Inditex Secures Pact with Brazilian Authorities
In a significant development, the Galician fashion chain Zara has agreed to a Term of Conduct Adjustment (TAC) with the Brazilian Ministry of Labour. This new agreement aims to address work-related complaints concerning Zara in Brazil, particularly focusing on promoting human rights and improving work conditions.
The TAC includes several key measures. One of the most notable is the creation of an emergency fund to mediate in cases of labour precariousness. Additionally, Zara has committed to investing in social actions as part of the TAC, with an investment of 3.4 million reals (1.4 million euros) outlined in the agreement.
The new agreement also involves the formalization of sewing workshops and the hiring of personnel, further emphasising Zara's commitment to promoting human rights and improving work conditions. However, the exact nature of the social investments remains undisclosed.
It's worth noting that Inditex, Zara's parent company, has seen impressive growth recently. The company closed the first nine months of its fiscal year with a 10% growth, with group's sales amounting to 9.709 million euros. This growth was also reflected in Inditex's profit, which increased by 10% during the same period.
The TAC was initially declined by Zara last November, but negotiations resumed and a successful agreement was reached. The TAC is intended to rectify complaints about work conditions similar to those faced by Zara's suppliers' employees in Brazil.
Despite the agreement, the exact amount of compensation to solve the problems of the affected collective is not specified in the TAC. However, it was previously proposed that the compensation would be 20 million reals (8.1 million euros).
In conclusion, the signing of the TAC marks a significant step forward in Zara's efforts to improve work conditions in Brazil. While the exact nature of the social investments remains undisclosed, the commitment to promoting human rights and improving work conditions is clear. As negotiations continue, it will be interesting to see how these investments are implemented and what impact they will have on the lives of those working in the Brazilian fashion industry.
