Maytag Moves to Mexico
The closing of the Galesburg Maytag plant has left more manufacturing workers pondering an uncertain future
By David Moberg
Galesburg, Illinois—Many Americans dream of getting rich. Aaron Kemp had more modest ambitions. “I wanted to work at a decent job and earn a decent wage, with decent benefits, so I can raise my kids, give them a decent education and maybe take them out to Pizza Hut on a Friday night. I don’t need a Mercedes, just a ho-hum… return to article
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Reader Comments (42)Page 1 of 1 pagesI understand the concerns of the workers in Galesburg. I know they can produce a fine product and their craftsmanship is excellent. But WE THE PEOPLE, the consumer of the U.S. wants inexpensive products. That why there is Wal-Mart and Home Depot. Until wages and living conditions improve in the U.S. will can not afford the quility products produced in the U.S.
You have workers in China making $100 a month and they are glad to get that. Workers of the world unite? That’s never going to happen. Stop buying from the big boxes? Not going to happen.
Until our way of thinking changes, more jobs will be lost. Time for something new.
Posted by jeff on Dec 30, 2004 at 8:39 AM “premium-priced”, yes. “high-quality”? what quality.
I purchased a Neptune front-load washer. It had motor, mold, oder problems just aft 2 yrs. Apparently these are common problems and there was a class-action lawsuit in the U.S.; Maytag settled the lawsuit recently but totally neglected the Canadian consumers (or anyone outside the U.S.).
A phone call to the Maytag Customer Assistance was met with extreme rudeness and arrogant. I was given a lecture on how I failed to keep my washer “clean”. Yeah, great “Made-in-America classic”.It does not seem that Maytag cares about its workers, products, service, reputation, and the people who will buy their products. For these reaons, I will boycott all Maytag/Amana/… products. Perhaps all others should do the same.
Posted by Zman on Dec 30, 2004 at 11:05 PM For all the parents out there - DON’T encourage your kids to finish hish school and get a manufacturing job. In this economy, training and education are the key to success. There is a great deal of opportunity here, but the worker has to adjust to the job market that is available (as opposed to the job market they wish was available!). You don’t have to be particularly smart - there will always be a need for nurses, plumbers, technicians of many types, etc. But don’t expect a cushy union job that pays far over market wages for doing manual labor - those jobs are leaving, and they ain’t coming back. . .
Posted by aParent on Dec 31, 2004 at 10:14 AM I have just learned that my former employer and roller chain manafacturer can now outsource roller chain parts, at lower cost than raw material needed to produce the parts here. Quality is sacrificed short term. Methods can easily improve over time.
With immigration whether legal or otherwise, the pool of workers becomes larger. Competition for jobs is more widespread and labor costs as a commodity is driven down. Its called “capitalism”.
Only when we think of the common good rather than individualism, and demand more from government, will our future change.
Posted by Marvin Wagner on Dec 31, 2004 at 2:40 PM Unless and until the American people elect
governments that are willing to drop the
dollar as reserve currency, things are not
going to change.
Posted by Paul Velez on Dec 31, 2004 at 10:54 PM The author does a good job of shedding light on a very serious problem. However, some of his economic reasoning is flawed.
1. The trade deficit has very little to do with oil prices because the price of oil is about the same all over the world except for the transportation component.
2. To say that the trade deficit is a result of the shift in jobs manufacturing tradable goods is to tell only part of the story. Actually, there’s a feedback loop between these two things. But more important, they are both results of the artificially strong dollar that we’ve been “enjoying” for decades. The US has for a long time been coasting on the success it achieved shortly after WWII when it was unmatched in terms of manufacturing prowess and stability. The dollar became the world’s reserve currency for this reason. I hope I don’t have to explain why the dollar’s status as the world’s reserve currency status has made it artificially strong. Now foreigners own tons of dollars, and every dollar is an IOU, a loan (albeit with less than zero percent interest because of inflation), a promise that an American company or individual will provide goods or services that a rational person would value equally with the goods or services that they exported to the U.S. We stopped manufacturing tradable goods because all those foreigners were just accumulating those dollars in savings and using them to conduct foreign trade instead of buying American-made goods. The commentator above correctly alludes to the need to “drop” the dollar as a reserve currency. But this is something that foreigners will have to do. Also, Mr. Greenspan has to put an end to the irresponsible expansion in credit. Manufacturing, and jobs across the board, will return to America only after the dollar falls to its real value. It will be a painful but necessary transition, painful in the short term for Americans because it’ll be the end of artificially cheap imports, and painful for the foreign suckers who thought all the dollars they were getting for their exports were fair payment when in fact they were not.
