A thread of hope

Galesburg's Protexall stands as one of the last family-owned union-shop clothing makers in America

Tuesday, March 22, 2005

BY CLARE HOWARD

OF THE JOURNAL STAR

GALESBURG, IL -- Fred Peterson is an all-American, guy-next-door. He drives a Chrysler minivan, wears clothing made in America, worked for the Burlington Northern Railroad and once made ice cream for a living. He loves apple pie . . . a la mode.

Today, Peterson is national sales manager for Protexall, one of the last family-owned, union-shop clothing manufacturers in America.

Falling squarely on his shoulders is the task of marketing the made-in-America union label. He expected his cause would be embraced by unions nationwide, but he's surprised how often he's left standing alone.

"I'm too blunt, but what's wrong with this picture? We're here. We want to do business with union companies that believe in union-made uniforms, but more and more are going offshore for uniforms. There's no doubt, it's getting worse," he said.

"Take a pencil to it. Our prices are not that different, and you can't wear out a Protexall uniform."

Protexall, 77 S. Henderson St. in Galesburg, was founded in 1889 in Abingdon, making workmen's clothing. In the early 1900s, the company designed a one-piece, slip-on suit for protection while riding in the first open touring cars. That "Protexall" garment was the world's first coverall.

Today the company makes uniforms and specialty corporate clothing with corporate logos. It has a computerized sewing machine that uses 16 needles and multiple colored threads at the same time to embroider company logos. Protexall sells to companies around the world and to individuals through the Internet at www.protexallinc.com.

The company's No. 1 customer since 1947 has been John Deere. "We're a great fit, no pun intended," Peterson said.

Protexall had purchased new equipment and was on the cusp of expansion when Congress passed the North American Free Trade Agreement.

Before NAFTA, the company made 3,000 pants and up to 10,000 shirts a week. Now, full capacity is 300 pants and 1,500 shirts a week. The shop floor is filled with union employees who have worked up to 40 years at the company.

"This is our pride and joy," said Pat Douglas, a 40-year Protexall employee, standing before the Gerbercutter, a machine that can cut up to 60 garments with one pass.

"We got this machine in 1999. Before that, we used to cut everything by hand with an upright knife. Any changes were very costly. Now the pattern is changed with a computer."

Douglas, production manager, said: "You're not going to find a foreign car in our parking lot."

The company has 50 employees, down from a peak of 2,000 in 1936 and 200 in the late 1980s. When Protexall competes with businesses overseas, the foreign competition has built-in advantages.

"The competition is offshore, companies with no EPA, no OSHA, no human rights, no child-labor laws," said David Perkins, president of UAW Amalgamated Local 171 in Hagerstown, Md.

"People have lost sight of this. Outsourcing is a tremendous issue with a devastating impact. It's important that American manufacturing jobs remain in this country, and we put our money where our mouth is."

Perkins writes into his union contracts that members will only wear American-made uniforms. "This is a better-made product and the price difference is not that great. But we're dealing with the Wal-Mart syndrome. Where can you buy it for 50 cents cheaper?" he said.

Perkins said it's discriminatory to sacrifice one segment of the economy for free trade.

"Not everyone is cut out to be a computer programmer. We have to keep jobs for every niche of society," he said. "This (movement offshore) is a real slap in the face. Sooner or later it will affect every working class person in this country."

It's not the cost of union labor that's driving companies offshore, he said.

"That's PR. It's the amount of money on mandates. How do we compete with sweat shops and child labor? It's also management and corporate greed at the top that are devastating companies," he said. "We're not asking for an unfair advantage."

As a result of Perkins' efforts, Protexall now has part of the Mack Truck contracts negotiated by UAW Amalgamated Local 171. "This is the kind of help we need," Peterson said.

Dave Chapman, president of UAW Local 974 in East Peoria - the largest union representing hourly workers at Caterpillar Inc. - said this is not something his union can negotiate because members don't wear uniforms.

U.S. Rep. Ray LaHood, R-Peoria, said Illinois is one of the largest exporting states in the country, and overall NAFTA has been positive for the state. Caterpillar has significantly increased exports to Mexico, South America and Canada, he said. In addition, Illinois farmers have increased exports of corn and soybeans.

"You can't find a member of the House or the Senate not impacted (by NAFTA)," LaHood said. "For our area, it's been a blessing."

However, there are provisions in the trade agreement for job retraining and for companies that have been hurt like Protexall, and LaHood plans to contact the company to review available federal assistance.

"There's a bigger story here" said Tucker Kennedy, vice president of marketing for the Illinois Manufacturing Extension Center, a not-for-profit business consulting organization based at Bradley University.

"Manufacturing is the wealth-generating segment of the economy," Kennedy said. "We can't just keep R&D (research and development) and see manufacturing move offshore. We can't lose that business mix, and I don't believe we will."

Survival lies in value-added diversification, Kennedy said. Any manufacturing that's easily replicated offshore is likely to be lost, but companies that add value like Protexall will remain viable.

Kennedy cautions that if our manufacturing base is lost, research and development will likely follow.

"Companies are competing. They are adding value. They are more efficient," he said. "And when they do lose business to offshore, they have gotten some back due to poor quality."

Peterson said, "We need some help here now. We could use some assistance from our legislators."