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American Garments is a business that’s gotten a lot of flak for its lewd advertising campaign, lack of transparency, and its questionable CEO Dov Charney, who got a number of worker grievances against him for sexual harassment, to name a few things. However for when, I am likely to take Dov Charney’s side on his stance relating to failing labor practices that led to the destructive manufacturing facility collapse in Bangladesh in April, which killed more than 1,000 people.
In a podcast with VICE Publication, Charney ranted about H&M’s cheap fashion prices,
Charney tore into the store for its unwillingness to pay employees overseas the same earnings it pays within its home nation, calling for the company to match the Swedish wage in its production areas abroad. Mentioning an H&M advertisement that advertised a $4.99 bikini, Charney said that it’s impossible to sell bikinis for that cost unless someone is getting pressed. He stated that such a product can not exist unless the company is ‘screwing somebody.’
“H&M is a $22 billion corporation – they have accumulated a huge amount of wide range. They don’t have to have their hands unclean to the level that they do,’ stated Charney.
As numerous problems as American Garments has with its company image and as many problems Dov Charney has himself, I don’t think that his message doesn’t have authenticity. Charney is requiring an international minimum wage, which simply makes great sense.
Many style companies are outsourcing their labor away from American manufacturing facilities do so for the extremely fact that they can prevent paying America’s minimum incomes to laborers in establishing manufacturing nations like Bangladesh, Vietnam, and others. Huge sellers can just handle to sell fast style at hugely inexpensive rates because cuts are coming from labor costs. These business aren’t losing earnings, and company is still thriving: H&M’s net profit was approximately $830 million in 2012, and Zara’s owner Inditex made $1.23 billion of revenue. These huge retailers are diverting their resources to enhance the variety of shops around the world, and to buff up their e-commerce efforts, yet they are not able to pay even more than a paltry wage to workers who’re essentially propping up their companies?
There have actually also been numerous cases that prove that well-paid employees are happier, more efficient, and earn companies even more cash. It assists business keep their employees and enhance dedication and loyalty to the company’s brand and item.
American Apparel’s garments are all made with U.S. labor, at $12 an hour earnings for employees, and understandably, the costs of their clothes are much greater than those offered at rapid fashion trend chains. A plain T-shirt can cost anywhere in the $20-$30 variety as opposed to H&M’s shirts that expense less than $10, however this is the truth of exactly what an item would cost if it was made in a UNITED STATE manufacturing plant. Customers truly mindful of labor practices cannot have their cake and consume it too: a T-shirt made on American incomes can’t possibly cost the like a shirt made by a laborer being paid $2 a day in a manufacturing plant in Southern Asia.
There needs to be more policy from the government, since capitalism is as commercialism does: minimum expense for maximum earnings. If it were left to the companies, there would be no reason for them to terminate exactly what they have been doing to source their apparel. Factory in developing countries are going to continue do the bare minimum in order to stick to safety practices because there’s no reward for them to do otherwise either. Most of their agreements with fashion trend chains are seasonal and if they should raise salaries or use even more of their resources to keep regularly high safety practices, they lose their competitiveness, and that can imply losing company to other manufacturers willing to get the job done for less.
This concern also eventually needs government participation due to the fact that there are still many families that depend on low-cost clothes from inexpensive fashion trend chains, which talks to a much bigger problem of poverty in the country. As long as there’s going to be high need for inexpensive, quickly disposable fashion, there will be companies that’ll reduce production time, and increase manufacturing output, nearly all at the expense laborers.
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