E. Coli And The Centralization of the Food Industry

September 28th, 2006

The San Francisco Chronicle ran an article detailing the issues that mass food production has caused – in this case, the easy spread of a single E. Coli outbreak from a local contamination to a national outbreak:

TECHNOLOGY, EATING HABITS HELP TO SPREAD E. COLI
By Erin Allday San Francisco Chronicle
September 23, 2006

In the spring and summer of 1982, McDonald’s held a special promotion—- two burgers for the price of one—- that led to the first reported outbreak of a food-borne bacterial infection that now sweeps the nation with some regularity.

That year, at least 47 people in Oregon and Michigan, most of whom took advantage of the promotion, fell ill with severe abdominal cramps and bloody diarrhea. Doctors and public health investigators were spooked—- they’d never seen anything like it.

A year later, after months of investigation by the Centers for Disease Control and Prevention, investigators were able to identify the infection. It was a common bacterium, one that microbiologists had long known to live in human intestinal tracts with mostly harmless, and sometimes even helpful, results.

The bacterium was E. coli, but this was a rare strain that had mutated. It had attached itself to a virus, and that virus made people very sick. Today, that same strain, called 0157:H7, sickens hundreds if not thousands of Americans every year, and is the source of the latest epidemic linked to bagged fresh spinach that has sickened 166 people so far, one of whom died.

“At the time of that (1982) outbreak, there was no knowledge that E. coli could cause a disease like this, so nobody believed it,” said Lee Riley, a professor of infectious disease and epidemiology at UC Berkeley who was one of the lead investigators for the CDC in the McDonald’s case and an author of the first paper published on E. coli in the New England Journal of Medicine.

“The outbreak occurred because the restaurants were having these promotions and going through a lot of hamburgers,” Riley said. “It’s the mass consumption of meat and the way it’s processed and delivered and distributed that made it possible for this E. coli to spread.”

Escherichia coli is found in everyone’s body. It can be helpful—- it kills off other harmful bacteria, for example—- but mostly it just sits there and doesn’t do much. Certain less-benign strains of E. coli are known to be the most common cause of urinary tract infections among women.

The first noted case of 0157:H7 actually dates back to 1975, when a woman at Alameda Naval Air Station became mysteriously sick. Doctors at the time couldn’t diagnose what ailed her, but they noted the rare E. coli found in her body and sent a sample to the CDC. When the 1982 outbreak occurred, investigators used that sample as further proof that E. coli was responsible for the sickness in the McDonald’s cases.

Public health officials say it’s impossible to know how long E. coli 0157:H7 has been around. People probably were sickened by it for years, or even decades, before doctors identified it.

But the reason outbreaks have become more common in the past 25 years, health officials agree, is because technology has been developed to identify and connect strains of bacteria and because the nation’s eating habits have changed—we eat mass-processed foods that make it easier for contaminated products to reach more people.

Over the years, technology has become increasingly complex as federal health officials searched for ways to identify outbreaks more quickly. The technique used today, known as PulseNet, allows microbiologists to track the “paternity” of a unique strain of 0157:H7, and, thereby, tell if isolated cases that appear around the country are connected, said Dr. David Acheson, chief medical officer with the federal Center for Food Safety and Applied Nutrition at the Food and Drug Administration.

The first E. coli outbreaks in the United States were in ground beef partly because E. coli bacteria live in cows, and partly because ground beef was among the first food products to be highly processed and mass-distributed via fast-food outlets. Beef from one tainted cow could be mixed with beef from hundreds of healthy cows, and the resulting hamburger patties would all be contaminated.

The nation has endured a handful of outbreaks since 1982—- including one notable outbreak involving hundreds of people who ate at Jack in the Box in 1993—- but the meat and fast-food industries have adopted policies over the years that make such cases more unusual now.

But in the 1990s, the source of the outbreaks spread to fruit and vegetables. In the past decade there have been 20 such outbreaks, including the most recent one. The last nine outbreaks involved leafy greens that were packaged into salad mixes.

