Famed garment factory paying a living wage struggles to stay afloat

Workers were furloughed without pay amid the pandemic at the Dominican garment factory, the only one in the developing world that pays a living wage

When Alta Gracia launched in 2010 it was hailed as an experiment to show the world that garment factory workers in the developing world could aspire to a living wage and that their labor rights could be respected. But in order to survive the company, which sells T-shirts and sweatshirts made in the Dominican Republic to US college students, also needs to make a profit. And then came Covid-19.

Nine months after the pandemic hit, Alta Gracia workers were furloughed without pay and the US based company is struggling to stay afloat. This is not the first time the company has struggled and its failure to keep its head above water over a decade led some to question whether a clothing business can pay a decent wage and still be profitable.