Corruption and Greed: Alianza Fashion Sweatshop in Guatemala

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For the last 12 years, the Alianza Fashion factory in Guatemala was run as a rogue operation by its corrupt owner who stole millions of dollars in wages and health insurance and pension benefits from the company’s over a thousand workers.  During that time, Alianza exported some 52 million garments to the U.S. and Canada for sale in retailers including Macy’s, JCPenney, Sears, Kohl’s, Wal-Mart, Nordstrom, Men’s Wearhouse and Marshall’s.  For years these companies profited from the cheap labor at Alianza Fashion.  For example, Calvin Klein boy’s suits with vest sold in Burlington Coat Factory cost just $9.23 to produce while retailing for $59.99!  A Wal-Mart “George” women’s blazer made by workers at Alianza cost just $4.25 to make and was sold for $21.88!  Over 200 internal documents ranging from invoices to shipping details smuggled from the Alianza Fashion factory showed massive production and the cheap production cost of garments produced for some of the most important companies in North America.

In March 2013, the company suddenly closed, owing over $1.4 million (an average of over $2,000 per worker) in unpaid wages and benefits and having robbed some $4.7 million in Social Security health and pension fund payments.

The Institute for Global Labour and Human Rights and our partner in this case, CEADEL (the Center for Studies and Support for Local Development, based in Chimaltenango), are demanding that the over 60 U.S. and Canadian companies, retailers and labels step up and make these workers whole again.   

[REPORT] Corruption and Greed: Alianza Fashion Sweatshop in Guatemala

Index and Links to Production Documents Smuggled out of Alianza Fashion

Informe en Español / Report in Spanish

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