NEW GOING OWNER? UP L.A. CONTEMPORARY BRAND A STRONG HOLIDAY IS SAID TO HAVE BEEN ESCAPE PLAN DROVE RETAIL WHERE DESIGNERS HEADED ON BOUGHT BY GARY WASSNER’S VACATION FOR THE HOLIDAYS. SHARES HIGHER. INTERLUXE. PAGE 2 PAGES 10 AND 11 PAGE 2

MAKING FACTORIES SAFE XXXXXX Bangladesh Estimates Xxx Xxx Xxx Repairs Will Cost $3B Xxx Xxx Xxx Xxx

By MAYU SAINI By OVIDIS A NATQUE NET

DHAKA, Bangladesh — It’s time for the money to MENDA VOLUPTA turepudit, quias nestis accus as start moving. resti beriasi doluptatem. Nem aut aperunto est ut The question that factory owners here have been perrori taquidem aut qui blatem ad eium fugiantur raising over the last year — where the money will modi cus vel iusam fugiamus, omnim volendus, sinus come from to fi x their plants — is slowly beginning to eaquas dolorep tatatent qui que sandelendis quis aut TUESDAY, DECEMBER 30, 2014 ■ $3.00 ■ WOMEN’S WEAR DAILY fi nd answers, as inspections now give way to making voluptur? real changes. Nam essint aut ea duntinv elendiciam num exp- WWD labo ribusae niam quidebi ssimet autat. “The sector will need a huge amount of resources for undertaking major transformational shifts in the Antiur, nobit faceptat. areas of building, construction and relocation and Idis molupti nonsequis doloren impelecae nusci complying with environmental and labor standards,” im solente molorep eribus des corpora tibus, odis et said Ahsan H. Mansur, Ph.D., executive director of the dunt dolorpo reiciatem dolo int adigend uciendus Policy Research Institute of Bangladesh. “And how aperita consequam utatur, quiani conectiam ut as much funds are needed is now becoming clearer.” intionsequas et quaeriat qui aut unt omniendi blabo. Shahidullah Azim, vice president of the Tem voluptat quam cum et fugia il mo etus aut eicae Bangladesh Garment Manufacturers and Exporters lam, offi ctoribus adistionsed que non re cone con Association, observed that about 1,000 factories cumquasped et quis del mo dellupt ataerum faccae would be required to relocate, and overall, a fund of repudae ne voluptat la cusapit periscilit quis eiur, aut $3 billion would be needed to cover all costs, includ- et atur asitisimi, autem quo quia nis quid qui ut auta ing fi xing safety features. dolesequi corum qui debitatur, quiam nis mos volu- Mansur said the amount of money needed for the pis sequam faccus si im el il isimoditis volorporem relocation varied with the size of the factories. “For imporro conse con ratquiasse vellum re et et optate factory relocation, we know that the bigger the facto- con consequuntio doluptiam eata digenis aut offi c to ries are, the more money they are going to need for inctur sam re re dolupta tessin con pe corio dolorum acquiring lands, providing facilities and setup, reme- aditias et el et mi, ius dolori bla eosam utem even- diation and relocation,” he said. dae offi cae nobistr umquos milliqui apiendam rere- According to his analysis, for factories that export hen dendandi doluptur maiorrovid eum es quid eturi between $2.6 million and $20 million and that hire 300 tem re, incipsa nisquiam quatenimet quiditatem im- to 1,200 workers, the amount needed for relocation porrovid ut quia di simporest et la dolorro blant eos would range between 25 million takas, or $300,000 at dolupti atistia cus, aborpore landio to blautet as aut current exchange, and 85 million takas, or $1.09 million, offi cipsam earciaes excearum, qui te offi cilicit est aut depending on their size. The cost of detailed remedia- id mil min ea pore mil iumque pro vit offi cab il en- tion would be between 2 million takas, or $25,000, and dantotatum verovid mod et rat.Soloremquiam et pro 7 million takas, or $90,000. The cost of acquiring and que pelique plibus et, similiqui ius essi re arum et providing facilities and industry setup in the dedicated od mo earum aliquat latur, offi c tem faciend itatend zones would be between 200 million takas, or $2.5 mil- esequatur molene landit endam solor sene vitaqua ti- lion, and 678 million takas, or $8.7 million. asitaquunt faccuptur sum qui od untorum facitiis do- lessita dolupta temporepe platect enistiam con conse- Raw SEE PAGE 6 ditae. Itatum et aut ant enim acillor am eos esectas et explam repudae. Nequam, omniminum faceruptatas American Apparel Faces Material Growing Calls to Sell Imperfect beauty. That’s the message Xxxxxx Xxxxxx of spring’s most intriguing knits and By EVAN CLARK By OVIDIS A NATQUE NET laceworks. They come mottled, shredded and otherwise distressed for a dark, INVESTORS ARE WAITING to see where the chips MENDA VOLUPTA turepudit, quias nestis accus as fall on American Apparel Inc. resti beriasi doluptatem. Nem aut aperunto est ut provocative take on body-conscious The stock rose 2 cents to $1.08 on Monday as more perrori taquidem aut qui blatem ad eium fugiantur dressing. Here, Simone Rocha’s long- forces began to push for a possible sale of the com- modi cus vel iusam fugiamus, omnim volendus, sinus pany. Lyndon Lea, founding partner of Lion Capital, eaquas dolorep tatatent qui que sandelendis quis aut sleeve tulle dress with hand-crocheted late on Sunday sent a letter to the fi rm indicating his voluptur? fl owers and scalloped edges. For more, intention to join the board, according to sources. Nam essint aut ea duntinv elendiciam num exp- see pages 4 and 5. That adds more fuel to the fi re at the ailing retailer labo ribusae niam quidebi ssimet autat. and apparel producer, which is in the midst of a turn- Antiur, nobit faceptat. around under new management and being courted by Idis molupti nonsequis doloren impelecae nusci private-equity fi rm Irving Place Capital. im solente molorep eribus des corpora tibus, odis et American Apparel recently hired Moelis & Co. to dunt dolorpo reiciatem dolo int adigend uciendus explore its strategic options, including an outright aperita consequam utatur, quiani conectiam ut as sale and changes to the capital structure. intionsequas et quaeriat qui aut unt omniendi blabo. Lion, which in the past has teamed with ousted found- Tem voluptat quam cum et fugia il mo etus aut eicae er Dov Charney, has the right to a seat on the company’s lam, offi ctoribus adistionsed que non re cone con board by virtue of warrants that entitle it to 24.5 million cumquasped et quis del mo dellupt ataerum faccae shares in the company, giving it a 12.3 percent stake. repudae ne voluptat la cusapit periscilit quis eiur, aut Lea asked that a special committee of the board be et atur asitisimi, autem quo quia nis quid qui ut auta set up to evaluate any takeover offers and that he par- dolesequi corum qui debitatur, quiam nis mos volu- ticipate. That would give him more direct infl uence pis sequam faccus si im el il isimoditis volorporem over how the M&A dance might play out. The topic of imporro conse con ratquiasse vellum re et et optate a special committee is said to have been controversial con consequuntio doluptiam eata digenis aut offi c in the boardroom, but a source close to the company to inctur sam re re dolupta tessin con pe corio do- said the board was advised by an M&A expert who de- lorum aditias et el et mi, ius dolori bla eosam utem termined that a special committee wasn’t necessary. evendae offi cae nobistr umquos milliqui apiendam Irving Place, which is led by chief executive offi cer rerehen dendandi doluptur maiorrovid eum es quid John Howard, said it could value the company at as much eturi tem re, incipsa nisquiam quatenimet quiditatem as $1.40 a share, or $245 million, depending on due dili- imporrovid ut quia di simporest et la dolorro blan gence. That deeper look into the company’s operations, PHOTO BY SILJA MAGG; STYLED BY MAYTE ALLENDE SEE PAGE 12 SEE PAGE XX 2 WWD TUESDAY, DECEMBER 30, 2014 WWD.COM Ports Dispute a War of Words THE BRIEFING BOX step in. Also last week, more than 160 national, By KARI HAMANAKA state and local trade groups appealed in a letter to IN TODAY’S WWD President Obama and his administration to inter- LOS ANGELES — Labor contract negotiations im- vene in the matter. pacting some 20,000 West Coast port workers con- The National Retail Federation and the tinue to drag on. National Association of Manufacturers estimated in The International Longshore and Warehouse a report, released in June, that a full shutdown of Union on Monday accused the Pacifi c Maritime the ports over a fi ve-day period would cost roughly Association of stalling the now seven-month-long $2 billion a day. That fi gure would increase over a talks by not including key decision-makers in ne- longer time period. gotiations. The ports have continued to operate throughout Workers have been without a labor contract the contract negotiations, although traffi c conges- since July. tion and delays have affected imports and exports. “Indirect negotiations won’t get us over the fi n- Retailers including Ann Taylor, Ascena Retail ish line. The few issues that remain unresolved Group, New York & Co. and Lululemon during re- relate directly to the carriers, and these key cent earnings calls have mentioned the impact of carriers need to come to the table,” said Robert the contract dispute as being, in some cases, in the McEllrath, ILWU president and chairman of the millions of dollars. Even McDonald’s was impacted negotiating committee. when it temporarily had to suspend sales of its reg- The PMA, which represents 72 cargo carriers ular-sized fries in Japan due to delays in getting po- and terminal operating companies, said in a re- tatoes shipped from the U.S. The problem has now sponse that “signifi cant issues remain unresolved, been resolved. Confi dent winter styles permeated including wages, pensions, jurisdiction and work NRF members remain concerned about the on- Berlin. For more, see WWD.com. rules.” The association reiterated its call for fed- going issues at the ports, which are now delaying KRISTEN KORTEBEIN PHOTO BY eral mediation. deliveries of early spring merchandise to stores, ac- The PMA last week said it asked the U.S. cording to Jonathan Gold, the NRF’s vice president Federal Mediation and Conciliation Service to of supply chain and Customs policy. Bangladesh factory owners’ questions about where the money will come from to fi x their plants are being answered, as inspections give way to real changes. PAGE 1

American Apparel stock rose Monday as more forces began U.S. Retailers Lift WWD Stock Tracker to push for a possible sale of the company. PAGE 1 to 1.48 Australian dollars, or $1.20 at current ex- By ARNOLD J. KARR change. Li Ning Co. was up 6.5 percent to 3.62 Hong The WWD Global Stock Tracker went up 0.1 percent to Kong dollars, or 47 cents, with Guess Inc. a fairly 108.70, identical to the S&P 500’s rise to 2,090.57. PAGE 2 INVESTORS APPEARED to breathe a sigh of relief distant third, up 3.4 percent to $21.06. about the fi scal condition of retailers in the after- Avon Products Inc. and Kate Spade & Co. both Walgreen’s shareholders approve plan to acquire the math of the peak of the holiday tacked on 3.2 percent to end the remaining interest in Alliance Boots GmbH. PAGE 2 selling season. day at $9.56 and $31.56, respec- On the strength of gains among tively. Dillard’s Inc. added 3.1 Imperfect fashions take center stage as loose knits and most of its U.S. retail equities, the percent to close at $125.81. frayed edges create a lived-in seductiveness. PAGE 4 WWD Global Stock Tracker rose Issues losing ground were led by 0.1 percent to 108.70, identical % Quiksilver Inc., down 7.4 percent to New union leaders in Bangladesh empowered by change in to the S&P 500’s rise to 2,090.57. 0.1 $2.25, and Luen Thai Holdings Ltd., RISE IN WWD GLOBAL STOCK factories even as they face unspoken dangers and trepidation Retail components of the S&P off 4.9 percent to 1.37 Hong Kong TRACKER, TO 108.70. for speaking out. PAGE 6 rose far more, with the S&P 500 dollars, or 18 cents. Retailing Industry Group gain- Shanghai Metersbonwe was Executive director of the Accord on Fire and Building ing 0.8 percent to close at 1,035.09, while the Dow off 3.9 percent to 10.60 yuan, or $1.71, while Vince Safety in Bangladesh speaks about the progress — and Jones Industrial Average gave back 0.1 percent to Holding Corp. lost 2.5 percent to close at $26.62. concerns — that remain at garment factories. PAGE 8 close at 18,038.23. Hermès International ended the day at 287.10 Australia’s Myer Holdings Ltd. gained the most euros, or $349.59, while Takashimaya Co. closed at The Alliance, which has 26 North American apparel ground among tracker stocks, rising 0.1 percent 977 yen, or $8.11. companies, strives to make worker safety a priority. PAGE 8

