Clothing Companies Settle Sweatshop Suit

Five clothing retailers, including Ralph Lauren and Donna Karan, agreed to settle a class-action suit over poor working conditions at sweatshops in Saipan. The companies, which also included Phillips-Van Heusen, Dress Barn and Bryland, join four others that have already agreed to pay for independent monitoring of Saipan’s garment industry in an effort to comply with American labor laws and international human rights treaties. The agreement requires the approval of a federal judge in Los Angeles. Companies agreeing to the federal class-action lawsuit settlement will be dropped from a related state lawsuit that was filed in San Francisco. The settlement calls for retailers to establish a fund to finance the independent monitoring program, provide money to the workers, create a public education campaign and pay attorneys’ fees. Other companies that agreed to the terms were Phillips-Van Heusen, Dress Barn and Bryland. U.S. District Judge Christina A. Snyder also ruled that the case would be transferred to Honolulu. Litigation is pending against factories in Saipan and several other U.S. companies, including Gap, Tommy Hilfiger and Wal-Mart Stores.