“The truth behind your clothing’s ‘made in Guatemala’ label”, 21 October 2025

…Independent inspectors are hamstrung by factory bosses, according to government officials. Trade unions are few and attempts to organize are met with threats, firings and, in some cases, violence, the workers said.

What does emerge from these factories is box after box of garments overwhelmingly destined for the US: clothes for some of the biggest brands in North America, such as Carhartt, Target and Ralph Lauren, among others.

After decades of nearshoring policies pursued by successive US administrations, Guatemala has become an integrated hub for cheap apparel – and some of the consequences for the local workforce have been brutal.

A months-long investigation by CNN gathered dozens of testimonies of workplace abuse. Workers spoke of public dressing-downs and threats to fire staff unable to fulfill impossible quotas, wage theft and sexual harassment.

Some maquila workers told CNN they were given daily quotas of thousands of apparel items, and made to stand for up to 15 hours a day, while earning a minimum wage of less than $500 a month.

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Others described deplorable working conditions: “The (drinking) water was dirty. Sometimes it even had soap or cockroaches in it,” said Merida Jacinto.

But dissent is not an option for the vast majority of maquila workers. Of the more than 850 textile maquilas in Guatemala, only 76 allow a workers’ union, Labor Minister Miriam Roquel told CNN. That’s about 9% of factories.

…The t-shirts, skirts and more that she made at the factory – owned by Korean company KOA Modas – were supplied to US retailer Target and sold abroad. Throughout her employment Cano was never under contract with Target, who – as a third-party client – was not responsible for her layoff. Target used an intermediary to purchase garments from KOA Modas, a spokesperson told CNN.

…In this intricate supply chain, US brands do not have formal relationships with most of the Guatemalan workers who manufacture garments on their behalf, nor are they legally responsible for the working conditions inside the maquilas.

According to a company fact sheet, big US brand Ralph Lauren purchases from 17 facilities across Guatemala, some of which are owned by Korean companies. Ralph Lauren did not immediately respond to CNN’s requests for comment on its supplier relationships.

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Mother-of-three Cano had been looking forward to retiring one day and spending more time with her family. But in February, that future was upended when Cano’s factory declared bankruptcy. Labor inspectors told her the factory’s ownership had left millions of dollars in outstanding payments to the Guatemalan welfare agency. Cano’s pension was gone.

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A spokesperson for Target told CNN suppliers are required to comply with lawful, safe and respectful working conditions and that the company decided to end the relationship with KOA Modas because the factory did not comply with its standards.

CNN reached out to KOA Modas for comment, but did not receive a response at time of publishing.

After the factory closed, Cano joined litigation involving Sae-A Trading, another Korean company which used to purchase KOA Modas’s apparel on Target’s behalf and, after a lengthy legal battle, pledged to fulfill the vast majority of severance payments.

While Sae-A Trading has no legal responsibility for the workers, it agreed to make a “humanitarian contribution” to those affected by the closure, it said in a resolution document. Its contribution of $3.3million is “considered a loan,” it added.

Such severances are “by far the largest single sum of money most of these families will ever see in their lives,” Scott Nova, executive director at the Worker Rights Consortium, a US-based organization that investigates the garment industry, told CNN.

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When CNN last spoke with Cano in late September, she was still waiting to be paid under the settlement with Sae-A Trading. “I need that money,” she told CNN, adding “at my age I’m struggling to get work – the only thing I could do is cleaning houses but that is very tiring.”

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For other maquila workers, simply joining their factory’s trade union – if it even exists – can be met with trepidation.

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In the months leading up to Caal’s death, obscenity-ridden threats appeared on the walls of workers’ toilets, which CNN has seen photos of. “Unionists, son of b****es, resign or we will lynch you,” read one, with the stylized image of a revolver mimicking a signature. “Unionist b**ch, go to sh*t don’t mess with the factory, be grateful it’s given you to eat for many years,” read another.

While the US Department of Labor implied Caal’s murder was linked to his union activity, Olivares wasn’t so certain. However, she added, the threats made her seriously question whether to run as his successor: “For months, I was genuinely scared to walk to work,” she said. Olivares told CNN that the company blamed the union – which had campaigned for reduced working hours and clean drinking water being made available between shifts – for a contraction in trade. The resulting hostility from other workers toward union members made her feel unsafe.

A spokesperson for Texpia II confirmed that threatening graffiti appeared between May and June last year but stressed that factory’s management took actions to condemn the threats and support union activities.

Any form of verbal abuse or personal harassment is not tolerated at Texpia II, the spokesperson said.

Elsewhere, VESTEX, the civil association representing the textile export industry in Guatemala, said in a statement to CNN that the group’s Code of Conduct strictly bans verbal and physical abuse, including corporal punishment, coercion and sexual harassment.

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Inside factories, the balance of power between the male-dominated management and the mostly female workers can lead to another disturbing problem.

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Instead of quitting, Alexandra decided to join a workers’ union. The group relayed the abuse to the Guatemalan Ministry of Labor. But when labor inspectors were sent to the factory earlier this year, the company’s management refused to meet with them, video seen by CNN shows.

The following week, all the members of the union were laid off.

In the months since, the Ministry of Labor has continued to engage with the company, with no results.

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Alexandra’s factory did not respond to a detailed list of questions from CNN. However, the textile factories trade association VESTEX, told CNN in a statement that the group works hand in hand with the labor inspectorate to make sure regulations are respected.