Demo mars Banana opening

The opening of an American fashion giant's first UK store was today marred by a demonstration over wages paid to Indian workers.

Banana Republic's three-storey shop, occupying 1,580 square metres in Regent Street, has been eagerly awaited. The chain, owned by Gap, has had huge success inAmerica and Japan and it plans to open another four shops in Britain as part of its expansion into Europe.

Today a small group of demonstrators from the charity War on Want, which campaigns against poverty in developing countries, targeted the store.

One of the demonstrators, Paul Collins, said: "Workers in Delhi are making Banana Republic clothes for as little as 15p an hour, about £42 a month.

"That is well under a living wage in India and they are working at least 70 hours a week. We think it is pretty outrageous the way the workers are treated and then you have stores like this making massive profits."

Banana Republic, which is more expensive than Gap and is aimed at middlemarket shoppers who currently buy their clothes in stores such as Zara, had a turnover of more than £1.25billion from its 500 stores last year.

Allegations in the Guardian today claimed that workers at a factory producing Banana Republic clothes near Delhi were abused if they complained about their pay and conditions and could be docked money for petty disputes.

John Hilary, campaigns director, said: "It reveals the high price workers in developing countries pay for our fashion. Time and again we have seen examples like this exposed while retailers fail to ensure decent pay and conditions." Banana Republic said it would investigate the claims but added that the factories around the world, which it did not own, were checked regularly to ensure suppliers complied with the company's ethical code.

Dan Henkle, Gap's senior vice-president of social responsibility, said the company condemned unfair working conditions and would "terminate" any factories found breaking regulations.

He added: "We have launched an immediate investigation into the allegations... we are looking at the factories in that area, where production on our clothing is done, factories which also do work for a number of other retailers, and plan to take appropriate action."