3. No one should feel sorry for the Mexicans. Were they forced at gunpoint to work for Maytag? Did they have better jobs before Maytag arrived? If not, was Maytag to blame for their poverty before they arrived?
Posted by Stephen Marsh on Jan 1, 2005 at 5:26 PM You can plug in all familiar economic formulas, but keeping it simple is the best way to understand the fleecing of America.
Greed x Corruption + sellout = - American way of life
DO NOT SUPPORT MAYTAG or any other company that sells out it’s own for greed and appeasement of wall streets fat cats. How many of you really benefit from the pennies on a dollar on met or surpassed expectations, who has the money to invest in this kind of volume so there is a real payoff ? You guessed it !
The bottom line is that we are all being fleeced and are being conditioned to accept less and less every year and pay more for it. Our taxes go up, toll ways go up, gas goes up, health costs go up, insurance goes up, oil/home heating gas goes up, food goes up, even prices on kids toys go up, but wait ! I thought that foreign made goods would relax the costs of production to stay competitive but no the price goes up. So where does the extra revenue go ! You guessed it !
Even our real estate taxes go up, mostly for education but most education administrators maintain a yearly pay increase but complain they need more funds to educate ? In the real world, this kind of production would have you sacked !! But they get it, and more, while our kids scores pale in comparison with other industrialized nations.
Our way of lives are being threatened by out of control corruption and greed. I am all for making a profit but I can assure you that most corp. executives are likely to take a pay raise on top of the millions they make every year regardless of the profits. Take them out of the picture and insert honest management and you have a profitable company that maintains the USA plants and more. The wrong people are at the helm !
Do not support maytag or such and let your local reps know it. And as for the Big Box stores I have no qualms of using and returning items not made by my fellow Americans !
It is an irony that we are allowing the purging of our rights to the way of life we have built so that other nations can catch up, but the point is that they are not, look at the abuse and poverty ALL OVER CHINA AND LATIN AMERICA ! Maytag, levis, etc are only supporting the mistreatment of these workers and they simply do not care. Do you think maytag execs would allow there offspring to work the summer in one of these facilities, probably not but they expect somoneone else to do it.
Soon maytag, levis will have to import one important aspect in the circle of economics !
Customers who have money to spend....but maybe they are the ones lobbying for relaxed immigation policies ! Volume is the answer that these fat cats have come up with !
Look at everything that you have purchased over the last three months and you will be sickened by the fact that a very small percentage of it was Made in the USA, when at one time, it was ours but no longer. As will be our way of life because in our economy, as in nature, any link damaged in the chain of life effects the chain that holds life together.
Is there any politician out there who will be a hero and fight for us ? If not, anyone out there with deep pockets can contact me and I will do it. It is time to throw the “tea” back into the harbor again. If not, last one out turn off the lights because the party if over.
God help us and if someone takes offense to me using Gods name, than you are part of the problem as well.
p.s. Has anyone noticed a “foreign body” attempt of hording the natural resources of late ? Namely oil and natural gas ! And as close to our borders as canada ?
J StCruz
Posted by J StCruz on Jan 3, 2005 at 10:47 PM then I could think they deserve it based on their vote, but alas Illinois is true-blue.
too sad.
Posted by cris on Jan 4, 2005 at 8:23 AM A letter to Maytag…
Anyone who cares about our own people should join in and let any other company that forsakes the American worker for the cop out of using foreign workers should join in and not act out only against maytag but all that conduct total abandonment.Not doing anything is as bad as doing it yourselves. And if you do not agree, than what is your answer ?
To whom or all it may concern :
By moving your IL plant to mexico you join the list of manufacturers who have abandoned Americans.
Along with the other cowards, you must be expecting that the foreigners will be buying your usd1000.00 units ? But then again, these new workers will be paid min
wage salary, so how does this fit in your plan ? In any case, you will certainly not count on the employees or vendor effected employees by your “business decision”. I am not, nor any within my circle directly effected but our interests in our country and it’s well being will make you and your products as a non-consideration.Instead of marketing your product under the auspices of made in the USA by Americans,
you sold out to the fat cats in wall street
and left working families behind in the dust. I almost find it hard to believe that your executive offices are held by Americans since you well know how your decision will effect these families.In the end, the executives making hundreds of thousands of dollars a year plus are responsible for these weak decisions and not looking at themselves for acting on the real solution : Cut out the greed and
inflated salaries of top executives and investing in the waste. Be a business and not the cess pool of greed. Maybe you could use one of your products to clean house, if they work when they come out of the new plants…J StCruz
Posted by J StCruz on Jan 4, 2005 at 12:37 PM The U.S. is a service oriented, consumer driven economy, there’s no place in the global marketplace for American made products. Trying to save manufacturing jobs in Illinois is a waste of time.
