Is Ross Stores, Inc. Socially Responsible?
Ross Shareholders
No! Ross is in violation of its Code of Business Conduct and Ethics.
LA garment workers have been fighting for justice since 2016 when the Department of Labor and the GWC found wage theft in Ross' supply chain. Workers have sent letters and led store pickets, delegations, and a caravan to Ross headquarters. The company, however, has refused to meet with them and pay their share of over $800,000 in owed wages. Workers will not back down until their labor is respected!
On May 22, 2019, Ross CEO Barbara Rentler shut down their annual shareholder meeting after GWC organizer called for accountability at the meeting. Ross was afraid that their biggest institutional shareholders would be notified of this important matter. We will continue to outreach to important shareholders to urge for their support of garment workers in Los Angeles.
Please stand in solidarity with LA garment workers! Say NO to wage theft and YES to fashion brand accountability!
Sponsored by
To:
Ross Shareholders
From:
[Your Name]
The Vanguard Group, Inc.
BlackRock, Inc.
FMR, LLC
T. Rowe Price Associates, Inc.
State Street Global Advisors
PRIMECAP Odyssey Funds
JPMorgan Investment Management, Inc.
Massachusetts Financial Services Co.
Geode Capital Management LLC
Dear Shareholder:
The Garment Worker Center (GWC) is a worker rights organization that holds retailers, manufacturers, and factory owners accountable for the sweatshop conditions they create. We write to inform you of a critical issue impacting Ross Stores, Inc., and one that undermines its stated commitment to ethical business practices.
In 2016, the Department of Labor (DOL) conducted an investigation into 13 factories that produced for YN Apparel, a primary supplier for Ross Stores. DOL found egregious labor violations in all 13 factories, including wages as low as $4 to $5 per hour. The DOL also announced findings, and notified Ross directly, that Ross failed to pay sufficient prices for its garment production, making it impossible for factory owners to comply with the local minimum wage. Ross has failed to resolve the matter in violation of its Code of Business Conduct and Ethics.
Since this investigation, the Garment Worker Center has supported four workers who worked at one of the thirteen factories, Sam’s Fashion, and successor Han’s Fashion. These workers sewed clothing sold by Ross at approximately $5.00 an hour for 50-60 hours per week. Having earned as little as $300 a week for those long hours, they brought forward wage claims to the California Labor Commission against the factory and the brands they produced there, including Ross, and were awarded $849,104.13 in owed wages.
Despite the wage award in their favor, they were not paid their owed wages because Han’s Fashion, and Ross manufacturer, YN Apparel, closed their business without making payment. This tactic is commonly known as “cutting and running.” The garment workers then asked Ross Stores to take responsibility for the owed wages in its supply chain.
Workers have sent numerous letters and led peaceful store pickets and delegations at Ross stores asking to meet with the company to resolve their claims. Last December, they took their demands to Ross’ doorstep, by leading a caravan of supporters to Ross headquarters in Dublin, CA. The company sent an unnamed representative to deny them entry to the building and the meeting workers requested.
For over two years, the company has ignored the people who produced their goods and deemed them unworthy of a meeting. This is unacceptable, irresponsible corporate behavior. The DOL investigation demonstrated that Ross caused wage theft. The appropriate response would have been for Ross to work directly with suppliers to remedy the situation and to take financial responsibility for the impact of the inadequate prices it paid for garment production.
Per Ross’ 2019 Vendor Compliance Manual, “Ross is committed to ensuring that working conditions in Ross’s supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are responsibly undertaken.... Ross also requires that [supplier] operations comply with national and international standards regarding labor and human rights...” Even where Ross does not have direct control because of the use of subcontracting, Ross’ Product Sourcing and Human Rights statement indicates that the company “require[s] suppliers to uphold our ethical standards, both contractually and through enforcement.” Finally, under the United Nations Guiding Principles on Business and Human Rights, it is Ross Stores’ responsibility to ensure remediation in the case of wage violations at factories producing clothing sold at Ross. (2011) Accordingly, Ross has an obligation to make workers whole for the work they provided on Ross clothing.
Shareholder, we ask that you exercise your role to encourage Ross to come to the table with the four workers and the GWC. As with other fashion brands under similar circumstances, Ross can and should act as a wage guarantor, or in the alternative, ensure YN Apparel pays the workers. We ask that you raise this issue with Ross CEO Barbara Rentler, and rightfully require that the company you invest in reach a resolution to this matter, that includes payment of Ross’ proportionate share of wages and penalties due to the workers.
Sincerely,