Coat firm loses fight against cheap labour
The raincoat manufacturer London Fog, a household name in the US, has said it is to close its last remaining US factory. The plant, which employs 280 workers in Baltimore, represented a unique experiment to withstand the logic of shifting production to countries where wage costs are lower.
The Baltimore government two years ago gave London Fog almost $2m (pounds 1.2m) in incentives to keep the factory open, and the union agreed to a $1.25 cut in hourly wages. Now the company concedes even with that help, making coats in the US is not viable. "The lower cost of goods manufactured by overseas contractors, as compared to US-based costs, has forced us to join our competitors in placing the remaining portion of our business with offshore contractors," said the chairman, Robert Gregory.
In the debate about the benefits and costs of global free trade, textile workers have long been identified as the group most wounded by the process.
In the primary races of the 1996 presidential elections, Republican contender Patrick Buchanan singled out the earlier closures by London Fog to support his platform in favour of reasserting trade controls.
- 2 Moscow voted the world's unfriendliest city
- 3 The excuses your boss is most likely to believe when you call in sick
- 4 I'm pansexual – here are the five biggest misconceptions about my sexuality
- 5 More than 11,000 Icelanders offer to house Syrian refugees to help European crisis
The one chart that shows how George Osborne is almost certainly going to be our next Prime Minister
The excuses your boss is most likely to believe when you call in sick
Bono's group has made more money from Facebook investment than from all his music
Three-year-old ultra-Orthodox Jewish children told 'the non-Jews' are 'evil' in worksheet produced by London school
Wikipedia rocked by 'rogue editors' blackmail scam targeting small businesses and celebrities
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Jeremy Corbyn calls Osama bin Laden's killing a 'tragedy' - but was it taken out of context?
If these extraordinarily powerful images of a dead Syrian child washed up on a beach don’t change Europe’s attitude to refugees, what will?
If you're not already angry about the refugee crisis, here's a history lesson to remind you why you really should be
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
£40000 - £42000 per annum: Recruitment Genius: This is an exciting opportunity...
£35000 - £40000 per annum: Recruitment Genius: This IT support company has a n...
Negotiable: Recruitment Genius: A works engineer is required in a progressive ...
£21000 - £25000 per annum: Recruitment Genius: Our client is seeking someone w...