National News Items - December 2004

Pitney Bowes service workers are dressed to sell

Stamford , CT , November 26, 2004 (by Julie Fishman-Lapin, The Advocate) - Can blue work for you? Stamford-based Pitney Bowes says it can as it outfits its service personnel into new blue uniforms.

For the first time in its 81-year history, the world's biggest maker of postal meters and mailing equipment has adopted a company uniform for its 1,800 customer-service employees.

"We wanted to give our customer-service folks a presence and identity," company spokesman Christopher Tessier said.

The new uniform communicates and identifies a branding presence -- similar to UPS and Fedex workers who are easily recognized by their uniforms, Tessier said.

The uniform, a button-down blue shirt with the company logo, also spurs dialogue with customers, which gives the customer service rep a chance to talk about new products and services.

"The uniforms are a great opportunity to build customer loyalty and make a lasting impression on people who may become customers," said Roger Nunley, managing director of the Customer Care Institute, an Atlanta-based resource organization that helps companies improve their delivery of customer service.

The uniforms are actually part of a larger program for the company's service reps, who are playing an increasingly important role, Tessier said.

Twenty years ago the main job of customer service reps was to visit clients and fix broken mail meters. Today the service reps are software programmers and help with system integration.

"They are dealing with software that includes shipping and logistics systems," he said.

Also, with 6 percent of its client base using multiple Pitney products, the company realized there was a tremendous opportunity for growth, Tessier said.

"The service force . . . can identify opportunity for us," he said. "Today they work hand-in-hand with our sales people to investigate and uncover opportunities."

More companies are realizing that customer service employees probably talk to more people than sales people, Nunley said.

"It's a wonderful opportunity, but it has to be done right," he said.

Many companies just order their customer service employees to make a sales pitch at the end of a service call, he said.

The key is the right training and making the sales pitch more about assisting the customer or identifying a service that can help the customer, Nunley said.

"It's a much more sophisticated type of service employee," Tessier said.

G&K Services Acquires Direct Sale Business from Lion Apparel

MINNEAPOLIS , MN , December 2, 2004 (Business Wire) - G&K Services, Inc., today announced the acquisition of the direct sale uniform group and related assets ("Lion Uniform Group") from Lion Apparel, Inc. Based in Dayton , Ohio , Lion Uniform Group is a leading designer, marketer and distributor of customized uniform programs. Lion Uniform Group generated approximately $27 million in revenue in their most recent fiscal year ended September 25, 2004 .

"We are extremely pleased to announce the addition of this high-quality business to G&K," said Richard Marcantonio, president and chief executive officer. "This acquisition expands our direct sale business, and more importantly, positions us to pursue greater direct sale growth in this large, fragmented market. The Lion Uniform Group has a high-quality customer base, seasoned management team, key information systems, solid sourcing capabilities and excellent fulfillment center operations."

G&K stated that Lion Apparel, Inc. operates other businesses for fire, rescue, police and military organizations in North America , Europe and Asia which are not part of this transaction. "As we've discussed over the past several quarters, we see significant growth opportunity across our entire business," Marcantonio said. "We're continuously evaluating alternatives to grow our rental and direct sale businesses through internal initiatives and potential acquisitions. The Lion Uniform Group brings a great portfolio of direct sale customers that depend on their uniform program as a key element of their brand strategy. Their programs are specifically designed to enhance the customer's image in the marketplace which is consistent with G&K's new strategy. Our plans are to leverage their marketing, operational and management expertise to significantly expand our share of this market."

Terms of the deal were not disclosed.

San Joaquin County Deputies to Get New Uniforms

Lodi , CA , November 27, 2004 (reported by Les Mahler, San Joaquin News Service) -- For the past few weeks, county law enforcement agencies have been voting on a new, sleeker uniform, said Steve Walker, president of the Deputy Sheriffs Association.

The new black uniforms, which would replace the green and tan ones currently worn, was proposed by the DSA and Correctional Officers Association, Walker said.

