American Apparel
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| American Apparel | |
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| Type | Private |
|---|---|
| Founded | Los Angeles, California |
| Headquarters | Los Angeles, California |
| Key people | Dov Charney, Senior Partner Marty Bailey, VP of Operations Nicolle Gabbay, Head of Retail Operations Patricia Honda, Customer Service Manager |
| Industry | Garments manufacturer |
| Products | Clothing |
| Revenue |  US$250 million (2005) |
| Employees | 4000 (2005) |
| Website | www.americanapparel.net |
American Apparel, LLC is a clothing company based out of Los Angeles, California. It has over 155 stores in 11 countries. Its claim to fame is sweatshop-free clothing made in Downtown Los Angeles, where it pays its employees an average of US$13 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, proper lighting and ventilation, and the most up-to-date equipment.
The company also strives towards environmental friendliness. Currently, over 20% of the cotton used by American Apparel is organic and the company recycles its fabric scraps. Over the next four years, the company plans to convert more than 80 per cent of its cotton consumption to sustainable cotton.[1] American Apparel has also installed a 146 kW solar electric system on the roof of its downtown Los Angeles factory. The system is expected to cut the company's electric bill by at least 20%.[2]
It is currently in the process of large retail growth, opening stores in the United States, Israel, Japan, Korea, Netherlands, Switzerland, Germany, Canada, the UK, France and Mexico.[3]
It was recently ranked 218th in Inc. Magazine's annual list of the 500 fastest growing companies in the country, with a 525% three-year growth and revenues in 2004 of over US$124 million.
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[edit] Criticism
[edit] Sexualized work environment
The source of most criticism for the company is their sexually charged advertising and unconventional corporate culture. American Apparel's CEO, Dov Charney, was also accused of a "hostile work environment" [4] by three female employees (two lawsuits have been dropped), and reportedly had oral sex performed on him by a female employee (who happened to also be a long time girlfriend) and masturbated with consent and at home during a two-month interview with Jane reporter Claudine Ko.[5] The company is criticized for its sexually charged advertisements, which feature suggestive photos taken in an amateur-pornographic style reminiscent of Calvin Klein's ad campaign in the 1990s, and been accused of focusing on personal style in its hiring practices for retail positions; similar to those of Abercrombie & Fitch.
[edit] Conflict with UNITE
Also, 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. It is worth noting that on another occasion, the workers staged a walk out when management switched the sewing procedure to one they felt would earn them less. Without a Union they were able to use their collective power to negotiate on their own terms. 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.[6]
It is further worth noting that by joining the Union, employees would receive very few benefits not already offered for free by American Apparel, but would be required to pay union dues of about $200/month.
In addition, UNITE does not have a "clean" record. According to knowmore.org, Sweatshops have been run in New York despite the workers being organized by UNITE , and in one, an 11 year old Chinese girl spent her last days of life working in a UNITE organized garment factory. It must be made clear however, that UNITE does not own or operate these factories, nor do the workers of the union, rather they exist and run for private profit like American Apparel.
[edit] Lawsuit against Clamor magazine
Clamor magazine, a Toledo, Ohio-based progressive media, has written a special section for its Fall 2006 issue critical of American Apparel's progressiveness and anti-sweatshop marketing rhetoric, which the magazine claims as false. American Apparel has threatened Clamor magazine with "legal action in light of such gross, blatant, negligent and irresponsible journalism."[7] To date, no lawsuit is forthcoming. Despite the existence of a number of articles critical of American Apparel, the company has yet to take any legal action.
[edit] References
- ^ Josh Sims, "Organic Consumers Association" (July 6, 2006). Look Good, Save the Earth.
- ^ RenewableEnergyaccess.com (January 27, 2006). Downtown L.A. Clothing Company Goes Solar
- ^ The Corporation, Business Week (June 27, 2005). Living on the Edge at American Apparel.
- ^ Josh Dean. Inc. (September 2005). Dov Charney, Like It or Not.
- ^ Claudine Ko, "Meet Your New Boss" JANE (June-July 2004), 136-141.
- ^ Stephen Wishart. Behindthelabel.org (January 2005). The Truth Behind American Apparel: Sweatshop free or Union buster?.
- ^ AdBusters (August 23, 2006). Clamor Mag vs. American Apparel. An electronic version of the Clamor Magazine article, in PDF format, is available for download at the AdBusters site. Clamor magazine's website is at www.clamormagazine.org
[edit] External links
