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BUSINESS NEWS ARCHIVE 2007
 
 
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  Business News Archive 2007 -> Child labour in Delhi forces 'Gap' to withdraw clothes  
 
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CASE STUDIES

Pharma Families: The Kenyan Asian Story (05/04)

The Man from the Priory - Dr Chai Patel (04/04)

Karan Bilimoria - Bottled for Business (02/07)

Lakshmi Mittal's Ring of Steel (01/04)

Mayank Patel - Currencies Direct (01/07)

Mike Jatania - Lornamead Group (01/07)


2007 ARTICLES

Vikram Pandit named Citigroup CEO (12/07)

British consumers victims of credit card fraud in India

Vodafone to outsource jobs to India (12/07)

Scottish Asian Business Awards 2007 (12/07)

Asian Businesses key to London's Economy (12/07)

Tata wins key union backing in Jaguar, Land Rover sale

Going global, Indian firms create jobs in US (11/07)

Hindujas on billion pound spending spree in UK

Jagriti Yatra 2007 searchs for India's real heroes

Vijay Mallya foraying into luxury retail segment

The Indus Nano-Tech Association launched

Entrepreneur Reuben Singh declared bankrupt (11/07)

Killer fire at Asian-owned warehouse (11/07)

Microsoft signs $500-mn IPTV deal with Reliance

National mission to make India a global nano hub

Jet Airways targets $3 billion revenue in 3 years

Hindujas to expand hospital business (10/07)

Indian stock markets break all records (10/07)

Cisco to triple headcount to 10,000 in India (10/07)

Child labour in Delhi forces 'Gap' to withdraw clothes

Cobra Beer bets high on India (10/07)

British NHS patients favour India for treatment (10/07)

Mukesh Ambani soon to join world's 10 richest (10/07)

Indian handicrafts: weaving their way to slow death?

India to set up centralised drug licensing authority

'BPOs no longer career choice for Indian youths'

GVK launches centre for US Pharms Giant, Wyeth

India to tap funds in Britain for infrastructure (09/07)

India not easy to do business in: World Bank

Don't fret about Wal-Mart: Lord Swaraj Paul (09/07)

Vijay Mallya wants India racing on F1 tracks (09/07)

India most acquisitive of emerging economies

Globalisation is two-way traffic: Azim Premji (09/07)

Indo-British bilateral trade up 30 percent (09/07)

Hero Group buys Scotland's top call centre operator

Indian Ruling against Novartis a victory (08/07)

Founders quit as Goldshield settles NHS claim (06/07)

Ethnic Minority Business Task Force Launched

Female wealth creation driven by business success.

Barclays launches retail banking in India (05/07)

Sanjeev Shah to head Fidelity's Fund (05/07)

Indian Nano-Tech business starts in the UK (05/07)

Punjab National Bank launches in the UK (05/07)

Asian Business Awards 2007 (05/07)

Indian Biotech sector to be $5 bn industry by 2010

A business school for India's rural women (05/07)

UK customers unhappy with Indian call centres (05/07)

Uganda woos Indian investors, says Indians safe

Reliance Money enters gold retailing business (05/07)

Mayor rejects UK Post Office privatisation (04/07)

Vedanta buys Sesa, India's largest iron ore producer

Infosys targets $4 billion revenue in 2008 (04/07)

Jet buys Sahara for Rs.14.5 billion ($336 million)

GSK signs outsourcing deal with Indian Firm (03/07)

India's biotech industry emerging as world innovator

Patak's up for sale at £200 million (03/07)

Cobra Beer to set up two breweries in India (03/07)

Lloyds TSB launches Muslim Business Bank Account

Dr Reddy's eyes generics arm of Merck (02/07)

UK retailer Argos set to enter India (02/07)

Bharti & Wal-Mart close to a Cash-&-Carry deal (02/07)

Vijay Mallya to buy Whyte & Mackay (02/07)

Vodafone acquires Hutch Essar in India (02/07)

1000 strong network of women entrepreneurs

64% of Business retirees have no exit plan (02/07)

Small firms to get I.P health checks (02/07)

Indian entrepreneurs riding wave of innovation (02/07)

India's Global Services Economy (01/07)

First Asian Woman CEO of a FTSE Company (01/07)

Tata finally acquires Corus at 6.08p/share (01/07)

Gita Patel's Trapezia Fund hits £4.5M target (01/07)

Bank for India's Rural Women: 10th anniversary


ARCHIVED ARTICLES

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CHILD LABOUR FORCES 'GAP' TO WITHDRAW CLOTHES
By Prasun Sonwalkar, London, October 28, 2007(IANS)

GAP logoBritish fashion major Gap Sunday announced that it had withdrawn from sale children's clothes that were reportedly produced using forced child labour in Shahpur Jat area of New Delhi. The announcement by the prominent fashion and clothes company was made following reports in the British press about miserable conditions in which goods were produced in low-cost Indian factories.

