Hugo Boss Threatens to Move Overseas if Workers Refuse $4/Hr Pay Cut

[Omaha Steve]

http://www.jwjblog.org/2010/02/hugo-boss-threatens-to-move-overseas-if-workers-refuse-4hr-pay-cut/

By Debbie Kline, on February 3rd, 2010

Clevelanders Protest the Closing of Hugo BossIt wasn’t very long ago that every time you looked at a clothing label you would see “Made in the USA.” Not only was it made in the USA but it probably also had some sort of connection to a thriving garment industry in the Cleveland area. Names like Joseph & Feiss Co, Bobbie Brooks, Printz-Biederman, Lion Knitting Mills, and Cleveland Worsted Mill dominated the industry and union cards kept people gainfully employed.



But this good thing has come to an end. Now Hugo Boss, the last clothing manufacturer in Cleveland, has given notice of their intent to shutter their plant and permanently lay off 400 workers at the end of April.

Hugo is closing because they want to ship the jobs to a plant in Turkey where they can pay much less than the average current rate of $12 per hour they pay Cleveland employees.

Hugo management offered to stay if the employees were willing to cut pay to $8 an hour.

Maybe there should be a new rule—no more pay cuts anywhere unless and until management actually lives on what they are asking the workers to live on for at least a year.

FULL story at link.

[mike_c]

1. this is wage slavery, plain and simple....

Most corporations have no loyalty to their workers or to their country-- only to their profits and the bottom line. It should be illegal for American corporations who don't hire American workers to do business in America. If they want to profit here, they should pay it forward here.

[scarletwoman]

16. [phone]! Not only is it not illegal, the outsourcing bastards get tax breaks.

Capitalism is bleeding us dry.

[femrap]

63. This is a German Company....

http://en.wikipedia.org/wiki/Hugo_Boss

Figures it was part of the Nazi Party back when.

The Germans also pulled out of Wilmington, Ohio....DHL Air Cargo and absolutely decimated that area of the state.

Tell the Ohio AG to sue them....especially if given some sort of tax benefits to locate in Ohio.

[Dr.Phool]

73. They were there for a very long time.

As was Joseph and Feiss, and Bobbie Brooks.

I still lived in Cleveland when they left.

[Manifestor_of_Light]

91. My aunt in Cuyahoga Falls used to get me clothes from the Bobbie Brooks outlet.

Always cute stuff, unlike the handed down dorkage my mom forced me to wear.

:cry:

[jxnmsdemguy65]

79. Hugo Boss actually manufactured SS uniforms...

so this isn't terribly surprising... a company that profits from fascism, slavery and death...

[RedCloud]

95. May your words spread far and wide!

[leftstreet]

2. K&R

[bluestateguy]

3. And if they take the pay cut, they will move anyway

Maybe a little later than otherwise, but this is how these things always play out.

[Robb]

8. Yup. nt

[tomm2thumbs]

23. true

[Fixed_Based_Operator]

24. The truth has been spoken.

[alfredo]

34. That's what happened to the GM workers in Flint.

[Blue_Tires]

39. +10000

the auto industry is proof of that...

[Hannah Bell]

45. and the workers wind up on ue anyway -- only less than they'd have gotten had

they not taken the pay cut.

also ramifications with pensions, social security, etc.

was a tactic with autoworkers -- repeated clawbacks --

[Dr.Phool]

74. George Steinbrenner pulled the same shit in the '70s and 80's.

He demanded wage and benefits concessions at Lorain Shipbuilding, got them, and kept demanding more until the union couldn't take it anymore. He finally broke the union, and got the contract he wanted, then moved everything to Tampa anyway.

It decimated the great lakes ship building industry.

[EmeraldCityGrl]

4. We have to get organized and stop supporting these

corps with our dollars. I wish someone could tell me what
percentage of the revenue of the above named companies
is from US consumers?

[Goldstein1984]

14. Thats THE SOLUTION

With free trade treaties and geopolitical quid pro quo at work, we can't rely on the government to protect American workers, we can only rely on ourselves.

Our government can't or won't enact measures to protect American jobs, but the American people can.

We must have a national Buy American Movement.

One could argue that in a global economy a boycott by American consumers isn't relevant. First, we consume a lot, so we are relevant. Second, regardless of where else manufacturers sell there goods, American retailers still have to satisfy American demand, and we can demand American goods.

