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AAFA Newsbreaker
Jan. 13, 2009
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AAFA offices will be closed Monday, January 19, in observance of Martin Luther King, Jr. federal holiday and Tuesday, January 20, Inauguration Day.

In this issue...
Legislative, Trade & Regulatory News
  • AAFA Joins Business Community in Opposition to Pending Employment Legislation
  • CPSC Clarifies Implementation of CPSIA for Lead and for Resellers
  • CPSIA - Congress Begins to Respond to Constituent Concerns
  • Footwear & Apparel Top List of Seized Counterfeit Goods in FY 2008
  • USCIS Issues Final Interim Rule on Employee Citizenship Verification
  • New CAFTA-DR Short Supply Requests & Approvals
    Latest Statistics
  • Apparel, Footwear Manufacturing Employment Drops Further in December and in 2008 Despite Quotas
    AAFA Member News
  • AAFA Welcomes New Member: Oscar de la Renta
  • AAFA Launches Elite Sponsor Recognition Opportunity
  • AAFA to Offer More Webinars in 2009
    In the Press
  • New Toy Safety Laws No Game for Toymakers
  • After Weak Holiday Sales, Retailers Prepare for Even Worse
  • Wave of Bankruptcy Filings Expected from Retailers
  • Legislative, Trade & Regulatory News

    AAFA JOINS BUSINESS COMMUNITY IN OPPOSITION TO PENDING EMPLOYMENT LEGISLATION
    The US House of Representatives passed HR 11 on January 9, which combined the AAFA-opposed Ledbetter Fair Pay Act and the AAFA-opposed Paycheck Fairness Act. If passed by the US Senate and signed into law by the President, both bills would create an overwhelming scenario for US businesses. In response, AAFA joined with the US business community in sending a letter January 9 to the US Senate opposing Senate passage of HR 11. HR 11 is overly expansive legislation that would subject employers to unlimited liability under the Equal Pay Act (EPA) – even in cases where a plaintiff cannot show an employer's intent to discriminate or even when years or decades have passed since the alleged discrimination has occurred. HR 11 gives trial lawyers greater ability to file class action law suits and subjects employers to legal challenges for legitimate business practices. When Congress passed the Civil Rights Act, the Age Discrimination in Employment Act and the Americans with Disabilities Act, it created limits on the period of time under which an individual may file a "charge of discrimination" with the Equal Employment Opportunity Commission (EEOC). The limits on the charge filing period promote early reporting of potential discrimination to the EEOC, rapid resolution of employment claims and quick remedial actions by employers where appropriate. Without these time limits, businesses are left indefinitely vulnerable to frivolous legal challenges. (Kurt Courtney)



    CPSC CLARIFIES IMPLEMENTATION OF CPSIA FOR LEAD AND FOR RESELLERS
    The Consumer Product Safety Commission (CPSC) has recently approved proposed rulemakings regarding the new Consumer Product Safety Improvement Act (CPSIA) lead standard (that goes into effect on February 10). The proposed rulemakings would exempt out some natural materials, provide a process to exempt out other materials and clarify the application of the lead standard to both inaccessible components as well as electronics. The final proposals will be published soon. After the proposals are published in the Federal Register, there is a 30-day public comment period. The CPSC has also "clarified" the application of CPSIA to resellers. According to the clarification, thrift and second-hand stores are not required to test or certify their inventory for lead or phthalate content under the CPSIA. However, if they do sell anything which is in violation of the new standards they could still face civil and/or criminal penalties. In essence, this "clarification" means that while resellers are nominally "exempt" from the new rules under CPSIA, they will still be held liable if any of the clothes, shoes and any other children's products they sell violate the new lead and phthalate standards under CPSIA. (Rebecca Mond)



    CPSIA - CONGRESS BEGINS TO RESPOND TO CONSTITUENT CONCERNS
    Congressman Anthony Weiner (D-NY) sent a letter January 7 to the Consumer Product Safety Commission (CPSC) regarding concerns about the negative impact the new Consumer Product Safety Improvement Act (CPSIA) would have on the children's wear industry. Congressman Gresham Barrett (R-SC) also sent a letter January 9 to Congressman Henry Waxman (D-CA), Chairman of the House Committee on Energy and Commerce, and Congressman Bobby Rush (D-IL), Chairman of the House Subcommittee on Commerce, Trade and Consumer Protection, expressing his concerns over the implementation of the CPSIA – particularly the adverse impact on small businesses. A number of other members of Congress have also started to get involved as well so expect more letters to come. Much of this is due to the tremendous amount of opposition and concerns over the implementation of CPSIA. Furthermore, 6,500 activists from around the country have sent 21,000 letters to Congress in the past two months alone through the AAFA website urging Congress to fix the law. (Rebecca Mond)



