Hugo Boss to Keep Ohio Plant Open (succumbing to an aggressive union-led campaign & Danny Glover)

Source: Wall Street Journal

By PETER LATTMAN

Hugo Boss reversed a decision to shut down a factory in Ohio, succumbing to an aggressive union-led campaign against the German fashion house and its private-equity owners.

Workers United union and Hugo Boss announced an agreement Friday to keep the plant open after a year-long negotiation. The pact is expected to save about 300 of the 375 jobs at the facility. The deal calls for pay cuts from $13 per hour to $10 per hour, according to a person familiar with the deal.

"We stood up against a multinational corporation and reversed the trend of globalization," said Bruce Raynor, president of Workers United.

"We are delighted that—together with the trade union and our employees—we have managed to find a way of keeping our Cleveland location open while we attempt to attack the competitive imbalance at this facility," said Andreas Stockert, chief operating officer of Hugo Boss, in a statement.

Read more: http://online.wsj.com/article/SB10001424052748704388304575202432989044188.html?mod=WSJ_latestheadlines

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Danny Glover gets a two thumbs up for his role in this!

http://www.msnbc.msn.com/id/36007050/ns/entertainment-celebrities/


Mark Duncan / AP


By Thomas J. Sheeran
updated 7:49 p.m. CT, Tues., March. 23, 2010

BROOKLYN, Ohio - Actor and activist Danny Glover has offered hugs and moral support to Cleveland-area workers at a men's suit plant that faces a shutdown next month with the loss of 375 jobs.

Workers at the Hugo Boss plant in Brooklyn, Ohio, cheered as the star of the "Lethal Weapon" action movies toured the operation Tuesday.

Glover later held a news conference and appealed to Germany's Hugo Boss AG to reverse its shutdown decision. Glover led a boycott of Hugo Boss formal wear at the Academy Awards earlier this month.

The company says its shutdown decision stands. The company says the union representing workers rejected concessions at the plant, which it says isn't globally competitive.

but in Ohio right now, they unfortunately won't have any trouble filling the jobs.

Funny thing about globalization. We were told it would bring people up to a better standard of living in other countries, which it has to some degree. They "forgot" to tell us that we would be required to lower our standards to compete.

the only people that it REALLY brings up to a better standard of living are the CEO's.......

Just pointing out that otherwise, all Hugo Boss suits would be imported from Germany, where the company is based.

globalization in Germany had the same effect as it does here in the US..... did the German workers gripe about us lowering the wage standards in Germany in the same way that we do about outsourcing to places such as India and China?

I would hate to think that we started this really shitty trend to depress wages all over industrialized nations, and now we bitch......

Just a random thought.

T.

their manufacturing sector is a bit more focused on business than consumer products, eg they make a lot of industrial machinery for export, and fewer consumer goods. We didn't invent the idea of globalization in the US or anything. The EU is an example of the same approach going back >50 years.

Or are we just being whiners? (maybe some cheese to go with our whining???)

Every country gets pissy when it has the economic blues, feels more laid back during good times.

Joseph & Feiss was acquired by Hugo Boss AG, a West German clothing and accessory firm, in 1989 and was made a division of its subsidiary.

Not exactly the same thing as setting up shop offshore to reduce the wage of its workers.

Globalization doesn't necessarily mean the pursuit of the lowest wage. You might also set up or acquire a branch of a business where there was a concentration of skilled or well-educated workers in proximity to a market for your product. I don't like when it's primarily motivated by exploitation, but I'm in favor of free trade and globalization when standards are adhered to. Honest, ethical competition is a good thing, but it doesn't grab the headlines to the same extent.

I have in-laws in Viet Nam, some of whom work in the garment industry; those are often regarded here as sweatshop jobs, but according to my in-laws the pay, conditions, and career value (ie a good employer on your resume) are quite superior to similar jobs in the domestic marketplace. The first ten years of my career, I worked (in the UK) for a French computer company and later for American financial-sector and technology companies who had offices in the UK. This was before the word 'globalization' became fashionable but it's the same idea.

I don't think it's inherently better or worse than domestic industry. Indeed, foreign competition for labor in a domestic market can often improve pay or working standards. Remember that as companies grow, more people can afford to buy different products and markets expand. It's not like there's only a fixed amount of work available and when some of it goes overseas the same amount is necessarily subtracted at home.

My comment was really just for the practice of global competition in general; who does it benefit? Does it benefit all workers, or primarily the CEO and shareholders? I personally don't see the benefit, but I'm not exactly an entrepreneur, nor am I very well versed in that kind of dealing.

I've done factory work (knits) and it's a brutal job. Could only hack it for 10 months before the shoulders and neck gave out. But when you're one of the few places in town which pays anything above minimum wage, anybody will take it not because there just aren't any other choices to be had.

Excerpt:

GAITHERSBURG, Md. Actor Danny Glover and 11 others have been arrested during a labor union protest at the Maryland headquarters of a food service company.

Montgomery County police spokesman Capt. Paul Starks says Glover and others stepped past yellow police tape and were asked to step back three times at Sodexo headquarters. When they refused, Starks says officers arrested them.

The dozen were issued citations for trespassing and let go. Starks says they face a $1,000 fine or 90 days in jail.

Starks says organizers told police beforehand that some would risk arrest.

The Service Employees International Union was protesting what it calls Sodexo's unfair and illegal treatment of workers. Sodexo says the union was spreading misinformation.

http://www.huffingtonpost.com/2010/04/16/danny-glover-arrested-in-_n_541329.html

but used car salesmen have bought Hugo Boss for quite sometime .

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=367&topic_id=24824


:woohoo:

I had read via Dennis' website that Obama was invited to visit Hugo Boss. I also notice he didn't bother to visit (even though the plant is pretty damn close to the airport). However, he DID make time to go to Strongsville and manipulate Dennis in front of a large, televised audience. That shit just turned me off.

Glad to hear that Danny Glover took the time to visit Hugo Boss plant. I will remember that the next time I want to actually buy a movie.

Have a good evening!

Kind of makes you wonder, doesn't it? I noticed that at the time, myself.

You have a good evening, too. :toast:

OK, my boyfriend noticed it, too.

Cheers back at ya!

eom

K&R