"It started with a bunch of younger guys who wanted to make a change," he said. "They saw it as a morale booster."

Also, black is now the standard in the industry, Walker said. " Sacramento , and other county deputies have already switched," he said. "And Stanislaus is going through the process now."

Walker said the DSA vote was overwhelmingly in favor of the new uniforms. Correctional officers will vote on the new uniforms Dec. 1 and Dec. 2, he said, but they're expected to favor the new duds as well.

While sergeants, lieutenants and clerical staff still have to vote, Walker said the other two groups' approval will probably be enough to make the change.

But Sgt. Gary Padula, president of the COA, said the final vote is up to Sheriff Baxter Dunn.

Padula said Dunn could have simply ordered the change, but instead let everyone offer their opinion and then make a decision.

Several deputies have modeled the new uniforms during the past weeks, including Lt. John Picone and Sgt. Wayne Lowery at the Stockton courthouse.

Picone said many deputies felt the black look was more professional looking -- and had a slimming effect.

While neither man offered a personal opinion on the uniforms, one courthouse deputy who wouldn't give his name said the new uniforms have problems, such as a tendency to expand and absorbing too much heat during the summer.

Padula said costs and professionalism are driving the vote to change. The current uniform costs $150, he said, with the pants costing $100 of that because they're wool-blended. And no one buys just one uniform, he said.

"If you buy only one, you're not going to get by," he said.

He didn't have a price breakdown for the black uniforms, but said deputies, sergeants and correctional officers have an annual allowance for uniforms, so the cost isn't such a burden.

Walker said if the new uniforms are approved, the switch will be made in March so that deputies who retire in April won't have to buy them.

While he wouldn't say which he preferred, Padula said he's been dressed in the current green-and-tan uniform for 37 years.

Uniforms, Flags of Colorful Civil War Units on Display

Saratoga Springs , NY, November 24, 2004 (NBC Channel 3) - In the Civil War, the most colorful soldiers on the battlefield didn't wear blue or gray.

The volunteer units known as the Zouaves (zoo-AHVS') fought for the Union during the Civil War, and many of the regiments hailed from New York .

Some of their eye-catching uniforms and the flags they carried into battle are on display at the Capitol in Albany and the New York State Military Museum and Veterans Research Center in Saratoga Springs .

At the start of the Civil War, thousands of New Yorkers joined Zouave units, attracted by their flamboyant uniforms consisting of red baggy trousers, blue jackets and red tasseled fezzes.

The Americans copied the style from French military units that had adopted the uniforms from Algerian tribes they defeated in the mid-1800s.

Many of the first Zouave units were recruited from the ranks of Manhattan firefighters. Their leader was Elmer Ellsworth, a Saratoga County native who was the first Union officer killed in the Civil War.

For more on the uniforms, visit www.dmna.state.ny.us/historic/mil-hist.htm

Charles River Apparel Launches New 2005 Performance Outerwear Catalog

Medford, MA, November 18, 2004 (Company Release) - Charles River Apparel recently launched its exciting 2005 Performance Outerwear catalog featuring 25 additional styles in a variety of innovative, new fabrics. The catalog features several new categories for the company including a collection of cotton-blend sweatshirts as well as the company’s first “For Her” collection designed exclusively for women.

This year’s cover image was especially important to the company since it was taken at the annual Head of the Charles Regatta in Boston , Massachusetts , which attracts 100,000 spectators and over 7,000 rowers from around the world.

Charles River Apparel is launching its annual catalog earlier than usual this year to help the distributor. “Distributors need to know what is new for 2005 in advance so they have time to put their own catalogs together. Plus, this is the time of year when distributors are putting programs together for their customers - our distributors need to have access to pricing, samples, and images of the new styles prior to January 1,” says Vanessa Keefe, marketing manager for the company. “This is also a great time to add new colors to existing styles so that distributors are able to present as many color options to their customers as possible.”

