— Chris Cool blog

Interesting Globalization Article

http://economyincrisis.org/content/whirlpool-slash-thousands-jobs

 

The company Whirlpool plans to cut thousands of U.S jobs and close at least one factory in the U.S. I found this interesting and quite relevant as we talked alot about outsourcing and such earlier in the semester. But the kicker is that Whirlpool claims it isnt outsourcing. They blame the loss of jobs on the recent recession and a lack in demand from the higher end consumers. These seem like perfectly plausible reasons, except for the fact that this isnt Whirlpool’s first job “slashing” incident. Last year they cut over 1,000 American jobs by “mov[ing] the factory to Mexico where, due to the North American Free Trade Agreement and almost nonexistent labor and environmental laws, it was able to produce for a fraction of the cost.” If that isnt outsourcing jobs, then I dont know what is. Clearly this factor alone relates to globalization, but I also think its the beggining of a scary trend for big corporations. “Whirlpool is today’s typical multinational corporation. When times are tough, it seeks all the government help it can possibly get in the name of economic patriotism. When times are good, however, it shows no such loyalty.”

 

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