Designers traveled as far as Marrakech and as close as InterLuxe Said Buying A.L.C. Brand Detroit to relax over the holidays. PAGE 10 Amazon said if every shoe from each pair of pumps bought Reached while on vacation, Wassner said he had were stacked on top of one another, they would be 52 times By EVAN CLARK no information and was focused on InterLuxe’s fi rst higher than the Empire State Building. PAGE 12 acquisition, Jason Wu. THE DEAL market for at least one young designer Wassner is co-chief executive offi cer of the fash- British fashion photographer Rankin has been tapped by seems to be heating up as the year comes to a close. ion factoring fi rm Hilldun and set up InterLuxe fi tness chain Equinox for its 2015 ad campaign. PAGE 12 Andrea Lieberman’s ready-to-wear brand A.L.C. this year with Lee Equity. He serves as chairman — which was courting the investment set this fall — of the venture, which is looking to build out a port- is said to have found a buyer in Gary Wassner’s new folio of brands. ON WWD.COM venture InterLuxe, according to a source. InterLuxe plans to build up infrastructure of small- The specifi cs couldn’t be learned, but the invest- er companies with $15 million to $100 million in sales. THEY ARE WEARING: In the vibrant city center ment is believed to value the company at $60 mil- Lieberman, who could not be reached on neighborhoods of Berlin Mitte and Friedrichshain, individual lion, or one-times sales. After launching in 2009, the Monday, built a reputation as a stylist working for winter style was confi dent, if conformist: a predictable palette brand found a footing in the contemporary designer Gwen Stefani, Gwyneth Paltrow, Kate Hudson and of black, charcoal and camel. For more, see WWD.com. areas of leading retailers like Saks Fifth Avenue, others. The New York native went to Parsons The Barneys New York, Nordstrom and Intermix, New School for Design and had a store in the city among others. called Culture and Reality before launching A.L.C. FOLLOW US ON SOCIAL MEDIA @ WWD.com/social

TO E-MAIL REPORTERS AND EDITORS AT WWD, THE ADDRESS IS Walgreen Shareholders OK Alliance Deal [email protected], USING THE INDIVIDUAL’S NAME. WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. The companies launched a long-term strate- COPYRIGHT ©2014 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. By FAYE BROOKMAN VOLUME 208, NO. 131. TUESDAY, DECEMBER 30, 2014. WWD (ISSN 0149-5380) is published daily (except Saturdays, gic partnership in June 2012, when Walgreen ac- Sundays and holidays, with one additional issue in March, April, May, June, August, October, November and December, and quired a 45 percent equity ownership in Alliance two additional issues in February and September) by Fairchild Media, LLC, which is a division of Penske Business Media, LLC. PRINCIPAL OFFICE: 11175 Santa Monica Blvd., 9th Fl, Los Angeles, CA 90025. Periodicals postage paid at Los Angeles, CA, WALGREEN CO. shareholders approved the com- Boots, with the option to proceed as step two to and at additional mailing offi ces. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, pany’s plan to acquire the remaining interest in a full combination by acquiring the remaining Rich-Hill, ON L4B 4R6. POSTMASTER: SEND ADDRESS CHANGES TO WOMEN’S WEAR DAILY, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, Alliance Boots GmbH. 55 percent of the British retailer. Walgreen exer- P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail customer service at wwdPrint@cdsfulfi llment.com. Please At the special meeting called Monday, share- cised the option to acquire the remaining 55 per- include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes holders voted to approve all proposals related cent of Alliance Boots in August. The companies or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Offi ce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. to the company’s acquisition of the 55 percent of have received all regulatory approvals required If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfi ed Alliance Boots it doesn’t own and the reorganiza- to complete the transaction. Walgreen expects to with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a tion of Walgreen into a U.S.-based public holding complete the acquisition of Alliance Boots and the subscription term and/or the way the product is delivered. Address all editorial, business, and production correspondence to company called Walgreens Boots Alliance Inc. reorganization merger on Wednesday, subject to WOMEN’S WEAR DAILY, 750 Third Avenue, New York, NY 10017. For permissions requests, please call 212-630-5656 or fax request to 212-630-5883. For reprints, please e-mail [email protected] or call Wright’s Media 877-652-5295. Walgreen said 97 percent of the votes cast were in the satisfaction of customary closing conditions. For reuse permissions, please e-mail [email protected] or call 800-897-8666. Visit us online at www.wwd.com. favor of the proposals for reorganization and the is- As announced, Greg Wasson will retire shortly fol- To subscribe to other Fairchild Media, LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WOMEN’S WEAR DAILY IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, suance of Walgreens Boots Alliance shares. That per- lowing the completion of the second step of the UNSOLICITED MANUSCRIPTS, UNSOLICITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, centage represents about 73 percent of Walgreen’s deal. From a beauty standpoint, the deal further AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSIDERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY outstanding common stock as of Nov. 17, the record gives the green light for expansion of the Boots REQUESTED TO DO SO BY WOMEN’S WEAR DAILY IN WRITING. MANUSCRIPTS, PHOTOGRAPHS, AND OTHER MATERIALS date for the special meeting, the company noted. concepts into U.S. stores. SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE. Be Digital BEAUTY NYC Forum February 12, 2015

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Loose knits and frayed edges create a Lived-in seductiveness.

PHOTO BY SILJA MAGG; STYLED BY MAYTE ALLENDE

MODEL: HEATHER/DNA; HAIR BY CAMERON RAINS; MAKEUP BY KATIE MELLINGER; PHOTO ASSISTANT: BENNY LEE; FASHION ASSISTANT: MILTON DIXON raw material

Azede Jean-Pierre’s cotton dress. KATIE MELLINGER; PHOTO ASSISTANT: BENNY LEE; FASHION ASSISTANT: MILTON DIXON MILTON ASSISTANT: BENNY LEE; FASHION MELLINGER; PHOTO ASSISTANT: KATIE BY CAMERON RAINS; MAKEUP CAMERON RAINS; BY MODEL: HEATHER/DNA; HAIR MODEL: HEATHER/DNA; 4 WWD TUESDAY, DECEMBER 30, 2014 WWD TUESDAY, DECEMBER 30, 2014 5 WWD.COM

LOOSe NITS ANd AYed edGeS eATe A LIedIN SedTIeNeSS

PHOTO BY SILJA MAGG; STYLED BY MAYTE ALLENDE

MODEL: HEATHER/DNA; HAIR BY CAMERON RAINS; MAKEUP BY KATIE MELLINGER; PHOTO ASSISTANT: BENNY LEE; FASHION ASSISTANT: MILTON DIXON

raw materialFrom left: Reed Krakoff’s honeycomb silk macramé sleeveless dress with embroidered crystals and Grant Knits’ scarf. Eckhaus Latta’s knit terry cloth dress and Karolina Zmarlak’s silk top. AllSaints shoes.

From left: Joseph’s wool dress. Paula Cheng’s silk, wool, polyester and Lurex dress.

From left: Alexandre Vauthier’s python- on-lace top and skirt. Gabriele Colangelo’s top and skirt in lasered and printed silk organza and Greg Lauren’s cotton tank.

Azede Jean-Pierre’s cotton dress. KATIE MELLINGER; PHOTO ASSISTANT: BENNY LEE; FASHION ASSISTANT: MILTON DIXON MILTON ASSISTANT: BENNY LEE; FASHION MELLINGER; PHOTO ASSISTANT: KATIE BY CAMERON RAINS; MAKEUP CAMERON RAINS; BY

PHOTOS BY SILJA MAGG STYLed BY MAYTe ALLeNde MODEL: HEATHER/DNA; HAIR MODEL: HEATHER/DNA;