[EmeraldCityGrl]

30. A couple of years ago

there evolved a fear of contaminated food. It seemed a week didn't go by
that consumers didn't hear another news story about a salmonella outbreak
or an ecoli recall. Now Americans all over the country are shopping at farmers
markets, growing their own vegetables. Orgamics are available in every grocery
store. Americans learned to change their shopping choices for their health and
life. Why not do the same for their jobs and our economy? If we can dramatically
cut into their revenue, being the corporate pigs they are, they will meet our
demands.

The "buy American" message has been out there a long time. It has taken all these
years for most Americans to realize the outsourcing of jobs will impact their own lives.

[GinaMaria]

67. We can also buy from each other

There are artists, clothing designers/makers, people who craft home goods etc probably on this board. If we could buy from others who are making things for extra cash, they may be able to hire an employee or two. Damn straight we've got to take it back.

[Goldstein1984]

72. We try to do that locally as much as possible

A buy from each other forum sounds like a great idea.

We hire a guy to shovel snow from our driveway. He has a plow on his truck, it takes him five minutes to do what would take me hours to do with a shovel, and he charges $10 CASH.

He does a lot of driveways, and I'm sure he doesn't pay a penny in taxes. There was a time when that would have bothered me, but considering the corruption I believe exists in Washington, and the poor uses our taxes are put to (bailouts of corporate criminals and incompetents, killing people), now I say more power to the guy.

[Quantess]

5. And, as easy as it is to blame Hugo Boss, it really isn't all their fault.

They are just trying to stay competetive with all the other clothing companies who have already outsourced their labor.

[jmowreader]

28. They're competitive now!

I have Nordstrom's website up...$950 for a tux, $895 for a two-button suit, $275 for a tracksuit. Zappos wants $397 for a sportcoat--their normal price is $552 on it. This is moderately high end stuff--about the same price as Hart Schaffner Marx and a little lower than Brooks Brothers (aka Garanimals for Republicans).

Weird segue...I actually went to the Garanimals website. They have a tiger on there that looks an AWFUL lot like the one Sambo's used...hmm...

[KamaAina]

56. Garanimals for Republicans!!!

:rofl: :rofl: :rofl:

[glowing]

6. If Obama doesn't try to do something real about our trade policies, we have

no shot at surviving. Everything is increasing. Pay has been stagnant for 30yrs. Now, its going down because there are more workers than jobs. Honestly the health care debate doesn't make sense anymore. So many companies don't even offer the benefit and ind. policies are so costly and cover nothing. Had they approached with a Medicare for All model, most of the country would be behind this. Finally, our jobs and our pay wouldn't be tied directly to our access to health care. The politicians protecting the status quo and shoveling "subsidies" into the crap current model is just immoral... Perhaps that's how we need to start addressing this? Its a moral fight.

[sam sarrha]

66. dont hold your breath..

[OhioChick]

7. Sad thing is...we need these jobs badly here. K&R n/t

[HillbillyBob]

17. Greensboro NC and Danville Va lost our textiles

over the last 5-10 yrs as each one left I wrote nasty I will not buy your products ever again letters. the responses were we have to care for our stock holders..I wrote back you should give a shit about your employees as you don't I ll not buy, Levis, wrangler, Dan river mills , Cannon etc. I guess they dont give a damn.
But if we actually boycotted their products make it loud and noisy..it might do some good but as far as I have seen all these corpses are run by neokkkons or other selfish greedy sobs.

[OhioChick]

20. Good for you for taking the time to write...

I've done the same over the years (still do) but sadly enough, I don't think they give a rat's ass.

[Omaha Steve]

25. Cannon went under, Walmart was the reason

I posted the story a few months back in labor.

OS

http://en.wikipedia.org/wiki/Cannon_Mills_Company

In September, 1997, Fieldcrest-Cannon was sold to the Pillowtex Corporation for $700,000,000. Sales slid, and problems began to appear as Pillowtex lost money. According to a former CEO of Pillowtex, its largest product buyer, Wal-Mart, encouraged the company to move production overseas but Pillowtex refused. It was undercut by competitors and stopped supplying Wal-Mart.<1>

Three years later, in November 2000, Pillowtex filed for Chapter 11 Bankruptcy protection. In May 2002, Pillowtex briefly surfaced from bankruptcy for little more than a year, but things kept sliding.

[hatrack]

33. As the bumper sticker says, "Shop At Wal-Mart And You'll End Up Working At Wal-Mart"

True enough.

[louis-t]

51. I must have some of the last Fieldcrest towels.

Strange, the amount of lint from those towels when they were new was staggering. My floors would be coated with burgundy dust.