Posted by theloneous on Jan 4, 2005 at 1:36 PM Pertaining to post by theloneous
This is what we have evolved into as a direct result of our waterdowned mfg base. But let’s not
kid ourselves into thinking that we will be a service oriented economy for long....Call you credit card company and ask for customer assistance..
Call Microsoft or any other software or hardware company for customer service....
Call AMERICAN express.....
Call any technical support service.....
And you will be having a conversation with someone in India, Taiwan, Costa Rica, Mexico…
You can bet on it that at least 75 to 80 percent
will be handled by a foreign agency....And you can also bet that these foreign agencies
will have your personal information ! I personally can confirm that I used to do business with a credit company that sent all customer service related calls overseas and when I found out that they have my personal information on there screen (incl my ss#), that was it and account closed.This is a side effect of what the global economy is supposed to be ?
Check it out for yourself.....
Trying to save jobs in illinois is the same as trying to save jobs in IA, CA, MO, etc....
The reverse result is materializing from this global economy. Foreign workers are not making more money, they just have more low paying jobs; while in America, we are losing our jobs and the balance remaining is becoming lower pay with less benefits in the area of insurance.
During 9/11, the people of this country united..
mostly under the “slogan” of “United we Stand”.
Writing off “Illinois is a waste of time”, does not represent this slogan or thought or being patriotic only during time of war or disaster.
We are facing a disaster now and even worse for
the future of our kids.We need to dump nafta, and re-write trade agreements that are equitable and stop the subsidising of the economy of certain regions at
the expense of our people. I am all for sharing the wealth and intl participation, but we are being taken advantage of in the biggest way imaginable.As our prior generations are responsible for our freedoms and way of life, we will also be accountable for our future generations way of life. And so far, our generation will be looked down at by the way we allowed ourselves to be siphoned.
Posted by J StCruz on Jan 4, 2005 at 3:49 PM It’s unfortunate but manufacturing has not been a viable job choice for many years. It seems foolish to be lured into a false sense of security by hoping for this trend in manufacturing to change, unions cannot stop this inertia. It may be a wise choice to educate children as means of turning the corner away from traditional high paying blue collar jobs. People may have to move away from thier childhood homes but that is the reality of this global greed. It makes no sense to complain about NAFTA, just move on and take another path.
Education and flexiblity are your freedom!
Posted by Lamar Winters on Jan 4, 2005 at 6:56 PM Yes, it does make sense to complain! I cannot believe the apathy here. So, it is a reality that our manufacturing jobs have fled because of insane trade agreements corporate greed. Why do you think no one can afford anything but junk these days? The US government is the #1 employer in the states, and WalMart #2. Truth is, most Americans do not want to make the sacrifice it would take to rebuild our infrastructure.
I’ve believe the exodus of good steady manufacturing jobs are at the crux of the spiritual disenfranchisement we are experiencing in our nation. Time was when dad or mom could depend on the livable manufacturing paycheck, buy a house, raise their kids and have roots and a stake in their communities. Extended families in the same town are virtually a thing of the past now, since breadwinners must travel out of town or out of state to find a decent job.. many times leaving the family behind or subjecting them to multiple uprootings.
It is simple, but not easy. We should put our money where it belongs, into rebuilding our crumbling infrastructures. I would gladly make that sacrifice.. if not for myself, but for our children.
Fix America First!
Posted by Linda on Jan 4, 2005 at 9:30 PM First and foremost : Unions have themselves placed the “blue collar” jobs at risk for reasons
that need not mention, but managed in balance with reason, they do have a place in our markets
and am for them as long as that they are within reason. Everyone should have the right to good pay and benefits to protect the family.Pertaining to to education and flexibility: I will again address education, I am certain that it is well known what it costs to send a kid to
college or a university, it is becoming less afordable and aid from the govt is becoming less every year while foreign students are coming in
on our tax dollars. Once again, I have no issue giving foreign aid to students abroad but every American kid has a right to be educated at least to the college (2yr) level at a some level of assistance before handing out cookies to foreigners and when they are done, they are gone.I am all for education and keeping options open but how is a displaced worker supposed to do this ?
REALITY CHECK is in need if the general public does not see the middle class is under direct
seige from all directions.Once foreign investors start dumping the USD, our economy is going to be really tested as well as the will of all of us.
Linda said it correctly, FIX AMERICA FIRST.
Posted by J StCruz on Jan 5, 2005 at 12:17 AM Linda - you say: “ Why do you think no one can afford anything but junk these days?”