Those salad mixes have become increasingly popular as Americans, told they need to eat more vegetables, jumped at the convenience of prewashed lettuce and spinach. But the problem with those mixes is the same problem the meat industry ran into—- a very small amount of contaminated vegetable can spread the E. coli bacteria to hundreds or thousands of packages when it’s mixed in a processing plant. That was the case with bagged spinach.

“Spinach is brought in from many, many farms,” Riley said. “So you have an opportunity for a lot of bagged spinach to become contaminated. It’s just a massive spread of E. coli, even if the original contamination was limited to one farm.”

With meat, solving the problem meant simply cooking it at a high enough temperature to kill the bacteria. But raw vegetables may prove more challenging because there’s not a lot that can be done once the produce has been contaminated. Washing produce isn’t necessarily enough to get rid of E. coli.

For now, federal and state investigators are searching farms in the Salinas Valley for clues as to what caused the contamination in spinach. But they may never know the answer. And to some degree, bacteria are always going to be living in our food supply.

“We live in a microbial world,” said Sam Beattie, a food safety extension specialist at Iowa State University. “Any time you go out into an agricultural field, can you really expect it to be a sterile environment? I don’t think so.”

The consolodation of the food market into the hands of one or two players – in this case, most of the nation’s spinach being produced in Salinas Valley, CA - can lead to massive outbreaks. It does need to be stated, however that federal inspection agencies have little to no power to halt such outbreaks before they happen.

(Thanks to A.V. Krebs’ Agribusiness Examiner #458.)

  • Sousy

Austin, MN: 20 Years After The Strike

June 26th, 2006

A post from Willing Worker below reminded me of something I was going to post: this June marks the 20th anniversary of the end of the P-9 strike of the Hormel plant in Austin, MN.

A brief account of the strike from Wikipedia:

In 1985, workers at Hormel went on the Austin Hormel Strike in Austin, Minnesota at the Hormel headquarters. Frustrated by low wages and dangerous conditions, they started one of the largest strikes of the 1980s. The strike began in August of 1985, with the sanction of the International level of the Union, P-9. The local chapter of the United Food and Commercial Workers Union P-9 led the strike, but was not supported by their parent union. After six months, a significant number of replacement workers crossed the picket line prompting riots in Austin. Wayne P. Goodnature was Sheriff at the time. In January 21, 1986, the Governor of Minnesota, Rudy Perpich, called in the National Guard to protect the replacement workers (derisively called scabs). This unpopular move brought on protests against the governor and Governor Perpich soon withdrew the National Guard from Austin. The action had more effect on the national union which ousted the local P-9 and the strike was ended in June 1986, making the length of the strike 10 months. Over 700 of the workers did not return to their jobs, refusing to cross the picket line as some had chosen to do. Ultimately, however, the company did succeed in hiring new workers at lower wages. It is still disputed as to who actually made the original National Guard request. The strike was chronicled in the film “American Dream”, which won the Academy Award for best documentary in 1990.

Minnesota Public Radio also ran a story two years ago about the strike. The unions finally conceded, which allowed Hormel to cut the wages and benefits that kept Austin, MN a proud, blue-collar town. Since then, Austin’s population has followed the pattern of rural migration and wage declines that are prevalent of all areas of rural America.

A documentary filmed in 1990 about the strike won an Academny Award for Best Documentary:

Wikipedia: American Dream

Something important to note (from the film description):

Hormel cut the hourly wage from $10.69 to $8.25 after posting a net profit of $30 million.


Digg!

The Flipside of Illegal Immigration

June 26th, 2006

This is a story from last week, but there are some interesting ramifications here – and an interesting view of the ethical problems surrounding illegal immigration.

Last week, egg farms owned by Austin “Jack” DeCoster were raided by immigration services. The raids on the egg “farms” netted 36 illegal immigrants.

Immigration agents detained at least 36 illegal immigrants during a raid on egg farms in Wright County.

Bob Teig, a spokesman for the U.S. attorney’s office, said Immigration and Customs Enforcement agents conducted the raid June 14 at several DeCoster egg farms. No charges have been filed and Teig declined further comment.

