American Jobs And Closing Tax Loopholes Act Of 2010
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask unanimous consent to speak for up to 10 minutes as in morning business. Mr. President, last April a German clothing company, Hugo…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent to speak for up to 10 minutes as in morning business.
Mr. President, last April a German clothing company, Hugo Boss, announced it was planning to close down its only North American manufacturing plant located in Brooklyn, OH, outside of Cleveland. Hugo Boss told us they were going to expand their American sales force but shut down all U.S. production. Despite the Cleveland plant being profitable--a plant that had been in existence for decades and decades prior to Hugo Boss purchasing it--Hugo Boss planned to move its Cleveland production to the country of Turkey.
I recognize Hugo Boss's desire to expand their sales force by eliminating production in the United States and shipping it to Turkey-- a sad but all too common story in our Nation today--but it was a devastating announcement for the workers and for the community in Brooklyn, OH. Cleveland has a long and storied history of manufacturing clothes and apparel, in addition to chemicals and steel and autos and so much else. In Brooklyn, a suburb of Cleveland, a factory is a source of pride and economic prosperity. Yet despite the shock and disappointment of the announcement, the community rallied behind the workers.
In the ensuing months, Governor Strickland and I met Hugo Boss executives and workers. I talked to the Hugo Boss people in Germany by phone. I went to the plant and talked to workers, heard their stories-- often workers who had been there 10, 20, 30 years, husbands and wives working together at the plant making no more than $15 an hour. So these were not jobs that paid a lot of money or made a lot of people rich, but they were jobs that gave particularly immigrant workers a real opportunity in this country to work. They had decent health benefits, and they made a wage that they could at least make a go of it.
Earlier this year, in February, when I traveled to meet with some of those 400 workers, I began to hear these stories. As I said, the workers make no more than $15 an hour, and many make less than that. They are paid decent benefits but barely enough to keep these working families in the middle class. These workers did everything they could to keep this plant profitable. Their work meant everything to the community.
When the decision to close the factory was made, Joe Costigan, Sue Brown, Mark Milko, and Dallas Sells--all of Workers United--fought tirelessly on behalf of these workers. Mayor Richard Balbier rallied the community to help keep the plant open, recognizing a healthy manufacturing sector means a healthy and prosperous community. In the meantime, management, workers, elected officials, and community leaders all continued to work together to find a way to keep the factory open.
Exactly a year later, in April 2010, an agreement was made that would keep workers in their jobs and would sustain that community's economy. These workers agreed to absorb wage cuts. Many of them went from $12 or $13 an hour down to $10 or $11 an hour.
Yesterday, we celebrated what happens when we work together to save a plant and a community. Yesterday, Governor Strickland and I joined 200 workers and Hugo Boss executives to celebrate the first suit off the line of this restarted manufacturing plant. Wanda Navarro and Sheila McVay were among those who spoke. Sheila McVay introduced the Governor, and Ms. Navarro introduced me. But before they did so, they spoke eloquently of what being back to work means. I am proud to have stood by Wanda and Sheila and those who fought for the classic American success story.
I wear a suit. The suit I have on today was union made in Cleveland, OH, by these workers. One of these workers came up to me as I was standing there and she pointed to the vest pocket of the suit, saying: I make those vest pockets; I probably sewed that one. It makes me proud to have worked with Workers United and Hugo Boss to ensure that a premier global company continues to invest in this town, in this State, in American manufacturing.
Yesterday marked a new chapter for this company's global competitiveness and for our community's economic prosperity. But that celebration yesterday must be viewed in the context of what is happening all too often in our country. The closing of a plant too often means moving it offshore. It looks like a good deal for the company's quarterly financial statement. That is initially what Hugo Boss thought when they were going to close this plant--a profitable plant--and move to it Turkey: manufacture more clothes, sell more clothes in Turkey, increase their U.S. sales force, and sell more of them back into the United States. We know that story can be told again and again, when U.S. trade law, U.S. tax laws, and companies think about the next quarter more than they do the next year or the next decade and outsource those jobs, then sell the products back into the United States.
As an example, I was meeting with someone today who is working to push the Commerce Department to simply enforce U.S. trade law and enforce or stop some of the currency manipulation by the People's Republic of China. He told me that only 10 years ago we had 19 million manufacturing jobs in the United States. Today, we are down to about 11 million. Yet China has some 100 million people working in manufacturing.
For the last two decades, manufacturing has steadily declined, as financial services expanded. The Presiding Officer from Delaware has worked on and has talked about this. He understands this in terms of what has happened with manufacturing versus what has happened with financial services. Only 30 years ago, manufacturing made up more than a quarter of our Nation's GDP, our Nation's gross domestic product. Financial services was only 11 percent of our gross domestic product. Today, those numbers are almost reversed, where manufacturing is only about half of what it was as a percentage of GDP and financial services is double what it was. Look where that brought us as a nation. Look what happened to our jobs. Look what happened to the middle class.
People at Hugo Boss and these other companies make things. People in this country who make things can provide a middle-class lifestyle for their loved ones and their families. If we stop relying on manufacturing as something that is important to us as a nation--not everything but something important to us as a nation--we will see the middle class continue to atrophy and decline.
We need a national manufacturing strategy that ensures that trade agreements and tax laws come down on the side of workers and communities, not encourages investors to go overseas, make things in China and then send them back to the United States. We need a national manufacturing strategy that once again invests in American workers and incentivizes companies to promote manufacturing innovation. We need a national manufacturing strategy that recognizes manufacturing has been and always will be a ticket to the middle class for millions of Americans. That is what manufacturing means to workers at the Hugo Boss plant in Brooklyn, OH, a suburb of Cleveland. That is what it means to workers in communities in Toledo and Dayton and Cincinnati and Lima and Mansfield, OH, and that is what it means to the middle class all over this great country.
Mr. President, I yield the floor, and I suggest the absence of a quorum.