I say: NONSENSE! People today have MUCH MORE in the way of material possessions than when i grew up (the 60’s). Everybody has AT LEAST one color TV, many have several (in the late 60’s we had a single b&w;TV). Most kids, even relatively poor kids, have cell phones. Most people, even poor people, have cable TV (both of which did not EVEN EXIST in the recent past!). Going out to eat has become ubiquitous in all social classes, as has buying prepared food (both of which were rare in the 60’s).
The problem with the US and the West today is NOT the lack of material possessions! Rather it is that INDIVIDUALS have gotten more and more GREEDY, and their lust for *STUFF* is greater than their means, which makes them feel “poor”.
What is the solution? Everyone should save at least 10% of their incomes. Everyone should “tithe” to a charity of their choosing (and with the largest natural tragedy taking place just over a week ago, this one is really REALLY easy!). And those of us who have children should teach them that happiness is not achieved by consumerism, but by helping others in need. . .
All this is as simple as the way to lose weight (eat less and exercise more). And falls on the same deaf ears! :)
Posted by notReally on Jan 5, 2005 at 8:44 AM Somwhere on this chain a comment was made to the effect that we were becoming a service oriented economy. Well to prove this is increasingly becoming false more each day, take a look at the links and if this does not satisfy, do a google search on jobs moving overseas. The irony of this is that I had a technical issue with our office land line and need customer service from sbc yahoo and was assisted by a support agency from INDIA !
People who turn there backs on this issue now is because this has not effected their own life or the life of someone they know but once it does, their character will come to light.
cut and paste the links :
http://seattlepi.nwsource.com/business/152829_outsource17.html
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2003/07/30/BU2 272273.DTL
http://www.commondreams.org/headlines03/1224-07.htm
http://news.zdnet.com/2100-9595_22-976828.html
http://www.boston.com/business/technology/articles/2003/12/30/us_companies_movin ng_more_jobs_overseas_1072840919/
http://www.pbs.org/newshour/bb/economy/jan-june04/jobs_3-11.html
http://desmoinesregister.com/business/stories/c2122222/23882498.html
Posted by J Stcruz on Jan 5, 2005 at 10:43 AM I went to Knox College, which is in Galesburg. I was there when Maytag decided to pull out. I met with the Chamber of Commerce to discuss the problem, and was told that each Maytag job lost would mean 3 other jobs lost in the community. Now that Butler is leaving, the town is really in trouble. Except for the prison and the college, Galesburg has no other big employer. Most young people move away, no new businesses come, and the town is mostly made up of retired people. New businesses could take advantage of the excellent railroad system in Galesburg, or the proximity to the Interstate, but it is hard for the C.o.C. to bring in new blood into the city.
Posted by Stacia on Jan 5, 2005 at 11:01 AM J Stcruz
I had mentioned that the U.S. has a service oriented - consumer driven economy. I don’t dispute that service industry jobs are going off shore but my point was the U.S. economy consumes services in the same way a labor oriented -producer driven economy consumes materials (raw or otherwise). In the latter, the product produced had more value than the materials that went into it whereas in our current economy the products we consume are “finished” and lose value the minute we take it out of the store. Our “evolution” to this type of economy began when our labor oriented - producer driven economy began producing more products meant to be consumed than products to be used to further or enhance the production process, products that would be used to create something more valuable. A natural next step for American manufacturers is to create products not currently in the marketplace using the technology they’ve mastered that has lasting value, much like arisans of ancient cultures did after the society’s they lived in developed enough to meet their sustinance needs.
Posted by theloneous on Jan 5, 2005 at 11:54 AM theloneous:
Your clarification is understood and no disputing these facts. The fact is that new technology has always been an American edge in the world markets.
The question is, will there be another “Henry Ford” era ? If so, will it be a “mega” efficient auto or alt powered engine, a breakthrough in solar energy etc… I hope it is in our lifetime, especially in the global climate we are in. Which brings to mind the attempt at the monopolizing of natural fuel resources by china, but this is for another forum that maybe Inthesetimes.com will bring to the forefront.In the sense that the current products under the classification of durable goods are being sent overseas to “making room” for new technology based durable goods is a great thought but I hope it will serve the maintstream than that scooter that was boasted in the media that was to be a rage in the west. But if this logic were true, than I believe it is as wise as quitting a job before finding a new one.
Posted by J StCruz on Jan 5, 2005 at 2:49 PM I don’t pretend to understand all the supply economics of this argument and I am not apathetic. I just know that reality is more comforting than standing in the way of a tidal wave. It’s ironic because these folks that are getting screwed by the out sourcing of American jobs probably voted to put this monkey back in the white house. How do you think Hitler pulled it off!!
