Pressure from the National Labor Relations Board has led Hugo Boss to renew negotiations with the Cleveland-area suit factory that it has slated to close later this month.
After revealing plans to close the facility — and with it cut some 300 jobs — in December after several months of bargaining failed, Hugo Boss will resume talks with Workers United, the union that represents the factory, on April 8 in Cleveland. The Metzingen, Germany-based company at the moment plans to close the factory April 27.
A statement from a Hugo Boss executive said the company’s change in course was a response to the findings of the NLRB, which threatened to issue a formal complaint against the firm. Such a complaint could have paved the way for a court injunction if Hugo Boss did not return to the bargaining table.
“We are returning to the table in hopes that the union is ready to accept the company’s proposal or propose another solution we find workable,” said Andreas Stockert, Hugo Boss AG’s chief operating officer. “Our goal remains as it was when we started bargaining — the right agreement to make the plant more globally competitive.”
This is the second conciliatory action by Hugo Boss in as many weeks. After actor Danny Glover visited the factory last week in a bid to stir publicity about the factory’s fate, the company said it would consider sweetening its $1.5 million severance package for union workers.
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