6 WWD TUESDAY, DECEMBER 30, 2014 Costs Become’’ Clear in Factory Repair Inspections {Continued from page one} green, which means that they need a fair Bangladesh Operations for the Bangladesh um-sized factories,” said Sarah Labowitz, Banks are taking center stage as the amount of work, to be completed within Accord Foundation, said the Accord puts a codirector of New York University Stern opportunities — and needs — for borrow- six months of inspection. “tremendous amount of effort into making Center for Business and Human Rights, ing and lending have become crucial. The Mansur noted funds for fi xing these sure that the fi nancial support part of the at a discussion on the remediation at the high interest rates charged by banks with- problems could be negotiated through remediation is understood and applied in Apparel Summit earlier in the week. in Bangladesh have been discouraging, commercial terms, joint investment, di- practice. We meet with the factory owner The Bangladesh bank will provide factory owners said, and they have been rect payment from the government level and owners’ representatives. $1.25 million to each export-oriented gar- calling for brands to lend and invest more and other donor support. He also felt We work proactively; the Accord fa- ment factory at a 9 percent interest rate. in the process of change, as well as asking that the Accord and the Alliance need- cilitates a meeting with the lead brand An analysis of inspection reports from the government to reduce interest rates. ed to ensure that “suffi cient funds were and the other brands can join if they all three initiatives so far indicates that But there is no shortcut to the available to pay for renovations and want,” he said, adding that the IFC also 69 percent of factories around Dhaka Corrective Action Plan itself — which other safety improvements as required is in talks with 10 Accord brands to make are in specifi cally constructed locations, means fi xing the problems found in the after inspection.” similar investments happen. while 28 percent are in shared locations. 2,000 factory inspections completed by Innovative partnerships are being That it is time for out-of-the-box think- Two percent have been converted from the global teams of buyers and retail- struck to make this happen. ing is obvious from the initiatives by com- shared to specifi c factories. ers of the Accord, Alliance and the local Of the factories inspected in Dhaka so National Action Plan. far, 1,434 are in specifi cally made build- The Alliance, a consortium of 28 The situation in the garment industry has ings while 569 are in shared spaces and brands and retailers that has 587 factories 62 have already been converted. in Dhaka, completed inspections in July. In Chittagong, 49 percent, or 256 facto- The Accord, the compendium of more changed… into a new arena, where the ries, are specifi cally constructed factories; XXXXXX than 160 European buyers and retailers, 42 percent, or 225, are in shared spaces, has completed the inspections in 1,106 compliance, the safety, national standards have and 9 percent, or 50, have been converted. factories, and shares 300 additional fac- Some in the industry complain that in- tories with the Alliance. Inspections by become more the need of the day. terest rates in Bangladesh — at more than Xxx Xxx Xxx the Accord identifi ed more than 80,000 14 percent — make it hard for factory safety issues, Brad Loewen, the Accord’s — SHAH SARWAR, IFIC BANK owners to borrow from local institutions. chief safety inspector noted. These range Shah Sarwar, managing director and from the need to reduce weight loads to a The Alliance has been making concert- panies such as Levi Strauss & Co., which chief executive offi cer at IFIC Bank, which Xxx Xxx Xxx Xxx failure to install fi re doors and alarms, the ed efforts to make $100 million in afford- worked with the IFC to give an incentive is a private sector bank with 32.5 percent failure to have protected fi re exits and the able capital available to factory owners. On to its factories in Bangladesh to meet en- owned by the government, said the bank By MAYU SAINI need to strengthen building columns. Monday, as the VF Corp., which is a mem- vironmental labor and safety standards. has announced a 10 million taka ($128,000) The National Action Plan by the ber of the Alliance, stood guarantor for a Japan International Cooperation loan on “very soft terms to buy basic fi re DHAKA, Bangladesh — It’s time for the money to International Labour Organization and $10 million fund from the International Agency has signed a memorandum of un- safety equipment for the garments industry. start moving. the Bangladesh University of Engineering Finance Corp., an arm of the World Bank, derstanding with the Bangladesh bank “The situation in the garment industry The question that factory owners here have been Technology has another 1,750 factories, 600 the money to three supplier companies of for $12.5 million of low-cost fi nance to be has changed from when they were family raising over the last year — where the money will of which have been inspected so far. $1.3 million was cleared. These included made available to factories, an amount owned and tried to do things in a more in- come from to fi x their plants — is slowly beginning to The factories that have been closed three factories that supply to the VF Corp.: that economists believe may be a lifeline dividual way into a new arena, where the fi nd answers, as inspections now give way to making — 29 at the last count have been classi- Arunima Sportswear Ltd.; Olio Apparels for the factories being inspected by the compliance, the safety, national standards real changes. fi ed as red — are about 2 percent of total Ltd., and Radisson Apparels Ltd. National Action Plan, which don’t have have become more the need of the day,” he “The sector will need a huge amount of resources inspections. It has been an unusual investment — big global brands to support them. said. “Now what they need is to move out for undertaking major transformational shifts in the Those classifi ed as amber need fi x- not just of dollars but of faith, a promise “It is necessary to discuss how they will of rented places to make factories that are areas of building, construction and relocation and ing within six weeks of inspection. of the future and of continued business carry on remediation. I’’ hope that real dis- compliant so they need fi re safety equip- complying with environmental and labor standards,” These make up approximately 24 per- for these factories. cussion will be on the practical solution ment to have safety so we are structuring our said Ahsan H. Mansur, Ph.D., executive director of the cent of inspections. The rest are yellow- Rob Wayss, executive director of to how fi nance comes to small- and medi- products to help them through this transfor- Policy Research Institute of Bangladesh. “And how much funds are needed is now becoming clearer.” Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association, observed that about 1,000 factories would be required to relocate, and overall, a fund of Union Leaders Remain Wary $3 billion would be needed to cover all costs, includ- “I didn’t want anything for myself. I ing fi xing safety features. By MAYU SAINI wanted to be able to ensure that we have Mansur said the amount of money needed for the the best for all the workers. They told me relocation varied with the size of the factories. “For DHAKA, Bangladesh — Ruksana, a sew- to take the money and go, leave the fac- factory relocation, we know that the bigger the facto- ing operator with more than a dozen years tory. I refused,” she said. ries are, the more money they are going to need for of experience, speaks up clearly from her Hamida Khatun, assistant women’s acquiring lands, providing facilities and setup, reme- desk in the corner of the classroom. secretary of the Bangladesh Jatiyatabadi diation and relocation,” he said. The room is fi lled with a record num- Sramik Dal, which is a national trade According to his analysis, for factories that export ber of “presidents” and “general sec- union federation, listens and advises her between $2.6 million and $20 million and that hire 300 retaries,” representatives of the many on the best way to communicate and — to 1,200 workers, the amount needed for relocation trade unions that have come up in the more importantly — to negotiate. would range between 25 million takas, or $300,000 at last year; 323 new unions at last count. Ruksana says she will not give up, no current exchange, and 85 million takas, or $1.09 million, Most of these have been formed after the matter the cost. depending on their size. The cost of detailed remedia- passing of a new law, in July 2013, by the The question of vulnerability is tion would be between 2 million takas, or $25,000, and Bangladesh labor ministry, allowing free- thrown open in the classroom. Many of 7 million takas, or $90,000. The cost of acquiring and dom of association without permission of the others had different experiences, but providing facilities and industry setup in the dedicated employers. The surge toward unioniza- these didn’t include violence or threats. zones would be between 200 million takas, or $2.5 mil- tion has set in motion a series of upheav- Minu, president of a separate union in lion, and 678 million takas, or $8.7 million. als in the industry. Factory owners ap- a factory in Badda, said she had led de- SEE PAGE XX pear to be settling into a new acceptance mands for change through presentations with workers who are more vocal and de- to the factory owners, many of which were manding, while workers themselves are accepted. Others nodded and said they More than 65 percent of the new union leaders are women. seeing real change. did not fear attack, although a general More than 65 percent of the new union sense of trepidation kept them in check. leaders are women, and it is obvious with “It is all quite new,” said Asna, the They have to take on criticism in the pro- tory, has sharpened the global debate the changing leaders that empowerment general secretary of another new union. cess, their husbands saying, ‘Why are you and attention to the situation of trade isn’t just a word here. It radiates. “For them and for us. After the change of coming home later, talking to strange peo- unions in Bangladesh. But with empowerment also comes law, we also understand that we need to ple?’…but it is empowering because they Boashak was reported to have been some very real fears — antagonism be more responsible. If the factory closes are able to be a spokesperson for them- beaten with iron rods, causing a severe against union leaders has, in the past, led down because of our demands, it is bad for selves and their colleagues,” Suson said. head injury that required more than a 6 to 8: Bangladesh jump; to physical harm, attacks and dismissal us, too. We are a bit afraid, but it is more The unspoken dangers that Asna re- dozen stitches. There was a second attack at BangladeshWayss; pics of workers. The question being asked because we have heard there is danger.” ferred to include past incidents, espe- the same factory in November, and the em- over the last year as trade unions multi- “There is a transformational change cially the murder of Aminul Islam, a ployer has reportedly stated that the quar- ply is whether a new law can change a going on,” said Alonzo Glenn Suson, labor organizer, in 2012. Islam was a fac- rel was between the union and workers, not tradition of hierarchical systems, and if country program director of the tory worker who became a leader and between the factory owner and workers. so, how quickly? Solidarity Center. The center is a non- had several run-ins with factory owners Meanwhile, showing the quick link At the training session, Ruksana profit organization affiliated with the as he negotiated workers’ rights. Despite between the local and the global, United speaks up clearly from her desk. She is AFL-CIO, which works with unions, non- protests and calls for investigations Students Against Sweatshops has been emphatic: As the president of the union governmental organizations and commu- into his death, worker federation lead- gathering signatories in a petition to that was set up in March at Update nity groups worldwide to advance work- ers have voiced their frustration that no ask PVH Corp., which owns the Calvin Apparels Ltd., she talks about threats ers’ rights and promote broad-based, progress has been made into the case. Klein and Tommy Hilfiger brands, to from her employers, being asked to leave sustainable economic development. A recent case at the Azim factories in cut ties with the Azim Group. They want her job and a failure to get any bonus or “They have the confi dence to speak to Chittagong, where the factory owner has the company to respond immediately to incremental raise. She said that through their boss, to their coworkers, fi nding so- been accused of violence against Mira the violence against union leaders in

all this, her own position was clear. lutions to the problems of other people. Boashak, president of a union at the fac- Bangladesh garment factories. SAINI MAYU ALL PHOTOS BY