Again my point is awareness to what is present in our lives. Education and reading as opposed to reality TV is the path to freedom. Most folks in manufacturing jobs are not seeing the big picture and voting republican, the very power out to do them in and thier middle class lifestyle. No more tears please ... action is preferred.
Lamar
junebugg53@aol.com
Posted by Lamar on Jan 5, 2005 at 5:03 PM We in the United States have, for the most part, a Higher Standard of Living than the countries that are being targeted to take our manufacturing jobs. It costs us more to live, we need more to make ends meet. It is obvious to me that a company can make more profit by having it’s procuct manufatured in a “3rd world” country. Our problem is that this is going to be a temporary imbalance. If the trend continues, and the American consumer continues to support it by purchasing offshore products, our standard of living will decline and the other countries standard of living will increase. The larger profits made now by these companies will decrease as shipping will eat away at these monies. A generation of American people will suffer from lack of jobs (we can’t all work at Taco Bell or Wall Mart). Then what? We have no manufacturing base. The only way that America won WWII was because a strong manufacturing base allowed us to turn our private manufaturing sector into producing war materiel. What was once a strong, vibrant economy able to respond to outside influence is now open to threat, economicaly and militarily.
Just my opinion, thatnk you for the forum
Posted by steve sharber on Jan 5, 2005 at 9:09 PM First, with respect to point 1 by Stephen Marsh: Either you misunderstood Mr. Moberg’s comments or you are deliberately trying to misrepresent them. He did not say that the trade deficit caused high oil prices; he said that high oil prices partially caused the trade deficit. We must import a high volume of oil; and the higher the price of oil, the higher the dollar value of those imports. Period. The only ways to change that is to consume less oil and/or value upward our dollar which would render our exportable products unsaleable abroad.
Second, as for oil being priced the same all over the world: That is true only if the oil is purchased on the open market. If country A pumps more oil than it needs for its export production, it can price its domestic market oil at any price it wishes. It can “dump” its oil domestically, subsidizing its domestic industries. Those domestic industries now have an absolute advantage over industies in oil importing countries (ie. US, etc.).
But I really came here to ask a question. Is there any reason why the US govt. cannot adopt a policy whereby any company that shifts production offshore can be prohibitted from importing those products back into the US? If it wants to sell here, it cannot remove production from here.
If it wants to set up production overseas to serve overseas markets, fine. I’m all in favor of expanding the availability of good jobs internationally. But I do not believe it should come at someone elses expense. I also believe that those overseas jobs must be able to be organized and fairly compensated.
Most of this “trade” deficit is not really trade at all. It is largely a series of intracompany transfers. GE, Nike, Zenith, etc. do not buy goods manufactured by Sony, Addidas, Kenwood, etc. and sell them here. They build GE, Nike, Zenith products elsewhere and transfer them to a local distribution division here. This is fundamentally different in a whole host of ways from traditional “trade.”
In some respects, dollar transfers, job losses, etc., the effects are the same as genuine trade. In others, tax revenues, legal jurisdictions, asymmetrical power and leverage, etc., it is very different.
Does this give the US govt. jurisdiction that traditional trade would not give it?
Posted by Kit Conrad on Jan 5, 2005 at 11:11 PM This is in response to the previous post. Mr. Moberg’s words were “partly reflects” which we all know means “is partly caused by.” My words were “has very little to do with,” thus denying a significant cause-and-effect relationship. I should qualify my comment by saying that, yes, there is a short-term cause-and-effect relationship, but it’s only because the dollar is still way overvalued. If the dollar were realistically valued, we would be importing a lot less of everything, exporting more, and creating more and better jobs at home.
As for point #2: the domestic industries of country A will enjoy their unfair subsidy from their government, but the citizenry will have to pay for that subsidy through higher taxes or less government spending. The country will be worse off because whenever you subsidize anything, people value it less and tend to waste it. This kind of policy is politically popular, but the country as a whole would be better off if the oil were sold at world prices. The fact that the ruling elite probably wouldn’t spend the extra proceeds justly or wisely is a separate issue.
