Two key players in the creation of Alta Gracia were Joe Bozich, the CEO of Knights Apparel, and Donnie Hodge, the company president. "We started thinking that we wanted to do something more important with our business than worry just about winning market share," Bozich explained in an interview.
Student activists and labor experts began conversations with Knights executives about whether the economics of clothing production allowed for "the perfect factory," one that could produce well-made items in a safe workplace and pay workers decent wages and benefits. Worker abuse surfaces on factory floors, but it is rooted in the dynamics of the global apparel industry, in which so-called manufacturers—in reality, design and marketing firms such as Nike—outsource the fabrication of clothing to independent contractors worldwide. In this labor-intensive industry where capital requirements are minimal, it is relatively easy to open a clothing factory. This has led to a global race to the bottom: There is always someplace where clothing can be made still more cheaply. Today more than 90 percent of the clothing in U.S. retail stores is imported.
Bozich and Hodge selected a site in the Dominican Republican where a Korean-owned plant had once made clothing for Nike and Reebok. The company, BJ&B, had shut the factory down after its employees unionized. But its workers had forged ties with American activists, and USAS leaders convinced the Knights executives that students would encourage their peers to buy clothing produced there. In February 2010, after a $500,000 renovation based on recommendations from the Maquiladora Health and Safety Support Network, the Alta Gracia facility opened for business.
The new factory is far livelier than other nearby workplaces. Bachata music and workers' chatter are constant background noise. The factory has good ventilation, plenty of windows, and overhead lighting help workers avoid eye strain.