[b]It was the third raid at DeCoster farms in Wright County since 2001 that has led to the detention and possible deportation of illegal immigrants[/b], Sheriff Paul Schultz said.

Schultz said the [b]people that help get fake identification and work visas for the illegal immigrants should be held accountable[/b].

“The people who bring them here and furnish false IDs are just as guilty,” he said.<
...
He said the employees who were detained were hired by KNA Co., which was under contract with DeCoster to provide legal workers.

“We’re distressed to find some of those people were not legal,” [DeCoster’s attourney William] Smith said.

So…. DeCoster’s operations have illegal workers, yet the sheriff makes a statement regarding the workers. Let’s do a little recap of big events in the history of DeCoster’s egg laying operations.

[Ed Note: apologies in advance for possible pay-only links to the NY Times.]

1997: Jack DeCoster settles with the Department of Labor for $2 million in fines, following charges made by then Secretary of Labor Robert Reich that the egg-laying operations were an “agricultural sweatshop”.

2000: Even under the rather lax Iowa environmental laws applied to confinement operations, Jack DeCoster is named as a “habitual violator” under DNR regulations.

Miller’s Office has filed a total of five lawsuits alleging environmental violations by DeCoster Farms, the most recent filed in Lucas County on April 24. Last July, the Iowa Supreme Court affirmed a Wright County court decision assessing a civil penalty against DeCoster in the first suit, constituting one “strike” toward habitual violator status. On March 22 the Supreme Court upheld a district court decision against DeCoster in the second and third suits concerning violations in Wright and Hamilton Counties. The Supreme Court action paved the way for classification of DeCoster as a habitual violator under Iowa law, which requires that violators must have been the subject of “three strikes” – three violations referred to the Attorney General for legal action and assessed a civil penalty by a court. Civil penalties ordered in the first three suits totaled $79,000.

2002:: DeCoster Farm settles for $1.5 million in a civil rape case brought by a domestic violence group.

DeCoster Farms will pay $1.53 million to a group of Hispanic women who claimed they were raped and abused by supervisors at the company’s egg plants in Wright County, the company and federal authorities announced Monday.

DeCoster did not admit liability.

The U.S. Equal Employment Opportunity Commission began its investigation of DeCoster in August 2001 after the Iowa Coalition Against Domestic Violence filed a discrimination lawsuit.

The group alleged that DeCoster supervisors in four egg-production plants sexually assaulted female employees and threatened to kill those who complained.
...
“We see a lot of sexual harassment cases, and a lot are pretty awful,” Kamp said. “But this was forcible rape.”

The women reportedly were afraid to testify, and criminal charges were never filed.

[Ed: anyone want to guess why the victims did not want to file criminal charges…. anyone?]

2003: Jack DeCoster pleads guilty to a pattern of aiding and abetting the continued employment of illegal workers. The guilty plea gets him probation (which is still in effect, if this article is to be believed) – instead of prison.

.Even when employers are convicted, penalties are often minimal. Austin Jack DeCoster, 68, owner of several Iowa egg plants that had at least 121 unauthorized workers, was sentenced to five years probation after he pleaded guilty to engaging in a pattern and practice of aiding and abetting the continued employment of illegal workers. His general manager between 1998 and 2001, who transported illegal workers between plants, was sentenced to three months home confinement with electronic monitoring and ordered to pay a $9,000 fine; he will be on probation for three years.

Under an agreement with the U.S. Bureau of Immigration and Customs Enforcement, ICE agents can inspect DeCoster plants without warning. DeCoster owns several egg farms in Iowa and Maine, and a hog operation in Iowa. DeCoster agreed to pay a $1.25 million civil forfeiture and $ 875,000 in restitution for the ICE investigation.

Now, this is just the big stuff. The Register also ran an article a few years ago detailing Jack DeCoster’s attempt to “remake his image”. But, after all of this (and continued violations – this time, neatly “outsourced’), we’re right back to the basic problem: DeCoster Farms and the owners have repeatedly shown a disregard for the law in both letter and spirit, while running an operation that basically amounts to human trafficking.