Posted by Stephen Marsh on Jan 6, 2005 at 7:27 AM I work at Emerson Appliance Controls in Sparta, TN at the moment or at least until the Chinese and Mexicans perfect the products that we have made for the past 30 years. The estimated time of complete shutdown for this plant is currently projected on the first of May 2005. There are people here who have devoted their entire working lives to this factory but are still not at a retiring age. I wonder what they are going to do. I have watched for the past ten years the closing of at least six plants in the surrounding areas to the competitive wages that other countries offer their workers. Now that is a laugh, how can we justify the $.17 cents per hour that the Chinese workers are earning and the $.68 cents per hour that the Mexican workers are earning any way near competitive to the wages we earn. I know that we are greedy just like those large corporations which are closing and that I probably don’t deserve to make $18 an hour; however, how in the world can we say this is right. Is there any one in the United States other than the misfortunate, whom I believe haven’t chose to be poverished, that could live on .17 cents an hour with the cost of living as is. I believe NOT. So that brings me to my next question: HOW DO WE COMPETE? I have heard a lot about this country becoming a service oriented economy. So what services shall we provide to these countries who have consumed all of our industries? Shall we offer them a Big MAC and ask them if they want fries with that?
I just felt I needed to share my feelings and hope I didn’t anyone. Thanks for listening!
Posted by Concerned US Citizen on Jan 6, 2005 at 8:14 AM Concerned :
Really sorry to learn this is happening at Emerson which is another good company choosing the
path of short term gain paid by you and all your colleagues. I hope for a very quick recovery for all of you.Soon enough these companies will learn that it was the American WORKER who gave them prosperity in return for a decent job. As the middle class shrinks, earnings for these companies will shrink in proportion and moving factories to the next third world village to cut costs will not save them.
The post from Steve Sharber hit right on.
Good Luck…
Posted by J StCruz on Jan 6, 2005 at 9:28 AM Wrong, Mr. Marsh. “Reflect” does NOT mean “cause” at all. Check the dictionary.
Posted by Kit Conrad on Jan 6, 2005 at 5:29 PM Yes, subidies just like anything else (like externalities or legal limits on remedies) that results in costs not reflected (absolutely not meaning caused, in fact meaning NOT causing current pricing) in prices. That does not, however, mean that the industry in Country A will COMPLETELY squander that subsidy thereby putting it at a competitive disadvantage. In most real-world examples, the companies receiving subsidized resources are able to realize considerable and enduring advantage which, as has been happening in this country for 40 years, frequently destroys whole industries and prevents currency realignment from correcting anything. Once the entire industry is gone, it is very hard to resurrect it at a later date.
Posted by Kit Conrad on Jan 6, 2005 at 5:45 PM That’s twice you’ve misunderstood me, reversing the cause-and-effect arrows.
Posted by Stephen Marsh on Jan 8, 2005 at 12:56 AM I have a new idea for a refrigerator that will sale. please contact me!
Posted by romiah henderson on Jan 12, 2005 at 7:57 PM From Lamar Winter and others, we see this recurring theme that Americans who get an advanced education are fine, it’s only the blue collar workers who suffer.
Tell that to the hundreds of thousands of permanently unemployed people with advanced degrees in computer science who have seen their jobs disappear into India, the former Soviet Union, and the Pacific Rim.
Americans need to wake up to the fact that greedy companies who do not have the common sense to support with payroll the very marketplace they sell to, have sent not only blue collar manufacturing jobs to the lowest bidder, but also the white collar jobs that we’ve been told represent the “future.”
If the manufacturing economy is dead, and the service economy is gone, and the information economy is gasping for breath, what the hell is left?
Posted by Frank L on Jan 14, 2005 at 9:17 AM I’m sorry to hear of all those who lost there jobs, as I wouldn’t ever wish something like that on even my worst enemy. This now also gives me a 2nd reason never to buy a Maytag product again.
You see in Australia Maytag is marketed as a premium durable brand, and I just bought one of what I believe is the last of the refregerators to come out of the Illinois line. It’s 2 weeks old and I’ve already had the repair man out 4 times, and they still can’t get it to run cold enough whilst operating in an air conditioned home.
I’ve since learned that this model is one of the Amana models, and is a very old design with little or no development put into.
I’ve now formed an opion that Maytag only looks after it’s “bottom-line”, and puts customers and employees last.
Posted by B McLean AUSTRALIA on Jan 15, 2005 at 10:29 PM My wife got a rude awakening when she tried out her new “Neptune” washer that I got her for Christmas. The very first time that she tried to use it, it didn’t work! It is hard to imagine that Maytag doesn’t even test its machines before sending them out, but that is apparently what happened with this $900 machine. So the so-called “customer service” people told us that they would arrange to get this lemon “fixed.” We told them that we did not want them to fix it—we want a brand new washer that works the first time we use it, dammit! They initially told us that they “could not comply with our request.” After it was pointed out to them that we had a locked-tight legal case against them, with potential punitive damages in the offing, they changed their tune. Now, “the check is in the mail.” Whether we actually ever will get proper treatment from the Maytag Company is still up in the air. In the meantime, their lies to us and our dirty clothes are piling up.