To further aid the distributor, Charles River Apparel announced a catalog imprint program and for 2005 they now offer a version of their outerwear catalog with suggested retail prices listed. For more information on Charles River Apparel, call 1-800-225-0550 or visit www.charlesriverapparel.com

Aramark Uniform Services Acquires Two Uniform Supply Companies

Burbank, CA, November 15, 2004 (BUSINESS WIRE) – Aramark Uniform Services, a leading provider of uniform and career apparel, announced it has acquired two uniform companies: L&N Uniform Supply Company and Eastern Uniform Service Corp.

L&N Uniform Supply Company, headquartered in Santa Ana , Calif. , rents, leases and sells uniforms and career wear to businesses throughout the southern California and Salt Lake City regions. Revenues for L&N Uniform Supply were approximately $18 million for fiscal year 2003.

The acquisition, which was completed on October 4, 2004 , adds approximately 2,000 business customers to the Aramark Uniform Services client base.

Eastern Uniform Service Corp., headquartered in Queens , New York , rents, leases and sells uniforms and career wear to businesses throughout the greater New York City region. Revenues for Eastern were approximately $3.5 million for fiscal year 2003. The acquisition, which was completed on October 4, 2004 , adds approximately 700 business customers to the Aramark Uniform Services client base.

"The purchase of these companies further strengthens our presence in two important markets," said Stephen Donly, president of Aramark Uniform Services. "Both companies have served their clients well through their dedication to customer satisfaction. We look forward to continuing that tradition with Aramark’s own hallmark for high-quality service."

Aramark Uniform Services is a leading supplier of uniforms and career apparel, providing rental, purchase and lease programs to over 1.5 million people at more than 300,000 businesses. Aramark Uniform Services is a division of Aramark Uniform & Career Apparel Inc., an indirect wholly owned subsidiary of Aramark Corporation.

For more information, contact Dave Gargione, corporate and financial media relations, (215)238-3559, or visit www.aramark.com

Los Angeles Passes "No-Sweat" Ordinance 13-0

Los Angeles, CA, November 11, 2004 (Company Release) – Councilmember Eric Garcetti joined Tom Hayden and representatives from Sweatshop Watch, Progressive Jewish Alliance, Progressive Christians Uniting, garment workers' union UNITE HERE and the Los Angeles County Federation of Labor, AFL-CIO, to cheer the passage this morning of the nation's most innovative and far-reaching anti-sweatshop purchasing ordinance to date. The ordinance, which builds on the international accomplishments of the anti-sweatshop movement, requires that a living wage be paid to workers on many city contracts and creates a flexible mechanism for the city to share information with advocates and governments facing these issues across the globe.

"Whether we're buying uniforms, desk chairs, computers or pens, the city government shouldn't be sending its money to sweatshops," said Councilmember Eric Garcetti, who introduced the original motion calling for an anti-sweatshops law. "Companies who exploit or abuse their workers should have no part in supplying L.A. with the goods we use to run the city."

"It is fitting that in Los Angeles, the sweatshop capital of the United States, city contractors and subcontractors will be held to the strongest to-date 'sweatfree' purchasing code in the nation, protecting abused workers here and around the world," said Erica Zeitlin, associate director of the No More Sweatshops-Los Angeles office, which proposed the legislation under the stewardship of former State Sen. Tom Hayden. "This law is a true landmark for those who care about lifting exploited workers out of misery and a historic opportunity for a new model of socially responsible business practices in the public sphere," she added. "Its innovative provisions for contracting with an independent monitor also give the policy real teeth."

"Thousands of workers toil in sweatshops without hope of ever seeing a living wage," said Christina Vasquez, international vice president of UNITE HERE. "I want to thank Councilmember Garcetti for his leadership on this issue."

