stopsweatshops.org

I usually try to buy clothes made in first world country, by looking at the label (Milan, London, made in LA). I always assumed that the Western world had minimum wages, and other progressive standards that say, made in China didn't. I use this to justify the high cost of the goods, but my father informs that this is untrue and the expensive hand labor of ripping the jeans, sanding, etc. are done in places such as LA -- but are sweatshop conditions (by employing illegals, ignoring labor laws, etc.). Is this true? I have no doubt illegal immigrants are hired and conditions are substandard, but he indicated that usually these places hire children (under 16), pay below minimum wage and practice such things as not letting employs out for lunch. While I would poster that this sometimes happens, he indicates that this apparently is widespread and the places do get busted -- but sweatshops still pop up all over the place. I'm specifically talking about "Chip and Pepper" jeans. I'd also like to know about some of the so-called designer brands -- Dolce & Gabanna, Prada, Burberry. I have no doubt they are made in the country they say they are (it's illegal to state otherwise in the US), but am I being fooled into thinking that it's only marginally better than buying from China, Thailand and other notorious low labor standard countries?

NB I'm aware of the WSJ article indicating the move to Egypt and Eastern Europe for some designer-ware but in the US the label still indicates that it was made in said countries.