So… on to today, when the first charges are filed in the case. Who is being charged with a crime? Why, the workers, of course. No mention of the county attourney or federal officals pursuing the repeated violation, or possible probation violations. What’s amazing: in the comments to that previously linked article, someone is willing to defend rampant abuse of the law because workers in egg factories are evidently not entitled to things like “basic human rights” because that might mean we need to pay more for a dozen eggs. (Unlikely – has the price of eggs ever gone down because we’re willing to tolerate de facto slavery?)

Go to Hampton. Get a job cleaning chicken cages and other dirty work associated with the Egg buisness. Organize. Demand $12-$15 per hour.Plus paid for medical and a 401k. Better yet why not a fully paid for by the company pension. Lets not forget 4 weeks vacation after 10 years. Plus all the paid holidays the government gets.Then when eggs go to $8 a dz. you’ll really have something to gripe about.

It’s a rather amazing thing to note that we’re willing to tolerate the operation of a business that seems to make enough profit to pay multi-million dollar fines and remain ever in operation, yet there are people out there willing to believe that a business cannot pay workers enough for them to make a decent living. This is, to say the least, one of the great moral failings of our society.

The best suggestion I’ve heard so far: when the DNR catches a poacher illegally fishing or hunting, the DNR has the ability to confiscate all assets related to the crime. I would imagine that if the same rules applied to immigration and labor law, this “crisis” of illegal immigration would be over tomorrow – and without the need to spend one dime of taxpayer money on fancy new computer systems or multi-billion dollar construction projects.


Digg!

Smithfield Foods: Coming Soon

June 22nd, 2006

Smithfield Foods, known in Iowa for successfully fighting Iowa’s packer ban anti-trust laws and increasing their presence in Iowa’s meat packing industry is in the news for employing illegal tatics to fight unionization in Smithfield processing plants.

There is something that struck me as related to our recent illegal immigration debates – Smithfield hiring illegal workers, then threatening them if they dare to organize or protest working conditions:

“They would always tell us don’t get mixed up in this stuff about the union, if you talk about the union they will fire you, (and) having the Hispanics think they’ll bring in INS if they try to vote for a union,” he said.

This is something I’ve never heard in the midst of all of the rhetoric coming from Washington: while we focus on walls and technology and deportation – what is to be done to employers that break the law to employ a virtual slave labor force?

The answer is evidently “nothing”.

Links:
Confined Space: Treating Workers Like Hogs

SmithfieldJustice.com

  • Sousy


Digg!

Tom Tauke: Verizon’s Net Neutrality Hit Man

June 12th, 2006

Behold the visage of the man who’s complicit in handing the big telco and cable cartel the power to create a 2-tiered internet and hastening the onslaught of a have/have-not online experience.

The Congress voted 269-152 last Thursday against codifying the priciples of Net Neutrality into law – siding with the likes of Verizon, AT&T, Comcast, et al. – all while devoting a whopping 20 minutes to ‘debate’, thanks in no small part to the efforts of Tauke and his ilk.

Still screwing us after all these years, Tauke, former Republican Congressman from Iowa’s 2nd district, currently serves as Verizon’s Executive Vice President for Public Affairs, Policy and Communications. That’s Orwellian double-speak for propaganda minister, kids. Let’s watch him spin, shall we?

Via C|Net News: Newsmaker: Net neutrality: Meet the winner

Thomas Tauke must be one of the most ecstatic lobbyists in Washington right about now.

As Verizon Communications’ executive vice president for public affairs, policy and communications, Tauke has spent the last few months embroiled in a fiery debate over Net neutrality, the concept that broadband providers must be legally required to treat all content equally.

And now he’s won. Thursday evening, in a testament to Verizon’s lobbying prowess, the U.S. House of Representatives definitively rejected extensive Net neutrality regulations in a 269-152 vote.

