Friday, October 26, 2012

The Selling Out of America

Cequent Towing in Goshen, Indiana, announced to their employees and their union on October 18th that they had made a preliminary recommendation to shut down the Goshen facility and to move the work performed here in Goshen to Renosa, Mexico, for the purpose of securing lower wages and benefits for the employees producing the products made here in Goshen.

This recommendation was made even though the Collective Bargaining Agreement states:

During periods of layoff or reduced hours the Company shall not contract or outsource work customarily performed by the bargaining unit, provided the work can be performed by those employees.

The Union strongly protests the recommended move as it would violate the terms that Cequent Towing Products agreed to  in 2011.

On October 25th in their earnings statement the parent Company of Cequent Towing Products announced in their earnings statement that the Company had third quarter sales of  $335.9 million up 21% from 2011 third quarter earnings.

Goshen and the State of Indiana have given tax abatements to Cequent Towing Products for the last several years in order to create American manufacturing jobs here in Goshen.

To move this work to Mexico is the betrayal of not only the employees of Cequent but a betrayal of Cequent to this community after taking tax abatements from that same community.

This is not a distressed Company. This is a very profitable Company that simply wants to increase their profits at the expense of Goshen, Indiana, the United States and American Workers by exploiting low wage Mexican workers.

We urge the community and the State and Federal Government to engage in this struggle to maintain middle class jobs here in Goshen Indiana.

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