6 WWD TUESDAY, DECEMBER 30, 2014 WWD TUESDAY, DECEMBER 30, 2014 7

WWD.COM The Accord and Alliance Costs Become’’ Clear in Factory Repair Inspections {Continued from page one} green, which means that they need a fair Bangladesh Operations for the Bangladesh um-sized factories,” said Sarah Labowitz, mation period. We have a serious history do what we have done as a coalition Banks are taking center stage as the amount of work, to be completed within Accord Foundation, said the Accord puts a codirector of New York University Stern of hand-holding in the garment industry and that’s been really satisfying to see. On Progress in Bangladesh opportunities — and needs — for borrow- six months of inspection. “tremendous amount of effort into making Center for Business and Human Rights, for the last 30 years and have watched Both the speed and quality of work that ing and lending have become crucial. The Mansur noted funds for fi xing these sure that the fi nancial support part of the at a discussion on the remediation at the companies transform.” we can get done together in inspect- ENTERING THE NEW YEAR, the ini- were understood to be taken as the guid- high interest rates charged by banks with- problems could be negotiated through remediation is understood and applied in Apparel Summit earlier in the week. Appeals to the commerce minister ing factories, in figuring out what’s to tiatives to improve factory safety in ing point, to avoid duplication. While in Bangladesh have been discouraging, commercial terms, joint investment, di- practice. We meet with the factory owner The Bangladesh bank will provide to reduce interest rates, which was ur- be done in remediating the factories, Bangladesh’s apparel sector have been the Alliance and the Accord completed factory owners said, and they have been rect payment from the government level and owners’ representatives. $1.25 million to each export-oriented gar- gent to meet the deadlines set by the training the workers, all of that is hap- evaluating their progress. their inspections in July and September, calling for brands to lend and invest more and other donor support. He also felt We work proactively; the Accord fa- ment factory at a 9 percent interest rate. Accord and the Alliance, have been pening very quickly, and I think it is the Twenty months after the collapse of respectively, the NTC, which has an esti- in the process of change, as well as asking that the Accord and the Alliance need- cilitates a meeting with the lead brand An analysis of inspection reports from made by factory owners who have coming together of so many people that Rana Plaza, the tragedy that claimed mated 1,700 factories to evaluate, is still the government to reduce interest rates. ed to ensure that “suffi cient funds were and the other brands can join if they all three initiatives so far indicates that clearly indicated their ability and de- has allowed that to happen.” the lives of more than 1,100 workers, completing its inspections. But there is no shortcut to the available to pay for renovations and want,” he said, adding that the IFC also 69 percent of factories around Dhaka sire to change and accommodate with There are still many frustrations WWD spoke to the leaders of the ini- All three initiatives have had to agree Corrective Action Plan itself — which other safety improvements as required is in talks with 10 Accord brands to make are in specifi cally constructed locations, the results of the inspections. — and far from enough money avail- tiatives that aim to ensure the safety of on safety measures involving structure, means fi xing the problems found in the after inspection.” similar investments happen. while 28 percent are in shared locations. “We’ve actually seen them [the own- able for the lists of requirements the the almost 3,500 garment factories in fire and electrical systems. This ap- 2,000 factory inspections completed by Innovative partnerships are being That it is time for out-of-the-box think- Two percent have been converted from ers] being very cooperative in wanting factories need to meet. Bangladesh. These include the Alliance proach has taken considerable nego- the global teams of buyers and retail- struck to make this happen. ing is obvious from the initiatives by com- shared to specifi c factories. to make the changes and sometimes it It also is, essentially, about working for the Safety of Workers in Bangladesh, tiation, with the various parties working ers of the Accord, Alliance and the local Of the factories inspected in Dhaka so is an education process because they together with local and global financial the initiative of 26 brands and retailers, together with representatives of differ- National Action Plan. far, 1,434 are in specifi cally made build- don’t always understand the purpose institutions, brands and bigger garment mostly American; the Accord on Fire and ent government ministries to effect the The Alliance, a consortium of 28 The situation in the garment industry has ings while 569 are in shared spaces and for the change,” Daniel Duty, vice presi- companies that can help with funding. Building Safety in Bangladesh, the con- changes. Reports of discord between the brands and retailers that has 587 factories 62 have already been converted. dent of global affairs and corporate so- As Duty pointed out, some of the sortium of 190 brands and retailers, most- Accord and the Alliance have been wide- in Dhaka, completed inspections in July. In Chittagong, 49 percent, or 256 facto- cial responsibility at Target, told WWD. frustration was just the sheer amount ly European and some American, and the spread over the past year, but the ulti- The Accord, the compendium of more changed… into a new arena, where the ries, are specifi cally constructed factories; “You know you have to have some of work left to do and the shared re- Tripartite National Action Plan, with mate goal has generally papered over the XXXXXX than 160 European buyers and retailers, 42 percent, or 225, are in shared spaces, conversations and talk about why and sponsibility to make it happen. the Bangladesh government taking re- differences. has completed the inspections in 1,106 compliance, the safety, national standards have and 9 percent, or 50, have been converted. how it can actually benefit their business “There are so many parties that have sponsibility for the remaining factories, At the Apparel Summit in Dhaka ear- factories, and shares 300 additional fac- Some in the industry complain that in- at the end of the day. A lot of the factory to be a part of it; no one company and no with inspections led by the Bangladesh lier this month, Prime Minister Sheikh tories with the Alliance. Inspections by become more the need of the day. terest rates in Bangladesh — at more than owners are starting to see that by mak- one authority can solve this issue. The University of Engineering Technology Hasina pledged her support to continue Xxx Xxx Xxx the Accord identifi ed more than 80,000 14 percent — make it hard for factory ing these changes, it can actually make government has to come to the table, the and supported by the International the process of change. Factory own- safety issues, Brad Loewen, the Accord’s — SHAH SARWAR, IFIC BANK owners to borrow from local institutions. their business better, they can be more industry, factory owners, labor and the Labour Organization and funded by the ers also have been working through the chief safety inspector noted. These range Shah Sarwar, managing director and productive, they can be more profitable, brands, and you want everyone to have Dutch and British governments under a BGMEA, with a renewed focus and a goal from the need to reduce weight loads to a The Alliance has been making concert- panies such as Levi Strauss & Co., which chief executive offi cer at IFIC Bank, which they can be more successful,” he said. the same timing and enthusiasm and so $24.2 million grant revealed last year. to grow the industry from revenues of Xxx Xxx Xxx Xxx failure to install fi re doors and alarms, the ed efforts to make $100 million in afford- worked with the IFC to give an incentive is a private sector bank with 32.5 percent Duty talked about the “historic” forth that everybody else has,” he said. The Bangladesh Garment Manufacturers $24.5 billion in 2013-14 to $50 billion in- failure to have protected fi re exits and the able capital available to factory owners. On to its factories in Bangladesh to meet en- owned by the government, said the bank effort, as retailers such as Gap Inc., Economists have also warned that and Exporters Association, a powerful body dustry by 2021, the year Bangladesh cel- By MAYU SAINI need to strengthen building columns. Monday, as the VF Corp., which is a mem- vironmental labor and safety standards. has announced a 10 million taka ($128,000) Wal-Mart Stores Inc. and Target Corp. the investment in remediation would of factory owners, continues to be central to ebrates its 50th year of freedom. The National Action Plan by the ber of the Alliance, stood guarantor for a Japan International Cooperation loan on “very soft terms to buy basic fi re were working together — something need to be complemented by invest- all negotiations and moves toward greater The garment industry has helped DHAKA, Bangladesh — It’s time for the money to International Labour Organization and $10 million fund from the International Agency has signed a memorandum of un- safety equipment for the garments industry. they’ve never tried to do before — es- ments in the infrastructure — better safety in the industry. Bangladesh maintain an economic start moving. the Bangladesh University of Engineering Finance Corp., an arm of the World Bank, derstanding with the Bangladesh bank “The situation in the garment industry pecially at this scale. transport facilities to carry the goods, Factory inspections completed so growth rate of 6 percent for almost a de- The question that factory owners here have been Technology has another 1,750 factories, 600 the money to three supplier companies of for $12.5 million of low-cost fi nance to be has changed from when they were family “And we actually like each other, availability of electricity, gas, etc. far include 1,106 by the Accord, 587 by cade and provide employment to about 4 raising over the last year — where the money will of which have been inspected so far. $1.3 million was cleared. These included made available to factories, an amount owned and tried to do things in a more in- and like working with each other,” he Zahid Hussain Ph.D., lead economist the Alliance and 606 by the National million workers, 80 percent of whom are come from to fi x their plants — is slowly beginning to The factories that have been closed three factories that supply to the VF Corp.: that economists believe may be a lifeline dividual way into a new arena, where the said with a smile, talking about the at World Bank, has estimated that devel- Tripartite Committee, led by a team women. — M.S. fi nd answers, as inspections now give way to making — 29 at the last count have been classi- Arunima Sportswear Ltd.; Olio Apparels for the factories being inspected by the compliance, the safety, national standards changes taking place among factories opment of the infrastructure would cost from BUET. The Accord and the Alliance real changes. fi ed as red — are about 2 percent of total Ltd., and Radisson Apparels Ltd. National Action Plan, which don’t have have become more the need of the day,” he in Bangladesh and describing the sit- between $74 billion and $100 billion. have 340 factories in common, for which Here, updates on the three main “The sector will need a huge amount of resources inspections. It has been an unusual investment — big global brands to support them. said. “Now what they need is to move out uation as “impressive.” It is obviously a long road ahead, inspections completed by the Alliance initiatives: for undertaking major transformational shifts in the Those classifi ed as amber need fi x- not just of dollars but of faith, a promise “It is necessary to discuss how they will of rented places to make factories that are “Just seeing that change has been but one that the garment factories areas of building, construction and relocation and ing within six weeks of inspection. of the future and of continued business carry on remediation. I’’ hope that real dis- compliant so they need fi re safety equip- very dramatic so that’s very reward- are taking with the goal of doubling complying with environmental and labor standards,” These make up approximately 24 per- for these factories. cussion will be on the practical solution ment to have safety so we are structuring our ing,” Duty observed. “What is interest- growth in the next seven years to $50 said Ahsan H. Mansur, Ph.D., executive director of the cent of inspections. The rest are yellow- Rob Wayss, executive director of to how fi nance comes to small- and medi- products to help them through this transfor- ing is that no one company alone could billion in exports. THE ACCORD IN FIRE AND BUILDING SAFETY IN BANGLADESH Policy Research Institute of Bangladesh. “And how The Accord, a legally binding agree- and if there was either a refusal to discuss much funds are needed is now becoming clearer.” ment signed by more than 190 compa- or refusal to provide support for the reme- Shahidullah Azim, vice president of the nies from 20 countries in Europe, North diation. If they gave us that information, we Bangladesh Garment Manufacturers and Exporters Asking “who is the culprit behind vious that these are not just worker America, Asia and Australia; two global would investigate and intervene; if neces- Association, observed that about 1,000 factories these horrific assaults,” the students groups who are attacking factories.” trade unions, IndustriALL and UNI; nu- sary, we would escalate it. would be required to relocate, and overall, a fund of Union Leaders Remain Wary demand an answer from the factory Bridging this gap, and overcoming merous Bangladeshi unions and with $3 billion would be needed to cover all costs, includ- “I didn’t want anything for myself. I owners of the Azim Group. An inves- a situation of mistrust, has become an the International Labour Organization WWD: The lending money that the ing fi xing safety features. By MAYU SAINI wanted to be able to ensure that we have tigation into the situation is already important area of focus. acting as the independent chair, com- International Finance Corporation put for- Mansur said the amount of money needed for the the best for all the workers. They told me under way by VF Corp., which owns At a panel discussion in Dhaka pleted inspections of 1,106 factories in ward earlier this month through VF Corp. relocation varied with the size of the factories. “For DHAKA, Bangladesh — Ruksana, a sew- to take the money and go, leave the fac- brands such as Nautica, Lee and earlier this month, Wajedul Islam September. appears to be understood by the industry in factory relocation, we know that the bigger the facto- ing operator with more than a dozen years tory. I refused,” she said. JanSport. VF has given Azim until Khan, general secretary of the Rob Wayss, its executive director, Dhaka to be linked with the Alliance. ries are, the more money they are going to need for of experience, speaks up clearly from her Hamida Khatun, assistant women’s Wednesday to complete the investiga- Bangladesh Trade Union Centre, spoke about the progress and the con- R.W.: No, we’ve worked actively with the acquiring lands, providing facilities and setup, reme- desk in the corner of the classroom. secretary of the Bangladesh Jatiyatabadi tion and to give assurances there will urged employers “not to consider cerns that remain. IFC for the past year. We’ve learnt of the diation and relocation,” he said. The room is fi lled with a record num- Sramik Dal, which is a national trade be no further violence. workers as enemies.” Instead, he said possibility of an IFC instrument investing According to his analysis, for factories that export ber of “presidents” and “general sec- union federation, listens and advises her Faced with the criticism, the that the “role of workers and trade WWD: The Bangladesh Garment here, met with them, shared the informa- between $2.6 million and $20 million and that hire 300 retaries,” representatives of the many on the best way to communicate and — Bangladesh Garment Manufacturers unions should be clearly spelled out.” Manufacturers and Exporters Association tion with our steering committee, shared to 1,200 workers, the amount needed for relocation trade unions that have come up in the more importantly — to negotiate. and Exporters Association told WWD The International Labour has said the Accord is not doing enough, the presentation in one of our steering would range between 25 million takas, or $300,000 at last year; 323 new unions at last count. Ruksana says she will not give up, no that it was further investigating the Organization, the U.N. agency that and they need more help with remediation committee meetings, and there is an inter- current exchange, and 85 million takas, or $1.09 million, Most of these have been formed after the matter the cost. case, but claimed a preliminary in- focuses on human and labor rights, and on several other counts. Are they tell- est in them by several of the Accord brands. depending on their size. The cost of detailed remedia- passing of a new law, in July 2013, by the The question of vulnerability is vestigation had revealed that the al- has been playing an active role in this ing you that, too? We’ve done a series of Webinars with IFC tion would be between 2 million takas, or $25,000, and Bangladesh labor ministry, allowing free- thrown open in the classroom. Many of tercation had taken place “between mediation, especially after the col- Rob Wayss: We do a lot of work with BGMEA and the Accord staff. We’ve had about 300 of 7 million takas, or $90,000. The cost of acquiring and dom of association without permission of the others had different experiences, but workers” and was “outside the prem- lapse of Rana Plaza, and taking note to get their support for the Accord and for our signatory companies participate in the providing facilities and industry setup in the dedicated employers. The surge toward unioniza- these didn’t include violence or threats. ises of the factory.” of the dramatic growth in worker the remediation. The Accord puts a tre- Webinars, and in speaking with the IFC, it zones would be between 200 million takas, or $2.5 mil- tion has set in motion a series of upheav- Minu, president of a separate union in BGMEA officials are also quick unions over the past year. mendous amount of effort in making sure appears that 10 of our brands are well into lion, and 678 million takas, or $8.7 million. als in the industry. Factory owners ap- a factory in Badda, said she had led de- to point out that, in general, factory “This is a staggering growth com- that the financial element for the remedia- the discussion of setting up an instrument. SEE PAGE XX pear to be settling into a new acceptance mands for change through presentations owners are “not bigoted and violent pared to registration figures for the tion is understood and applied in practice. There are a couple that have already been with workers who are more vocal and de- to the factory owners, many of which were people who hate trade unions.” preceding years,” said Gilbert Fossoun With every single factory that is in- set up that will be announced soon. So, we’ve manding, while workers themselves are accepted. Others nodded and said they More than 65 percent of the new union leaders are women. “We have no quarrel with labor Houngbo, deputy director general for spected, we meet with the owner or the been working with them for the better part of seeing real change. did not fear attack, although a general unions,” said Atiqul Islam, presi- Field Operations and Partnerships of owner’s representative, together with the a year now. So it’s not an Alliance initiative. More than 65 percent of the new union sense of trepidation kept them in check. dent of BGMEA. “But what is im- the ILO. “The formation and registra- lead brand, to explain the process after the The IFC has worked with the Alliance and leaders are women, and it is obvious with “It is all quite new,” said Asna, the They have to take on criticism in the pro- tory, has sharpened the global debate portant to understand is that many tion of new trade unions is a sign of a inspection, how the Accord verifies things the Accord, and any one of the brands, the the changing leaders that empowerment general secretary of another new union. cess, their husbands saying, ‘Why are you and attention to the situation of trade of these unions are led by politics. new era of collective bargaining and and what support we need from them and Accord or the Alliance, can speak with them isn’t just a word here. It radiates. “For them and for us. After the change of coming home later, talking to strange peo- unions in Bangladesh. These unions who come and break freedom of association in Bangladesh, what they can expect from us. In those con- about setting up an initiative. But with empowerment also comes law, we also understand that we need to ple?’…but it is empowering because they Boashak was reported to have been down factories and throw stones… which can act as a catalyst for change versations, we inform the parties of their some very real fears — antagonism be more responsible. If the factory closes are able to be a spokesperson for them- beaten with iron rods, causing a severe they are not led by normal work- in other industries.” obligations and discuss the finances and of WWD: Has the Apparel Summit this month against union leaders has, in the past, led down because of our demands, it is bad for selves and their colleagues,” Suson said. head injury that required more than a ers. They would not stone a place Training the union leaders our requirement that, before the corrective been helpful in clarifying some of the is- 6 to 8: Bangladesh jump; to physical harm, attacks and dismissal us, too. We are a bit afraid, but it is more The unspoken dangers that Asna re- dozen stitches. There was a second attack at that feeds them and where they find has been part of this change. In action plan (CAP) will be approved, they sues and differences among the various BangladeshWayss; pics of workers. The question being asked because we have heard there is danger.” ferred to include past incidents, espe- the same factory in November, and the em- work. Unions that are led by hostile October, the ILO held a three-day have to confirm — both with the factory stakeholders, including the Accord? over the last year as trade unions multi- “There is a transformational change cially the murder of Aminul Islam, a ployer has reportedly stated that the quar- elements from outside — we object training workshop. owner and the brand — that the financing R.W.: The summit is more of an industry ply is whether a new law can change a going on,” said Alonzo Glenn Suson, labor organizer, in 2012. Islam was a fac- rel was between the union and workers, not to that.” Srinivas Reddy, the ILO’s country for the remediation is confirmed. We also promotion event than anything. I mean, tradition of hierarchical systems, and if country program director of the tory worker who became a leader and between the factory owner and workers. Several factory owners have director for Bangladesh, spoke on the require them to provide us information on people in the community know that in- so, how quickly? Solidarity Center. The center is a non- had several run-ins with factory owners Meanwhile, showing the quick link voiced concern that “irresponsible” panel about the growing momentum the composition of the remediation. spections have taken place, they know At the training session, Ruksana profit organization affiliated with the as he negotiated workers’ rights. Despite between the local and the global, United unions could be fatal to the $25 bil- over the last year and the changing In many cases, it is self-financed. that the initial ones have finished, they speaks up clearly from her desk. She is AFL-CIO, which works with unions, non- protests and calls for investigations Students Against Sweatshops has been lion export garment industry in trend. “We’re seeing more women — The BGMEA has criticized this, saying know that remediation costs money, and emphatic: As the president of the union governmental organizations and commu- into his death, worker federation lead- gathering signatories in a petition to Bangladesh. particularly younger women — com- that the brands aren’t meeting the require- they want to figure out where the money is that was set up in March at Update nity groups worldwide to advance work- ers have voiced their frustration that no ask PVH Corp., which owns the Calvin Abdur Razzak Sattar, managing di- ing forward to be leaders. They are ment of the Accord, that they are not provid- going to come from and what the options Apparels Ltd., she talks about threats ers’ rights and promote broad-based, progress has been made into the case. Klein and Tommy Hilfiger brands, to rector of the Utah Group, which has finding ways to represent the work- ing support to the factory owners. And we’ve are for getting the money or for getting the from her employers, being asked to leave sustainable economic development. A recent case at the Azim factories in cut ties with the Azim Group. They want more than 12,500 workers, explained: ers, but they also need support to go asked BGMEA if they have information on support. And I think that’s what the ses- her job and a failure to get any bonus or “They have the confi dence to speak to Chittagong, where the factory owner has the company to respond immediately to “If you look at the protests over the on to the next level, to be able to sit any specific cases in which the factory own- sion on remediation addressed — on how incremental raise. She said that through their boss, to their coworkers, fi nding so- been accused of violence against Mira the violence against union leaders in last year and the attacks on factories with employers and negotiate and to ers or one of their members approach one this can happen.