    FOOTWEAR & APPAREL TOP LIST OF SEIZED COUNTERFEIT GOODS IN FY 2008
    US Customs and Border Protection (CBP) on January 7 released its Fiscal Year (FY) 2008 report on seizures of counterfeit goods. CBP seized more than $272.7 million in counterfeit and pirated goods in FY 2008, a 38 percent increase over FY 2007. Footwear continues to be the top commodity seized at the border, accounting for 38 percent of the value of all goods seized by CBP. Apparel constituted 9 percent of counterfeit articles seized, amounting to some $25 million in value. (Kurt Courtney)



    Product Showcase:
    STR Apparel & Footwear Testing

    Substantiating the quality, safety and responsible sourcing of apparel and footwear. STR delivers comprehensive services for the apparel & footwear industry including physical, chemical, biomechanical and field testing, flammability, fiber content, colorfastness, dimensional stability, strength, performance, construction, aging, care label verification, and fiber identification and analysis. Our responsible sourcing audits and training services are internationally recognized and offer a thorough and objective analysis of labor conditions at factories. Starting right at the source, we work with our clients to secure quality, conformity and social responsibility of products at every stage of manufacture. More info



    USCIS ISSUES FINAL INTERIM RULE ON EMPLOYEE CITIZENSHIP VERIFICATION
    US Citizenship & Immigration Services (USCIS) issued its interim final rule to streamline the Employment Eligibility Verification (Form I-9) process. Employers must use the revised Form I-9 for all new hires and re-verify any employee with an expiring employment authorization beginning February 2. The Handbook for Employers, Instructions for Completing the Form I-9 (M-274) will be updated to reflect these changes and will be available on the USCIS web site in the near future. (Kurt Courtney)



    NEW CAFTA-DR SHORT SUPPLY REQUESTS & APPROVALS
    The US government's inter-agency Committee for the Implementation of Textile Agreements (CITA) on December 2 approved two petitions from Hansoll Textile, Ltd., determining that certain raschel knit open work crepe fabrics, as specified in the petitions, are not available in commercial quantities under the US/Central America-Dominican Republic Free Trade Agreement (CAFTA-DR). With CITA approval of the petitions, apparel made in any of the CAFTA-DR countries using the subject third-country fabrics would be able to enter the United States or any other CAFTA-DR country duty-free under the agreement. In related news, CITA also requests comments on a January 2 petition from BWA requesting that certain woven modal-polyester blend fabric made from ring-spun yarn, as specified in the petitions, be declared not available in commercial quantities under CAFTA-DR. If CITA approves the petition, apparel made in any of the CAFTA-DR countries using the subject third-country fabric would be able to enter the United States or any other CAFTA-DR country duty-free under the agreement. Comments on the petition are due January 16. (Nate Herman)



    Latest Statistics

    APPAREL & FOOTWEAR MANUFACTURING EMPLOYMENT DROPS FURTHER IN DECEMBER AND IN 2008 DESPITE QUOTAS
    According to the US Department of Labor's Bureau of Labor Statistics January 9 release of December 2008 (November 2008 for wholesale apparel trade and footwear) employment figures, US total apparel manufacturing employment followed a 0.9 percent decline in November with a more severe 2.2 percent drop to 184,100 employees in December, and was 9.6 percent lower than in December 2007. US apparel wholesale trade employment fell by 1.2 to 150,000 in November and was 3.8 percent lower than in November 2007. November US footwear manufacturing employment declined 1.3 percent to 15,200 from the previous month and was 5.0 percent lower than in November 2007. US textile mill (yarn, fabric, etc.) employment dropped 2.5 percent to 138,000 in December and was 15.0 percent lower than in December 2007. For its part, US textile product mill (sheets, blankets, towels, curtains, auto/furniture upholstery, etc.) employment went down by 1.6 percent in December to 143,100 and was 8.3 percent lower than in December 2007. For the year, total US apparel and textile manufacturing employment stood at 496,500 workers, an 8.3 percent decline from 2007. Since quotas were re-imposed on US apparel and textile imports in November 2005, US apparel and textile manufacturing employment has fallen by almost one-quarter, or by almost 150,000 workers. Overall US labor market conditions deteriorated further in December, with total non-farm employment declining by 524,000 workers on a seasonally-adjusted basis and the unemployment rate increasing from 6.8 percent to 7.2 percent. Please note that the manufacturing figures include total employment (distribution, management, sales & marketing, R&D, administrative, etc., as well as production workers) at all US apparel, footwear and textile manufacturers. (Nate Herman)





