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Report: N.Y. Authorities Raid Alleged Sweatshops

BY CSA STAFF

New York City An investigation conducted by the New York State Department of Labor Wednesday morning uncovered serious violations by factories that manufacture garments for Macy’s, Gap, Banana Republic, Express, Victoria’s Secret, Limited and Coldwater Creek, according to an article in WWD.com.

Jin Shun, a garment contractor operating in Long Island City, Queens, N.Y., allegedly underpaid more than 100 workers, mostly immigrants, by nearly $3 million in minimum and overtime wages since 2005. Upon raiding the two factories, officials tagged more than 10,000 garments with a label stating that the merchandise was unlawfully manufactured, the article said.

The DOL’s Apparel Industry & Fair Wages Task Force found factory employees worked 12-hour days, often six or seven days a week. Workers, who were paid on a piece-rate basis, were instructed to fill out two time cards. One was for Monday through Wednesday, and a second card for the remainder of the week. This practice ensured that no more than 40 hours of work would appear on any card, the article reported.

According to the timecards and the factory’s production, workers were completing an entire item of clothing in less than a minute.

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Zahari named president and ceo of Lalique North America

BY CSA STAFF

NEW YORK According to reports, Maz Zouhari has been named president and ceo of Lalique North America.

Zouhairi was previously serving as vp of sales and marketing. He succeeds Guillaume Gauthereau.

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Supervalu reports 9% net earnings increase

BY CSA STAFF

MINNEAPOLIS Supervalu reported sales and earnings for the first quarter of fiscal 2009. The company reported first quarter net sales of $13.3 billion compared to $13.3 billion last year, net earnings of $162 million, an increase of 9% compared to $148 million last year, and diluted earnings per share of 76 cents, an increase of 10% compared to 69 cents last year.

Jeff Noddle, Supervalu chairman and ceo said, While we are pleased with our record results and the continued progress of the Albertsons integration, the ongoing weakness in the economy combined with higher food and energy inflation has created conditions that make us take a more cautious view for the balance of the fiscal year. In light of the macroeconomic environment, we have updated our guidance and are responding with tighter expense controls and other cost-savings activities. We remain confident that we are doing the right things for the long-term health of our business and are effectively managing those factors under our control in order to create a foundation for sales momentum and future growth. 

The company said it expects earnings per diluted share for fiscal 2009 to be in the range of $3 to $3.16 per diluted share. Identical-stores sales growth, excluding fuel, is now projected to be approximately 0.5% compared to previous guidance of 1% to 2%.

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