all this, her own position was clear. lutions to the problems of other people. Boashak, president of a union at the fac- Bangladesh garment factories. SAINI MAYU SAINI ALL PHOTOS BY MAYU ALL PHOTOS BY by alleged groups of workers, it is ob- foster an understanding,” he said. of our brands for support for remediation {Continued on page 8} 8 WWD TUESDAY, DECEMBER 30, 2014

THE ACCORD IN FIRE AND BUILDING SAFETY IN BANGLADESH {Continued from page 7} I think about, and we’re doing everything Rob Wayss WWD: In April, factory owners appeared we can to prevent it from happening. to be resistant to inspections, but now I certainly don’t want to see timelines they appear to be glad for them and on remediation not being met because ready to move forward. Has that been there wasn’t sincere discussion on fi - your experience, too? nancing to begin with, like that factory R.W.: Clearly, the inspections took place, owner needed help and either didn’t ask and there wasn’t a tremendous amount for it or the discussion on it was not sub- of resistance — some noise, but not a tre- stantive and then — four months later, mendous amount of resistance in terms when they’re supposed to have fi re doors of practical purposes. installed and fi re-alarm systems — noth- And on the remediation stuff, it var- ing’s getting done or not getting done ies. I would say, by and large, the factory adequately, and the factory owner says, owners are going about it and being fair- “I can’t do it because I don’t have the re- ly sincere. Some of them have expressed sources. I need some help.” I hope that the need for some fi nancial support, and doesn’t happen, and, again, we’re proac- we are facilitating those discussions or tively doing this stuff to prevent it. putting the brands and the factory owner On the safety and health committees, together so that discussions take place. the election of worker representatives I would say that the bigger issue that is, I think, going to be a sensitive subject we will have to deal with is people not and requires a prominent role by the gov- meeting timelines, whether through lack ernment. The government should be the of effort or [for] legitimate reasons; I think one to oversee those elections and serve there will be some cases of both. But I the regulatory functions if there are any think it’s not so much that people aren’t irregularities in the elections. It’s impor- going to fi x stuff — they know they have to tant for the government of Bangladesh to fi x it. I think it’s wanting to get more time step up and do that. to fi x it and then, obviously, fi nding the means of support to make this happen. WWD: The numbers that BGMEA is saying — about $250,000 per factory and $3 bil- WWD: So, what’s on the top of your worry lion for all the factories — are they cor- list at this time? rect? Is that fair? er they will have to put a sprinkler sys- WWD: It’s the same in terms of relocation? R.W.: I would say — I don’t think it’s going R.W.: We don’t really have an average per tem in; it depends on, structurally, if the R.W.: Again, are they proposing a fac- to happen — but I don’t want to see large- factory because there really isn’t one. It building is fairly sound and there’s not a tory that is five or 10 stories? How many scale failure to remediate within reason- depends on how many floors, how many lot of column strengthening that needs to doors are there going to be in the fac- able timelines. And, again, I don’t think doors, how many meters of wiring for take place. So, we don’t give an average tory, how many square meters is the we’re going to see that. But it’s something the alarm system; it depends on wheth- because it can vary so dramatically. floor going to be — without that, you

THE ALLIANCE FOR BANGLADESH WORKER SAFETY and let’s understand how to queue and se- change and half a world away. All of the THE ALLIANCE, which has 26 North asked, “Were you in that factory?” they quence the elements of a major plan.” things that make this hard. So, actually, American apparel companies, retailers kind of knew where they were, but they For instance, I don’t want to do any getting down to it was difficult, but we and brands, including Gap Inc., VF Corp., really didn’t know where they were. You more inspections. I want to get my in- were pretty clear what we had to do. We and Wal-Mart Stores Inc., completed in- can’t do that any more. You gotta know spections done, which we’ve done. I want set very significant milestones for our- spections in its 587 factories in July. An where you are. We require it as a part of to sit down and get these agreements selves. We just went about getting it done. additional fire-safety training program this binding agreement. with the factory owners, CAP, and then The toughest part still is the politi- for 1.1 million workers and managers move on to the remediation plan. But cal challenge. was part of its focus. WWD: In this time, have you seen the then there will have to be ongoing in- Ellen O’Kane Tauscher, former U.S. business model in Bangladesh really ma- spections. What requires them, and who WWD: In Bangladesh? Or do you mean in Congresswoman and the Alliance’s inde- turing and changing?’’ is going to do them? You don’t have to be the U.S., as well? Or do you mean politics pendent chair, spoke with WWD about the E.T.: The change has been enormous just a buyer to do that. Let’s get the inspec- between the various segments? tasks ahead and what it will take to achieve in the past 18 months, causing buyers to tors hired, and by the end of year three, E.T.: Yes. It’s the political tension be- safer garment factories in Bangladesh. focus. And requiring them to only be in we want that they are doing them on tween the Bangladesh government and factories that are in the inspection pro- their own. We’ve got to get them doing the Alliance and the Accord [and] the WWD: What is your immediate concern on cess creates a lot more visibility [and] annual inspections. factory owners — and all of those [rela- the ground in Bangladesh? also creates people making a lot more We’ve got to get them to a place where tionships] have been managed very well, Ellen Tauscher: In order to do business, smart choices, the flight to quality. not only their capability and capacity is in- I think. And then the relationships back you need to do two things: have a busi- So, what we want is to pull every- creased to take over from us but [they also at home, people’s expectations…and, ness license and belong to the BGMEA body up. There will be some that won’t can] take over from us without having any of course, the relationship between the [Bangladesh Garment Manufacturer and make it. But [the process] has to be an degradation of the standards. You can’t be Accord and Alliance. Exporters Association]. So, it makes sense organized endeavor of the government, nose down when you need to be nose up. that you’re going to have the bifurcation of BGMEA and these business owners. WWD: Things haven’t been working very the factory business: the factories that are You have to create a fl oor —regard- WWD: You’ve agreed on the contentious smoothly with the Accord on the ground. taking the exports, the flight to quality, the less of the other vagaries of the business issues of the common factory approvals Is that frustrating? factories that are higher end, more sophis- model — that you cannot have anyone with the Accord? E.T.: No. I can only affect what I can do. ticated, safer and have better everything, We’ve decided that we’re going to take [and] then you’re going to have the domes- the high road, and we’re going to be re- tic factories. I want to continue to have sults-oriented, and we’re going to keep these aspirational goals [and] continue to Business interest and competition and the our promises. I cannot set expectations have factories do better and more. for somebody else. I can’t require people normal business cycle will dictate whether to do things unless I have an expecta- WWD: Will there be 4,000 factories in tion that I can meet because we have an the future? there will be 4,000 factories or 3,500 factories. agreement. But we don’t have an agree- E.T.: It’s not my job to figure out how many ment with the Accord. there should be. Business interest and com- If anything, I think that people are petition and the normal business cycle will I want each of those factories inspected. starting to see that, from the very begin- dictate whether there will be 4,000 factories ning, we’ve always decided to be results- or 3,500 factories. I want each of those facto- — ELLEN TAUSCHER oriented and take the high road and not ries inspected — every one of them. be drawn into a political fi ght — that’s I want subsequent initial inspection sourcing, even if it’s just domestic, from a E.T.: Yeah, we’ve agreed, and then we — really about certain constituencies of and subsequent remediation. I want them factory that is uninspected. That is such me and my board — will have some meet- the Accord who don’t like the American inspected every year, and that’s got to be a material change. That will take us well ings with the senior leadership of the brands. I’m not going to change the fact. the job of the Bangladesh government. beyond the fi ve years, but it will change Accord to get past some of these political I don’t have to. They are not my constitu- And they’ve got to decide that there can’t everything, and that is how we start to issues that are wasteful and distracting ency. My constituency is here. be a shadow factory business; there can’t stabilize business and people’s expecta- because, in the end, the Accord and the be some factories that have kind of gone tions in the business. You start to mature Alliance already have an agreement on WWD: What aspirations and goals are you under because, with that, you’re going to the business model, and you start to ma- how to go forward. We’ve already created setting out for the coming months? Are take the whole thing down. ture the business, and you empower and the standards and the aspirational seven these common goals with the Accord and educate the workers. stories for fire suppression. So, the ques- the Bangladesh government? WWD: Are these issues being understood tion is, what do we do about the other E.T.: I think there is general awareness at the local level? WWD: Has the Bangladesh government 2,000 factories that are still under the and acceptance that — so, we’ve got E.T.: These are the kind of awakenings held up the right end to make these Bangladesh purview to manage? maybe 600 factories; they have maybe that the ministers and government…and changes possible? ’’ 1,300 or 1,400 factories out of 4,000. So, the BGMEA and the brands and the buy- E.T.: Yeah, but you always have to have a WWD: What has been the biggest chal- there are now all these other factories, ers [are having]. There is a lot of sophisti- healthy tension in a relationship because lenge for the Alliance these past months? anywhere from the high teens to 2,500 cation after [the collapse of] Rana Plaza, you have to be able to say, “Yes, I know E.T.: The biggest challenge has been — factories that the Bangladesh govern- when American and European brands it takes a long time, and it will take six because this is a hybrid conception, ment has to inspect. What we’ve been began to understand. When something months. But I can’t let it be seven because never created before — to do something very aware of from the very beginning bad happened and they were called and I have five years. So, let’s get this time line, that is tough to do: cultural and social is that, if there should be, God forbid, 8 WWD TUESDAY, DECEMBER 30, 2014 WWD TUESDAY, DECEMBER 30, 2014 9 WWD.COM