"City workers wear these uniforms," said Julie Butcher, president of SEIU Local 347, which represents city workers. "It's important to us to know that the only sweat in our uniforms is ours." The ordinance, if passed, would require vendors to the city to sign a Code of Conduct, affirming that they and their suppliers will subscribe to all applicable workplace laws. Vendors (or their suppliers) found to be in violation would be subject to penalties and, if no corrective action is taken, to the termination of the contract. Seeking to take advantage of the compliance standards that have been put into play chiefly by universities with anti-sweatshop codes, the ordinance comes forward with first-year funding of $50,000 for contract with an international compliance firm. This contract will be used to monitor and investigate compliance with the code of conduct on the part of producers that may be located outside of Los Angeles or even the United States .

The ordinance also requires that a "procurement living wage" be paid to workers working on garment contracts. Once standards for its application have been developed, the procurement living wage will be gradually expanded to cover all city purchasing, following the recommendation of an advisory group formed to oversee implementation of the no-sweat ordinance.

Other features of the ordinance before Council today include:

• The formation of an advisory working group comprising representatives of the City, advocacy groups and labor organizations
• Public disclosure of contractors and subcontractors working on City commodity contracts in languages of employees who form the majority of the employment pool, such as English, Spanish, Chinese, Thai, and Vietnamese.
• Accessing of inter-governmental public records and information from non-governmental entities of potentially non-responsible contractors and subcontractors.
• Requirement that vendors who are not under contract with the City but who appear on department-approved apparel lists also sign the Code of Conduct as a condition of listing.
• Contracting with an independent monitor to conduct on-site factory assessments.

The City Administrative Officer reported that implementation of a procurement living wage would cost between $20,000 and $70,000 on annual contracting for apparel and related accessories of $3 million.

For additional information, contact Josh Kamensky, Organic Consumers Association, (213) 473-7013.

Deployed Airmen Getting New Physical Training Uniform First

Washington, DC, November 4, 1004 (written by Staff Sgt. C. Todd Lopez, Air Force Print News) -- When the Air Force chief of staff announced a new fitness standard in July 2003, he promised Airmen a new physical training uniform in which to prepare.

That new uniform is now ready, and Airmen serving in Southwest Asia will be the first to get them, said Senior Master Sgt. Jacqueline Dean, the Air Force uniform board superintendent.

"The beginning of October is when the first shipment really went out," Sergeant Dean said. "(Gen. John P. Jumper) wanted us to target Airmen in Southwest Asia as the first recipients of this uniform. Some Airmen will receive the uniforms as early as the middle of November."

Officials at U.S. Central Command Air Forces designated 13 locations in their area of responsibility as needing the uniforms, Sergeant Dean said.

"For force protection issues, CENTAF (officials) wanted Airmen to be in a standardized uniform," Sergeant Dean said. "Additionally, all of the other services in the region are requiring their service members to be in service-unique PT gear when they are not in another uniform."

The new unisex uniform can be worn off-the-shelf, requiring no modifications. It consists of a T-shirt, a pair of shorts and a two-piece nylon running suit. With the exception of the grey T-shirt, the entire ensemble is navy blue. It was designed with comfort and safety in mind, officials said.

"One of the biggest directions from (General Jumper) was that it had plenty of reflectivity," Sergeant Dean said.

The uniform has enough reflective material on it to ensure wearers are visible from any direction. The running suit top, a kind of lightweight coat similar to what is being used by cadets at the Air Force Academy, features wide reflective stripes that form a 'V' across the wearer's chest and back. Seams on the pants are trimmed with reflective piping, while the shorts feature both a reflective 'V' and an Air Force logo. The T-shirt has the Air Force logo on both the front and back.

Wear testing for the uniform began in January at Fairchild Air Force Base, Wash. , and Wright-Patterson AFB, Ohio . Three hundred Airmen tested the uniforms for both comfort and usability.

"The Air Force Clothing Office first did fit tests to make sure the patterns were correct, then went back to talk to individuals to find what they liked and didn't like about the uniforms," Sergeant Dean said. "In one case we found the lining was too long, in another case, the shorts were too full. Appropriate modifications were made based on their input. That all took place and concluded around March."

