American Apparel takes stand on immigration

By Alexandria Sage

LOS ANGELES (Reuters) - Atop its pink factory in downtown Los Angeles, a sprawling banner declares American Apparel a "Compania Rebelde" (rebel company) and all over town, benches and billboards sponsored by the company shout "Legalize LA."

While immigration is almost a non-issue in the U.S. presidential campaign, American Apparel, the biggest garment manufacturer in the country, is doing its best to keep the debate alive, saying legalizing foreign workers is good for business.

Amid the whirr of sewing machines and clatter of cloth-laden carts, workers sport T-shirts that display their job functions in both Spanish and English, and telephone calls to family in Mexico are free.

Its campaign to legalize immigrants fits with a progressive image -- the 230,000 garments it churns out a day are all made by some 4,500 workers at its Los Angeles factory, and the company advertises its products as "sweatshop free."

"This is a company with equal opportunities for everyone and that fights for people's rights," said Eric Martinez, a stock room worker.

The debate over how a country built on immigration should manage its new immigrant workforce exploded into mass demonstrations in several major cities in 2006.

After policy overhaul efforts failed in Congress the following year, both presidential candidates have said they support humane reform, but have kept quiet on the subject in the months leading to the election on November 4.

Democrat Barack Obama wants a halt to raids that separate families and supports citizenship for immigrants who pay a fine, learn English, and wait their turn in line.

Republican John McCain, who once supported a temporary guest worker program for illegal immigrants, now emphasizes border security.

The dramatic tailspin of financial markets and the slowing U.S. economy has pushed the immigration issue even further into the background, a situation that American Apparel is trying to challenge.

"It is essential that we do not idly stand by in this next election," read a memo the company recently sent to its workers in a voter registration drive, urging them to remind both candidates to honor their promises for reform.

Chief Executive Dov Charney, a Canadian immigrant who displays his first alien resident card in the lunch room, did not respond to requests for an interview. But employees proudly cite his pro-immigrant policies -- $13 average hourly wages, $5 above California's minimum; stock in the company; subsidized health care, bus passes and meals; free English classes; and shuttering the factory during past protest marches.

'LEGALIZE LA'

"He's in love with the American dream," said Shawn Shahani, who works on the company's "Legalize LA" campaign.

American Apparel, hotel chain Marriott International and others that employ lower-skilled workers argue that federal regulations can ensnare employers who unwittingly find themselves with undocumented workers, despite their best attempts to comply with confusing and often contradictory rules.