Posted by Pappy on Jan 19, 2005 at 10:19 PM Along with Maytag, here is another example of the GREAT AMERICAN SELLOUT !
ALL and I mean ALL of our jobs are up for sale.
And that includes Service oriented jobs, not just the MFG jobs. Maybe asia will allow us workers visas ! Not likely, since they like to take and not give.Here is an article from the news wires today:
Some US Airlines Outsource Maintenance to Central America
There’s more outsourcing of jobs—now it’s the airlines industry.
The latest, preferred location for airline maintenance? El Salvador.The Wall Street Journal reports at least two airlines—Jet Blue and America West—send their planes to El Salvador for “long distance” maintenance, outsourcing the work to cut costs.
Air safety experts are said be concerned that it jeopardizes safety and makes scrutiny by regulatory agencies more difficult.
If you think your vote does not matter, think again. Call, write your local rep and make noise.
Let these companies know that you will not support them and they might as well start importing there own customers.I have resorted to a website, the more the merrier !
We are being sold out and it is not going to stop
until we take it back. Sitting and doing nothing is worse than what is happening. And if you think
you are powerless, you probably are until you do something to contribute to the cause, no matter how small, it is an effort and it is all about
collective PRESSURE.
Posted by J StCruz on Jan 21, 2005 at 1:56 PM Dear J StCruz,
In Australia we’re guilty too as our largest airline Qantas just announced this week that 7000 jobs will be lost, as they’re moving them off-shore to cut costs.The irony of this is that although passenger airlines around the world have being doing it tough over the last 3+ years, Qantas is currently ranked as the worlds most profitable airline.
It’s a great airline that’s never had a single fatality in its 75+ year history, but could this safety record now be in jeopardy as Qantas focus more on excessive net profits????????
Posted by B McLean SYDNEY AUSTRALIA on Jan 21, 2005 at 2:56 PM Wake UP America!
As seen by the Maytag closing, the loss of jobs is not limited to the production facility alone. All of the businesses that support the operation are affected from the wiring and metal suppliers to the additional labor making subassemblies. With the reduce tax base thanks to the loss of higher wage incomes, this puts more pressure on local and state governments to find new,creative ways to increase taxes - further burdening the people who recently lost their jobs. The result is a downward spiral that is hard to recover.
Did it ever occur to anybody that the reason this time our trade deficit hasn’t decreased is because we no longer MAKE anything in this country? I have seen good companies who are making money shut down production facilities and move the work to Mexico or China. They use the fact that “others will do it so we better go.” Although there is some truth to that, what has our government done to promote jobs in this country? If our government was so concerned with promoting Democracy and improving the lives of everyone, they would require anyone that ships goods to the US to have pension plans or 401Ks, environmental regulations, safety regulations (OSHA) and some sort of health care for their workers. Then and only then should they be allowed to sell to the US. Give the US worker a fighting chance. However is that really the case? My father had to go over to Taiwan to supervise a company making pump castings for the US market. The workers were pouring hot castings in their bare feet. Right next to the casting, was their 5 year child playing with a doll. Exploitation at its finest.
Corporate greed has taken over and our government seems willing to cooperate. Think about the fact that we are essentially financing a Chinese government that is communist. Is there any accountability there? Many brave men and women have died for this country to fight communism and here we are promoting that country and bending over backwards to please them. Why? So in 10 years they will have the most powerful economy on earth and we can all sit back and wonder what they are doing to promote their values throughout the world. Are they going to work with the US to foster growth? They are already stealing our intellectual property - what’s next?
A recent comment was made that it is the American people and their relentless pursuit of cheaper goods that promote the proliferation of Walmart stores throughout the country. As our economy increasing becomes 3rd world, we have no choice but to look for these cheaper alternatives. When people loose $20/hour manufacturing jobs for $10/hour service sector jobs(Home Depot or Wal Mart if your lucky), what can a family do to survive but go the the Walmarts for cheaper prices.
Once again I say America Wake Up!! I don’t believe we should resort to a protectionist society, but there needs to be better accountability for our actions. We as a people need to unite and stop the relentless offshoring of jobs in both the blue and white collar work forces. We need to have tax incentives that create high paying jobs in this country and increase taxes on the so called future service sector companies like Walmart. I realize that this is a very simplistic idea but something needs to be done before it is too late and we have no manufacturing left.
