December 20, 2011
Brazil fines retailer for slave conditions
RIO DE JANEIRO, Brazil — Brazilian prosecutors say they have reached a settlement with Spanish retail chain Zara that sharply reduces the fine imposed after investigators found slave-like conditions at factories supplying the brand.
The chain signed an agreement accepting a fine of US$1.8 million ($154.4 million). The original fine imposed after the August investigation was US$10.7 million.
Zara’s owner Inditex SA did not immediately return calls.
The original settlement held the company liable for future conditions at its subcontractors. Monday’s agreement only asks Zara to strengthen auditing of suppliers.
Labor Department prosecutor Luiz Fabre says officials preferred to negotiate rather than go to court to get results faster.
