Brazil's Labour Ministry reported that a supplier for Spanish clothing transnational Zara had subjected workers to slave-like working conditions.
A ministry spokeswoman said that in July its inspectors found 16 undocumented Bolivian workers working long hours in unhealthy conditions in two facilities in Sao Paulo for less than $1.40 per completed commodity.
The workhouses had been outsourced by the supplier to produce clothing for Zara's 30 outlets in Brazil.
Zara is owned by the world's largest clothing retailer Inditex SA, which was run until last month by Amancio Ortega - Spain's richest man and the seventh richest in the world.
The spokeswoman asked not to be identified because she was not authorised to comment on the case. She did not provide further details.
Inditex said in a statement that the case involved the "unauthorised outsourcing by a Brazilian supplier" and that the company would work with the Labour Ministry to make sure "cases like his are not repeated."
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