Now the telecommunications bill approved by the House heads to the Senate, where Sen. Ted Stevens, the Alaska Republican who heads a key committee, has been an ally so far. But in an apparent nod to companies like Amazon.com, eBay and Google that are pressing for Net neutrality rules, Stevens did say last week that he might be willing to bend and consider more regulations.

Tauke, a lawyer, is a former member of Congress from Iowa and former chairman of the United States Telecom Association, a telecommunications trade association.

CNET News.com spoke with Tauke about Net neutrality and Verizon’s view of what Washington, D.C., might do next.

You can read the Q/A with Tauke here – or bone up on the history of the net neutrality debate via Wikipedia here. Pay special attention to how Tauke disingenuously dangles ‘video content services’ as a primary reason for justifying increasing big carrier’s control over the internet. That’s a red herring. The fact of the matter is the telco’s simply want more control and the ability to charge you even more than you already pay, while squeezing smaller providers completely out of business. Period. Their goal is to exert the type of stranglehold and control upon the internet that Clear Channel has achieved over the radio spectrum.

On the Senate side, via TPM, I’m truly surprised to see DINO emeritus Joe Lieberman landing on the right side of the vote while Russ Feingold is still twisting in the wind a bit. The hell, Russ? Take a stand, willya? And what’s up with the 57! other Democrats selling out on this one?

Clicky clicky: Send a letter to Congress in support of Net Neutrality and the Markey ammendment to HR5252.

  • pdx


Digg!

The Protein Industry?

June 9th, 2006

From A.V. Krebs’ Agribusiness Examiner #435 comes a story that has a rather interesting choice of words:


SMITHFIELD’S PROFIT PLUNGES AS MEAT GLUT HURTS PRICES
By Associated Press
June 8, 2006

RICHMOND, Virginia—- Smithfield Foods Inc., the world’s largest pork processor, on Thursday reported its profit plunged 99% in its fourth quarter as bloated meat inventories in the U.S. hurt prices. Its shares were off nearly five percent in midday trading.

Industry observers have blamed the oversupply on bird-flu fears that have softened international demand for chicken and have hurt domestic prices of other meats. Evolving diet trends—- a move away from high-protein, low-carb meals—- may also be playing a role, though a smaller one.

“This past quarter was difficult for many in the protein industry, including ourselves,” said Joseph W. Luter III, Smithfield’s chief executive officer.

Smithfield, based in Smithfield, Virginia, said it earned $1.1 million, or one cent a share, in the quarter ended April 30. That is down from $85.4 million, or 76 cents a share, in the year-earlier period. Revenue decreased 8% to $2.68 billion from $2.90 billion.

The current quarter includes a pretax charge of $10 million, or five cents a share, tied to the restructuring of the company’s East Coast pork-processing operations. Income from continuing operations—- excluding its to-be-sold Gorges/Quik-to-Fix Foods unit—- was $4.7 million, or four cents a share.

The “Protein Industry?” I suppose there is a bit of truth in that statement: Smithfield is not in the animal business, nor the farming business – they’re in the “protein business”. An interesting worldview that probably makes the notion of driving small famers into the ground with gigantic CAFO operations an acceptable business endeavor. After all – the “protein” should be the same, right?

Krebs follows this up with an item from October 1985:

A “RAW MATERIALS PROCUREMENT AND DISTRIBUTION SYSTEM
By Fred Stover U.S. Farm News
October, 1985

“The biggest problem farmers have is that they have to sell their products through a market place that is really a `raw materials procurement and distribution system;’ a system that is designed to buy raw materials as cheaply as possible and resell the products on the basis of all the traffic will bear—- regardless of cost, efficiency, supply, demand or fair market value.”

Fred Stover, was President of the U.S. Farmers Association

So… what do producers do when the owners (Smithfield) view the product as a ‘raw material’?

  • Sousy

FYI: Smithfield was the company that fought Iowa’s packer ban

Sear This Into Your Memory

May 10th, 2006

Thanks, Drew, and State 29.

Lamberti, a republican from Ankeny and co-president of the Iowa Senate [Ed: and 3rd District GOP Congressional Candidate), says almost every other alternative beyond the sale to Whirlpool is worse for the community and workers.

