Crain's
Adrianne Pasquarelli
On Wednesday afternoon more than 250 marched from SoHo to Union Square to demonstrate against alleged unfair wage practices at two New York retailers. The event was organized by the Retail Action Project, which works with retail workers in lower Manhattan to make sure fair wage practices are followed. The Retail Action Project is part of the Retail Wholesale and Department Store Union.
Beginning at 4 p.m., participants walked from Amsterdam Boutique, a Mystique Boutique affiliate, at 454 Broadway on the corner of Grand Street, to Shoe Mania at 654 Broadway on the corner of Bond Street. They then headed north to the Shoe Mania location at Union Square.
“People understand now that we need good jobs in New York City,” said Stuart Appelbaum, president of the retail union. “The only way people are going to get through this economic crisis is if we produce good jobs paying living wages.”
About 150 current and former Shoe Mania employees say they were denied overtime payment and are owed $3 million in damages for violations of the Fair Labor Standards Act. The group filed a collective action lawsuit last year with the state attorney general's office and has been in settlement negotiations since the fall.
Mystique, a fast fashion chain with several New York City affiliates, is also being investigated for labor violations. Workers say the chain owes between $1.7 million and $2 million for unpaid overtime and minimum wage. Employees were allegedly paid $5.25 an hour, which is $2 below minimum wage, for 66-hour work weeks.
“[Shoe Mania] stole money from us,” said Ahmed Dalhatu, who worked at Shoe Mania for three years before the West 34th Street store closed prior to Christmas last year. “They were using us because we didn't know any better. There were a lot of immigrants who didn't know about the law.”
Mr. Dalhatu, who is attending the march, said he did not receive overtime pay and was required to work 60-hour weeks. He had been trying to save enough funds to pay for business school and has since found a new job.
Representatives from Mystique Boutique and Shoe Mania did not immediately return calls requesting comment.