Besides reflectivity, some key features of the uniform include two pockets in the shorts; one for a military identification card and one for a key; zippers on the running pants to make it easier to slip them on over a pair of shoes, zippers on the running jacket to aid in ventilation; and a hood in the collar of the jacket.

Total cost for the new uniform is around $125. Enlisted Airmen will be given an increase in their yearly clothing allowance to purchase the uniform, those in basic military training will be issued the gear, and officers will be required to purchase the uniform with their own funds. The uniforms will eventually be available for sale in military clothing sales stores.

"We are hoping to start seeing some of the PT uniforms stateside in the January or February timeframe," Sergeant Dean said. "For now, the distribution plan revolves around those on deployment."

Sergeant Dean said there is not yet an official mandatory wear date for the uniform. When Air Force officials do set the date, Airmen will be required to maintain a complete uniform in much the same way they do their battle dress uniforms and blues.

For additional information, visit www.af.mil

eCommerce Fraud Losses to Jump $700 Million in 2004

Mountain View , CA, November 15, 2004 (Company Release) - The sixth annual survey of eCommerce fraud released today by CyberSource Corporation (Nasdaq: CYBS) shows that U.S. merchants expect to lose an estimated $2.6 billion to online fraud in 2004, $700 million more than in 2003. The new estimate beats the prior fraud loss record of $2.1 billion established in 2002.

Though merchants feel they are limiting the rate of fraud loss (this year's loss rate of 1.8% of sales is statistically level with last year's 1.7%), eCommerce revenue is growing so fast that a steady fraud rate means ballooning dollar losses. And fraudsters tend to be attracted to higher ticket price items. The median price on fraudulently ordered merchandise in 2004 was $150 while the median amount for a legitimate purchase was $100.

Hardest hit are the mid-range companies, those with annual online revenues between $500,000 and $5 million. This group says it expects to lose up to 2.5 % of its online revenue to fraud, compared to 1.9% last year. Larger companies fare better. Those with revenues between $5 million and $25 million experience a loss rate of 1.5%, identical to the year before. Companies with annual revenues greater than $25 million anticipate losses of 1.1%, slightly less than last year's 1.3% loss rate. Doug Schwegman, CyberSource director of market intelligence called that a "predictable" finding. "Most companies achieving high levels of growth over a number of years acquire a level of sophistication in fraud prevention that renders the problem more manageable," Schwegman added.

One other alarming note that emerged in the findings was the estimated fraud rate experienced in international eCommerce. High growth rates outside the U.S. make foreign eCommerce an important initiative for U.S. merchants, but one that brings more risk. Survey data shows international orders are rejected twice as often as orders from North America . Those merchants who accept orders from outside the U.S. and Canada say they reject over 13% of orders just on suspicion of fraud. And among those orders accepted, 3.8% turn out to be fraudulent, a rate nearly 3 times higher than the overall rate.

There is good news in this year's survey. Electronic commerce continues to grow. Merchants surveyed expect their eCommerce revenues to increase by 39% in 2005. And, on average, fraud rates have slightly decreased. Among all the orders merchants accept, on average, 1.3% turn out to be fraudulent. The average fraud rate in 2003 was statistically similar at 1.4%. In 2004, 50% of merchants complained of fraud rates equal to or greater than 1%, a slight improvement over 2003 where 58% of merchants experienced such fraud rates. "The simple fraud rate is going down, especially for larger, more sophisticated merchants," says Schwegman. "We noted the beginning of this trend in 2001 and it has continued. So on one front, merchants can claim a real success. The problem lies in how much that success is really costing."