[jxnmsdemguy65]

81. Wow I have a bunch of towels with the Fieldcrest label...

Kannapolis, NC... guess I should stop using them and keep 'em as collector's items.

[jxnmsdemguy65]

82. You can't buy an oxford cloth shirt Made in USA

because of the Danville, Va. plant closings. They made all the oxford cloth in the US. Now those plants have been transferred to Malaysia. So now most oxford cloth shirts are made in Malaysia, because that's where the cloth is manufactured.

[Mike_03]

9. Outstanding Post, and a great reason never to buy from Hugo Boss ever again.

Shocking, horrifying, pretentious, arrogant....

Post and Rec...

Thank you for bringing this to my attention.

I had NO CLUE that Hugo Boss was another psychopathic company.

[Quantess]

18. Is it really all that shocking or horrifying?

I'm surprised Hugo Boss hadn't been outsourcing their labor until now. Practically every other clothing company already does!

I'm always blown away when I see a MADE IN USA label. Those are so rare anymore. Even MADE IN CANADA is uncommon.

[pampango]

76. HB a German company that outsourced to the US, so you're right, it's been outsourcing for a long

time.

[Caliman73]

10. This is completely an emotional response, but ....

Let those fuckers move overseas, then just ban them from selling their products here. You want cheap labor then find fucking buyers in Turkey to take your shit!!

This is where the Administration really needs to walk the walk. Companies that leave purely for the sake of profits need to have consequences.

[Mike_03]

11. Another thought for Hugo Boss

They own commercial real estate in malls that are in danger of imploding.

I am very very skeptical that Hugo Boss has ANY leverage whatsoever right now when it comes to boating about store fronts.

If you could see how pathetic their presence is in Orange County, CA, USA, you would laugh.

[Libertas1776]

12. What do you expect from a company

whose one time big customer was a certain goosestepping genocidal fascist party of the German derivation. Ya know...the NAZIS! Fuck Hugo Boss.

[Arkana]

13. I'll be damned if I ever shop there again.

Shame--I used to like Hugo Boss for high-end crap.

[DBoon]

15. I bet management in Turkey makes a lot less too

make the same offer to management, I say

[Mike_03]

19. Happy to pay $150 for a black tee shirt. NT

[frazzled]

21. First of all, Hugo Boss is a German company

I had no idea they had any plants here at all, and it's somewhat remarkable that they did. I'd give them thumbs up for even trying to do business in this country for this long--95% of clothing manufacturers left years ago.

Apparently, they manufactured only 2 lines of men's suits there.

But the article in the OP ... Bobbie Brooks? Are they kidding me? Anyone remember Bobbie Brooks? (hint: you needed to have been a "junior" size in the early to mid sixties to remember this):

[Lydia Leftcoast]

22. "The many looks of Bobbie Brooks" as they used to advertise in Seventeen

Yeah, I'm that old. No, I don't mean I'm seventeen. Definitely not.

[JVS]

26. Use eminent domain to seize the company and let the workers manage it.

[barb162]

78. Good idea

I'm tired of this crap.

[unabelladonna]

27. it's blackmail

giving a f--k you to american workers and the USA..... and this is what it's all come down to...threats, wage cuts, and moving overseas. i don't know what to say or what we as a nation can do.

[Lyric]

29. If we stopped BUYING the crap these companies make, they'd stop DOING this.

They do it because we don't care enough to actually inconvenience ourselves and our precious routines and just stop BUYING from them. The US market is not the only market, but it's the biggest, the richest (at least for now) and the most important market for all of the little luxuries (like designer or "branded" clothes) that we love so much. A real consumers movement here WOULD have an impact--save that nobody can be bothered to consistently give a damn about anyone other than themselves.

If supporting American workers isn't a good enough motivation, then think of it as supporting our OWN best interests--at least, if you intend to be living in America for the foreseeable future. The more jobless, desperate people WE have, the more miserable YOUR life will be as crime goes up, wages go down, and public services dwindle to nothing. After all--we can't keep up our parks, paved streets, police forces, and efficient snow removal without taxpayers helping to pay those bills. Taxes to pay for public services come (for the most part) from wages, retail sales, and property. More poverty = far less income tax revenue and far less consumer retail spending. Then, as services decline and houses empty out, home values fall through the floor, and even property tax revenue shrinks.

It is in OUR best interests to stop supporting the companies that make American workers poor. Increased poverty has a disastrous effect on the entire nation. The misfortune of your neighbors, even if you don't give a damn about them, has a negative effect on YOUR life. The Republicans have spent decades lying to people, telling them that self-interest is the only thing that matters, and that if YOU are successful, then you don't need to feel any kind of responsibility toward the other people around you. "Greed is good!" they said. Well they were WRONG. Dead wrong. I suspect we're all going to find out just HOW wrong, much to our collective misery, in the near future.

[EFerrari]

31. They're bringing it on themselves. It's hard to buy anything

when you're out of a job.

Also, this OP puts the coup in Honduras in focus. The democratically elected president, that was ousted with the collaboration of our government, was deposed in part because he increased the minimum wage modestly. The vultures flipped like pancakes when they realized they might have to pay their SWEATSHOP WORKERS a better wage. So, out he went.

[arikara]

42. Thats why Aristide was deposed too

he was working for the people and not the slavers.

[EFerrari]

43. Yep. And the people are calling for him to return again. n/t

[zorahopkins]

32. "Look For The Union Label"

I may be the only person here that remembers the old TV ads that featured the song, "Look for the Union Label".

I think that we should see that sort of ad on the Super Bowl.

[dflprincess]

40. I remember that ad

it was put out by the International Ladies Garment Workers' Union (though men belonged as well). If I recall correctly the ILGWU was started after the Triangle Shirtwaist Factory Fire.

[Mari333]

35. knr

and the bastards will get away with it.
fucking ruling class sons of bitches.

[gateley]

36. Several years ago during Fashion Week in New York, the top designers were

asked what the "can't do without" accessory was for that season. I was so impressed that one guy (and I'm ashamed to say I don't remember who) said - 'Fashion isn't important. Go buy an American car."

[Starry Messenger]

37. k & r

[donheld]

38. It should be treason

[prolesunited]

41. This is the global economy

a race to the bottom

[voc]

44. There is a bigger picture here. nt

[Hello_Kitty]

58. Do tell. eom

[texastoast]

71. And what would that picture be?

Clue us in.

[Wardoc]

46. 33% less income? That's ri-fucking-diculous. For many, that...

...would make working cost more than staying home if they have kids and have to pay for any daycare.

[timtom]

47. Go ahead and f***ing move!

America will just buy its clothes from other manufacturers.

(Would that this were true...)

[Vinca]

48. These companies need to be assessed with a job exporting tax

that makes outsourcing jobs not worth it. You can scream and cry and beg for American jobs, but greed always wins and as long as they can exploit overseas workers they will.

[Orsino]

49. Congress: asleep at the tiller, when not actually complicit. n/t

[abelenkpe2]

50. We need global unions

to combat global corporations.

[joeybee12]

52. Phuck Hugo Boss...$8 an hour????

They're insane!!!!

[Hello_Kitty]

53. Funny, I don't see DU's Free Trade Brigade on this thread to defend this. eom

[Elwood P Dowd]

85. Maybe reality is finally taking hold with some of these nuts. (nm)

[Barbara2423]

54. Wake Up People

I can't afford these clothes but the people who do should boycott Hugo Boss. What has happened to America? We use to stand up and fight for one another. We have more power than we think but won't use it as a group. Wake up people!! Stop buying those clothes that are not made in America. I know they are hard to find but keep looking.

[KansDem]

57. Here's a start...

http://www.madeinusa.org/nav.cgi?data/clot

Type in Google:
made in usa clothing
made in usa shoes
made in usa toys
made in usa jeans
made in usa furniture
made in usa boots
made in usa store

Last year I bought an imported-can opener. It broke the first time I used it! I'm tired of this shit and will now look for "Made in the USA"

[nonconformist]

59. I have a KitchenAid Stand Mixer, made in the USA (Ohio)

Solid as a tank and just one great piece of machinery. I bet I'll make my grandchildren cookies with it in 20 years.

[femrap]

64. How old is it?

I thought all of the Kitchenaid small appliances were made in China now.

[nonconformist]

69. Some of their stuff is made in China now, but not the stand mixers.

They are still assembled by hand in Greenville, Ohio.

I've had my Artisan for over 4 years now. Still as beautiful and powerful as the day I bought it. That thing is a workhorse.

[Dappleganger]

93. Love the KA, it never lets us down. nt

[femrap]

98. I'll check them out....

I figured they were made in China.

My maternal grandfather was from Greenville.

[proudohioan]

62. Thanks for that link, KansDem..

My pet peeve is cheap, imported egg slicers. I have promised myself that when I get my tax refund (provided student loans doesn't take it..) to purchase an egg slicer made in USA. I get sick and tired of those damn things breaking. Your link will come in handy.

[iceman66]

55. Do they really think people are going to pay Hugo Boss prices

for cheap foreign-made crap?

EVERY time a company does this, there is a notable decline in the quality of the product.

[texastoast]

60. Bring it on home

http://americanmadeyes.com/?gclid=CL7eg_-G3J8CFQgNDQodTQiCHg

http://www.madeinusa.org/

http://www.americansworking.com/

http://www.stillmadeinusa.com/

http://www.usstuff.com/

http://www.theunionshop.org/

http://www.usamade.com/


It's not so much "be the change you want to see in the world" as it is "do the change."

We all have to make it a top priority, forego convenience, make the extra effort, and stop buying from slave-trader corporatists.

Fuck Hugo Boss. And Liz Claiborne. And Levis. And especially that Nike bunch of assholes.

And fuck the free-trade brigade.

[Overseas]

61. K&R. //nt

[CLANG]

65. Take the $8

and start looking for another job. I would even take one for less money just to get the fuck out of that hell hole.

[WVRICK13]

68. Are They Kidding

Have you priced a Hugo Boss item? At their mark-up they could pay double the salary to the workers.

[midnight]

70. There web site indicates they were doing best in the Americas. I guess that

is how they repay the best performing area. Slash their pay.

Stable sales performance in growth regions Americas and Asia/Pacific

Regionally, HUGO BOSS posted lower sales in Europe while there was a slight
increase in the Americas. Sales in Asia marginally held their ground.

In the European market, sales fell by 13% to EUR 852 million in the first nine
months of 2009 (Q1-Q3 2008: EUR 980 million). The downturn was primarily
due to the continued economic challenges in Eastern Europe and Spain.
http://group.hugoboss.com/files/PM_Q3_02_Nov_2009_e.pdf

[boppers]

75. That's BELOW minimum wage here.

Our state minimum wage is $8.40....$8.00 an hour is insane.

[barb162]

77. The scumbags should keep the jobs right where they are

and keep the payrates the same or higher. If most of this stuff is bought by Americans, keep the factories here.

[barb162]

80. Don't let them import their clothes to the US if jobs are shipped to Turkey.

Let the Turks buy the stuff.

[Christa]

83. The fuckers

this should and must be posted all over ....

[tbyg52]

84. This should be illegal.

Of course, to make it so would require that "our" legislators actually care about us.

[Regret My New Name]

86. Are the managers and higher ups taking a pay cut too?

[B Calm]

97. Wow.. didn't you know? Only when labor takes pay cuts it makes

the company more competitive in the market place. . .

sarcasm

[greengestalt]

87. Tax breaks and subsidies

Sure, they might pay the workers starvation wages, even on their local economy, and all the "Socialist" laws like health and safety standards are out the window.

-but...

The chief of police's third cousin comes in demanding bribes like it's Halloween every weekend, along with the second cousin, the chief of police, and a big one to the local "Genarlismo Sadismo"...


The companies that make products use the same equipment and materials to make knock-offs that out compete the companies on their market and sometimes ours.


Last and not least, the cost of fuel alone made up the difference, to transport the stuff to and fro.


It's only because of "Tax Breaks and Subsidies" they get to do this and make a profit. Before that floodgate was opened, the only companies that outsourced were ones like Union Carbide who outsourced the plant to Bhopal knowing they'd get off easier not if but when a horrible accident occured.



Frankly, this should be a campaign here, to lobby Obama to keep up his "End tax breaks and subsidies to companies that export jobs."

[Omaha Steve]

88. These workers are tough as nails and are fighting back, here's a video they made

Direct link: http://www.youtube.com/watch?v=6SryAyMwwAY

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=385x431594

[marmar]

89. I'm sick to death of corporate terrorism.....

:argh:

[kudzu22]

90. I didn't know they even made clothes

in America anymore.

[Alias Dictus Tyrant]

92. I like Hugo Boss suits, but those are all made in Europe.

[pleah]

94. K&R

[B Calm]

96. the traitorous bastards shouldn't be allowed to sell their clothes in the US

[Odin2005]

99. Globalization = BLACKMAIL

[Veruca Salt]

100. Large tariffs on ALL IMPORTS.

[newspeak]

101. I know it may be a pipe dream

but I would like to see even more cooperatives and employees owning business. I think that we need to come up with some creative ideas. If you had some people who could invest 5,000., 10,000. or whatever, and start more employee owned companies-go against the "too big to fail" megacorporations. Hell, most are not even American companies--they could give a damn if this country fails (unless they could pick the bones clean before it goes down.)