Cda press:Local plant moving operations to Mexico

[ljs]

how do you guys feel about us sending jobs to Mexico?(or any other country) Why don't we have stimulous money to help these companies?

http://www.cdapress.com/articles/2009/06/23/news/news03.txt

40 people will lose jobs on parent company's decision

Coeur d'Alene manufacturing company U.S. Products announced to employees last week the company will shutter its local plant and move production to Queretaro, Mexico, within the next several months.

The transition will ax 40 jobs from the production line, while keeping 22 people in administrative offices that will continue running in Coeur d'Alene, said General Manager Doug Hauff.

"Obviously I'm saddened because we've got such a great group of folks in our plant that have dedicated many years to U.S. Products," Hauff said, adding that the company hasn't pegged if any locals will be offered jobs in Mexico. "My personal goal -- and one I will work very hard to establish -- is getting new jobs for those who want help."

The call was made by U.S. Products' parent company, Nilfisk-Advance.

The Minnesota-based company is consolidating its U.S. plants into a single Mexican location to reduce costs, Hauff said.

"I think it's a preemptive measure. No one knows how long this recession is going to last," Hauff said. "A company has a couple choices -- it can wait around and hope that everything turns around, or they can have proactive measures."

U.S. Products has produced carpet cleaning, hard surface cleaning, and restoration equipment out of Coeur d'Alene since the late '80s, Hauff said, and ships more than $10 million in products per year to customers around the world.

"We certainly experienced some downturn (during the recession), but we've done a fairly good job of managing the company through this," he said.

Hauff said employees are at least fortunate the company gave them a 6- to 8-month notice.

"That's almost unheard of in plant closings," he said.

Laid-off employees will receive seniority-based severance packages, he added.

The company is looking into federal grants to fund retraining for laid-off employees.

"We're going to do everything we can so that when the light switches out, every one of those folks has a new home in our area," he said.

Employees didn't see the closure coming, said Lawrence Frey, a plant crew leader.

"Everyone's in the same boat I am -- we were living paycheck to paycheck because we planned on this business being here," he said. "Some have spent their lives here -- they've been around 15, 20 years."

His wife, who preferred not to be named, will lose her job at the plant, too, he added.

"I'm losing my whole household income," he said. "It goes to show you never put both incomes into one business."

He worries most for newer employees who will receive the smallest severance, he added.

"It's like a piece of candy -- it's good for a moment, and then it's gone," he said. "I just want to get the word out so at the end of six months they'll be able to find work."

He doesn't blame anyone, he added.

"I know it's not the company's fault, they have to do what they have to do," he said.

[Popeman38]

When the cost of doing business can be reduced by 60% by moving to Mexico, what can one expect?

[PeterMP]

Well the prolem w/ using stimulus to keep them here is that it isn't real solution. Once they've gone through the stimulus the underlying differences between the US and Mexican workforce are still there.

[zoony]

When the cost of doing business can be reduced by 60% by moving to Mexico, what can one expect?

Labor, yes.

However, the real costs are hard to measure. Quality, logistics, and perhaps most importantly, opportunity costs. Many of which are subjective.

I think a lot of companies are getting wise to it, and looking at it differently than they did 5-10 years ago.

[ACW]

That's capitalism.