Drew also points out that Whirlpool has been greasing the GOP palms in Iowa as of late, as well.

  • Sousy

Coming To Iowa’s Rivers: More Hog Poo

May 4th, 2006

The DNR asked for more authority to protect Iowa’s wateways from being threatened by the growing hog confinment industry…. instead the legislature says “Quit picking on polluters!”

The Iowa Department of Natural Resources had asked for the power to protect waterways from factory farm pollution, but instead received backlash from lawmakers who accuse the agency of overstepping its authority.

The Legislature on Wednesday passed a bill that strips DNR director Jeff Vonk of his ability to deny construction permits to livestock confinements that meet state requirements but may pose environmental risks.

Lawmakers said they want the DNR to approve permits by the rule of law, not at the agency’s or its director’s discretion.

“We have not had a high degree of confidence in the department,” said Rep. Jack Drake, R-Lewis, a proponent of the bill.

Vonk’s request for more authority through an administrative rules change came earlier this year as factory farm construction reached record highs for five years in a row. In 2005, the DNR approved 203 permits—the bulk of them for the $12 billion hog industry in Iowa, the largest in the nation.

As of April 28 this year, the DNR had handled 358 permits, DNR officials said. The agency has rejected a handful of those permits, mostly because they didn’t meet manure management plan requirements.

CAFO construction is at record highs, Iowa’s water quality is at record lows…. and we want to step on the gas?

  • Sousy

Jane Smiley Smacks Down Converted Cons

March 22nd, 2006

One of Iowa’s own has done us proud.

She begins thusly…

Bruce Bartlett, The Cato Institute, Andrew Sullivan, George Packer, William F. Buckley, Sandra Day O’Connor, Republican voters in Indiana and all the rest of you newly-minted dissenters from Bush’s faith-based reality seem, right now, to be glorying in your outrage, which is always a pleasure and feels, at the time, as if it is having an effect, but those of us who have been anti-Bush from day 1 (defined as the day after the stolen 2000 election) have a few pointers for you that should make your transition more realistic.

and continues her evisceration of the conservative culture of corruption and hypocrisy in her blog entry at The Huffington Post here.

Another quickie excerpt:

President Bush is your creation. When the US Supreme Court humiliated itself in 2000 by handing the presidency to Bush even though two of the justices (Scalia and Thomas) had open conflicts of interest, you did not object. When the Bush administration adopted an “Anything but Clinton” policy that resulted in ignoring and dismissing all warnings of possible terrorist attacks on US soil, you went along with and made excuses for Bush. When the Bush administration allowed the corrupt Enron corporation to swindle California ratepayers and taxpayers in a last ditch effort to balance their books in 2001, you laughed at the Californians and ignored the links between Enron and the administration. When it was evident that the evidence for the war in Iraq was cooked and that State Department experts on the Middle East were not behind the war and so it was going to be run as an exercise in incompetence, you continued to attack those who were against the war in vicious terms and to defend policies that simply could not work. On intelligent design, global warming, doctoring of scientific results to reflect ideology, corporate tax giveaways, the K Street project, the illegal redistricting of Texas, torture at Gitmo and Abu Ghraib, the Terry Schiavo fiasco, and the cronyism that led to the destruction of New Orleans you have failed to speak out with integrity or honesty, preferring power to truth at every turn. Bush does what he wants because you have let him.

  • tristero

Iowa Voice = Wal-Mart Shill

March 7th, 2006

Thanks to TH1974 for first bringing this story to my attention here.

The guy with the Sinatra karaoke side ‘career’ also likes parroting the propaganda of Wal-Mart and passing it off as his own.

You can read the NYT story here.

A few excerpts follow:

Wal-Mart Enlists Bloggers in P.R. Campaign

Brian Pickrell, a blogger, recently posted a note on his Web site attacking state legislation that would force Wal-Mart Stores to spend more on employee health insurance. “All across the country, newspaper editorial boards — no great friends of business — are ripping the bills,” he wrote.

