Friday, October 14, 2005

HISTORICAL HOSIERY HAPPENING: October 13, 1948 - Association Protests Any Imposition of Unduly High Minimum Wage in Hosiery Mill Wool Yarn Spinning Departments
A proposal had been submitted by the Textile Workers Union of America to the Administrator of the Public Contracts Act (Walsh-Healey Act) for the establishment of a minimum wage of $1.05 in the woolen and worsted industry, on the claim that such a minimum is the prevailing minimum in such industry today. Such claim is being disputed by the woolen and worsted industry, on the ground that while it exists under the contracts of a number of unionized plants, lower and varying minima prevail in other parts and areas of the industry.

The woolen and worsted industry is one of a number for whom no minimum wage has ever been established under the Public Contracts Act, so that it is governed today by the $.40 minimum of the Wage and Hour law. This means that the present minimum is $.40, while it is proposed that it should be changed to $1.05. This proposal is of interest to the Hosiery Industry because the definition of the woolen and worsted industry under the Wage and Hour law, and presumably under the Public Contracts Act, is one which would include the wool yarn spinning operations which exist in a limited number of hosiery mills.

NEED EMPLOYEE HOLIDAY GIFT IDEAS? Give them a unique piece of hosiery history.
Whether it’s employee gifts or those who were involved with the hosiery industry, learn more about the exciting events that have transpired in the hosiery industry in the last 100 years. Purchase copies of The Hosiery Association Centennial: In Step With The Industry For 100 Years. This is the only commemorative publication that captures the Association’s 100-year history of leaders, events, programs and services. Information on how to order is available on our web site. There are a limited number of copies available so they will be sold on a first-come, first-served basis. Act promptly as orders are being filled weekly. These make unique gifts and are only available through THA. Requests to have the author, Sally Kay, sign your copy are also being taken via the order form. Visit www.hosieryassociation.com or contact THA staff at 704-365-0913 to obtain your history book order form.

AL & TN Chapters Luncheon: The next combined AL/TN Chapter meeting will be held on Thursday, October 20 at Lookout Mountain Golf Club in Lookout Mountain, GA. Harding Aslinger, with the University of TN Center for Industrial Services, will be describing how their manufacturing extension program functions as a part of the University and the National Manufacturing Extension Partnerships. He will provide an overview on services they provide, such as, Lean, Quality, Human Resource, Environmental, Safety, Government contracting, etc. Please plan to attend this event, enjoy a complimentary lunch, and gather useful information and weather permitting enjoy a round of golf afterwards. The program will begin at 11:30 a.m. (Eastern) with an approximate golf tee time of 1:15 p.m. Registration information is available at www.hosieryassociation.com and the deadline for registering is next Monday, October 17. Contact Mike Austell at 704-365-0913 ext 204 if you have any questions.

CHA Supplier Luncheon: The October 27 supplier luncheon will be a repeat performance of “A Student Panel’s Youthful Perspective to Fashion/Purchasing Trends.” The location for this one will be The Pepper Tree Inn located in Greensboro, NC and begins at 11:30 a.m. (Eastern). Registration information is available on THA’s website. The deadline for registering is Monday, October 24. If you have any questions, please contact Mike Austell at 704-365-0913 ext 204.

2006 CHA Luncheon Sponsorship opportunities are still available. If your company is interested in sponsoring any of the 2006 CHA luncheons, please contact Mike Austell at 704-365-0913 ext 204. Call early before all dates are taken. All luncheons are held on the 4th Thursday of the month and alternate between Hickory (Jan, Mar, May & Sept) and Greensboro (Feb, Apr, Aug & Oct).

Hosiery 101 & 102 Courses will be offered again at the Hosiery Technology Center in Hickory, NC on November 9 & 10. For further information, visit www.legsource.com. Classes cost $60 each and the deadline for registering is one week prior to the class dates.

