American Apparel is Using Illegal Immigrants?

I found this article in some ASI literature and thought this was very interesting. I have been an advocate for American made products for quite some time, but typically they are not an option in our industry. Customers love the thought of an American made product, but not the price tag that comes along with it. When a customer asks for American made products and is willing to go the extra mile to support these products, I always go with American Apparel as they are known as powerhouse in this field. After reading this article I think I might try to find an alternative option. American made should be made by Americans, not illegal immigrants.

"As first reported in a Breaking News Alert last week, American Apparel has been told by the United States government that 1,800 of its employees are working illegally in the U.S. The supplier, whose founder Dov Charney has been a vocal advocate of immigration reform, is one of hundreds of companies that are being investigated by Immigration and Customs Enforcement in a new effort by the Obama administration to catch illegal workers.
The immigration agency sent notice to the Counselor Top 40 supplier that 1,600 of its employees submitted suspect documentation. The eligibility of another 200 workers could not be verified due to discrepancies in their records. "It is the company's hope that these employees are able to confirm their work authorization so that they may continue to work at American Apparel," Charney said in a prepared statement.

In a press release, American Apparel said that if the workers – representing nearly a third of the Los Angeles-based supplier's workforce – could not provide proper documentation, "the employees will not be able to continue their employment." The supplier revealed the notice from the government in a filing with the Securities and Exchange Commission. The government's findings were the result of an inspection conducted by the immigration agency in January of last year. The Los Angeles Times reported that among the infractions were fake social security numbers used by some of American Apparel's employees. In its release, American Apparel points out that the "notice provided no indication that American Apparel knowingly or intentionally hired any unauthorized immigrants."

The supplier says employees will be given a "reasonable timeframe" to resolve their immigration status. Even if it were to lose all the employees in question, American Apparel believes that its current surpluses of inventory and production capability will mitigate any major effects, financially or otherwise. The notion is supported by Todd Slater, an analyst at Lazard Capital Markets who follows American Apparel. "This is likely to be more of a human-interest story than one affecting the ability to make enough garments," Slater wrote in a note to investors. "[It] should have no impact on earnings."Charney – a Canadian immigrant himself – and his company have a history of outspoken activism regarding immigration reform. American Apparel has conducted a campaign called "Legalize L.A." that supports the legalization of undocumented workers, and the CEO has continually touted his company as a sweatshop-free organization. "The company remains very proud of its track record as an advocate for the comprehensive reform of the country's immigration laws," said Charney in the press release."