Labor in Illinois

Weekly Labor Report
Sept 20, 2007

Carhartt Plant Conversion from Production to Warehousing in Galesburg

Carhartt, a clothing manufacturing company based in Dearborn, Michigan, has announced layoffs for 33 employees, all of whom are union members. The family owned company has handled the sewing of cotton canvas outerwear. However, it will be converted to a distribution and warehouse center for irregular and overstock items. John Mozena, public relations manager for the company, said that the facility is committed to “the most efficient mix of domestic and international manufacturing and processing facilities.” Twenty five jobs—17 union and eight management—will remain at the plant. – Peoria Journal Star (20 Sept 2007)

State Loses Jobs in Large-Scale Corporate Research

While employment in corporate research and development—“where science is harnessed to pursue profit”—increased 16 percent nationally between 2001 and 2006, it fell almost 28 percent in Illinois. The state, which used to be ranked second to California in such jobs, is now in seventh place. According to the Chicago Tribune, the culprit may be the shutting down of telecommunications research labs in suburban Chicago. In the last ten years, Lucent Technologies ended 7000 jobs, G.D. Searle & Co. in Skokie layed off 1000 more. Motorola has also closed plants, not excepting the facility in the University of Illinois’ research park. Meanwhile, China and India have some of the world’s fastest- growing major research and development markets. While the average Illinois employees in this field make over $100,000 per year, labor is cheaper overseas. Some executives in the field are encouraged that small high-tech companies, especially those who could have settled in more expensive locations, do favor Illinois a basis of operations. A Japanese drug firm Astellas Pharma opened a research center at the old Searle site earlier this year. Even though Baxter International saw a net cut in jobs over the last decade, North Chicago’s Abbott Laboratories has close to 150 research and development job openings, and its spending in this area rose 44 percent between 2001 and 2006. – Chicago Tribune (26 August 2007)