Story posted Wednesday, July 1, 2009
Sale Saves Hartmarx, Local Jobs
Factory workers rally to celebrate the sale of their parent company at the Hart Schaffner Marx clothing plant in Des Plaines on Monday.
By TOM ROBB Journal & Topics Reporter
The last time hundreds of Hart Schaffner Marx workers gathered with union leaders in their Des Plaines manufacturing plant it was to approve a "sit-in" and fight off proposed liquidation of the factory.
Last Monday, workers gathered with union leaders and political leaders to declare victory as they keep their jobs.
Hart Schaffner Marx parent company Hartmarx emerged from bankruptcy with the sale to a new owner, Emerisque UK Brands, at a reported price tag of $128 million.
Union leaders said Emerisque promised to keep manufacturing jobs in the United States.
The sale keeps the Des Plaines plant open saving 600 jobs locally, 1,000 jobs in the Chicago area and 3,500 positions nationwide.
"Can't you see the smiles on their (workers) faces, they're happy. For six months we've been wondering what we're going to do. We had the right people at the right place at the right time," said Service Employees International Union (SEIU) shop steward Ruby Sims. "We've been so scared to spend money so now we might be having a party."
Monday's rally in Des Plaines saw several high profile federal, state and local politicians and labor leaders celebrating along side workers.
Though not at the rally himself, Illinois Gov. Pat Quinn issued a statement.
"This decision is a testament to the diligence of many individuals, especially the employees, who have fought so hard to ensure a reasonable solution would be reached. It shows what can happen when all work together for the common good," said Quinn.
Two members of U.S. Congress, Jan Schakowsky (D-9th) and Phil Hare (D-17th), told those at the rally of their fight to keep the Des Plaines plant open and their strong personal ties to Hartmarx and its unions.
Hare was a suit cutter at a Hartmarx plant and worked as a union leader for 12 years before being elected to Congress two years ago. He said seeing the Des Plaines plant stay open was his proudest moment as a congressman.
A fiery Schakowsky pounded her fist on the podium as she spoke to workers saying, "You did it."
She told her family's story that mirrored the union's current fight. When Schakowsky's great aunt immigrated to the United States from Russia 100 years ago, she got her first job at a Hart Schaffner Marx plant.
When women working at that plant walked off the job, Schakowsky's great aunt did not understand what was going on but joined in the walk out and returned to work earning more money. That walkout occurred during the birth of the labor movement in the United States.
Des Plaines resident and Hart Schaffner Marx employee Jatin Patel feared he might lose his house if he lost his job. Now he said those fears have been put to rest.
He credited SEIU and political leaders for taking such a strong stance against the banks to ensure the plant stayed open.
Des Plaines Mayor Marty Moylan said the victory was one not only for the workers but for the city itself. He said the loss of property and sales taxes from the factory's outlet store to the city would have reached into the hundreds of thousands of dollars.
"Everywhere I go people are asking me about jobs. This keeps jobs here in Des Plaines," Moylan said. He said the loss of jobs would have pushed an unemployment rate of about 8% even higher in Des Plaines.
"It would have been a PR disaster if they (Hartmarx largest creditor Wells Fargo Bank) had not kept this company open," said Schakowsky.
She credited the determination of workers to sit-in if the threatened liquidation happened in addition to state officials' pressure on Wells Fargo not to liquidate.
"All sides, Congress, the labor movement, State Treasurer Giannoulias, all came together," said Schakowsky.
"We just sent a message. We are not asking to be unreasonable but we expect to keep these jobs (when banks receive bailout money) especially in Illinois as people are losing their jobs left and right," said Giannoulias. "These are considerations banks should make. Banks don't want to be held accountable that way."
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