Why? Cause that is exactly what Leo thinks he’s gonna get now that the International Trade Commission has sided with the USW’s incredibly weak argument that radial passenger tires imported from China has directly led to the loss of thousands of tire plant jobs in this country.
And what Leo wants, Leo gets.
“Our domestic industries cannot survive unless our government enforces the trade laws designed to curb and dissuade anti-competitive practices that cause market disruptions,” said USW International President Leo Gerard. “We anticipate the remedies that will be delivered to President Obama will allow the time necessary to rebuild the U.S. tire industry.”
“Remedies”? “Rebuild the U.S. tire industry”?
Those “remedies” may well end up being what Leo wants – a three-year limit on the importation of China-produced passenger tires (an immediate cut to 2005 levels, plus up to 5% incremental increases for each of two years). Too bad, because those cutbacks will surely put more people out of work than will deliver new jobs to the USW. Like the private branders that depend on Chinese producers to make their products (since no one but Cooper still makes private brand tires), and private brand distributors and private brand dealers. Oh, and the legit importers of Chinese branded tires.
And there won’t be any rebuilding of the U.S. tire industry. Number One: It ain’t broke. In fact, our local industry should be commended for how it has managed itself in these trying times, working hard to minimize the negative impact on employees and distribution while trying to remain financially healthy. Very, very hard job, to be sure.
Number Two: No one will be adding capacity here to produce low-margin tires. Nobody, Leo, will be building new plants or adding production. Ain’t happening. The days of American- or Canadian-made Tier 3-4-5 tires is passed. There will be demand for those tires, because of consumer demand for size or price (mostly price, especially in these days). Whatever shortfall is left by the proposed import limits will be made up by tires from other low-cost countries, not by tires produced by your members.
I hear Indian tiremakers are real anxious to make a mark here. So, Leo, are you going to go after them, too? Are you going to chase every country? Hell, I got an e-mail today from some outfit selling Indonesian-made passenger radials.
It is, and has been, a totally disingenuous argument to claim that the sharp increase in the number of tires imported from China directly resulted in closed tire plants and lost jobs here. Equally absurd is the USW’s convenient loss of memory when it fails to recognize that its tire company employers have contributed to that import increase.
Those plants and those jobs went away because of cost. Because it cost a lot less to make low-margin, no-profit tires overseas than it did to make those same tires here. A number of years ago, raw materials costs, as we all know, went through the roof. Despite “concessions” made by the USW, it still cost too much to make those tires here. And some of those plants were closed because the USW itself proved to be a difficult dance partner; the union even negotiated the closure of one plant into its last master contract with Goodyear.
That is reality.
This is not: “We anticipate that the final decisions on remedies will improve domestic job security, increase production and sales, and allow for investment in capital equipment to better compete in the global market for the long term.” – USW vice president Tom Conway.
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– Jim Smith
