More than 70 local garment manufacturers were cited recently by the state for labor code violations, racking up combined fines of more than $600,000.
The State Division of Labor Standards Enforcement and the Economic & Employment Enforcement Coalition issued more than 100 citations during a two-day sweep Oct. 10 and 11. The manufacturers, which included 63 companies in Los Angeles County and 11 in Orange County, were cited for violations including failure to pay minimum wage, allowing minors to work beyond the allowed hour limit and not carrying workers’ compensation insurance.
Eleven of the 11 companies without workers’ compensation insurance were shut down immediately.
“We are here to ensure that the garment industry properly pays its employees and that the rights, protections and safety of these workers are safeguarded,” said California Labor Commissioner Angela Bradstreet in a statement.
SM Garment Corp. in Los Angeles was hit the hardest, amassing some $106,800 in fines for violations including failure to keep accurate records. Investigators also confiscated materials and forced the company to pay an additional $37,800 in back wages to 84 employees.
The company could not be reached for comment.
The Division of Labor Standards Enforcement conducts enforcement sweeps occasionally to ensure companies are not operating illegally. Investigators last month issued more than 150 citations totaling over $1 million to area car washes for violating state labor laws.
Coming Into Focus
Focus LLC, a national investment banking firm, announced last week it has opened an L.A. office that aims to play a significant role in mergers and acquisitions in the local manufacturing sector.
Paul Richey, who previously handled M & A; activities in manufacturing and other industries as president of Pasadena-based Janas Associates, will serve as managing director of Focus’ local office.
“L.A. is just a wonderful area for manufacturing, distribution and business services,” Richey said. “In this market, the subprime crunch has not affected our activity too much.”
The Washington-based firm is looking to expand its national reach after recent acquisitions of regional banking operations in Washington, Chicago and Charlotte, N.C.
Richey said the firm may look to open a San Diego office in the future. It already has offices in San Francisco and Bend, Ore.
Focus handles primarily middle-market clients with revenue between $10 million and $300 million.
Green Food
A leading frozen food company is set to open the world’s first certified environmentally friendly frozen-food manufacturing plant in East Los Angeles next month.
Contessa Premium Foods Inc. announced last week its new $35 million, four-million-cubic-foot facility has been awarded a Leadership in Energy and Environmental Design certification from the U.S. Green Building Council.
“As a leader in our industry, we didn’t wait for environmental standards to be established,” said Chief Executive John Blazevich in a statement. “Instead, we collaborated with LEED and decided to raise the bar for the entire industry and to do the right thing for the long-term sustainability of our environment.”
The San Pedro company, founded by Blazevich in 1984, said it expects the factory to produce one ton of carbon dioxide less per day than that of a traditional manufacturing plant.
Called the “Green Cuisine Plant,” the facility includes solar panels, an energy-saving water heating system and a loading dock designed to prevent the loss of refrigerated air.
The plant, which will open its doors Nov. 15, will produce 150 million pounds of frozen food in its first year, the company said.
Flying High
Worldwide Aeros Corp. is developing a technology for the Department of Defense that will give pilots greater control over aircraft.
The Tarzana aircraft manufacturer was awarded funding this month to build a system that will allow planes to fly without any kind of ballast, which helps control balance in the aircraft.
Under the deal, Aeros will design and develop the technology and demonstrate its capabilities on an Aeros 40D Airship.
The 40D is a blimp that can be used for television broadcasting, recreational flights and other activities.
The terms of the deal were not disclosed. The program is run by the Defense Advanced Research Projects Agency and officials say it could have applications for military aircraft.
Staff reporter Richard Clough can be reached at (323) 549-5225, ext. 251, or at [email protected].