It was the kind of pro-Wal-Mart comment the giant retailer might write itself. And, in fact, it did.

Several sentences in Mr. Pickrell’s Jan. 20 posting — and others from different days — are identical to those written by an employee at one of Wal-Mart’s public relations firms and distributed by e-mail to bloggers.

Did you know Wal-Mart is more selective than Harvard? It’s true!

Mr. Pickrell, the 37-year-old who runs the Iowa Voice blog, said he began receiving updates from Wal-Mart in January. Like Mr. Beller, of Crazy Politico, Mr. Pickrell had criticized the Maryland legislature over its health care law before Wal-Mart contacted him.

Since then, he has written at least three postings that contain language identical to sentences in e-mail from Mr. Manson. In one, which Mr. Pickrell attributed to a “reader,” he reported that Wal-Mart was about to announce that a store in Illinois received 25,000 applications for 325 jobs. “That’s a 1.3 percent acceptance rate,” the message read. “Consider this: Harvard University (undergraduate) accepts 11 percent of applicants. The Navy Seals accept 5 percent of applicants.”

Asked in a telephone interview about the resemblance of his postings to Mr. Manson’s, Mr. Pickrell said: “I probably cut and paste a little bit and I should not have,” adding that “I try to write my posting in my own words.”

Let’s hope this guy doesn’t truly represent the voice of Iowa:

Mr. Pickrell, explaining his support for Wal-Mart, said he shops there regularly and is impressed with how his mother-in-law, a Wal-Mart employee, is treated. “They go real out of their way for their people,” he said.

If he does, it will be many years before the world stops laughing at us.

You can read more on how Wal-Mart goes ‘real out of their way for their people’ at Wal-Mart Watch.

  • tristero

“Crunchy Cons?”

February 27th, 2006

I’m amused.

I won’t detail further, but instead point you to the forums here and here.

  • Sousy

Business 101: How Do You Make Money?

February 23rd, 2006

The Des Moines Register reports that Maytag will eliminate 50 positions

Maytag will lay off 50 workers tomorrow

February 23, 2006

Maytag plans to lay off 50 production workers at its Newton plant on Friday, a union leader said today.

Ted Johnson, president of United Auto Workers Local 997, said the layoffs will cut the plant’s production work force to about 1,000 workers.

Johnson said the company said the layoffs were necessary because there has been no growth in sales of products produced at the plant.

The plant produces three lines of washers and their companion dryers. The lines are Maytag’s original Neptune front-load washing machine, a long-standing topload washer known as the Dependable Care and a topload called Atlantis.

Johnson blamed the company for the flat sales of Newton products, saying sales have stagnated because the company no longer advertises the machines.

Company representatives weren’t immediately available for comment.

The plant’s work force dropped to 1,000 last August, but a number of workers had been called back, putting the number back to 1,050 before the new round of layoffs, Johnson said.

The plant’s work force was 2,600 in 2001, he added.

However, jobs have been cut since then, with the company saying it would not put any new product lines in the plant until costs were cut.

The company, citing wages and benefits paid to union workers, says the Newton factory is the company’s highest-cost plant.

The union has said the workers’ pay is deserved because of their productivity. Johnson says the plant continues to be profitable.

Is it just me, or is anyone reminded of that TV commercial that aired during the Super Bowl with the “cost cutting executive” leading a meeting with the one remaining employee? (“I eliminated our workforce – what have you done to save the company money?”)

What seems bizarre: evidently there was enough product demand to recall 50 employees, just to announce the hard times you’re going through is causing you to lay off 50 people. How ‘bout focusing a little harder on moving product than cutting costs?

(Tune into this afternoon’s Rush Limbaugh program to learn how unions are the downfall of American manufacturing.)

  • sousy

Isabel Bloom Recommits To Davenport

February 22nd, 2006

From the Press Release:

Isabel Bloom Recommits to Retaining Local Art and Local Jobs

Owners say they listened; Quad Cities response made all the difference.

