Germany's Hugo Boss luxury goods producer is set to close a USplant employing 300 people in April 2010 with suit production to betransferred to Romania, Bulgaria and Turkey, countries with lowwage costs.
"Hugo Boss plans to continue to pay the 300 workers in Clevelandto the end of April 2010 even if production needs diminish prior tothat date. Beyond this, management intends to work closely with theunion to negotiate a fair severance package," the company said in anews release quoted by cleveland.com website.
Workers United trade union, representing the Cleveland plantemployees, has been negotiating for nearly a year on ways to turnthe plant around.
Workers United representatives were not available forstatements, but during a protest move organised in December at theCleveland plant the trade union handed out fliers specifying theplant's suit production would be moved to production facilities ofRomania, Bulgaria or Turkey, where costs are lower. The informationwas transmitted by Hugo Boss representatives to trade union leadersduring negotiations between the two parties.
The plant has operated just three days a week for almost a yearnow, a period during which employees received only 60% of theirwages.
Hugo Boss bought the Cleveland plant in 1995, when it took overJoseph & Feiss Co. local suit producer.
Hugo Boss German company is one of the most renowned luxurygoods producer, with the goods being available in 110 countriesthrough 330 own stores and more than 1,000 franchises.
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