The highest costs associated with the management of fraud are typically loss of potential revenue and wages. A key source of revenue loss occurs when good orders are rejected for fear of fraud. According to the survey, rejection rates during 2004 were nearly 6%, up from 4.6% last year. So for every confirmed fraudulent order, merchants are refusing to accept another 4 to 5 orders on suspicion of fraud. Significant revenue is being left on the table if even a small portion of these orders are valid.

Manual order review and its associated costs are equally threatening to merchant profits. In what should be an automated sales environment, 73% of merchants are manually checking orders today, up 12% from last year. Across all surveyed merchants, the number of orders being manually examined increased by 20%: 27% of all orders were manually reviewed in 2004 versus 23% of all orders 2003. This leads to obvious questions about merchant capability of coping with continuing eCommerce growth. According to the survey, only 21% of merchants expect to increase the size of their review staff in 2005, so greater productivity among order checkers is clearly required.

Use of fraud tools is at an all-time high now. In addition to manual review, 82% of merchants use Address Verification Service, 56% use Card Verification Number checking, and 53% use internally-built fraud screens. The number of merchants using commercial fraud screening solutions grew 55% from the year before: 18% in 2003 and 28% in 2004. The median number of tools in use now is 5, and 40% of merchants are using 6 or more. Large merchants are the most likely to invest in automation, with 79% of those with $25 million or more in revenue having automated order screening systems.

For more information, visit http://www.cybersource.com/fraudreport/

Retailers Realize Benefits From Industry-Specific Hardware and Software Bundles Powered by Microsoft Retail Management System

REDMOND, WA, November 2, 2004 (Company Release) - Microsoft Business Solutions today announced the availability of retail vertical bundles of software and hardware designed for small and medium-sized retailers specializing in apparel, sporting goods, gifts and hobbies, and specialty retail. At the core of the packages is Microsoft® Business Solutions Retail Management System 1.2, which has a track record for easily automating inventory management, speeding up card transactions, creating effective productivity reports, tracking customer purchasing habits and giving retailers more control over their business -- all of which help save time and increase profits. The packages, which will be distributed by ScanSource and Tech Data Corp., allow independent merchants to invest in information technology at a lower cost than if they purchase the components separately.

"One of the biggest barriers to entry for small retailers is price," said Brendan O'Meara, general manager of the Microsoft Retail Management System at Microsoft Business Solutions. "Microsoft Business Solutions, together with its partners and distributors, is responding to small retailers with a complete POS offering that includes four industry-specific hardware and software packages available at a low total cost of ownership." Pricing for the industry packages starts at an estimated retail price of $2,999* ( U.S. ), which is more than 30 percent less than the average cost if the components were purchased separately.

The hardware component of the packages includes a retail-hardened point-of-sale (POS) terminal with monitor from manufacturers such as Pioneer and IBM Corp. Keyboard, receipt printer, cash drawer, bar-code scanner, magnetic stripe reader, required cable and accessories, and a mouse are provided by manufacturers including Symbol Technologies Inc., Cherry, Epson and APG Cash Drawer, a division of UMI Company Inc.

Small apparel retailers face increasingly stiff competition, particularly from larger retailers. To help them achieve and maintain a competitive edge, Microsoft Retail Management System 1.2 is easily customizable and usable, and includes inventory tracking functionality to help apparel retailers determine exactly which products -- by color, size, style and more -- are selling. Other features of the package for this industry include customer sales reports that facilitate intelligent purchasing, an easy-to-understand touch-screen monitor that will allow sales staff to quickly process even the most complex transactions, and the mechanisms needed to quickly retrieve customer buying histories.

Microsoft Business Solutions offers integrated business applications and services that allow small and midsize organizations and divisions of large enterprises to connect employees, customers and suppliers for improved efficiency. The financial management, customer relationship management, supply chain management and analytic applications work with Microsoft products such as Office and Windows® to streamline processes across an entire organization, giving businesses insight to respond rapidly, plan strategically and execute quickly. Microsoft Business Solutions applications are delivered through a worldwide network of channel partners that provide specialized services and local support tailored to a company's needs.