Posted by GCush on Jan 23, 2005 at 10:27 AM Here is an interesting tidbit on how china is turning the screws on the global markets. Even
on projects such as nuclear reactors, china demands that 70 percent of the components are produced in china.Human/labor rights violations, arms build up, trade lane positioning as in the panama canal, monopolizing natural resources, arms deployments to rogue nations, intel property violations, north korean puppet string holder, a player on the dark side of the terror war. And last but not least, major holder of bonds/usd that are slowly being dumped. These guys have already declared war on us and our media, govt are putting this issue off until it is too late.
Foreign manufacturers are facing increasing problems in the China market. Beijing has told
bidders for a current project in Guangdong that 70 percent of its components must be made in China in order to develop a domestic nuclear power industry. But the increasingly tough localization demands do not seem to have deterred foreign companies, such as Atomic Energy of Canada, which has already built two reactors, and Areva, which owns 66 percent of Framatome and has supplied four of the existing Chinese reactors. Westinghouse, the British-owned U.S. nuclear developer that has yet to break into the Chinese market, is also said to be interested.
Posted by 7thangel on Jan 25, 2005 at 2:06 PM You make the best appliences, and their USA made and now the greed factor has come your way! I assure you I do not buy foreign. Don’t tell me you have to be competative, (BS) you build a good product and it sales as of the result! This grips the snot out of me you’ll go to Mexico and pay a lobor hand $3.00 a day to make you a half rate product but you’ll still sale it for the same amount here in the USA. Same applies for GM, Ford, Diamler and etc. their cars are ever higher priced and made 3 times as cheep, I congradulate our engineers, who’s left here in the USA that can buy our products? Over 2 million of our jobs have been lost to the foreign markets and now your just another to reep the harvest. Go for it you’ve lost me as a customer!
Posted by MARK ROBERTS on Feb 3, 2005 at 10:18 AM I work for a division of Maytag and I will say that they are the kind of company that does not care about their workers. You can give obvious suggestions to help productivity and you will totally get ignored. In confirming this they have cancelled all suggestion programs. Engineering revisiting practices for product improvement are ingnored. To make matters worse we do all this under very little supervision. All while taking concessions. My guess is they need money for the big move to china. This is indeed greed turning the eyes away from the American family. Mr. Hake, maytag president, just reported that if we dont turn a profit for consecutive quarters that we are also doomed. Goodbye to a 100 year old company that maytag aquired and goodbye to a great community to raise a family. Bye the way I was working on a degree in mechanical engineering that I was planning on using but maytag fired them all last year. So what does education do for you again!
Posted by mr.T on Feb 5, 2005 at 9:49 AM Proud to be an American? Yes many times over yes, I’ve live in 3rd. world countries, and have seen so many wrong things, won’t get into that. Here we are in such a delima about what us “baby boomers “ are going to do and with social security. When NAFTA passed did no
one consider where and how social security is paid? Is it not paid by the working people? Yet we’ve (us Americans) have given our jobs to foreign labor. When all our jobs are gone where’s social security going to be? Due to inflation the normal $400.00 you would draw a month won’t do it anyway. Still proud to be an American still yes, but angry at the leaders taking us for a ride and taking us forgranted. Nafta was surly passed by Clinton (the crook) any idea what he’s getting out of it? He’s the type of man that would do something only for something in return, am I wrong? While our great nation is still strong I purpose, imposing a tax on every single item imported to the United States, say $5000.00 per automobile, washing machines $200.00, televisions $500.00, tires $75.00 and etc., every foreign manufacture must pay a percentage of the item made. This cost must not go to the consumers, only the manufactures. You don’t think you would see all the greed shifting directions back to the states? I would look foward to it. Oh by the way it’s times up for NAFTA, no one else is allowed, and the gates are closed! Americans just lost Maytag appliences and 1500 labor hands producing their products. Were sold out...what will our children do? I ask my self, “what would a letter like this do? There was once a great President “Roosevelt” in one of his speaches he uttered our nation will be a strong nation and it will be built by many industries, I wonder what he would say today? Yes it’s time for the “BIG TAX,” let the maquila manufactures pay back into our loss. This to me would be incintive for our manufacturing to come home.
Mark
Posted by Mark Roberts on Mar 15, 2005 at 2:01 PM Ok, here we go again , yes we found out nafta was bad as I thought it was a joke that Clinton agreed to but remember there was enough Republicans to override this bill. Now we have more jobs then ever leaving and and idiot in the white house trying more then ever to can social security by giving all the money to brokers. Geee did you think all these accounts would be free. Sure if your smart and have money maybe you can do better on your accounts. But you better be training your kids in foreign languages because english wont be the one of choice much longer in this country.
Posted by bruce on May 20, 2005 at 11:01 AM Page 1 of 1 pages -
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