THA Credit Group Meeting: The next meeting of the Credit Group will be on Thursday, November 17 and will be held at the Lyon Credit Services office in Charlotte, NC. For information about this group, contact Jeanna Sheldon, staff liaison, at 704-365-0913 ext 203.

AL Chapter Monthly Luncheon: The next luncheon meeting for the Alabaman Chapter will be on Thursday, November 17 at the Western Sizzlin’ in Fort Payne, AL. Stay tuned for program information as it becomes available. FRONTIER SPINNING MILLS will be the sponsor of this meeting, and a special Thank You goes out to them.

THA Industry Executive Summit/Board Meeting will be held November 17-18 in Charlotte, NC. As THA officially turns 100, one of the industry’s leading strategists will conduct a thought provoking, challenging planning session for hosiery industry executives and will offer leaders an exclusive setting to share industry concerns and network with their peers. The Board of Directors meeting will follow the leadership summit. Stay tuned for more details or contact Sally Kay at 704. 365-0913, ext. 212 sally.kay@hosieryassociation.com

CHA’s 47th Annual Meeting will take place on Thursday, December 1 at The Sawtooth Building in Winston-Salem, NC. The program will feature a panel of hosiery company CEO’s that will share their insight as to what is keeping them competitive in today’s business environment. Everyone is invited to attend this great networking opportunity…you don’t have to be a CHA member to participate. Registration information will soon be available on THA’s website.

AL & TN Chapters Christmas Party will be held at The Chattanoogan in Chattanooga, TN on Friday, December 9. Additional information on this event will be forthcoming.

THA’s 101st Annual Convention- April 27-30, 2006 at Desoto Hilton in Savannah, Ga.

Hosiery Technology Center Receives Major Grant From US International Trade Administration: The Hosiery Association Plays Key Role In Securing Funding for Vital Industry Resource: The U.S. Department of Commerce’s International Trade Administration (ITA) has presented a grant of $397,000 to the Hosiery Technology Center (HTC). Based on the campus of Catawba Valley Community College here, HTC enables U.S. hosiery firms to compete in the global marketplace through a broad range of training programs, R&D, testing, and new product development. James Leonard, ITA’s Deputy Assistant Secretary for Textiles and Apparel, presented the award on October 6 at Harriss & Covington Hosiery in High Point, NC, to: Dan St. Louis, Director of HTC; and Sally Kay, President of The Hosiery Association (THA). Please visit the THA website at www.hosieryassociation.com for complete details. 

National Textile & Apparel Team Office of Textiles & Apparel, USDOC PIEDMONT TRIAD CHAPTER - NCWTA USDOC EXPORT ASSISTANCE CENTER - GREENSBORO PRESENT CAFTA-DR & CHINA SAFEGUARDS TUESDAY , NOVEMBER 15th - GREENSBORO HIGH-POINT MARRIOTT HOTEL: The hotly debated FTA, covering Central America and Dominican Republic, has been signed into law. Are you fully up to speed and in compliance with CAFTA requirements - avoiding possible penalties and profit threatening duty payments? Or, are you missing out on the opportunity altogether because of the complexities of qualifying your goods? Do you want to be current on the status on on-going consultations with the Chinese relative to a broad agreement with China on textile quota issues?

Join us, along with Deputy Assistant Secretary for Textiles and Apparel Jim Leonard, Customs Attorney Jon Fee, Dr. Nancy Cassill, College of Textiles - NC State University, and Sally Kay, President - The Hosiery Association for a comprehensive conference in order to take full advantage of these issues.

8:00 a.m. - 8:30 am - Registration
8:30 am - 12:00 noon - Program
12:00 noon - 1:00 pm - Lunch & NCWTA Awards Presentation

GO TO: http://www.ncwta-triad.org/cafta-dr.php for details and registration form.

