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American Manufactures and Workers Getting it “Socked” to Them

Dave Johnson, President
UFCW Textile & Garment Council


When asked to do a story for the Buy American Campaign newsletter about the dilemma of the U.S. sock industry, I of course, initially thought that the same can hold true for almost every industry we have in The United States. And while I have spent a lifetime working in organized labor, I have always recognized the parallel interest between manufacturers we share a relationship with and the workers we represent. After all, if they’re out of business, so are we.

Over the past three decades that I have worked in the Apparel/Textile industry, I have witnessed consultants and certain business representatives continue to influence management towards having a negative view of labor unions, while at the same time, elements of organized labor continued to maintain adversarial attitudes towards management. The net result has been, while many labor and management in the United States have been isolating themselves from each other, retailers and economist have carefully and politically been selling our leaders on GATT (General Agreement on Tariffs and Trade) with its various modifications, as well as other trade agreements such as NAFTA (North American Free Trade Agreement). And while all of this has been going on, the bottom line has been the undermining of our own domestic manufacturers and workforces.

Today we find members of the U.S. sock industry through the American Manufacturing Trade Action Coalition (AMTAC) fighting for its very life and that of their employees against the threat of cheap imports, mostly from China, due to the expiration of quota limits taking effect January of 2005 as agreed to under GATT. Proponents to the elimination of quotas and tariffs, base their support on what they feel is the ultimate cost to consumers that can be eliminated when tariffs no longer exist and a free world market is allowed to function without restraint.

Opponents on the other hand, like myself, feel that nothing in this world is free as suggested in the term “Free Trade”, and that there is a price to be paid for everything we do in our society. Unfortunately, the price in this case like many others, will be the further loss of thousands more American manufacturing jobs.

In an article recently written by Bruce Stokes of the National Journal (a nonpartisan publication concerning politics, policy and government), Mr. Stokes wrote “Most important, the now seemingly inevitable displacement of the U.S. textile and apparel industry by the Chinese should not be dismissed as simply the natural death of another outdated industry. Fabric and clothing producers are merely the canaries in the mine. Their experience should teach the United States important lessons about the challenge that China poses for domestic makers of auto parts and machine tools, and for other large portions of America’s rapidly dwindling manufacturing sector.”

While the sock industry through AMTAC are petitioning for safeguards through the Committee for the Implementation of Textile Agreements (CITA) to approve the special textile safeguard petition of the domestic sock industry against surging Chinese sock imports, there are those forces working equally viligant within large retailers and importers lobbying in the opposing direction. In their letters to Secretary Evans & Powell, along with Trade Representative Zoellick and Secretary of Labor Chao, AMTAC noted that imports of socks from China increased from 5.8 million dozen pair in 2002, to 22 million dozen pair in 2003, an annual growth rate of over 370%. Imposing the sock safeguard would limit Chinese sock imports to an orderly 7 1/2% annual growth rate. Furthermore explaining that their’s is a highly automated industry and the most vibrant sector left within apparel manufacturing; it being a crucial part of the economy and local tax base of communities in North Carolina, Alabama, Virginia, Kentucky, Wisconsin, Iowa, South Carolina, Indiana, Vermont, Tennessee, Pennsylvania, California and elsewhere.

Worth mentioning in this story I think, is the fact that much of this industry is non-union. I bring up this point for only one reason. The effects of our American trade politics affect everyone without discrimination. For far too many years, we have heard those who say that greedy Unions are largely to blame for jobs going offshore. When truly, I could say, what we have are business interest in America that care more for profits that they for for people, even their own employees. It’s really too easy to point the finger, without each and every one of us as Americans accepting some responsibility. Everyone wants things faster and cheaper regardless of the consequences (or price). Well, folks these are the consequences.

If you talk to American manufacturers about why they outsource overseas, they will tell you, it’s because the retailer (their customer) keeps pressuring them on pricing points. Then if you go to a retailer and question why they don’t have any “Made in USA” products, they will tell you that the public demands lower prices and that they have to compete with discount stores like Wal-Mart, that purchase over 50% of their products from China, and they say, that it’s because they are ever diligent in reducing prices that allows consumers to keep billions of dollars in their own pockets for other needs. It’s a vicious cycle that has a lot of players in it with some truth to what each has to say. However, all the time, our own jobs in this country continue to spiral downwards in wages, benefits and for that matter even in existence, leaving everyone so busy passing the buck (literally), that no one is apparently responsible. Here we have the sock industry fighting for its life and that of thousands of American jobs, often times in a setting of small communities that will soon find themselves devastated. WHY?

Of sure, we might pay more for “Made in USA” socks, but what else is it that we’re buying besides just a pair of socks? Could it be when we “Buy American” that we are paying for a way of life that has been envied by the world? I think so.

Perhaps the day will have to come, when as citizens we say that enough is enough and take the time to write our legislators about the trade politics that are negotiated. At the same time, as citizens, the day may have to come when we quit looking to government to solve our problems and as consumers we decide to look a little harder to find American made socks. After all, we as consumers really do have the final say when we put our money on the counter, don’t we? Look for American-made Wigwam® and ingenius® socks.

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American Manufacturers
and Workers Getting it
“Socked” to Them




 


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