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Binnie Plant Relocation Cost U.S. Jobs

by: William Tucker

Sun Aug 22, 2010 at 21:19:57 PM EDT


On the campaign trail, U.S. Senate candidate Bill Binnie talks about how he built Carlisle Plastics into an industry-leading company employing thousands of workers around the globe.

Last Sunday, a John DiStaso piece in the Union Leader identified a long list of labor, safety and environmental protection violations allegedly committed by Carlisle Plastics under Binnie's management. Chief among them was the claim that Binnie closed a California factory in 1989 and moved it to Mexico after workers tried to unionize, costing 450 American jobs.

William Tucker :: Binnie Plant Relocation Cost U.S. Jobs

Binnie fired back with a full-page ad in the Union Leader.

YOUR PAPER ALLEGES THAT WE CLOSED a plant in the Los Angeles area and moved it to Mexico—wrong. We closed a small plant in the L.A. area after we acquired it and built a new much larger plant just SEVEN miles away, in the same L.A. area.

Today, Garry Rayno pens a follow-up in the Union Leader backing up the original claim. He uncovers Carlisle Plastics' 1991 annual report, signed by Binnie, stating it relocated manufacturing operations for plastic hangers from California to a new plant in Tijuana, Mexico. The L.A. area facility is identified as a distribution warehouse rather than a manufacturing facility.

Carlisle's 1991 report to the SEC states: "In 1990, the Company relocated a hanger plant facility from Santa Ana, California to a newly constructed facility in Tijuana, Mexico. Management believes that the 60,000 square-foot facility in Tijuana, Mexico, which became fully operational in the first quarter of 1991, will significantly lower the division's operating costs."

Another section of the report explained reduced sales revenue in the plastic hanger division by saying the "relocation of the Santa Ana, California plant to Tijuana, Mexico created a short term capacity constraint. In the first quarter of 1991, the Tijuana, Mexico plant became fully operational."

A later reference says gross profits were down in the division "almost entirely from temporary operating inefficiencies associated with the relocation of the Santa Ana California plant to Tijuana, Mexico and the associated start-up delays, offset in part by improved efficiencies realized within the division's other facilities."

Binnie campaign spokesman Gerry Nichols says the campaign has "nothing to add to our previous statement."

Cross-posted to Miscellany Blue

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It's been nine month, Mr. Binnie (4.00 / 1)
. . . and we're still waiting for answers:

Questions for Mr. Binnie (4.00 / 10)
Bill Binnie has been a successful businessman for the past quarter century.  He clearly knows how to make money -- and I, for one, believe that financial analysis and value realization are useful skills for any prospective policymaker.

But Mr. Binnie has a problem: He doesn't have a whole lot of respect for the workers who made him rich.  He busts unions, fires capriciously, and places his own exhorbitant financial lust ahead of his employees' needs.  If he wants to represent New Hampshire workers, he needs to answer questions about his record.  Such as:

1. Excessive Pay: In 1992, during a severe economic recession, your company - Carlisle Plastics Management Corp. -- lost $6.3 million.  How did you justify paying your self $1.5 million in salary while your company was struggling in a price war, and while your employees were fearing for their jobs? (Plastics News, 8/94)

2. Firing Union Organizers: Mr. Binnie, in March 1993 your Tijuana-based plant, Plasticos Bajacal, fired three employees for distributing literature advocating formation of an independent union.  The Washington Post reported that as many as 10 other workers were axed for engaging in union advocacy.  How can you claim to respect New Hampshire workers when you have so vociferously opposed the rights of your employees to bargain collectively?  (Washington Post, 10/27/93)

3. Minimum Wage: An employee at Plasticos Bajacal showed a Post reporter a pay stub indicating that she earned 13 pesos ($4.25) per day.  Does your record of paying workers subsistence wages mean that you oppose our minimum wage of $7.25/hour? (Washington Post, 10/27/93)

4. Worker Intimidation: Did you direct managers at Plasticos Bajacal to intimidate workers who voted for an independent union by identifying them publicly -- a practice revealed by the San Diego Union-Tribune? (San Diego Union-Tribune, 12/23/93)

5. Fixing Union Elections: Union organizers at Plasticos Bajacal claimed that your managers offered $33 (1 1/2 weeks wages) to each worker who voted against an independent union?  Do you endorse such a practice?  If so, how do you sleep at night? (San Diego Union-Tribune, 12/15/93)

6. Abandoning US Workers: When you moved jobs from A&E Plastics to Mexico in 1989, what did you do to assist the workers whose livelihoods you destroyed in order to line your own pockets?  Please provide specifics -- retraining support, etc.

If Mr. Binnie enters the US Senate race, New Hampshire voters will ask him these -- and many other -- questions.  He will be asked to account for his record, and to discuss how it will influence his decisions as a Senator.  

More to come. . . .  

--------------------------------------------------------------------------------

by: Dartmouth Dem @ Sun Nov 08, 2009 at 00:41:55 AM EST
[ Reply ]



Being picky (0.00 / 0)
I have to note there that in 1993 minimum wage was $4.25 an hour.  I know because I made that much that year; at least it made my taxes easy to file.  But the rest of the questions are great.

[ Parent ]
Being pickier (4.00 / 2)
I also earned $4.25 per hour in 1993, working at the Bear Right Burger King.  Even got to run the bear show.  

However, #3 above indicates the worker was paid $4.25 per day.  


[ Parent ]
Another question: (0.00 / 0)
Since states are incapable of monitoring the activities of corporations they charter when those activities are carried out in another state or foreign country, should the Congress mandate that such private corporations be federally chartered like the Federal Reserve Banks and the FDIC?  Or, in the alternative, should the designation of the directors and management of such private/shareholder-owned corporations be left to the shareholders?

Does it make sense, as happens now, for the state of Delaware to supervise corporations with offices in Dubai or Rio?


"Business friendly" (4.00 / 1)
When will these great economic experts realize that you can't have "business friendly" policies that aren't friendly to their consumers as well?  They can't make enough selling to each other, can they?  And they can't sell everything to the government, which they want to defund anyway.  Not a plan, as far as I can see.


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