THE ACCORD IN FIRE AND BUILDING SAFETY IN BANGLADESH don’t know. So, what we do is, we pro- are elected — that will be happening them in our factories. So, I think the to allow for possibilities of backslid- {Continued from page 7} I think about, and we’re doing everything Rob Wayss vide information that we’ve been gath- in the next year. They do outreach with work will get more intensive with the ing, and you have to allow for repairs WWD: In April, factory owners appeared we can to prevent it from happening. ering on costs of common inputs, so you members on how to handle the safety government when the elections start tak- made on the electrical systems to not to be resistant to inspections, but now I certainly don’t want to see timelines do the math. Here’s a standard-size fire complaint mechanisms of the Accord. ing place — that’s going to be a big deal. be maintained. they appear to be glad for them and on remediation not being met because door of this dimension, which costs this But we don’t require a union at the fac- These will start in early 2015. I mean, we can’t eliminate the pos- ready to move forward. Has that been there wasn’t sincere discussion on fi - much; the installation for [that] fire door tory. We’re not supporting IndustriALL to sibility of industrial accidents. I would your experience, too? nancing to begin with, like that factory costs somewhere in this area; a meter of do union organizing. WWD: So, 2015 is essentially going to be suspect that we’ll see some fires and, R.W.: Clearly, the inspections took place, owner needed help and either didn’t ask sprinkler system can be purchased and about meeting timelines on remediation? hopefully, again, that these will be dra- and there wasn’t a tremendous amount for it or the discussion on it was not sub- installed for this much; the computer WWD: What has been the hardest to initi- R.W.: Yes, the remediation and moni- matically reduced and that workers won’t of resistance — some noise, but not a tre- stantive and then — four months later, components for a central fire-alarm sys- ate on the ground so far? toring the remediation is going to be a be injured when they do break out and mendous amount of resistance in terms when they’re supposed to have fi re doors tem cost this much; the cabling per meter R.W.: I don’t find any of it particularly major part of our work, and preparing that there will be fire doors if they do, so of practical purposes. installed and fi re-alarm systems — noth- costs this much; the jacket of a column hard to work with — not the BGMEA, and establishing the safety and health that people can get to safety faster. And on the remediation stuff, it var- ing’s getting done or not getting done costs this much, and then you have to do nor the government. BGMEA is a mem- committees and training the people who It’s terrible, of course, anytime we ies. I would say, by and large, the factory adequately, and the factory owner says, the multiplication based on this. That ber-based organization, so they have to will be on the committees will be a big [hear] that any of the factories we have owners are going about it and being fair- “I can’t do it because I don’t have the re- kind of stuff is what we provide. represent their members. The people part of our work going forward. inspected have a fire or an accident. But ly sincere. Some of them have expressed sources. I need some help.” I hope that that serve on the board of directors, We’ve also done a lot of upgrades on we need to work with purpose to make the need for some fi nancial support, and doesn’t happen, and, again, we’re proac- WWD: Will you be working with the forma- they are elected people, so there is a the Web site. It will be launched this sure that these things get fixed and that we are facilitating those discussions or tively doing this stuff to prevent it. tion of new trade unions and worker rep- bit of politics that comes into it, which month. We’ve done a lot of graphics on it we’re tracking and supporting so that putting the brands and the factory owner On the safety and health committees, resentation at factories? sometimes affects our work, so…on a and significant change in layout. they do get fixed. together so that discussions take place. the election of worker representatives R.W.: The trade unions are signatories, day-to-day level, from the political lead- I would say that the bigger issue that is, I think, going to be a sensitive subject but we don’t do any union organizing or ership level, we work well with BGMEA. WWD: The fire in October at the Mega WWD: Are there things that people on we will have to deal with is people not and requires a prominent role by the gov- anything like that. The trade-union sig- Our engagement with the government Dyeing Ltd. factory happened after in- the global level don’t understand about meeting timelines, whether through lack ernment. The government should be the natories are equal partners, so they get is more with the national-effort project spections were completed by the Accord. what’s happening on the ground? of effort or [for] legitimate reasons; I think one to oversee those elections and serve all the inspection reports. We’re invest- with ILO and the National Tripartite Aren’t inspections expected to eliminate R.W.: They need to know that factories in there will be some cases of both. But I the regulatory functions if there are any ing in the IndustriALL structures; we’ve Committee. We have a good working re- these risks of fire? Bangladesh are being made safe. There’s think it’s not so much that people aren’t irregularities in the elections. It’s impor- done a lot of trainings with their activ- lationship with them. R.W.: I don’t think we are going to be able been a lot of progress in one year, and going to fi x stuff — they know they have to tant for the government of Bangladesh to ists, with their worker-outreach people, to eliminate accidents in the garment the commitments that the Accord has fi x it. I think it’s wanting to get more time step up and do that. with their trainers. WWD: What would really help on an im- factories, and I would expect that, yes, made are being met — not without its to fi x it and then, obviously, fi nding the We’ve worked with them to select a mediate level? we would see fires and other industrial problems, not without its complication, means of support to make this happen. WWD: The numbers that BGMEA is saying group of people to set up meetings with R.W.: From the government perspec- accidents in the factories. Our job is to not without setbacks or occasions where — about $250,000 per factory and $3 bil- the workers from the factories to go tive, it’s important for the rules on the eliminate the ones that can be avoided we’ve had to enforce the Accord — but WWD: So, what’s on the top of your worry lion for all the factories — are they cor- through the inspection reports and get labor law to be published [and sent] to through practical safety measures. commitments have been met, and we’re list at this time? rect? Is that fair? er they will have to put a sprinkler sys- WWD: It’s the same in terms of relocation? their contact information and share ours, the safety and health committees. They But I would say, realistically, it will working hard to make sure they are met. R.W.: I would say — I don’t think it’s going R.W.: We don’t really have an average per tem in; it depends on, structurally, if the R.W.: Again, are they proposing a fac- so that we have access to workers in the need to lay down what the rules are take 12 to 18 months to remediate the And by doing this, the factories that pro- to happen — but I don’t want to see large- factory because there really isn’t one. It building is fairly sound and there’s not a tory that is five or 10 stories? How many factory as part of our monitoring when going to be for the safety and health factories that we’ve inspected. Even duce for the Accord brands are being scale failure to remediate within reason- depends on how many floors, how many lot of column strengthening that needs to doors are there going to be in the fac- the remediation is taking place. We rely committees and how they are going to when they are remediated, we won’t made safe. able timelines. And, again, I don’t think doors, how many meters of wiring for take place. So, we don’t give an average tory, how many square meters is the on them to do outreach to workers when get elected. That will be very helpful to be removing all hazards — it’s a cat- They’re not safe yet, but they are we’re going to see that. But it’s something the alarm system; it depends on wheth- because it can vary so dramatically. floor going to be — without that, you the worker committee representatives everybody because we have to establish and-mouse sort of thing. You also have being made safe.

