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What Does AA Do for Its Workers?
To ensure the company's success and stability, American Apparel sees all of its employees as long-term investments.
We care about their health and well being. Therefore, the company provides the following benefits to its employees as
a matter of policy.
These benefits also ensure the quality of our garments and the efficiency of our production. We believe that the nature of the work environment has a direct impact on the caliber of the work. Unlike the majority of the apparel industry currently pursuing a program of offshore or local subcontracting, American Apparel has implemented a groundbreaking system of internalization, manufacturing and marketing all its apparel under one roof. This program of vertical integration, along with a commitment to art, design and technology, has propelled American Apparel's growth, making it one of the most efficient garment companies in the world. This is ultimately a testament to the fact that exploitative labor tactics are counterproductive. At American Apparel, we believe that providing employees with decent working conditions in a technology-driven environment allows the company to attain the highest levels of efficiency. This structure of efficiency ensures American Apparel's competitive edge in the open global market. a) Wages
American Apparel is committed to paying fair wages to its workers. Our workers are considered to be some of the highest-paid
apparel employees in the country. We strictly adhere to all California wage and hour laws. We pay overtime after eight
hours of work per day. Workers rarely work over eight to 10 hours per day. We offer two daily 15-minute breaks and half an hour
for lunch. Our average employee on the sewing floor earns over $12.50/hour, which is more than double the U.S. federal
minimum wage. Experienced garment sewers earn more than $9/hour and can make as much as $18/hr. There are some peripheral
positions (non-sewing) within the company where workers earn as little as $8/hour; however, we are continuously raising the
lowest-tier pay as the company expands, and worker wages are steadily increasing.
b) Job Security
Our goal is to offer full-time and lifetime employment. Traditionally, the garment industry has suffered from severe seasonal
adjustments to the work schedule. Within the garment industry there are tales of overwork and tales of under-work. At American
Apparel, we have made great efforts to balance the work schedule year-round. Although there are seasonal changes that can affect
the number of hours worked per week, all of our garment workers are able to work approximately 2000 hours per year, allowing them
to receive the benefits of full time employment. American Apparel has generally offered bonuses to employees during slow periods.
However, in 2003, this was not necessary because the company did not suffer from the common October/November slowdown experienced
by most factories; nor were any workers laid off.
c) Human Resources
The Human Resources department at American Apparel provides information to employees about all existing company, county, state and
federal benefits. We go over workers' questions about their paychecks, which often does not happen in other garment factories where
workers are afraid to question their compensation. We help workers enroll for the federal Earned Income Credit (EIC), which can often
increase their take-home pay by $80 per week.
d) Health Care for Employees and Their Families
Our workers have access to company-subsidized health insurance for $8 per week. This same benefit is available to spouses
as well. Health insurance for each child is between $1-$3 per child, per week.
e) Natural Light
American Apparel's garment workers have proper lighting above their sewing machines in addition to abundant natural light. American
Apparel has one of the best-lit garment factories in Los Angeles.
f) Direct Deposit
Most garment workers in Los Angeles use check-cashing companies to deposit their weekly paychecks, costing each worker 1 percent to 2 percent of their
paycheck. American Apparel employees collectively spend over $150,000 annually on check cashing. We are currently collaborating with
Wells Fargo to provide each worker with a bank card and/or free checking account. American Apparel is the only garment factory among
the thousands in Los Angeles that offers this kind of service. This also includes Visa Check/ATM cards, significant because workers
are then able to use the card to send and spend money abroad. Western Union and American Express often overcharge for
simple transfers to Mexico or Central America. Not only do employees no longer have to cash checks, but they also save on wire transfer costs.
g) ESL - English as a Second Language
In collaboration with the Los Angeles Unified School District, we offer free English classes to our workers.
h) Massage/Health and Wellness
We have five certified massage therapists who work exclusively with our factory workers, free of charge. We have also hired an occupational
health and wellness specialist who is available to council workers.
i) Parking
We offer free parking in front of our facility.
j) Public Transportation
We subsidize bus passes upon request for all American Apparel employees.
k) Machines and Systems
We provide our garment workers with the most sophisticated cutting and sewing equipment on the market. We are constantly researching new
manufacturing techniques and are thus able to increase output and provide our workers with better take-home pay.
l) Heating and Ventilation
We recently installed heating and cooling equipment in our general sewing area. We have continued measures to better control the temperature
in our manufacturing spaces.
m) Bathroom and Telephone Breaks
During working hours, employees are allowed to go to the bathroom whenever they want and can receive brief cell phone calls or use the company
telephones, which are free of charge, for quick personal calls.
n) Paid Days Off
American Apparel offers its employees paid days off. We have devised a system based on the number of years an employee has worked, making
workers eligible for between five-15 paid personal days off per year.
o) Bicycle Program
During the MTA strike, American Apparel introduced a bicycle-lending program. These bicycles receive monthly maintenance and are available to
any worker upon request, along with a lock and helmet.
p) Employment Training Program
This government-subsidized program offers each worker eight paid hours of training to improve job and management skills.
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