In a word: YES.
I haven't read the article you linked to, so I'm basing my opinion on prior knowledge about their business practices. You couldn't pay me to shop there.
The reason their prices are so low is because they're paying slave labor wages in third world countries. You know, where people work 14 hour days, 6 days a week and make pennies producing clothing Walmart sells for much less than their competitors can sell similar products.
Thing is, I think many people in first world countries, like the US and UK really do not want to work 14 hours a day, 6 days a week, in a very noisy factory with a machine that can easily poke holes in fingers, doing mind numbing repetitive piece-work, for minimum or piece-wage these days, sewing T-shirts or jeans or sneakers or something.
Just because some garments are expensive, doesn't necessarily mean that they're not made under such conditions, e.g. Ralph Lauren, Nike, GAP, Banana Republic, and pretty much most other designer brands. Sweat-shops can exist anywhere, even the USA, but using cheap migrant Mexican labour. Pay $5 for a Wal*Mart polo shirt,
made in China. Pay $50 for a Ralph Lauren polo shirt,
made in China.
AFAIK apparel production has always been a crap job, wherever it takes place. The actual business of mass producing clothing has not really changed much ever since it started. Basically large factories with thousands of busy hands and a lot of sewing machines. Very labour intensive and little in the way of modern technology.
BTW before I came to China, I often bought George at Asda(Wal*Mart) clothing because I thought it was good value, rather than paying a premium for some designer name. I still wear a couple of George shirts now, they seem to be well made and will last a few more years.
EDIT:-
You can still find
Made in USA clothing, but much of it does NOT come from huge multinational corporations like GAP, Wal*Mart, Ralph Lauren, Levi or Nike.
http://www.americansworking.com/clothing.html
Probably still made in sweat-shops though, by low-wage migrant foreign labour.