OTHER NEWS - June 5, 1996

J.C. Penney Issues Warning to Suppliers: The Plano, Texas-based department store retailer told its suppliers that it will suspend shipments if they violate federal labor laws. The warning was made in a letter mailed to suppliers Monday. The letter comes two weeks after the company was cited for the fourth time in less than a year for buying goods made in sweatshops. The citation by the Labor Department is part of an effort to crack down on clothing makers that violate minimum-wage and overtime laws. J.C. Penney Co. said violating labor laws constitutes a breach of its supplier contracts and gives the retailer the right to cancel them. Penney said it may end relationships with suppliers that repeatedly or seriously violate the laws. If shipments are suspended, they won’t be resumed until Penney can verify that the supplier is properly monitoring working conditions, it said.