Wal-Mart Formally Announces Exclusive Metro 7(TM) Fashion Collection; America's Largest Retailer Signs Dayanara Torres as Spokesmodel for Metro 7: Wal-Mart formally announced its premier fashion collection for women -- Metro 7(TM), available now at select Wal-Mart stores and Walmart.com. The new collection is designed with the highly stylish, fashion-conscious customer in mind. The Metro 7 line features on-trend items with contemporary-tailored outfits, and stylishly casual weekend pieces that reflect the latest colors, fabrics and styles -- all at a great price. This new collection answers the perennial question, "What am I going to wear today?" with a strong style statement that takes every fashion-loving, time-starved woman from start to finish of her busy day in great style.

FDI or Not, Wal-Mart Will Enter India: Speculation is rife that the world's largest retailer, the $285-billion Wal-Mart Stores Inc, isn't keen to wait for government's green signal on FDI inflow into the country. Apparently, the retail giant is planning to set up its first store, either in Bangalore or Gurgaon, based on a cash-and-carry format - something that Indian laws currently permit. Wal-Mart's cash-and-carry brand, Sam's Club, is likely to be set up within 10-12 months, sources said.

Target Opens 60 New Stores: Target announced the grand opening of 60 new Target stores. This marks the largest mass opening in the retailer's history. New Target stores opened in the following cities on October 9: Jonesboro, AR - Yuma, AZ - Buena Park, CA - Carson, CA - Clovis, CA - Huntington Beach, CA - Northridge, CA - Redondo Beach, CA - Riverbank, CA - San Jose, CA - Whittier, CA - Arvada, CO - Denver, CO - Destin, FL - Glenwood Springs, CO - Lone Tree, CO - Davie, FL - Lady Lake, FL - Lee County, FL - Mt. Dora, FL - Palm Beach Gardens, FL - Pinellas Park, FL - Atlanta, GA - Evans, GA - John's Creek, GA - Broadview, IL - Tinley Park, IL - New Lenox, IL - St. John, IN - Waterford Park, IN - Overland Park, KS - Baton Rouge, LA - Allen Park, MI - Roseville, MN - West St. Paul, MN - Hampton Village, MO - Hattiesburg, MS - Durham, NC - Monroe, NC - Bedford, NH - Albuquerque, NM - Monroe, NY - Columbus, OH - Massillon, OH - North Olmsted, OH - Midwest City, OK - Owasso, OK - Lancaster, PA - Philadelphia, PA - Lincoln, RI - Chattanooga, TN - Memphis, TN - Fort Worth, TX - San Antonio, TX - Willowbrook, TX - Dumfries, VA - Harrisonburg, VA. Three additional stores in Ft. Myers, FL, Sawgrass, FL and Vernon Hills, IL will open by the end of the month.

Target Set to Raise Stakes vs Wal-Mart: Not many businesses go up against retail juggernaut Wal-Mart and survive, much less thrive. Target has found a way not just to compete against Wal-Mart but to grow into the second-largest discount retailer in the country. Target's business plan of filling a high-end discount niche with more upscale merchandise from well-known designers such as Isaac Mizrahi has been so successful even Wal-Mart has followed suit.

Sara Lee Sell-Off Another Let Down for Chirac: Sara Lee Corporation is in final talks to sell its European lingerie business, including brands DIM, Wonderbra, Playtex, Gossard and Unno, at a knockdown price. The would-be buyer is Florida-based Sun Capital Partners Inc, which plans to add the lingerie business to a portfolio including Lee Cooper jeans. The European business employs 14,000 across 10 factories generating sales of $1.8bn (£1bn, E1.5bn) a year.

Hosiery in Fashion Magazines: Hosiery is being featured across the country in numerous consumer fashion magazines. Oprah magazine (September issue), Vitals Woman (Fall Issue) and Allure (October) features a 3 page article on legwear and includes numerous quotes from THA president Sally Kay, entitled “Tricks of the Trade.”

