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On May 1, 2006, American Apparel shut down its factory to allow the company's workers, many of whom are immigrants, to participate in a pro-immigration rally in downtown Los Angeles.<ref name=mayday/> Dov Charney also marched with the workers.<ref name=mayday>{{cite news |author=Claire Hoffman |title=The May Day Marches |publisher=] |pages=1 |page=A11 |date=] |accessdate=2007-12-21 |language=English |quote="The iconoclastic chief executive of American Apparel Inc. not only gave 3,300 of his employees the day off, but he also supplied them with T-shirts emblazoned with a pro-immigration message," "By noon, Charney had left the factory and joined his workers and their families, who had arranged to march together on Broadway," "American Apparel, with about 130 stores around the world, has a history of supporting May Day marches: In past years, employees were given half the day off and bused to protests. On May 1, 2006, American Apparel shut down its factory to allow the company's workers, many of whom are immigrants, to participate in a pro-immigration rally in downtown Los Angeles.<ref name=mayday/> Dov Charney also marched with the workers.<ref name=mayday>{{cite news |author=Claire Hoffman |title=The May Day Marches |publisher=] |pages=1 |page=A11 |date=] |accessdate=2007-12-21 |language=English |quote="The iconoclastic chief executive of American Apparel Inc. not only gave 3,300 of his employees the day off, but he also supplied them with T-shirts emblazoned with a pro-immigration message," "By noon, Charney had left the factory and joined his workers and their families, who had arranged to march together on Broadway," "American Apparel, with about 130 stores around the world, has a history of supporting May Day marches: In past years, employees were given half the day off and bused to protests.


But this year, given the political significance, Charney said, he decided he would shut down production completely -- news that was met with cheers from workers."}}</ref> In December, 2007, American Apparel ran an advertisement in the ] supporting the integration of undocumented workers into the American workforce.<ref> </ref> In an interview with ], Charney likened his company's position to the decision of Levi Strauss to desegregate their factories during the civil rights movement, saying "Why did Levi's do it? Probably because it was the right thing to do at the time. And they became known as a company that represented what America was all about. What Levi's was to San Francisco, we aspire to be to Los Angeles."<ref> Womens Wear Daily, 12/28/2007</ref> But this year, given the political significance, Charney said, he decided he would shut down production completely -- news that was met with cheers from workers."}}</ref> In December, 2007, American Apparel ran an advertisement in the ] supporting the integration of undocumented workers into the American workforce.<ref> </ref> In an interview with ], Charney likened his company's position to the decision of Levi Strauss to desegregate their factories during the civil rights movement, saying "Why did Levi's do it? Probably because it was the right thing to do at the time. And they became known as a company that represented what America was all about. What Levi's was to San Francisco, we aspire to be to Los Angeles."<ref> Womens Wear Daily, 12/28/2007</ref>


==References== ==References==

Revision as of 22:56, 4 January 2008

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American Apparel
Company logo
Company logo
Company typePublicly Traded Company
IndustryGarments manufacturer
FoundedLos Angeles, California
HeadquartersLos Angeles, California
Key peopleDov Charney, CEO
Marty Bailey, COO
Ken Cieply, CFO
Nicolle Gabbay, Head of Retail Operations
Patricia Honda, Customer Service Manager
ProductsClothing
RevenueIncrease US$284 million (2006)
Number of employees6700 (2007)
Websitewww.americanapparel.com.au Edit this on Wikidata

American Apparel, LLC is the largest T-shirt manufacturer, and operates the largest garment factory, in the United States

Production

Shopper at an American Apparel store, Los Angeles, California

American Apparel is a vertically-integrated clothing manufacturer, wholesaler, and retailer that also performs its own manufacturing, design, and distribution. It is best-known for making basic cotton knitwear such as t-shirts and underwear, but in recent years has expanded to include tank tops, dresses, pants, denim and accessories for men, women, children, babies and dogs. American Apparel's most popular shirt, the 2001 Fine Jersey Short Sleeve T-Shirt, is popular among screenprinters, especially those catering to the music industry.

Manufacturing is based in an 800,000 square foot factory in downtown Los Angeles, California. By integrating all aspects of production and avoiding outsourcing, the company achieves a fast turn-around time from design concept to finished product.

Growth

As of 2007 the company is in the process of rapid retail growth, opening stores in the United States, Israel, Japan, Korea, Netherlands, Switzerland, Germany, Canada, the UK, France, Sweden and Mexico, and planning others in Australia, Belgium, Italy, and Spain. It was ranked 308th in Inc. Magazine's 2005 list of the 500 fastest growing companies in the country, with a 440% three-year growth and revenues in 2005 of over US$ 211 million.

In late 2006 American Apparel announced a reverse merger, an exotic financial transaction that would allow it to go public without the scrutiny that attends public offerings. The transaction, still pending as of November, 2007, would merge the company with a Endeavor Acquisition Corporation, a "public shell" company that went bankrupt and ceased operations in 2001, and was subsequently recapitalized as an investment to acquire other companies.

Corporate citizenship

Labor practices

American Apparel's main factory and headquarters in Los Angeles

As of 2007 the company employs more than 6,700 people and operates over 175 retail locations in 13 countries. The company pays its employees an average of US$12 per hour Employees also receive benefits such as paid time off, healthcare, company-subsidized lunches, bus passes, free ESL classes, on-site masseurs, free bicycles and on-site bike mechanics, free parking, and proper lighting and ventilation.. Management style promotes accessibility of upper executives, including the CEO, to all employees.

