An article about the potential plant closure in the Indianapolis Star noted that the 72-year old Noblesville plant is the only one of Firestone Industrial Products' three North American plants that is unionized -- represented by the United Steelworkers. Firestone also has air spring plants in Brazil and Poland. It's remarkable how clear Firestone is that they are closing up shop in the U.S. specifically because workers are paid better here and they want to find somewhere where they don't have to treat workers as well so that they can pay less in wages and benefits and presumably, make more money for executives.
Meanwhile, Bridgestone/Firestone is the largest tire company in the world and reported an income this quarter (FY2008, January-March) of 22.9 billion Yen (over $27 million). So what else have they been spending their money on? Well, first there are all the big sports endorsements (like the NHL/NHL Players Association/Hockey Hall of Fame, the GOLF Channel, the NFL SuperBowl, the Chicago Auto Show, the PGA tour and that's just the beginning!). Then of course, there are those illegal payments they made to foreign governments in order to get contracts for their marine hose division. They also have a Political Action Committee which has about $165,000 for the 2008 election cycle so far and have spent about $300,000 for lobbying. Looks like a matter of misplaced priorities to me!
Meanwhile, last week, leaders of the Firestone Agricultural Workers Union (FAWUL) which represents workers at the bottom of Firestone's supply chain -- their rubber plantation in Liberia -- were in DC to receive an award from the AFL-CIO. The Firestone workers in Liberia have faced incredible odds to get recognition for their union which is desperately needed given the intense levels of exploitation on the plantation. The current conditions the Liberian workers face are definitely at the bottom, but by organizing and raising their living and working conditions, these workers are helping to raise the bar for workers around the world. The FAWUL leaders in DC, which included President Austin Natee and Secretary-General Edwin Cisco, talked passionately about how support from workers here (through USW and the AFL-CIO Solidarity Center) and allied organizations helped them in their struggle and also how they are committed to supporting union workers here when they face trouble with Firestone.
As Austin said, "If we join hands, once we are together, we can move mountains. United we stand, divided we fall."
Comments
re: Bridgestone/Firestone: Running the Race to the Bottom
Tim,
I can understand the frustrations of workers in developed countries, such as the U.S. and others, when companies close plants and relocate production to countries with lower wages and a substantially less protection for workers.
In addition, the illegal payments you describe above are clearly unacceptable.
With respect, in relation to the company's decision to close the Indiana plant, companies do have the right, I believe, to choose the most cost effective location for their production.
In addition, I do not see any problem with senior executives being handsomely rewarded, or with extensive marketing and promotional campaigns or political donations. Companies are entitled to do such things, provided they are done in a manner which complies with legal requirements.
However, if the company shifts production to a third world country and then exploits workers in that country, that would be unacceptable.
In my opinion, the mere act of shifting production to a low-cost country is perfectly acceptable. To then exploit workers in that country, is not.
Cheers
Andrew