by Tim Newman · March 10, 2011
As we reported here recently, the children's clothing store Gymboree has recently been acquired by a private investment firm, Bain Capital. New reports indicate that the executives of this private fund profited handsomely from the deal; current and former executives of Bain Capital raked in $49 million in stocks. One of those executives who reportedly personally benefited from the deal is Jordan Hitch. Since Gymboree has not joined the rest of the garment industry in opposing he forced labor of children to pick cotton, those profits are a good deal for Hitch and Bain Capital, but not for the people toiling to harvest a critical component in the company's products.
Over 2,500 Change.org readers have signed a petition to Mr. Hitch and executives at Gymboree regarding the company's failure to speak out against forced child labor in Uzbekistan's cotton industry. So far, the company has remained silent in response to inquiries from Change.org members and editors. The new executives from Bain would be well-advised to review Gymboree's own most recent annual report, as they determine a response to the continued widespread use of forced, child labor on the cotton farms of Uzbekistan.
Gymboree's most recent annual report notes that its top competitors are the Gap, Target and Walmart. The report notes that a key risk for Gymboree is the strength of its competitors and their potential to take away from Gymboree's sales and "adversely affect [Gymboree's] operating results." Gymboree is already lagging behind its competitors in one area. All of these companies have spoken out publicly to oppose forced child labor in Uzbekistan and are working with other companies to address this ongoing abuse.
Additionally, the annual report specifically identifies the potential risks that could arise if Gymboree is linked to violations of labor laws or "practices that our customers believe are unethical." The company acknowledges that if the production of its clothing is connected to labor abuses, the "negative publicity or legal actions regarding our manufacturers or the production of our products could have a material adverse effect on our reputation, sales, business, financial position and operating results."
In one of the world's largest cotton producing countries, Uzbekistan, the government removes hundreds of thousands of children from schools across the country and forces them to pick cotton during the harvest season. The abuse is widely documented and continues despite international pressure. Sound unethical to you? As cotton often gets mixed up globally as part of the garment supply chain, Uzbekistan's cotton may end up in many of the products we buy in the US. Many of the biggest clothing brands and retailers in the world have acknowledged the severity of exploitation in Uzbekistan, have publicly opposed this abuse and are working to pressure the government of Uzbekistan to end its policies of forcing children into the fields. Gymboree has not joined these efforts.
As Bain Capital takes over Gymboree, it would be well advised to respond to the potential risks, identified in the company's own annual report, of being linked to some of the most unethical and egregious abuse of worker rights in the world. Gymboree can respond to this risk by joining its competitors in doing the right thing and publicly opposing forced child labor in Uzbekistan, committing to tracing its global cotton supply chain and instructing suppliers to stop sourcing cotton from Uzbekistan until the government ceases mobilizing children to harvest cotton and join with other companies and industry associations that are working to ensure that worker rights are protected in the production of cotton.
You can encourage Gymboree to take these steps by signing Change.org's petition here. But don't stop there! You can also tell the company to speak out against forced, child labor in the cotton industry in Gymboree's online survey and post messages on Gymboree's Facebook wall and on Twitter (using @Gymboree in your tweet) telling the company to join efforts to stop forced, child labor in Uzbekistan's cotton industry.
Photo credit: GTD Aquitaine
Tim Newman is a campaigns assistant at the International Labor Rights Forum. He also works on the Stop Firestone campaign. Source: change.org
New Gymboree Executives Profit from Ignoring Child Labor | Change.org News
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