Dan Henkle, a spokesman for Gap, said Sunday: "We were made aware earlier this week that a reporter had found an incident of children working in a factory that was producing for one of our brands, and this is completely unacceptable to us. "We have a strict prohibition on child labour, and we are taking this very seriously. This is very upsetting and we intend to investigate thoroughly." He added that the company was calling an emergency meeting with its suppliers in India and other countries in Asia.

In a report from New Delhi, The Observer reported Sunday that child workers, some as young as 10, were found working in a textile factory in conditions close to slavery to produce clothes for Gap Kids, one of the most successful arms of Gap. Speaking to The Observer correspondent, the children reportedly described long hours of unwaged work, as well as threats and beatings. Gap will be withdrawing tens of thousands of embroidered blouses from the market, before they reach the stores.

The paper reported that the hand-stitched tops, which would have been sold for about £20, were destined for shelves in America and Europe in the next seven days in time to be sold to Christmas shoppers.

A 10-year-old boy was filmed making clothes for Gap shops in the US and Europe as part of an investigation by Britain's Observer newspaper. The boy told the paper he had been sold to a factory owner by his family. The boy said he had been working for four months without pay and would not be allowed to leave the job until the fee his family had received was repaid. Another boy of 12 said children were beaten if bosses thought they were not working hard enough, the paper reported.

The paper quoted Sheotaj Singh, co-founder of the Dayanand Shilpa Vidyalaya, a Delhi-based rehabilitation centre and school for rescued child workers, as saying that he believed that as long as cut-price embroidered goods were sold in stores across Britain, America, continental Europe and elsewhere in the West, there would be a problem with unscrupulous subcontractors using children.

Singh said: "It is obvious what the attraction is here for Western conglomerates. The key thing India has to offer the global economy is some of the world's cheapest labour, and this is the saddest thing of all the horrors that arise from Delhi's 15,000 inadequately regulated garment factories, some of which are among the worst sweatshops ever to taint the human conscience.

"Consumers in the West should not only be demanding answers from retailers as to how goods are produced but looking deep within themselves at how they spend their money."

Gap summons suppliers to stop child labour
By Arun Kumar, Washington, Oct 29 (IANS)

American clothing chain Gap is calling an urgent meeting with its suppliers in the region to prevent child labour after withdrawing clothes allegedly made using child labour in an Indian factory. "We strictly prohibit the use of child labour. This is a non-negotiable for us - and we are deeply concerned and upset by this allegation," Marka Hansen, president of Gap North America said in a statement issued in San Francisco.

Referring to a British media report on the use of child labour in India, the company said it was informed earlier this week about an allegation of child labour at an unauthorised facility in India that was working on a single product for GapKids. An investigation was immediately launched, the company said, claiming that a very small portion of a particular order placed with one of its vendors was apparently subcontracted to an unauthorised agency without the company's knowledge or approval.

Describing this as a direct violation of the company's agreement with the vendor under its Code of Vendor Conduct, Hansen said: "As we've demonstrated in the past, Gap has a history of addressing challenges like this head-on, and our approach to this situation will be no exception."

"In 2006, Gap Inc. ceased business with 23 factories due to code violations. We have 90 people located around the world whose job is to ensure compliance with our Code of Vendor Conduct.

"As soon as we were alerted to this situation, we stopped the work order and prevented the product from being sold in stores. While violations of our strict prohibition on child labour in factories that produce product for the company are extremely rare, we have called an urgent meeting with our suppliers in the region to reinforce our policies.

"Gap Inc. has one of the industry's most comprehensive programmes in place to fight for workers' rights overseas. We will continue to work with the government, NGOs, trade unions, and other stakeholder organisations in an effort to end the use of child labour," the statement said.

Gap, which operates more than 3,100 stores in the United States, Britain, Canada, France, Ireland and Japan, did $15.9 billion in sales in 2006.

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