Monday, February 9, 2009

Every Company for Itself; Too Bad About the Workers

While Washington tries to figure out how to stimulate the American economy, American companies are still putting profits first. This story of a Virginia company closing an Ohio plant to send jobs to Mexico just burns. Some 316 Ohioans are affected, according to the Columbus Dispatch.

MWV Calmar, a subsidiary of MeadWestvaco Corp., will close the Washington Court House plant in early April and consolidate the plant's functions with one in San Luis Potosi, Mexico.

The Mexico plant is "more seamlessly scalable and features more advanced production equipment and processes," the company said in a news release.

MWV Calmar makes containers used for perfume as well as health-care and gardening products.

The Richmond, Va.-based parent company announced in mid-January that it would close 12 to 14 plants as part of an attempt to save $250 million to $300 million by mid-2010. No specific locations were listed at that time.


So where do you think they will send the other 11 to 13 plants? China? India?

But, please, let's make sure this company's owners and managers get their tax breaks and golden umbrellas.

Yup. Riiiiight!

I'd like to see Congress end all tax breaks for companies who move American jobs offshore but bring the products back into the USA. Didn't Obama mention that on the campaign trail?

Of course, the offshore gambit could get worse. Buckeye State Blog quotes a CNNMoney report that IBM, which has laid off over 4,000 American workers, is offering to match laid off employees with jobs in India or another “low-cost” country. It's still unclear but suspected that IBM means for the worker to accept the prevailing wages and benefits of the "low-cost" country.

How many rupees do you think you are worth? And, what health benefits are included?

Instead of "Do you want fries with that," we English majors might find ourselves asking, "Do you want naan or pratha with that?"

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