WRC Factory Investigation

Shahi Exports

Factory: Shahi Exports

Key Buyers: Cutter & Buck, Fruit of the Loom, Gap, H&M, J.C. Penney, Levi Strauss, Nike, Philips Van Heusen, Vantage Custom Classics, VF, Walmart

Last Updated: 2010

Case Summary

For nearly a year after a minimum wage increase in March 2009, garment producers in Bangalore failed to pay the legally required wage. Hundreds of thousands of workers were being deprived their rightful earnings. With nearly 50,000 employees, Shahi Exports was one of the largest producers in Bangalore. When the WRC presented evidence of the violations to Shahi, management openly admitted to violating the minimum wage law, stating this was common practice in the industry in Bangalore. Management defended this practice on the grounds that the industry believed the increase was ill-advised and urged the government to reduce the minimum wage.

We are pleased to report that the WRC’s exposure of these widespread wage violations has led to more than $6 million in back pay and wage hikes for more than 110,000 workers – including workers making university apparel and workers producing for many of the most prominent clothing brands and retailers in the US. The WRC has confirmed that the current minimum wage is now being paid at export garment factories throughout the city.

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