Thread: Immigrant jobs going to.....Mexico!

http://www.pioneerlocal.com/cgi-bin/...06-953655.html
Workers rally to keep Solar plant open
BY MARLENE HUNT | STAFF WRITER
hunt@pioneerlocal.com

Employees of the Solar Corporation in Libertyville rallied outside the headquarters of its newest owner last Thursday in an effort to halt the closure of the 60-year-old manufacturer of plastic parts for home electronics and the automotive industry.

The decision to close the company by Wynnchurch Capital of Lake Forest due to a lack of profitability puts about 300 workers out of a job.

John Hatherly, president of the private investment management firm located in Conway Park, said Solar will remain open for an extended amount of time to continue to serve customers in their resourcing needs.

"We will continue to make an effort to sell the company, but that may not happen," he said. "It will either be sold or closed."

Last week's rally and press conference sponsored by the United Electrical Radio and Machine Workers of America was a public effort to get Wynnchurch to delay the closing and look more intensely for a new owner.

The union contends Solar had always been profitable, and that Wynnchurch, who bought the company 18 months ago, made a commitment to its employees to spend at least five years investing and building the company.

"(Now) they decided to close the factory saying they were losing too much money," said Leah Stried, a union spokeswoman.

"Most of the workers are Latino immigrants," she said. "Working at Solar has provided good living wage job for them. Most earn over $11.50 an hour with full health insurance and retirement benefits.

"We feel strongly we have a responsibility to 300 people who work there to get it sold to someone who can make money," Stried added. "Solar was a profitable company for decades before it was bought by Wynnchurch Capital. They're not just closing, but liquidating. It doesn't make any sense."

But Wynnchurch denies buying the company to take profits and run. They say they have poured millions into the Libertyville operation.

"We are disappointed the company has not been competitive," Hatherly said. "What is happening here is a microcosm of what goes on in the U.S. economy in terms of jobs moving to lower wage companies. Given the assembly of television sets is a priority in Mexico, they prefer to use lower suppliers because the costs are so much less."
With the cost of transportation and higher fuel, Hatherly said Solar is not competitive with Mexican wages.

"The loss of jobs is a national issue. When you can get labor less than $1 an hour vs. $12 -- and you don't have transportation costs, you can't be competitive," he said.

Hatherly said the company does not buy companies to put people out of work. "We buy underperforming companies with the objective of growing revenues and improving operating margins. This did not happen with Solar."

He said Wynnchurch owns a number of union businesses and has worked to create hundreds of new jobs in Michigan and Illinois that are represented by the United Auto Workers and Teamsters' unions.

"We're very disappointed to see anyone losing a job. But the hard reality is with the global economy much of the U.S. jobs have been or will be moving to lower wage nations," he said.

Duncan Bourne, a company managing director, said substantial investments were made to make Solar a more productive company. "Companies (buying parts) look for price reductions. When they don't get them, they move to Mexico," he said.

"Most of the workers are Latino immigrants," she said. "Working at Solar has provided good living wage job for them. Most earn over $11.50 an hour with full health insurance and retirement benefits.

"immigrants" -- legal or illegal?

Originally Posted by Mamie

"Most of the workers are Latino immigrants," she said. "Working at Solar has provided good living wage job for them. Most earn over $11.50 an hour with full health insurance and retirement benefits.

"immigrants" -- legal or illegal?

I'm sure most of them are illegal.