Three leading Thailand clothing brands return home to Bangkok from Paris Fashion Week with international sales successes: Grey, Senada Theory, and Fly Now sign up European, North American, and Asian outlets during Paris ready-to-wear trade shows. Paris Fashion Week closed on Monday and the owners of three of Thailand’s leading ready-to-wear brands – Grey, Senada Theory, and Fly Now – are today back in Bangkok with large and unprecedented distribution contracts and placements for their Spring season lines in boutiques and showrooms in North America, Europe, and East Asia. The weeklong event in Paris, highlighted by catwalk presentations of new spring ready-to-wear lines form major labels, has become a goldmine for smaller international brands seeking rack space in key boutiques in major international cities.The Grey ready-to-wear line alone – a relatively new specialty fashion brand from Greyhound of Bangkok that is less than one year old – will now be available in seven major international centers -- Paris, New York, Boston, Los Angeles, Tokyo, Hong Kong and Manila with plans for at least one more city before years end. Senada Theory and Fly Now have had comparable success at the Paris trade pavilions this month. Potential news themes include:- Emergence of Bangkok with its vibrant street and club culture as a “fashion brand incubator” that is winning international attention and distribution. - Rise of women designers and professionally trained business managers in Thailand who are rapidly developing small family side investments from single-shop boutiques into vital, sustaining brands that extend beyond clothing to accessories and other luxury products.- Role of international trade shows – highly-publicized Paris, Milan, and New York Fashion Weeks – in getting broader exposure of Thai ready-to-wear brands to foreign buyers and audiences.

US-China Textile Talks Fail: The US and China held yet another round of negotiations this week in Beijing in the hope of concluding a comprehensive bilateral textile agreement. Although significant progress was achieved, a final agreement could not be reached. US officials have expressed pessimism that another round of negotiations could be held in the near future as a result of disappointment in the most recent round and an otherwise full agenda for US negotiators. Among other things, the USTR needs ample time to prepare for the December WTO ministerial meeting in Hong Kong and is seeking to make further progress on free trade agreements (FTAs) with Panama, Thailand, the United Arab Emirates, the South African Customs Union, and the Andean region (i.e., Colombia, Ecuador, and Peru). The most recent US-China talks focused on a host of unresolved issues, including the duration of the deal, product coverage, base quotas, annual quota growth rates, treatment of goods presently under embargo, and the use of the safeguard mechanism on products outside the scope of the agreement. The two sides reached agreement on quota growth rates for 2006 (8-15%, depending on the product) but proved unable to reconcile their positions on quota growth for 2008. Chinese negotiators were willing to consider quota coverage through the end of 2008, provided quota growth rates were sufficiently large. The failure to reach an agreement could prompt the Committee for the Implementation of Textile Agreements (CITA) to move ahead on petitions seeking additional safeguard quotas. CITA must meet a November 1 deadline for a decision on socks (category 332/432/632-pt).

Senate Finance Committee to Hold Hearing on USTR, DOC Nominees: The Senate Finance Committee has announced that it will hold a hearing next week to consider the nomination of the following individuals to the positions indicated: Susan C. Schwab, Deputy USTR; Karan K. Bhatia, Deputy USTR; and Franklin L. Lavin, Under Secretary of Commerce for International Trade.

ILO to Examine Effects of, Responses to Textile Quota Elimination: The International Labor Organization (ILO) will sponsor a meeting in Geneva on October 24-26 of business, labor, and government leaders from key textile and apparel producing and consuming countries. The meeting will focus on how international trade in this sector has changed since the elimination of quotas on January 1, 2005. Participants will also discuss the various ways they have sought to maintain their competitiveness in the post-quota environment. A new study prepared for the meeting by the ILO shows that many of the predictions regarding the global effects of quota elimination have proven to be accurate. China, India, and Pakistan have all seen significant export growth. Employment in the US and the EU has declined. African countries have been among the hardest hit: textile and apparel exports to the US under the African Growth and Opportunity Act (AGOA) were down 25% in the first quarter of 2005 compared to a year earlier, and many Asian companies that had invested in Africa to take advantage of AGOA are now pulling out. Tens of thousands of jobs have been lost, and the textile and apparel industries in some countries are near collapse. The study also found that many countries have developed innovative approaches to help their industries adjust to global competition. Programs focusing on improving working conditions have been particularly successful and are being implemented in countries like Cambodia, Morocco, the Philippines, Romania, Madagascar, Tunisia, Bangladesh, Haiti, and Sri Lanka. The October 24-26 meeting will discuss these strategies and the emerging situation to which they have been developed to respond, with particular emphasis on: the potential beneficial and adverse economic and social effects of the changes that have occurred since quota phase-out; the effectiveness of economic and social measures and policies undertaken during the quota period to limit the impact of increased competition and improve the competitiveness of the industry; an assessment of, and lessons that can be drawn from, the first ten months of open trade; what national policies should be developed and implemented in both exporting and importing countries to develop an integrated, socially responsible strategy to deal with the challenges of trade liberalization; whether manufacturing enterprises should adapt their strategies to cope more efficiently with increased international competition and better promote decent work; how international buyers can contribute to the promotion of fair globalization in textiles and apparel; and optimizing social dialogue to improve policy and social coherence.