THE ALLIANCE FOR BANGLADESH WORKER SAFETY and let’s understand how to queue and se- change and half a world away. All of the any tragedy in a Bangladesh ready-made Ellen Tauscher E.T.: It’s always been an important issue. THE ALLIANCE, which has 26 North asked, “Were you in that factory?” they quence the elements of a major plan.” things that make this hard. So, actually, garment factory, it doesn’t matter who is Our bylaws insist that workers have American apparel companies, retailers kind of knew where they were, but they For instance, I don’t want to do any getting down to it was difficult, but we sourcing from it. So, we’ve set some aspi- the right to organize, whether it is [as] and brands, including Gap Inc., VF Corp., really didn’t know where they were. You more inspections. I want to get my in- were pretty clear what we had to do. We rational goals, including having fire-sup- a labor union or a workers’ health-ben- and Wal-Mart Stores Inc., completed in- can’t do that any more. You gotta know spections done, which we’ve done. I want set very significant milestones for our- pression equipment on the seventh floor, efit committee. We promote that work- spections in its 587 factories in July. An where you are. We require it as a part of to sit down and get these agreements selves. We just went about getting it done. and this is not part of the building code in ers have the right to organize, and they additional fire-safety training program this binding agreement. with the factory owners, CAP, and then The toughest part still is the politi- Bangladesh. We would like to have some have to make their own choices on how for 1.1 million workers and managers move on to the remediation plan. But cal challenge. legislators pick it up and take a look at it they do it. We’ve said that right from the was part of its focus. WWD: In this time, have you seen the then there will have to be ongoing in- because there are two things that you ac- very beginning. We encourage the work- Ellen O’Kane Tauscher, former U.S. business model in Bangladesh really ma- spections. What requires them, and who WWD: In Bangladesh? Or do you mean in complish when you do that: [Using] either ers to organize. Congresswoman and the Alliance’s inde- turing and changing?’’ is going to do them? You don’t have to be the U.S., as well? Or do you mean politics fire doors or fire-suppression equipment pendent chair, spoke with WWD about the E.T.: The change has been enormous just a buyer to do that. Let’s get the inspec- between the various segments? like sprinklers, first thing you do is, you WWD: Part of the criticism of the Alliance tasks ahead and what it will take to achieve in the past 18 months, causing buyers to tors hired, and by the end of year three, E.T.: Yes. It’s the political tension be- give people on upper floors a chance to is that workers are not a priority. safer garment factories in Bangladesh. focus. And requiring them to only be in we want that they are doing them on tween the Bangladesh government and get out. But equally important, fire-sup- E.T.: Look, do we have some labor leaders factories that are in the inspection pro- their own. We’ve got to get them doing the Alliance and the Accord [and] the pression equipment allows people to go to who are never going to like the Alliance? WWD: What is your immediate concern on cess creates a lot more visibility [and] annual inspections. factory owners — and all of those [rela- work the next day. And there is something Apparently, there are. I think the test of the ground in Bangladesh? also creates people making a lot more We’ve got to get them to a place where tionships] have been managed very well, to be said about being able to go back to the thing — whether you have any class Ellen Tauscher: In order to do business, smart choices, the flight to quality. not only their capability and capacity is in- I think. And then the relationships back work the next day. or whether you have any credibility — is you need to do two things: have a busi- So, what we want is to pull every- creased to take over from us but [they also at home, people’s expectations…and, whether you can actually take someone ness license and belong to the BGMEA body up. There will be some that won’t can] take over from us without having any of course, the relationship between the WWD: So, is the awareness of the timeline you don’t like, see something that they do [Bangladesh Garment Manufacturer and make it. But [the process] has to be an degradation of the standards. You can’t be Accord and Alliance. — of five years in Bangladesh — becom- that they do well and say, “I guess you do Exporters Association]. So, it makes sense organized endeavor of the government, nose down when you need to be nose up. ing clearer now? that well.” that you’re going to have the bifurcation of BGMEA and these business owners. WWD: Things haven’t been working very E.T.: Yes, we’ve already been there 18 And unfortunately, apparently, there the factory business: the factories that are You have to create a fl oor —regard- WWD: You’ve agreed on the contentious smoothly with the Accord on the ground. months. We’re out of this business in three are some people, both in the United taking the exports, the flight to quality, the less of the other vagaries of the business issues of the common factory approvals Is that frustrating? and a half years. There is already the sus- I have more factory owners coming ing and a, frankly, new way of accessing States and Europe, who refuse to ac- factories that are higher end, more sophis- model — that you cannot have anyone with the Accord? E.T.: No. I can only affect what I can do. tainability compact, [and] there is the to me, saying, “I am doing it faster. I am capital. We realized early on that for many cept the fact that they have got “yes” for ticated, safer and have better everything, We’ve decided that we’re going to take National Tripartite Action plan. We are doing sprinklers on the seventh floor.” of the factory owners who look and appear an answer. These are companies that [and] then you’re going to have the domes- the high road, and we’re going to be re- now working with the brands, the Accord They understand that fire suppression to be needing credit from their buyers — have said and promoted and done more. tic factories. I want to continue to have sults-oriented, and we’re going to keep and the Alliance to sit down and say, “This is a double benefit: It gives people time [that] was the wrong message. So, we had We’re the only group that pays people if these aspirational goals [and] continue to Business interest and competition and the our promises. I cannot set expectations is the timeline in five years, and we’re on the upper floors to get out, but it also to turn it around and make sure that they they lose their job. So, where is the big have factories do better and more. for somebody else. I can’t require people doing our factories.” We know now that gives them a place to come back the next didn’t think that we were questioning their labor organization called the Accord? normal business cycle will dictate whether to do things unless I have an expecta- there is a flight to quality. We know now that day. If you’re waiting for the fire brigade ability to be a resource. The remediation is They’ve got tens of thousands of people WWD: Will there be 4,000 factories in tion that I can meet because we have an there are 1,700 of 4,000 factories where the to come, holy mackerel! extraordinary and a new kind of expense. who have lost their jobs without compen- the future? there will be 4,000 factories or 3,500 factories. agreement. But we don’t have an agree- Europeans and Americans have congregat- Also, this is a way for workers to re- And there is a premium on doing it sation. We’ve compensated everybody E.T.: It’s not my job to figure out how many ment with the Accord. ed, there is a sophisticated plan, so there is turn to work the next day. It’s a win-win. quickly. If you can figure out how to af- who’s lost their job for four months. there should be. Business interest and com- If anything, I think that people are a real going business. These factories are It’s an insurance policy. I remember the ford it in your business model but bor- So, you know, I think it is a little hol- petition and the normal business cycle will I want each of those factories inspected. starting to see that, from the very begin- going to now pass through other tests and first time I described it [last] summer, six rowing some money at a lower cost gets low to be claiming that there are people dictate whether there will be 4,000 factories ning, we’ve always decided to be results- will get more export business. But what is months ago: There was a little resistance it done faster, that’s an incentive for all for labor rights, while people are out or 3,500 factories. I want each of those facto- — ELLEN TAUSCHER oriented and take the high road and not the government going to do or the BGMEA? when I explained it as [being] the best everyone to do that. There were some of work because of the actions they have ries inspected — every one of them. be drawn into a political fi ght — that’s policy for workers and for you, because conversations with the factory owners to had to take because the factory that they I want subsequent initial inspection sourcing, even if it’s just domestic, from a E.T.: Yeah, we’ve agreed, and then we — really about certain constituencies of WWD: What do you see as the real shift you’re not waiting for the fire department make sure they didn’t feel vulnerable. We are working in is unsafe, but they’re not and subsequent remediation. I want them factory that is uninspected. That is such me and my board — will have some meet- the Accord who don’t like the American in attitude in Bangladesh now that the to come. They’re going to find a way to do worked with VF, but Wal-Mart and Target, paying them. Only the Alliance is paying inspected every year, and that’s got to be a material change. That will take us well ings with the senior leadership of the brands. I’m not going to change the fact. Alliance has done all this work already? it —they’ve brought it all on board, they’ve The Gap and others are involved. them. We’ve paid lots of people. the job of the Bangladesh government. beyond the fi ve years, but it will change Accord to get past some of these political I don’t have to. They are not my constitu- E.T.: At the panel [at the Apparel Summit in absorbed it. It’s a huge, huge, huge shift. This is innovation. This is people re- You know, people just don’t want to ac- And they’ve got to decide that there can’t everything, and that is how we start to issues that are wasteful and distracting ency. My constituency is here. Dhaka earlier this month], I’m sitting there ally saying, “OK, let’s just figure out how cept the facts. Their biases are showing, be a shadow factory business; there can’t stabilize business and people’s expecta- because, in the end, the Accord and the — we’re making the factory owners spend WWD: Is that what it’s costing, between to be creative. Let’s figure out how to do and it is unfortunate, but the truth of the be some factories that have kind of gone tions in the business. You start to mature Alliance already have an agreement on WWD: What aspirations and goals are you an average of $250,000 per factory. Their $250,000 and $300,000? something in a new way.” And IFC, to matter is, our record is unequivocal. under because, with that, you’re going to the business model, and you start to ma- how to go forward. We’ve already created setting out for the coming months? Are complaint is that there is a business envi- E.T.: Yes, for the American- and European- their credit, was right there and saying, take the whole thing down. ture the business, and you empower and the standards and the aspirational seven these common goals with the Accord and ronment where they are not competitive sourced factories, and these are the flight “OK, let’s figure out how to do it.” WWD: Is there a sense of satisfaction educate the workers. stories for fire suppression. So, the ques- the Bangladesh government? because of the high interest rate. They’re to quality — better managed and better about the achievements so far? WWD: Are these issues being understood tion is, what do we do about the other E.T.: I think there is general awareness not saying, “They are making us spend a resourced, better everything. WWD: How much interest are they going E.T.: Are we satisfied with the progress? at the local level? WWD: Has the Bangladesh government 2,000 factories that are still under the and acceptance that — so, we’ve got quarter of a million dollars to make their to charge? No. But we are working closely together. E.T.: These are the kind of awakenings held up the right end to make these Bangladesh purview to manage? maybe 600 factories; they have maybe workers safe.” No. They are complaining WWD: And you’re helping to find the E.T.: You know, it’s a market variable. But And if you ask, “Should anybody be sat- that the ministers and government…and changes possible? ’’ 1,300 or 1,400 factories out of 4,000. So, to the commerce minster that it’s costing money for remediation? it’s very competitive and a much better isfied with the progress?” the answer is the BGMEA and the brands and the buy- E.T.: Yeah, but you always have to have a WWD: What has been the biggest chal- there are now all these other factories, too much to borrow. They’re not saying, E.T.: So, this is the test of sophistication of rate than [at] HSBC and other banks. no. You have to have that tension there. ers [are having]. There is a lot of sophisti- healthy tension in a relationship because lenge for the Alliance these past months? anywhere from the high teens to 2,500 “That lady is making us do it.” the entire enterprise of this public part- You’re always trying to get something cation after [the collapse of] Rana Plaza, you have to be able to say, “Yes, I know E.T.: The biggest challenge has been — factories that the Bangladesh govern- That’s how the seismic shift has been: nership: our ability to bring resources of WWD: Now that fire and safety issues are done, but it doesn’t have to be adver- when American and European brands it takes a long time, and it will take six because this is a hybrid conception, ment has to inspect. What we’ve been People have absorbed this, they have ac- both corporate-quality lending and the IFC being addressed, will the Alliance take sarial because we have the same goals began to understand. When something months. But I can’t let it be seven because never created before — to do something very aware of from the very beginning cepted it, and they have moved on. It’s [International Finance Corp.]. Everyone up trade unions and workers’ rights as in mind, and we’re really confident that bad happened and they were called and I have five years. So, let’s get this time line, that is tough to do: cultural and social is that, if there should be, God forbid, amazing. It’s stunning. has been looking for imaginative, interest- an important issue? we’re really in a good place. 2.5x7 (right)

10 WWD TUESDAY, DECEMBER 30, 2014

“The Adirondacks... “Baja California, Mexico.” — CHRISTIAN LOUBOUTIN

“Surf and sun in Tobago with a bunch of friends and family.” — CYNTHIA ...and Palm Beach.” ROWLEY — MARK BADGLEY AND JAMES MISCHKA

“My home in Parrot Cay with my family.” Designer — DONNA KARAN “Back home to Athens. It’ll be the last break we have before the pre- fall and fall 2015 launches, so I’ll try to make the— MARY most ofKATRANTZOU it!” Destinations WWD wanted to know, “Where are you spending the holidays?” Somewhere fabulous, we assumed — and we were right. The Alps, Southeast Asia and Marrakech are just some of the spots the designers we caught up with are getting R&R — but so are the Adirondacks and Detroit.

“We are an athletic little family; we are going to Val— ISABELThorens MARANT to ski.” ye e “Traveling all throughout Southeast Asia. It’s the perfect combination of sun, escape and calm.” — MICHAEL KORS

“Punta del Este. I’ve never been, and I am so excited. A friend gave me her incredible beach house in San Ignacio for a week.” — ADAM LIPPES

“My mother’s house in Detroit is on a lake and beautiful year-round.” — ANNA SUI 2.5x7 (right)

10 WWD TUESDAY, DECEMBER 30, 2014 WWD TUESDAY, DECEMBER 30, 2014 11 WWD.COM

“The Adirondacks... “Baja California, Mexico.” — CHRISTIAN LOUBOUTIN Resolution 101 “I’m spending the holiday 2014 IS DRAWING to a close. It’s that time of year where we vow to spend at our family’s ranch in Wyoming. It’s a great place less time indulging in Netfl ix marathons and more of it on a treadmill. WWD polled designers, socials and celebs on their resolutions to see how they plan to better to cozy up and enjoy some themselves next year (at least till mid-February). time outside of the city.” “Surf and sun in Tobago with a — LELA ROSE “To eat less “I’m not going to make it, just be about it.’ bunch of friends kale, more any. I live my New That way I don’t beat and family.” chocolate.” Year’s resolutions myself up and feel — CYNTHIA ...and Palm Beach.” — LEANDRA MEDINE each and every day. guilty if I don’t do it.” ROWLEY So that’s my New — JOY BRYANT — MARK BADGLEY AND JAMES MISCHKA “They might seem phony, Year’s resolution: To but they’re true. One is to sit keep going.” “To take a little bit more down less, and the second is — KRYSTEN RITTER of myself and go back to to not have my phone in sight yoga in a big way.” all of the time. I feel like it’s “My New Year’s — DIANE VON always out. I think I can do a resolution is to get FURSTENBERG better job of putting it away more than four hours — it’s distracting.” of sleep “My New Year’s — JASON SCHWARTZMAN every night.” resolution is to try and — JENNIFER FISHER have a bedtime.” “Ideally, I would like to — CHELSEA LEYLAND create a couple more Natalies “To still see the in 2015. One will own glass half-full.” “Maybe I’ll start a her own clothing line. — ROLAND MOURET language or something. The other will study French. I really want to move neuroscience and “To eat more to France.” “My home in Parrot Cay develop therapies for greens.” — DYLAN PENN with my family.” children with learning — OSMAN — DONNA KARAN ...and Lisbon.” disabilities. And then YOUSEFZADA Designer — GIAMBATTISTA there’s the Natalie who has a TV show “To learn “Back home to Athens. It’ll be the VALLI on CNN. Now it’s calligraphy last break we have before the pre- up to the universe and enroll fall and fall 2015 launches, so I’ll to decide which in a dance class.” Natalie conquers.” — MISHA NONOO try to make the— MARY most ofKATRANTZOU it!” Destinations — NATALIE JOOS “I don’t make any WWD wanted to know, “Where are “I have to decide “To meditate anymore. I already you spending the holidays?” daily.” quit smoking between Marrakech... — LAUREN so that’s done. I Somewhere fabulous, we assumed — REMINGTON say, ‘Don’t and we were right. The Alps, Southeast PLATT talk about Asia and Marrakech are just some of the spots the designers we caught up with are getting R&R — but so are the Adirondacks and Detroit.

