MillerCoors workers, their union, people in Rockingham County and their elected representatives are right to fight against the company’s decision to close the Eden brewery. They should do everything possible to reverse it — including appealing to the U.S. Senate’s antitrust subcommittee.
The brewery, which opened in 1978, employs about 520 people and pays average wages of around $60,000. The Teamsters union, which represents more than 400 of those workers, negotiated a new, three-year contract that was ratified in February, providing pay raises and lifetime health insurance for retirees and their spouses.
So it was a shock when, in September, MillerCoors announced it would close the Eden brewery within a year. It cited declining sales. The Eden plant produced 7.1 million barrels of beer in 2014. “Since the creation of MillerCoors seven years ago, volume has declined by nearly 10 million barrels,” the company said. It pointed to overlapping distribution with its brewery in Shenandoah, