Mo Brooks goes after Cinram
Sounding a lot like a populist protectionist, Madison County Commissioner Mo Brooks has released a resolution aimed at punishing Cinram for bringing in 1,350 foreign workers. The resolution implores the legislature to rescind tax abatements that Cinram currently enjoys, force the company to pay for health care costs of the employees, and also force the company to compensate American citizens who are harmed by any of the immigrant workers.
Brooks’ resolution was met with hearty praise on AL.com’s Huntsville forum, but I can’t say I’m a big fan. First of all, demanding that companies that legally hire foreign workers must pay for health care costs sounds a lot like, well, it sounds a lot like mandatory, “universal” health care that all the modern day socialists love – except Mo wants to guarantee that benefit for foreigners instead of Americans. I haven’t asked him personally, but I’m quite confident that Mo isn’t a closet John Edwards supporter.
I believe that government shouldn’t be in the business of picking winners and losers in the market place. In this case the government crafted laws that Cinram is presumably following and offered tax abatements without strings attached. Cinram is simply playing by the rules that the government established for them.
I believe that my commissioner, Jerry Craig, understands the true dynamics that are at work here. We have a tight labor market in Madison County it is hard for Cinram to find workers at the price point they can afford. I understand the laws of supply and demand, but just because higher demand results in higher prices (wages in this case) doesn’t mean that Cinram has the latitude to pass the cost increase on to its customers. If Cinram were forced to pay higher wages, as Brooks wants to force them to do, then the calculus becomes clear: they will shutter their factory in Madison County and relocate to where labor costs are lower, most likely south of the border. That would not only cost the jobs of the 1,350 temporary foreign workers, but also a significant number of local workers.
My defense of Cinram is tepid at best. I would guess that Cinram is only a couple of short steps away from modern day slavery. An article in today’s Huntsville Times (print only so far) by Challen Stephens summarized the bleak, but predictable, financial situation most of the workers are in. Many will be lucky to break even due to a combination of their meager wages and fees they had to pay for the opportunity to work here. Low wages are one thing, presumably the workers were at least informed as to what the pay would be. But the situation is troubling for other reasons. The workers seem to be dramatically overcharged for housing. At least one worker claims to not being paid the promised $8 an hour.
Cinram certainly isn’t being a saint or even a good member of the community, but as long as they are following the applicable laws then they should be allowed to conduct their operations. The alternative of seeing them leave and taking away jobs currently filled by Americans rather than allowing them to supplement their workforce with foreigners is not extremely attractive. Of course, that would help soften our labor market.
The article you reference does make the legal foreign worker’s plight sound bleak – basically, after paying the agency fees, documentation costs, travel, housing, transportation, etc., these people still ‘owe their soul to the company store’. The housing can’t be legal: broken toilets, mattresses on the floor (’furnished’), no heat. I commented ealier that these people were set up to be abused, and this time I don’t like being right.
I would also make CINRAM and Blair Staffing liable to return the temporary workers back home.
What gets me is that CINRAM pays several thousand dollars ($4,000?) per foreign worker in documentation, travel, and fees. I don’t understand why they couldn’t pay local workers $10 per hour instead of the $8 per hour current wage.
Something stinks – more than we know…
I don’t have the article with me, but I thought Cinram paid $2k and some of the workers paid up to $2k themselves. Cinram is crunching numbers to set the wages for the pseudo-slaves. I think these guys are going to work for 9 months, which is about 1,600 hours excluding OT. If Cinram paid $4k per worker to bring them in then their effective cost per hour is $10.25 ($8 base wage plus $4k divided by number of hours worked). That is in the ball park of what they were offering locals ($11/hr.).
This highlights my main point. Cinram doesn’t WANT to hire foreigners. In fact, I bet they would prefer not to because I assume it is a major headache for a number of reasons (not the least which is the HSV Times articles). But they are a business and their pain threshold for costs is only so high. They are willing to pay a certain amount in labor. If they get that labor locally they will pay higher wages, but if they have to bring in outside labor they will pay them less to offset transportation and recruiting costs so that the total cost to Cinram doesn’t change.
If Mo has his way Cinram will make a run for the border and a bunch of Madison County residents are going to have to get their resumes in shape.
Like I said before, if I were a lawyer I’d be on these workers like stink on a monkey.
“Cinram certainly isn’t being a saint or even a good member of the community, but as long as they are following the applicable laws then they should be allowed to conduct their operations. The alternative of seeing them leave and taking away jobs currently filled by Americans rather than allowing them to supplement their workforce with foreigners is not extremely attractive. Of course, that would help soften our labor market.”
So: the only choice is let Cinram do as they please, or Cinram will move offshore? Are you sure about this?
Judging by the blogroll on the right, I’m guessing that Brian is a big proponent of free trade, of unfettered capitalism, of the “magic of the market.” Well, here are the results, which any thinking person could have seen coming years ago: that eventually, American workers would be in direct competition with all of that much-vaunted “cheap labor overseas.”
Although I’m far out on the left wing, I agree with Pat Buchanan: what has been done to this country is “economic treason”, and this situation is tangible evidence.
montysano – your comment got trapped in the spam filter (happening too frequently these days).
The free market is the best way to distribute limited resources. Period. On a macro (i.e. global) level free trade is also the most morally just economy. I love this country with a passion, but I can’t reconcile watching others around the world suffer because we refuse to trade openly with them.
I’ve worked for Cinram every summer for four years. We have a term there called “runners.” It’s what we call a first day employee who, instead of finishing the work day, quits and is seen looking for a way out (it’s a big complex plant).
The attitudes of the local work force is such that Cinram can’t do anything but hire immigrant labor. This is their only choice, and they should be looked at as a model for companies like them. They hire legal workers, pay them the Labor Department’s mandated wage for H2B worker status, and they are trying their hardest to keep their operation from moving to Mexico.
