Target knew for decades that the women who sewed its clothes at KOA Modas factory in Guatemala were having their wages and social security stolen. Yet Target never stopped buying from the factory, or intervened to stop the massive social security and pension theft scheme that carried on until the factory closed last February. According to an independent investigation, the factory deducted workers’ social security contributions but then failed to transfer those funds to Guatemala’s social security system, or to make its own legally required contributions. As a result, workers spent decades sewing Target-branded clothing at KOA Modas only to learn that they won’t be able to receive their pensions.

The factory, and its largest buyer Target, now owe nearly $6 million in unpaid social security contributions and associated fines. You can read more about this case in our previous blog here.

The letter, which was sent to Target CEO Michael Fiddelke on October 5, 2026, reads as follows:

Dear Mr. Fiddelke,

On behalf of labor, women’s rights, and other human rights organizations, we write to express our deep concerns over the theft of social security and pension contributions at Target 

Corporation’s supplier KOA Modas, a factory in Guatemala where mostly women workers produced Target clothing for decades until the time of its closure in February 2025.

According to the Worker Rights Consortium’s investigation, the factory deducted workers’ social security contributions but then failed to transfer those funds to Guatemala’s social security system, or to make its own legally required contributions. As a result, workers spent decades sewing Target-branded clothing at KOA Modas only to learn that they won’t be able to receive their pensions or healthcare. For example, one woman who worked for 23 years at the factory was only credited with 8 years of contributions. As of October 2024, KOA Modas owes nearly $6 million in unpaid social security contributions and associated fines.

We understand that Target has been aware of these violations since 2013, and that workers raised the issue repeatedly since then. Despite this, Target failed to take appropriate action, as required by its own Business Partner Code of Conduct and Standards of Vendor Engagement to remedy these clear violations of human rights. 

While we are very disappointed by the years of continued inaction, it is not too late for Target to correct its course. Will Target ensure the workers who sewed your clothes are able to retire in security, not poverty?

We request a public response from Target. 

Sincerely, 

Catalyst Miami
Centre for Research on Multinational Corporations (SOMO)
Clean Clothes Campaign International Office
Corporate Accountability Lab
Green America
Greenpeace USA
Interfaith Center on Corporate Responsibility
Just Ground
Labour Behind the Label
Maquila Solidarity Network
National Organization for Women (NOW)
No Sweat
ORALE: Organizing Rooted in Abolition, Liberation, and Empowerment
Partners for Dignity & Rights
PODER (Project on Organizing, Development, Education and Research)
Private Equity Stakeholder Project
Students for International Labor Solidarity
WeCount!
Women’s March
Worker-driven Social Responsibility Network
Workers United-SEIU