April, 2008
American Apparel
Share ownership:
American Apparel is a publicly traded company, having
completed a merger with Endeavor Acquisition Corp.
on December 12, 2007 (1). In
January 2008, American Apparel announced it would
be giving shares to employees.(2)
allegations
of sexual harassment and union busting...
Markets: American Apparel owns stores in the
USA, Canada, Mexico, UK, the Netherlands, Germany,
Belgium, France, Switzerland, Sweden, Spain, Israel,
Italy, Japan, Korea and Australia.
Activities:
American Apparel is a clothing and accessories
manufacturer, wholesaler, and retailer. It manufactures,
designs and distributes its own lines for men,
women children and dogs. It also retails vintage
eyewear, books and magazines.
Producers: American
Apparel states it 'uses a vertically integrated
business model which minimizes the use of sub-contractors
and offshore labor. Knitting, dyeing, sewing,
photography, marketing, distribution, and design
all happen in our facilities in Los Angeles' (3).
At the end of 2007, American Apparel employed
over 6,700 people and operated over 180 retail
stores in 13 countries(4).
'All of the 4,000 or so workers involved in American
Apparel's manufacturing process work in the same
factory in downtown Los Angeles. But this is not
because Mr Charney is opposed to outsourcing or
globalisation. His motive, once again, is self-interest:
it gives him control over every stage of production,
and enables him to monitor the fickle fashion
market and respond quickly to new trends. In any
case, he cannot outsource anything, he says, because
he lacks the necessary infrastructure-and he has
no plans to set it up.(5) '
Standards It was
not possible to find a code of conduct for American
Apparel. According to their website, American
Apparel workers earn more than the US minimum
wage, have job stability and full-time work(6).
Monitoring and verification
It was not possible to find information about
monitoring and verification on the American Apparel
website.
Reporting Some information
about workers' wages, benefits and worker profiles
can be found on the American Apparel website(7).
It was not possible to find a comprehensive report
about working conditions in garment manufacture
showing how the company met or didn't meet labour
standards.
Comments and questions
Disappointingly, American Apparel did not respond
to questions from the Clean Clothes Campaign.
Former employees have filed lawsuits for sexual
harassment against American Apparel CEO, Dov Charney(8).
Three suits were reported in January 2007 to have
been settled before going to trial(9).
One case was reported to be going to trial on
February 19th 2008(10).
Behindthelabel.org an online magazine funded
by UNITE HERE, reported union busting in the LA-based
factory in September 2003(11).
'The incident was reported to the National Labor
Relations Board for violations of Federal labor
laws, and a no fault settlement was eventually
reached with the NLRB. American Apparel now posts
in their production facility a document agreeing
not to conduct any anti-union activities. American
Apparel's union status has not been reported since.'
There is no trade union in the factory. 'A recruiting
drive three years ago by a garment workers' union
failed, thanks either to a lack of interest on
the part of the American Apparel workforce or
intimidation from the company, depending whose
version of recent history you choose to believe(12)'.
Notes: