Posted by jerry wigutow on Nov 14th, 2018
WHY JOBS ARE NOT COMING BACK TO AMERICA
tHE FOLLOWING ARTICLE I HAVE REPRINTED FROM sbg as you can see that i received to DAY. the ceo of the company is very matter of fact why he is closing the plant.
NEW ERA CONSIDERING CLOSING DERBY, NY PLANT
Posted by SGB Media | Nov 14, 2018 | Apparel Updates, SGB Updates, Sports/Fitness, Update | 0 |
New Era Cap Co., which is headquartered in Buffalo, said it is considering closing its manufacturing plant in Derby, NY, effective March 2019. A total of 219 jobs will be impacted. The plant represents New Era’s only headwear-manufacturing facility in the U.S.
“This contemplated decision is part of the company’s ongoing effort to more closely align its business model with its competitors in the global sports, lifestyle, and apparel industry by moving away from owning an operating manufacturing plants,” the company said in a prepared statement.
Most of the production of sports apparel is now made by third-party contactors in places like China, Bangladesh and Vietnam.
Most of the production of what is sold as sports apparel if not all is made by contractors in these countries and probably others countries as well not in the U.S.A. As I have previously commented once a company gets to a certain size it no longer wants to own and operate its own facility in the U.S.A.!!!!!
“This is an extremely difficult for me. I grew up in Derby and worked in the facility, which has had a long, productive history with the company,” said Chris Koch, CEO of New Era, in the statement. “Even as other sports apparel brands moved away from running their own manufacturing plants, we continued making caps at our facility in Derby. But I have an obligation to our employees, partners and customer to ensure the long-term success of this company and we need to keep up with changes in our industry.
I do not believe for one minute (a NY minute) that this fellow gives a damn about the employees of the company. His partners yes as well as customers. He is otherwise concerned about his profits and if he gets his production in Asia he will increase his profits, make a cheaper product and have a lower selling price to his customers.
Of the 219 workers at the plant, 192 are represented by the CWA Local 14177.
In accordance with the collective bargaining agreement, New Era said it has informed the union of its contemplated decision and expects to meet with the union to discuss the matter in the coming weeks. New Era said it is prepared to offer the affected employees benefits and severance at levels beyond what is required in the current agreement.
I never heard of this company so I do not know how large they are but I do know whatever they give, offer is an erroneous word to us; the employees will no longer have jobs and the company will in the long term have a huge financial benefit. If they lose money with this give away they just write it off.
This action has been going on for 40 years and some companies have grown quite large and profitable, but along the way the products that they contract to get made whatever they maybe are made from inferior materials so they have no lasting life and the consumer has no choice but to replace whatever it is with even poorer quality merchandise. Why poorer, because as the cost of labor increases in these countries and the refusal of the American companies to pay more the contractors use poorer quality materials as I have also pointed out in the past to offset their labor cost increases.
I do not have the same knowledge of other industries in the U.S.A. as I do the textile industry, so my opinion is just the textile industry and as far as I am concerned regardless what any and all politicians may say about bringing jobs back to America, it is just talk. The textile industry has been particularly hard hit. Aside from garment manufacturing we have lost weaving, knitting, dyeing and finishing as well. All tolled it amounts to many thousands of jobs. How about the factories that had produced synthetic fiber as well? Then there are the cotton farms here that may or may not ship to Asia, a lot more jobs lost.
I also believe that the quality of product regardless what the companies are selling will continue to deteriorate from the get go. More jobs will move out of the country and those who lose them will not easily find a new job and those growing up to become of work force age will not find any.
The result will be more taxes and more government borrowing to support the unemployed.