All of this nonsense about “legal slavery” is foolish. You should be ashamed of yourself.
Chris, I’m on your side, but it is not “foolish” to realize that having captive workers creates a situation ripe for abuse.
I have met a good number of the overseas immigrant workers that Cinram hired. I’ve visited their apartments, talked with them about how they got here and it’s not very re-assuring. There are some instances where there are 6 people crammed into a 2 bedroom apartment in unacceptable conditions. Nevermind the workers (who, might I add do not earn even the $8 dollars they were promised), have to pay for all housing and transportation to and from work. They have shown their payments to me and they make $6.5/hour, not $8/hour.
I understand Cinram is doing this legally as far as the laws of the land go, but someone has to take responsibility for the immigrants that are lead to believe that this is a great opportunity for them. I’ve been told by most that it cost them around $3000 to even apply to get to this position, nevermind the cost to fly over here from those countries, which can add up to about $1000 round trip depending on the season. I’m sure most of you have already heard about the working conditions at Cinram, so I won’t even mention that.
The workers I’ve spoken to are really tired of the long hours (4 am – 6 pm) 4 – 5 days and most are ready to get out and go back home (that’s if it’s legal for them to do so before their 9 months are up). I really feel for these people as they are no different and should not be treated any differently than us.
Could anything be done to Cinram about these unfair conditions?
I blogged about this a few times. Based on my hits there is a lot of interest in the subject. The workers are obviously being taken advantage of, and CINRAM is allowing it. They could have made proper arrangements for housing and transportation, but left it up to the “employment agency”. If I am CINRAM’s lawyers I am looking hard at them. Of course, they could just raise the pay a few bucks an hour and avoid the whole thing.
Yeah, this has proven to be a hot topic.
Man, CINRAM is interested. I have 5 hits from them on my articles about the Huntsville Times stories. Have they been here, too?
I know that CINRAM isn’t a saint in this situation, but they should not be taking all of the heat. I work with these H2B’s on a daily basis and their complaints are about Blair, not CINRAM. They work from 6-6 just like the full time employees and working conditions are more than adequate-otherwise I would not work there. They do light work (with the obvious exception of being on your feet for almost 12 hrs) and have their choice of overtime. I am not being biased because I work there but someone has to play devil’s advocate.
CNN, please investigate this CINRAM situation further! This sense that something sinister has taken place here. Don’t let this issue subside, please.
The issue that is being overlooked here is a larger one. Cinram is in a commodity based business. Their major customer (a big Hollywood studio) puts the screws to them to provide a better cost…so they can offer you the DVD’s you have to have at a lower price. Flippantly saying “just pay more” is not realistic…and never has been in any industry.
Can you imagine the uproar if your DVD’s suddenly cost you $5 more at WalMart???
The night of the last democratic debate was the first I had heard of this Cinram Corp. The news report was about how homeland security had cleared these “imported” workers, but now they were no where to be found. Since that night I have seen nothing about it. Where are all these poor people?
Are they poor work slaves fleeing or un-checked possible terrorists that our great homeland security system let fly in.
Terrorists don’t run in over the boarder.
I wonder what kind of job the previous blogger had that returned to Cinram for four years? The same as a “runner”?
Hollywood studios may tighten a “screw” but believe me it’s WalMart that screws all of us, by demanding the cheapest prices from all of its vendors.
How much does the Lebonese born owner of Cinram make? Couldn’t he take a million dollar pay cut and pass it on to his faithful employees? Thats whats wrong with a majority of American owned companies. CEO’s VP’s etc. make million dollar salaries off the blood and sweat of the working men and women. No one…. NO ONE is worth that much $$
Cinram in Huntsville employs about 2,000 people. Let’s do the math to give everybody a $2.00/hour increase….
2,080 working hours in a year X $2 per hour X 2,000 employees = $8,320,000. Now where is that money going to come from?
The Lebanese founder of Cinram is retired btw…the company is now run by an American…
Cinram pays the temps $8.25cts/phr, that`s only during the day. At night is .060cts more which it comes to be 9.25phr, tha`s what I get per hour, it sucks, that`s nothing I can`t even afford my rent or pay some of my bills sometimes. I recently moved fron another state where I was making between 700 & 900 dollars a week. When I got hired with Cinram, my first 2 weeks pay check was $601.00 I almost cried… I wanted to go back where I was living but it was to late we are already here. I did not had another choice but to stay. Also we just got a bonus, my was for $43, wow that was…. you all know what i mean. I know that the cost of living conditions are more reliable, more inexpensive, but I can`t live like this, this company makes millions of dollars and this is what i get payed this is bullshit(excuse me) had to say it. Why can`t we just get at least a raice every six months at least .050cts, that`s not so bad, so many promises for what?.
I have met a couple of jamaicans and visited them,and I just can`t believe my eyes, some sleep inthe floor, sofas, and they can`t even afford their rent eather.Is there anyone that can help us?
I worked at Cinram for all of nine months before I couldn’t take it any more and let me tell you, its worse than anything people let on. You work a twelve-hour shift (most of which is spent on your feet), you only get a half-hour lunch and two fifteen-minute breaks, the working conditions are some of the filthiest I’ve ever seen, and the bosses all get irate if they see you stop for even a moment, even as they all sit on their ever expanding rear ends. In addition to all of that, they have something called occurences. Basically, if you miss work for any reason it’s an occurence. Three occurences is a write-up and three write-ups is a firing. That was the reason I quite. During the last few months I worked there, my health seriously began to decline due to the hours and conditions and I started having to miss days because of my health. The final straw was when thay wrote me up for having food poisoning.