“We are an athletic little family; we are going to Val— ISABELThorens MARANT to ski.” ye e “Traveling all throughout Southeast Asia. It’s the perfect combination of sun, escape and calm.” — MICHAEL KORS

“I am going to Miami with “Punta del Este. my family for ‘non-Basel’ I’ve never been, and R&R, where I actually get I am so excited. A to wear a bathing suit and REACH THE friend gave me her eat tons of stone crabs on incredible beach the beach holding rosé or house in San Ignacio a Bloody all day long.” FASHION INDUSTRY’S for a week.” — JENNIFER FISHER — ADAM LIPPES TOP TALENT

“My mother’s house in Detroit is on a lake and beautiful year-round.” — ANNA SUI WWDCAREERS COM PRINT&ONLINEPACKAGESAVAILABLE Contact Christen Cosmas, WWD Classifi ed/Careers

LIPPES, SUI, BADGLEY AND MISCHKA PHOTOS BY THOMAS IANNACCONE; ROSE AND KORS BY JOHN AQUINO; KARAN, ROWLEY AND FISHER BY STEVE EICHNER; LOUBOUTIN BY AMY GRAVES; VALLI, KATRANTZOU AND MARANT BY GIOVANNI GIANNONI; THAILAND BY SASINTIPCHAI/ROOM THE AGENCY/CORBIS; ATHENS BY SANDRA RACCANELLO/SOPA RF/SOPA/CORBI ; ADIRONDACKS BY CHRIS HACKETT/; ADIRONDACKS BY RF/SOPA/CORBI RACCANELLO/SOPA SANDRA BY SASINTIPCHAI/ROOM GIANNONI; THE AGENCY/CORBIS; THAILAND ATHENS GIOVANNI BY BY AND MARANT KATRANTZOU VALLI, AMY GRAVES; BY STEVE EICHNER; LOUBOUTIN ROWLEY AND FISHER BY JOHN AQUINO; KARAN, BY THOMAS IANNACCONE; ROSE AND KORS LIPPES, SUI, BADGLEY AND MISCHKA PHOTOS BY HARDING WORLD IMAGERY/CORBIS; BAJA JAMES HAGER/ROBERT BY PIERINI/OCEAN/CORBIS; WYOMING JAVIER DEL ESTE BY PROBST/IMAGEBROKER/CORBIS; PUNTA NORBERT BARRY HOWE/CORBIS; TOBAGO BY JACQUES PIERRE/HEMIS/CORBIS; DETROIT BY THORENS BY CORBIS; VAL BY JORG GREUEL/OCEAN/CORBIS; MARRAKECH LISBON BY TANER/CORBIS; MURAT IMAGES/CORBIS; MIAMI BY TETRA DUTILE/CORBIS MATT MOXTER/WESTEND61/CORBIS; TURKS AND CAICOS BY MARTIN BEACH BY PALM PIETRO CANALI/SOPA/CORBIS; CALIFORNIA BY at 212.630.3937 or [email protected] HERSHEY’S BY SCOTT OLSON/GETTY IMAGES; YOGA MAT, FULL MOON AND BROCCOLI BY GETTY FULL MOON AND BROCCOLIIMAGES/ISTOCKPHOTO; BY GLASS GETTY MICHAEL BETTS/GETTY IMAGES; BY BUDDHA BY SIEDE PREIS/GETTY IMAGES; PEN BY IMAGES SCOTT OLSON/GETTYHERSHEY’S BY MAT, IMAGES; YOGA 12 WWD TUESDAY, DECEMBER 30, 2014 WWD.COM shot by Robert Wyatt via agency Wieden + Kennedy. At the Pressure Builds at American Apparel MEMO PAD time, it garnered media buzz, {Continued from page one} the third quarter. of business,” a spokeswoman as it marked a split with which would establish a value, has With 245 doors and its own fac- said. “Our stores are fully stocked. TALKING TOKYO: Japanese controversial photographer not happened and is not currently tory in Los Angeles, the company We’ve had a successful holiday photographer Nobuyoshi Terry Richardson, who previously scheduled, according to a source. has been losing money for years as season. Our employees have been Araki set aside his sexy shot a series of ads for Equinox Lea’s arrival on the scene it has coped with a series of high- working overtime to meet the and provocative edge for in his signature risque style. puts a third big-money investor interest loans. With a better capi- holiday demand, and now that the the spring advertising This year, Equinox said it in the mix. tal structure, the hope is that the holiday season is over, we plan to campaign he shot for Bottega partnered again with Wieden Soo Kim, managing partner brand will get ahead of things, open adjust shift schedules as we do Veneta, instead aiming for + Kennedy to depict post- at Standard General, is also very more stores and make the opera- every January.” imagery that is delicate yet workout imagery, which is influential at American Apparel tions at its factory more profitable. The spokeswoman added, strong. “More than simply meant to “further explore after he cut a stock deal with There’s been some progress: “American Apparel remains provocative, Araki’s images the consequences of a good Charney to share voting rights for Adjusted earnings before in- committed to great fashion while have a powerful honesty and workout and examine the his stake and then extended the terest, taxes, depreciation and staying true to its core principles human poignancy that make feelings associated” with it. company $25 million in financial amortization have been on the of producing clothes made in them unforgettable,” said The ad campaign is backing. Standard General had a rise, gaining 38 percent in the the USA, sweatshop-free and the brand’s creative director, budgeted at about $6 million, hand in picking five of the eight third quarter to $13.5 million. with fair wages for employees, Tomas Maier. “He has his own and it includes digital, people now on the company’s But American Apparel also and that commitment has not visual language, which I was mobile, social media, out- board. (Lucky Brand cofounder has been spending heavily to changed as the company posi- of-home advertising in New Gene Montesano had been made fend off Charney, who was voted tions itself for a turnaround.” York and Los Angeles, as Lion’s designee for the board, al- out as chairman in June and Charney was ultimately fired well as national print media though his name was withdrawn suspended as president and ceo this month but continues to domestically and in London. in favor of Lea, who will expand amid allegations of misconduct. orbit the company. He’s the larg- The ads will also be displayed the board to nine members when The company spent $5.3 million est shareholder — with a 43 per- at Equinox locations in New he joins officially.) on legal and consulting fees in cent stake, although he shares York, Los Angeles, Chicago, For now, the brand is plugging the third quarter alone. the voting rights for those San Francisco, Miami, Boston, along, working on a turnaround. Should money run short, shares with Standard General — Dallas, Washington, London Paula Schneider is set to take American Apparel is said to and has been threatening legal and Toronto. the reins as ceo on Jan. 5, and still have funds available from action that could seek damages Rankin created a series she’ll have her work cut out for her. Standard General. of more than $100 million. of portraits meant to grab The company posted losses of $40.9 On Monday, the company That means Charney is still attention; for instance, one million for the first nine months of sought to counter a report that it a player in what’s become fash- shot features a woman with a the year, as sales slipped 2 percent was cutting back at its L.A. fac- ion’s own version of “Game of shaved head with a razor in to $455.5 million. tory to conserve cash. Thrones.” And for those looking hand, while another shows Comparable sales in American “American Apparel’s factory is to catch up on all the others in Apparel stores fell 5 percent in operating in the ordinary course the saga, here’s a primer:

THE AMERICAN APPAREL PRIMER Nobuyoshi Araki’s ad Combatants in the battle to control the highest-profile U.S. apparel producer. for Bottega Veneta. very excited to see translated to the collection.” Photographed in Tokyo, the campaign includes a shot of model Saskia de Brauw hand- in-hand with male model Sung Jin Park. They are seen leaning against a wall in an empty LYNDON LEA, urban landscape, where the FOUNDING PARTNER, PAULA SCHNEIDER, overall white and gray scene LION CAPITAL CHIEF EXECUTIVE OFFICER, is interrupted by the pop of DOV CHARNEY, OUSTED FOUNDER, Longtime supporter of Charney, AMERICAN APPAREL color of a red metallic chair. AMERICAN APPAREL now seeking to claim his seat Set to take the reins of the firm The campaign is slated to The company’s largest on the board and pushing to on Jan. 5 and is said to have been break in the February issues shareholder, with a 43 percent consider a sale of the company. recruited by Charney, who reportedly of international fashion titles.

stake, but he shares the voting turned down a lucrative consulting ONE Araki is the latest artist

rights under the terms of a stock deal with the company when she CC to collaborate with Bottega Equinox ad shot by Rankin. deal with Standard General. wasn’t given a board seat. Veneta for its ad campaign. ANNA Charney’s on the outs with both I The label has previously a man in women’s clothing. AS the company and Standard M worked with photographers According to Equinox chief HO General, but has the support T including Ryan McGinley, Pieter marketing officer Carlos Becil, of many employees and is Hugo, Nan Goldin, Stephen Shore the campaign underscores threatening a legal battle. and David Sims. risk taking and empowerment. OWARD BY BY OWARD

H — ALESSANDRA TURRA “Everything we do at ; M

O Equinox is grounded in the RANKIN GOES SPORTY: British idea of high-performance fashion photographer Rankin living, empowering our PRESS. C A

COLLEEN BROWN, CHAIRMAN, M has been tapped by fitness members to be bold, be risk U AMERICAN APPAREL chain Equinox for its 2015 takers and push their limits, Joined the board in August JOHN HOWARD, CEO, ad campaign. inside and outside of the club,” and took the top spot this IRVING PLACE CAPITAL The ads, which break on Becil said. “This campaign SOO KIM, MANAGING PARTNER, INGO CHIU/Z STANDARD GENERAL month. Brings experience Private equity chief and fashion R Thursday, are an extension embodies that pride and the Loaned money to both Charney turning around public mainstay has expressed interest in of the company’s previous adventurous spirit that speaks and American Apparel and companies but finds herself buying the firm for up to $1.40 a campaign dubbed “Equinox to the idea that it’s about more secured voting rights and presiding over a battle royal share, or $245 million, pending Made Me Do It.” The first than just taking risks, it’s about significant sway on the board. for the future of the retailer. due diligence. iteration of the campaign owning the consequences.”

CHARNEY PHOTO BY CHARNEY PHOTO BY was launched last year and — ALEXANDRA STEIGRAD

to the population of Cheyenne, heart of suburban Makati, housed dot the islands, among them Wyo., which is home to one of in a gracious building that was Amanpulo in Pamalican Island, FASHION SCOOPS the largest outdoor rodeos in once an airport terminal. Lam, and El Nido, a collection of the world. And the number of accompanied by his husband resorts in the small cluster of AMAZON HOLIDAY FACTS: Amazon Alex and Ani bracelets to every pairs of running shoes bought and business partner Jan-Hendrik islands that take their name may have signed 10 million new child born in the U.S. with the would be enough to give each Schlottmann, met up with some from the birds’ nests (nest is Prime members for holiday, but name Alex in 2013. Purchases participant of the Minneapolis friends, who showed them around “nido” in Spanish) found atop it’s the Web site’s fashion facts of watches were sufficient to Marathon a new pair the city. “They’re the islands’ cliffs. The much- — based on purchases from scale London’s Big Ben 1,148 of running shoes FOR MORE here on their way to sought-after bird’s nest is a Amazon Fashion customers — times if stacked end-to-end. every time they SCOOPS, SEE Palawan,” said one delicacy in Chinese cuisine. that show just how big a retail The number of pairs of slippers started a new mile. friend, on condition It’s easy to vacation under presence the company had bought would be enough to give — VICKI M. YOUNG WWD.com. of anonymity. the radar in Palawan, which during the season. every resident of North Pole, “They’re doing a few explains why Amanpulo is a According to Amazon, if Alaska, a new pair of slippers LOW KEY IN THE touristy things while favorite of David Beckham, Naomi every shoe from each pair of every day for the next 100 PHILIPPINES: Derek in Manila.” Campbell and Michael Kors as pumps bought were stacked days (for the curious, a Google Lam may have jetted into the Palawan is a scattering of well as Phillip Lim, who spent a on top of one another, they search showed the town had a Philippines without much islands in central Philippines, few days there in September. would be 52 times higher than population of 2,214 as of 2013). fanfare, but Manila’s fashion known for its white sand A second Aman resort is being the Empire State Building. The number of pairs of cowboy crowd recognized him when beaches and blue waters, not to developed in the Philippines, Enough Alex and Ani bracelets boots purchased was enough he was seen having lunch at mention its pioneering efforts also in Palawan. were purchased to give four to provide a new pair of boots Blackbird, a chic restaurant in the in eco-tourism. Several resorts — BAMBINA WISE