American Apparel Lays Off Hundreds In Factories
The struggling retailer began layoffs in its LA factories last week, and so far at least 500 employees have lost their jobs.
Current CEO Paula Schneider says the layoffs are part of a redesign of the production process, which may involve moving manufacturing away from LA.
But Nativo Lopez, a senior adviser with Hermandad Mexicana—a group helping the workers unionize—says the recent layoffs are preemptively targeting union supporters.
Lopez says laid-off employees were given a two-month severance package, with an additional $800 if they waived their right to file claims.
American Apparel stepped out of bankruptcy in February and is trying to move past its tumultuous last two years, which saw the exile of company’ founder Dov Charney, store closures and fire sales, the LA Times reports.
“They are doing exactly what American Apparel fought against,” ex-CEO Charney said, “outsourcing and searching for ways to pay people less money.” [LAT]