claims that the firms were putting employees at risk.

The chain's parent company Fast Retailing said it was ushering in changes after the Hong Kong-based Students and Scholars Against Corporate Misbehaviour (SACOM) released a study this week that said factory conditions were unsafe and workers were mistreated.

"Respecting human rights and ensuring appropriate working conditions for the workers of our production partners are top priorities for Fast Retailing, and in this we are completely aligned with SACOM," said a statement issued Thursday.

"Fast Retailing has urged swift action against the factories on the issues identified in the SACOM report, and we will cooperate fully with them to ensure that improvements are made.

"Together with third parties, including auditors and NGOs (non-governmental organisations), we will check progress within one month," it added.

The report accused Uniqlo of buying from two suppliers -- Pacific Textiles and Dongguan Tomwell Garment Co. -- in China's southern Guangdong province that made employees work long hours for low pay in unsafe conditions.

It said the firms neglected work safety, with sewage on the factory floor, extremely high temperatures and poor ventilation.

The group, which carried out a months-long investigation last year, said one employee worked up to 14 hours per day, ironing between 600 and 700 shirts, for wages of 0.29 yuan ($0.05) per shirt, it said.

Fast Retailing said the suppliers had been "instructed" to reduce working hours, improve conditions, and change their management style, including getting rid of fines and other punishments levelled against workers.

The company said it would ask for a "government authority to immediately conduct a thorough check of air quality".

However, Uniqlo's parent also said its own probe "revealed a number of points which contradict" the rights group's findings, and added that it had little power to boost wages at the factories.

"Fast Retailing will continue with its own independent inspection and plans to engage in dialogue with SACOM to seek further clarification," it said.

A Tokyo-based Fast Retailing spokeswoman said: "It is difficult for us to directly get involved on the level of wages of our partner companies, but we will be requesting appropriate wage levels."

The claims come as the apparel chain pursues an aggressive expansion in a bid to challenge international brands such as Zara, H&M and Gap.

"We appreciate (Uniqlo's) positive attitude, and willingness to have dialogue with us," SACOM project leader Alexandra Chang told a news briefing in Tokyo on Thursday.

"At the same time... Fast Retailing should apologise to workers" at the factories, she added.

The suppliers are among China's top garment manufacturers, Chang said.

"So they should be role models for smaller companies."

kh/pb/dan

Uniqlo

H&M


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