Luther Strange, who was largely responsible for the closure of a manufacturing plant and the loss of thousands of Alabama jobs, lost his bid for a Senate seat during a primary vote in late September.
The people of Alabama rejected the former lobbyist despite heavy support from President Donald Trump, Vice President Mike Pence, and Senate Majority Leader Mitch McConnell. Strange had been in a battle with conservative judge Ray Moore; both candidates were campaigning for the Senate seat formerly occupied by Jeff Sessions.
If the results in Alabama are any indication, Trump and the Republican establishment backed the wrong horse in this race. Thankfully, the state’s economy may benefit as a result, assuming Moore can continue his victory streak.
Luther Strange and the Trade Deals that Lost Thousands of Alabama Jobs
At one time, the Russell Athletic brand employed over 7,000 people in Alabama. Today, though you can still purchase Russell products in the state, they are no longer made there. For over a hundred years, Russell manufactured clothing in Alexander City, but the company no longer employs local workers. Instead, Russell moved its manufacturing plants to other nations, including the Honduras, El Salvador and China.
Founded in 1092, Russell Brands helped restore the business district of Alexander City after a fire devastated the area. Over the decades that followed, Russel grew and thrived, eventually becoming not only an exclusive provider of Major League Baseball uniforms, but one of the largest uniform and athletic suppliers in the country.
What caused this popular, enduring American brand to flee Alabama and the United States in search of cheap foreign labor and increased profits?
Enter Luther Strange
What does this powerful lobbyist have to do with Russell Brands and the demise of this once thriving manufacturing plant? At one point, Russel Brands paid hundreds of thousands of dollars a year for Strange to lobby on their behalf, according to Breitbart. From 2000 to 2006, Strange lobbied heavily for the NAFTA style agreement between the United States and Central America.
While details are still emerging, according to Breitbart, Strange’s efforts were productive. The Dominican Republic-Central American Free Trade Agreement, or DR_CAFTA, was created in 2005. The following year, Russel brands began to shift thousands of jobs from Alabama to Honduras and Mexico.
“Russell said the company will eliminate about 2,300 jobs from its global workforce of 15,000. About 1,700 of the jobs cuts will be in the United States, with about 1,250 in Alabama,” , according to NBC news in 2006. “About 1,200 of the U.S. jobs will eventually be replaced by hiring in Honduras and Mexico, the company said.”
The first round of job cuts didn’t totally close down the Alexander City manufacturing plant, about 2,000 jobs remained. Eventually, though, Russell Brands was purchased by another company, Berkshire-Hathaway and incorporated into the Fruit of the Loom brand. Layoffs continued, with hundreds more losing jobs in the local plants and surrounding areas.
Now, a decade later, Russell apparel manufacturing is spread all over the world, including the Dominican Republic, El Salvador and Honduras, with workers in these countries earning as little as $1 per hour.
A Lucrative Deal for Luther Strange
Lobbying to move manufacturing from Alabama to Central America ended up being a lucrative project for Luther Strange – but not for the Alabama residents who relied on the plant for income and a thriving business district. According to campaign staffers for Strange’s Senate opponent Judge Ray Moore:
“Luther Strange’s record of self-dealing is staggering. In his former life as a Washington lobbyist, he was paid big bucks to work for implementing CAFTA, the trade debacle that sent thousands of Alabama jobs to Mexico and Honduras and thousands of small businesses into bankruptcy. Strange’s entire career has been marked by putting his own interest over the people of Alabama.”
As Donald Trump headed to Alabama to campaign for Luther Strange, the question remained as to whether the candidate was truly operating with the state’s best interests in mind. Both President Trump and Vice President Pence publicly endorsed Strange, but Moore still won the primary race, thanks in large part to his commitment to retuning jobs to Alabama and America from foreign nations.
“I agree with the president’s position from even before he was president,” Moore said. “This is one of the greatest travesties in our country. I agree with free trade—our country was established on free trade—but it’s not free trade when governments become involved in the trade process like what has happened in certain foreign countries. I think that that warps this concept and it’s allowed businesses to go overseas to Mexico, China, wherever.”
Moore’s commitment to bringing jobs back to Alabama and to the US in general could have been the key to his victory, despite high praise and public endorsements for his opponent. Alabamians had their say at GOP primary, rejecting Strange and embracing the conservative Moore instead.
“I support the president 100 percent in bringing industry back into our country,” Moore continued. “Quite frankly, I think it can be brought back into our country—we don’t lose the technology, we don’t lose the skill sets. We can develop those again. I know steel plants, sock factories across Alabama and the South have been taken.”
Regards,
Ethan Warrick
Editor
Wealth Authority
