Zara will launch a fund for workers in Turkey. These 140 workers were at a factory that closed down without warning. They will be reimbursed for unpaid wages, severance pay and unused vacation time. The popular fast fashion retailer faced criticism when shoppers at an outlet noticed tags attached to garments. These tags were put by unpaid workers, who spelt out their plight in messages.
The total for the 140 workers left with three months of unpaid wages amounts to only 0.01 per cent of Zara’s annual sales. Homegrown brand Zara leads the fashion industry in Spain. Zara is the flagship brand of the Inditex Group. Inditex, which has a market capitalization of 113 billion dollars, is one of the world's largest fashion retailers. It owns 7,405 stores and employs 1,62,450 people. The company has helped to reshape the fashion industry with its ability to quickly produce and turnaround cheaper fashion items.
Some of the world’s biggest brands source garments from Turkey. Among them are Primark, Inditex and H&M. It can be difficult for brands to know exactly what their suppliers are doing. Factories may subcontract work without a brand’s knowledge to meet tight deadlines and Turkey’s proximity to Europe makes it convenient for fulfilling last-minute orders.