The workers union that staffs the Cleveland factory for Hugo Boss says that Metzingen, the German owner of Hugo Boss, is going to close the factory putting workers out of a job.
The factory, which has served as the center of Boss' American suit production and distribution for 20 years, may go dark as soon as April 2010 when the union employees' contract expires, according to leaders at Workers United. The facility, which produces 150,000 suits a year, employs more than 400 workers, 320 of which are union members.
Responding to the union's contentions, Philipp Wolff, director of communications for Hugo Boss AG, said, "We have not made any strategic decisions. We are evaluating our global business needs in regards to customer demands and will communicate any decisions once they are finalized."
According to Dallas Sells, director of the Ohio State Council for Workers United, attorneys representing Hugo Boss recently met with union leaders to discuss closing the factory and initiate negotiations for union employees' severance.
Sells said the membership has refused severance and will fight the facility's closure. "Without our consent, the operation has to continue in some form," Sells said, noting the contract could prevent shutting the facility completely.
According to the union, Hugo Boss will also move its distribution facility to Savannah, Georgia, which will eliminate more jobs. The factory in question has been in business since the 19th century making suits. Hugo Boss took over the facility in 1989.