Davenport, Iowa, February 21, 2006 – The owners of Isabel Bloom have reconsidered a business decision that would have taken all production overseas. “We clearly believe in listening to the voice of our customers, despite perceptions to the contrary in recent days,” says Jeff Gilfillan, one of the three Bloom owners. “We apologize for failing to fully recognize the priorities of our local customers and we accept full responsibility for this error in judgment.

“As a result, we have decided to continue local production of our original concrete sculpture – sold in our four studio stores in Davenport, Moline, Naperville and West Des Moines – through existing quality retailers in the region and through our Web and toll-free business,” continues Gilfillan. Therefore, all 50 positions that would have been impacted now will be retained.
...
”Isabel Bloom, L.L.C. remains dedicated to the company’s long-term success. “The untold story,” says Gilfillan “is the mistaken belief that the production change was made only to grow the business nationally or to increase short-term profits.” Since a peak sales year in 2000, sales have decreased by 30 percent and profitability has shrunk by 75 percent despite modest sales growth from outside the Quad Cities such as in Des Moines. “While Isabel Bloom, L.L.C. is financially stable, this sales trend underscores the need for change to ensure a healthy future for the company. We clearly wish to serve as responsible stewards of the company for years to come,” says Gilfillan.
“While continuing to make our original concrete sculptures proves to be the right decision locally, the reality of staying in business still must be confronted,” says Gilfillan. “Therefore, we will continue to investigate opportunities to expand our market. We anticipate sculptures sold through any part of a national expansion will be made with the new cast stone produced overseas.”

I think the owners could answer a very simple question: why does expansion need to be done with overseas suppliers? There seems to be a very single truth in the retail world: in order to sell more product, you need to differentiate yourself from your customers. What’s going to make “Isabel Bloom made in China” any different than any of the other low dollar crap that fills the “gift store” shelves?

Something I do not know: how good is a job at Isabel Bloom? What are the pay/benefits like?

Addendum: More discussion on the forums.

Addendum II:: The Quad City Times Reports

  • Sousy

The Privatization of… Everything

February 22nd, 2006

A post this morning at TPM Cafe points out something interesting in the dustup over port operations – why is it that we trust the operation and security of our nations seaports to private interests in the first place?

Suddenly it’s as if Dubai Ports World had peppered a guy with birdshot.

I reserve judgment on whether the deal to turn American port terminals over to a UAE company is the stupidest move in history or not. But am I the only one who finds it mighty peculiar that this week we’re fervently debating an item that nobody noticed last week? Did the proposed sale really pop up out of the blue?

Evidently vast portions of American infrastructure are routinely farmed out to companies scurrying around this (as Tom Friedman reminded us with his trademarked adjective again this morning) flat world. Without rising to the level of front-page news.

Americcan infrastructure is being “globalized” without anyone really noticing – shouldn’t we be a bit concerned? We sell our airwaves, our military operations and daily services to the lowest bidder – why does in matter who buys them if we’re willing to put them up on the market in the first place?

Addendum: More discussion on the forums.

Addendum II: This is another case of “It’s not the people – it’s the ideology.” We’ve seen a lot of that over the past year.

  • Sousy

Webster City Employment -> Mexico

February 14th, 2006

This has not been a banner week so far for Iowa workers. From the Des Moines Register:

About 700 jobs will be cut from the Electrolux/Frigidaire laundry products factory in Webster City beginning late in 2007, Electrolux said today.

The factory now employs about 2,000 people, but some work will be transferred to a new plant to be built in Mexico at a cost of more than $100 million, said Blythe Reiss, a spokeswoman for Augusta, Ga.-based Electrolux Major Appliances-North America, a part of The Electrolux Group, a Swedish company.
...
Electrolux said [the new Mexican plant] is expected to cost more than $100 million to build and equip, and will account for most of $139 million that the company plans to invest in its North American laundry business.

The Mexican plant is expected to employ about 800, the company said.

This follows on the news that Isabel Bloom is moving production from Davenport to China. (As a follow on to that story, they get letters.)

  • Sousy


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