    AAFA Member News

    AAFA WELCOMES NEW MEMBER: OSCAR DE LA RENTA
    Oscar de La Renta
    Jennifer Osman, Operations and Financial Controller
    550 Seventh Avenue, 8th floor
    New York, NY 10018
    Phone: 212.282.0512
    Email: josman@odlr.com
    Website: www.oscardelarenta.com


    Oscar de La Renta, headquartered in New York City produces apparel, footwear, handbags and small leather goods. (Maureen Storch)



    AAFA LAUNCHES ELITE SPONSOR RECOGNITION OPPORTUNITY
    AAFA Elite Sponsors are member companies that make a notable annual investment to advance the association members' competitiveness, productivity and profitability in the global market. In return, they receive exclusive visibility opportunities and a platform to share their thought leadership with AAFA members. To learn how to become an Elite Sponsor, please contact Mary Howell at 703.797.9045.



    AAFA TO OFFER MORE WEBINARS IN 2009
    AAFA recently announced that it will begin supplementing its numerous education programs with regular webcast seminars (webinars) throughout the year. Webinars will focus on issues of key importance to members of the apparel and footwear industries. This is an innovative and economical membership benefit as well as a new sponsorship venue. Members interested in suggesting topics for and/or partnering with AAFA on a future webinar should contact Mary Howell or Cat Schmierer.



    In the Press

    New Toy Safety Laws No Game for Toymakers
    from The Minneapolis-St. Paul Star Tribune
    Federal legislation passed in response to recalls of millions of toys over the past two years could have the unintended consequence of imposing unaffordable costs on independent, cottage-industry toymakers. Already struggling through a punishing recession, those toymakers may be hard-pressed to manage the new costs. The problem, industry advocates say, is that the requirements were designed with large-scale foreign manufacturers in mind, and aren't feasible for small companies. More



    After Weak Holiday Sales, Retailers Prepare for Even Worse
    from The New York Times
    On Thursday, many chains reported the worst holiday shopping season in decades, and the stores are entering the new year so weakened that some might not survive. A wave of corporate failures that has already taken out stores like Sharper Image and Linens ’n Things is expected to grow substantially worse in coming months, sending some of the well-known names of American retailing into bankruptcy. More

    Wave of Bankruptcy Filings Expected from Retailers
    from The Wall Street Journal
    Drained by the worst consumer-spending slump in decades and burdened by debt, U.S. retailers are expected to begin a wave of post-holiday bankruptcy filings, altering the landscape at malls and on main streets across the country. Retailers are particularly vulnerable in the current downturn after a decade of buoyant consumer spending, which encouraged them to overexpand and overborrow. Now, the banks and private investors who financed the boom are pulling back. More



    AAFA Events & Educational Programs

    Jan. 13, 2009
    VICS/AAFA/RFID Item Level Committee meeting

    Jacob Javits Center, New York City

    Jan. 26, 2009
    Executive Committee Meeting

    Via conference call

    Featured Upcoming Events

    March 11-13, 2009
    AAFA Executive Summit

    March 31-April 2, 2009
    Prime Source Forum 2009

    Complete schedule of events


    AAFA Member Partners & Programs


    By AAFA partner,
    Boxwood Technology, Inc.
    Employer and employee
    job services.



    Freight Savings Plan
    By AAFA partner, Siriani & Associates, Inc.
    Save on shipping costs.



    Footwear Testing Services
    By AAFA partner, Intertek
    Expert resource and discount technical testing



    RFID Savings Program
    By AAFA partner, Avery Dennison
    Negotiated below-market priced labels




    XRF Analyzers
    By new AAFA partners,
    Innov-x and Thermo Scientific.
    Identification and quantification of toxic metals in products.


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    Phone: 703-524-1864 Fax: 703-522-6741 www.apparelandfootwear.org