US Delegation Seeks Currency Reform Commitment from China: Treasury Secretary John Snow, Federal Reserve Board Chairman Alan Greenspan and Under Secretary for International Affairs Tim Adams are in China this week to seek additional currency reform commitments. The Administration is clearly hoping that the presence of this high profile team will increase chances that China will pledge further liberalization of its exchange rate regime, which would then give Treasury political cover for not naming China as a currency manipulator in its upcoming foreign exchange report. Lawmakers have threatened to resume consideration of trade sanctions against China unless such a designation is made or Beijing takes additional steps toward currency reform, but Greenspan, Snow, and Adams have all strongly cautioned against such measures in recent months.

Nicaragua Approves DR-CAFTA: The Associated Press reported that Nicaraguan lawmakers approved the DR-CAFTA this week leaving Costa Rica as the only signatory that has yet to ratify the agreement. Nicaragua’s approval was somewhat delayed by recent political turmoil surrounding an effort to oust President Enrique Bolanos, but an intervention by the Organization of American States (OAS) and sharp warnings from Deputy US Secretary of State Robert Zoellick helped defuse the crisis. US trade officials are continuing to coordinate with their counterparts in the DR-CAFTA countries to determine when the agreement will take effect.

USTR Seeks Comments on CBI Biannual Review: The USTR is seeking comments by November 4 for use in preparing its 2004/2005 report on the operation of the Caribbean Basin Economic Recovery Act (CBERA), as amended by the Caribbean Basin Trade Partnership Act (CBTPA), together commonly referred to as the Caribbean Basin Initiative (CBI). The report is to be submitted to Congress by December 31. Comments are sought on any aspect of the program’s operation, including the performance of beneficiary countries under the eligibility criteria, the program’s effect on the volume and composition of trade and investment between the US and beneficiary countries, and the program’s effect on advancing US trade policy goals, as set forth in the CBTPA.

Senate Committee Approves Elimination of Cotton Subsidies: Last week the Senate Committee on Agriculture, Nutrition, and Forestry was expected to approve the elimination of the Step 2 cotton subsidy program, which provides for payments to US cotton and textile producers. The measure, part of an agriculture budget reconciliation process, would do away with the WTO-illegal program as of August 1, 2006. The WTO ruling on the Step 2 program came in a case filed by Brazil, which has repeatedly threatened to impose trade sanctions against the US as Washington has missed two compliance deadlines. Earlier this year Brazil suspended proceedings on a request for $3 billion worth of retaliation after the US took legislative and regulatory steps to repeal Step 2 and modify other export subsidy programs. On October 6, Brazil filed a separate request for just over $1 billion in sanctions, although officials have stressed that no action is imminent. In both cases officials have said that any retaliatory measures that may eventually be taken will include not only higher import tariffs on US goods but the withdrawal of certain commitments regarding services and intellectual property rights (IPR).

The contents printed in this document are informational in nature. They are gathered from various industry sources and do not necessarily reflect the views and/or actions of THA.

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