This week Hugo Boss, a well known German designer, has decided to shut down a factory that makes some of their men's suits. Over 300 workers are employed at the plant and will be dumped into this wonderful economic state in which they are surely to find a job. I hope you sensed my sarcasm. With the current unemployment rate soaring in to record breaking percentages, the loss of these jobs would put the workers of the plant into a horrible spot.
Hugo Boss claims that the reason they are closing the plant is because the labor is 28 to 40% cheaper in Europe. The Ohio plant will close “at the end of April because it was not globally competitive. “
If we were to look through Marx’s eyes this wouldn’t seem like an injustice, but more of a characteristic of Capitalism. The owner is competing on a global scale and therefore must produce at a lower cost so to out run the competition. Hugo Boss has found that American labor is too expensive and that European labor would lower their cost of production which would in turn raise the company’s profits even if it does mean throwing 300 worker’s lives into the gutter that is America’s growing population of the unemployed. Marx would look at this situation and say something along the lines of “I told you so.” The owners are out to make profit for themselves, and are by no means out to better the lives of the slaves they employ.
While it is a sad story for those who have a heart, it is just another business decision from the minority of capitalists who control us all.
Source: http://www.wkyc.com/news/news_article.aspx?storyid=130766
Hugo Boss just doesn't want to pay for Medical/Dental/Injury Benefits. As, American we fill we are entitled for such compensation for working at their plant. CEO of Hugo Boss knows it's cheaper to pay someone in Europe to do the work and it won't be Europeans. They will take advantage of the low income immigrants that are transplanted into the new homeland and pay them next to nothing. It is just like the corporation depicted in the documentary Flow, once there is issue for not receiving the profits they move elsewhere. Obviously, Hugo Boss is following suit.
ReplyDeleteNice post Kauri! I think this is the perfect example of Marx claim that when production goes up, wages go down. The competition for Hugo Boss is increasing amoung the capitalists, so they have to make a change to continue making a good profit. In this case, the workers lose jobs going to show that they are just commodities to the capitalist like we seen in the movie "Harlan County USA." This goes to prove the necessity of the fundamental antagonism between workers and owners. Now there will be more competition from the dumped workers to find a job. They will be willing to work for a lower wage leading to decreased wages as production increases according to Marx. Essentially Marx would like a man's labor to come back to himself, but sadly for the layed off laborers I don't think that will happen anytime soon.
ReplyDeleteIn old days designers might put ART in the firt place of thier works. But sadly, this belief no longer exitss today. Fashion designers have to consider the profit as well as art value. According to Marx, Hugo Boss moved the factory to Europe so that their company, as a part of capitalist class, could gain more surplus value from their worker class.
ReplyDeleteVery good post Kauri! This completely supports Marx's argument on capitalism and the way that corporations function. This goes with the ideas that we talked about in class in regards to the competition on two levels. The even bigger competition that will be created among the workers and all the already unemployed people in our country now. But also, we see in your quote the competition among the capitalists themselves to lower their production costs and increase their profits, so that they can compete with other companies. This was a perfect example of Marx's ideas.
ReplyDeleteThis was such a great post! There are so many companies that are downsizing their american companies and exporting the jobs to other countries, because they say that it is "cheaper" to pay people in other countries than that of america. It would seem that the question would arise that if they did not export theses jobs more people would be employed and the state of the american economy would flourish due to people making money and spending it. However, the economy is so low because like you stated before the unemployment percentage is at a record high, how can they expect people to buy things without having money to pay for them? It seems that with unemployment so high in america it would be cheaper for companies to keep the jobs in america, because employees would be competing amongst each other to have a job that they would take lesser pay than no pay at all.
ReplyDeleteI with you that it sucks that Hugo Boss is outsourcing their jobs, but it only makes sense from a business point of view. And it won’t stop in Europe; it’s only a matter of time until Boss moves their factories to china or other low cost labor countries. This is seen worldwide and is very unfortunate, but honestly I don’t see how this directly relates to Marx. I understand that people are always in competition for wages, even if it is worldwide, but I agree with another person who commented on how it’s not just the wages, but it’s also all the benefits that come along with full time labor. And most Americans are not willing/ are not able to give up those benefits to keep an hourly wage.
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