Environmental policies

The company promotes environmentally friendly practices. As of 2007 the company planned to increase its use of organic cotton within the next four years from over 20% to 80%. The company also recycles its fabric scraps. It installed a 146 kilowatt solar electric system on its factory roof, designed to reduce power costs by at least 20%.

Criticism of Advertising and Work Environment

The company has been criticized for sexually charged advertising and unconventional corporate culture. American Apparel's CEO, Dov Charney, was also accused of a "hostile work environment" by three female employees, and reportedly had oral sex performed on him by female employees. Charney claimed to have slept with employees, and reportedly masturbated numerous times during a series of interviews with a writer for Jane (magazine). American Apparel has also been accused of focusing on personal style and outward appearance in its hiring practices for retail positions.

Conflict with UNITE

Behindthelabel.org, an online magazine funded by UNITE HERE, reported union busting in the LA-based factory in September 2003. It is reported that the workers wanted to form a union to address issues concerning no paid time off, lack of affordable healthcare, production methods, and poor treatment by supervisors. However, as soon as organizing efforts began, the American Apparel employees countered with an anti-union rally. 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.

Pro-Immigration Stance

On May 1, 2006, American Apparel shut down its factory to allow the company's workers, many of whom are immigrants, to participate in a pro-immigration rally in downtown Los Angeles. Dov Charney also marched with the workers. In December, 2007, American Apparel ran an advertisement in the New York Times supporting the integration of undocumented workers into the American workforce. In an interview with Womens Wear Daily, Charney likened his company's position to the decision of Levi Strauss to desegregate their factories during the civil rights movement, saying "Why did Levi's do it? Probably because it was the right thing to do at the time. And they became known as a company that represented what America was all about. What Levi's was to San Francisco, we aspire to be to Los Angeles."

References

  1. ^ New York Post - T-Shirts, As Far As the Eye Can See - Maxine Shen - March 24, 2004
  2. ^ "Segment of Modern Marvels: Cotton". The History Channel via AmericanApparel.com. Retrieved 2007-11-25.
  3. Jamie Wolf (2006-04-23). "And You Thought Abercrombie & Fitch Was Pushing It?". New York Times Magazine. Retrieved 2007-11-25. {{cite web}}: Check date values in: |date= (help)
  4. "Inc. No. 308:American Apparel". inc.com. 2006-08-01. Retrieved 2007-11-25. {{cite web}}: Check date values in: |date= (help)
  5. "American Apparel's unusual flotation is typical of Dov Charney, its founder". The Economist via AmericanApparel.com. 2007-01-04. Retrieved 2007-11-25. {{cite web}}: Check date values in: |date= (help)
  6. Linda Baker (2004-02-11). "Made in the U.S. of A.?". Salon.com. Retrieved 2007-11-25. {{cite web}}: Check date values in: |date= (help)
  7. PSFK - Piers Fawkes - October 4, 2007 "Why Build Sustainability Into Your Business?".
  8. Josh Sims, "Organic Consumers Association" (July 6, 2006). Look Good, Save the Earth.
  9. RenewableEnergyaccess.com (January 27, 2006).Downtown L.A. Clothing Company Goes Solar
  10. Newsweek - Jennifer Ordoñez - June 26, 2006"California Hustlin'"
  11. Josh Dean. Inc. (September 2005). Dov Charney, Like It or Not.
  12. Claudine Ko, "Meet Your New Boss" JANE (June-July 2004), 136-141.
  13. Jamie Huff (2006). "Sweatshop Free but Still Exploitative:Sexual Harassment at American Apparel". Chrestomathy: Annual Review of Undergraduate Research, School of Humanities and Social Sciences, School of Languages, Cultures, and World Affairs, College of Charleston. 5: 153–67. {{cite journal}}: |format= requires |url= (help); Check date values in: |year= (help); line feed character in |journal= at position 80 (help)CS1 maint: year (link)
  14. ^ Ari Paul (2005-08-04). "Wolf in Sheeps Clothing". In These Times. Retrieved 2007-12-19. {{cite web}}: Check date values in: |date= (help)
  15. ^ Jim Straub (Fall 2006). "American Apparel Exposed". Clamor Magazine. Retrieved 2007-12-20. {{cite web}}: Check date values in: |date= (help)
  16. Stephen Wishart. Behindthelabel.org (January 2005). The Truth Behind American Apparel: Sweatshop free or Union buster?
  17. ^ Claire Hoffman (2006-05-02). "The May Day Marches". Los Angeles Times. p. A11. The iconoclastic chief executive of American Apparel Inc. not only gave 3,300 of his employees the day off, but he also supplied them with T-shirts emblazoned with a pro-immigration message," "By noon, Charney had left the factory and joined his workers and their families, who had arranged to march together on Broadway," "American Apparel, with about 130 stores around the world, has a history of supporting May Day marches: In past years, employees were given half the day off and bused to protests. But this year, given the political significance, Charney said, he decided he would shut down production completely -- news that was met with cheers from workers. {{cite news}}: |access-date= requires |url= (help); Check date values in: |date= (help); More than one of |pages= and |page= specified (help); line feed character in |quote= at position 504 (help)
  18. American Apparel New York Times Ad, 12/21/2007
  19. Memo Pad: Doing the Right Thing Womens Wear Daily, 12/28/2007

External links

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