Labor Dept. to Extend Guess’ Probation

The Labor Department will announce today that it is extending Guess Inc.’s probation on the “Trendsetter List,” a roster of apparel retailers and manufacturers considered to be taking extra steps to avoid doing business with sweatshops. Maria Echaveste, administrator of the Labor Department’s wage and hour division, acknowledged that Guess says it is tightening its program for monitoring the labor practices of its domestic sewing contractors. But, she added, recently announced plans by Guess to shift more production to Mexico and South America raise questions about whether the company is trying to escape U.S. regulations and whether it will push its foreign contractors to observe adequate labor standards. The company’s probationary status was extended indefinitely. Guess, the biggest clothing company based in Los Angeles, is the only company ever to be placed on probation with the Trendsetter program, which was launched in late 1995. Guess was put on probation after government inspectors found that some of its contractors were illegally underpaying workers. The action also came amid allegations that some of Guess’ workplace monitors took bribes from contractors to overlook labor law violations.