Hugo Boss stands by their decision to close Brooklyn plant (OH)

[OhioChick]

Posted: 8:40 PM

BROOKLYN, Ohio - Hugo Boss is standing by their decision to close their Brooklyn facility, insisting that the plant is not globally competitive.

A statement issued by the company Friday stated, "Hugo Boss tried in vain to find ways to make it (the plant) globally competitive and when that effort failed, we acted in the best interests of shareholders and customers by deciding to close the facility."

The company has met with city and state officials, as well as the Union representing its maintenance workers in order to provide severance packages and other transitional assistance to the workers affected by the April closure.

The Union which represents the facility’s 300 production workers rejected the company’s offer to talk about similar issues.

The company said they will continue to pay wages until April 27, 2010, even if production halts prior to that date. The company said they also intend to offer outplacement and professional reorientation training for all employees to smooth their transition.

The workers of Hugo Boss are still hoping that the company will change their mind about closing the facility. So is the city of Brooklyn, which stands to lose $120,000 in income taxes if the company moves.

http://www.newsnet5.com/dpp/news/hugo-boss-stands-by-their-decision-to-close-brooklyn-plant

"plant is not globally competitive" = workers refused to work for peanuts.

:mad:

[HeresyLives]

1. Well now they won't work at all.

[Travis_0004]

2. Why don't we just throw out NAFTA, and get some good old fashoned Tarrifs in place.

I don't have a PHD in economics, so maybe in reality it wouldn't work, but I think somebody smarter than me needs to start doing some research. Products made in China will never be cheaper, unless there is a cost to import them. Even a small tarrif would probably be enough to make China less attractive.

[HeresyLives]

4. China has nothing to do with NAFTA

NAFTA is Canada, the US and Mexico.

[FarCenter]

10. In this case it is eastern Europe

Workers United said Hugo Boss told labor leaders early in negotiations that it wanted to move suit production to low-wage plants in Turkey, Romania and Bulgaria.

"The only plan they offered to save the plant was a one year trial experiment which was grounded in the reduction of wages by 35 percent - from $12.80 an hour to $8.30 an hour," Workers United said in its rally flier.


http://www.cleveland.com/business/index.ssf/2009/12/hugo_boss_to_close_brooklyn_pl.html

[CaliforniaPeggy]

3. I am so sorry to hear this...

What a nasty blow...

[Happy Hippy]

5. ....it's sad.

People have to realize that without a college education in the US - you are screwed. Even all of the coffee pouring gigs have been taken by english, sociology, and philosophy majors!!!

[gateley]

6. It sounds as though they really did try, but by law, they have to make the

greatest profit possible for their shareholders.

Compared to other companies, they seem to be doing a lot to help with the transition.

As much as it sucks, this doesn't sound like just another greedy corporation - this sounds like a company who actually cares about the workers.

[Mimosa]

7. Our elected representives won't help citizens

Why won't our congress and senate reps stop this? Workers in our country are going under.

[Indy Lurker]

8. You are correct.

"plant is not globally competitive" = workers elsewhere are less expensive

Notice it did nit say "plant is not profitable"

[pipoman]

9. I'm betting it would begin to look

pretty 'globally competitive' if field leveling tariffs were imposed on all imported merch from 3rd world countries.....but wait, that possibility has already been nullified by trade agreements signed by Democrats against the will of the people...oh well, good thing those laid off workers can still change oil and give haircuts...the new American economy.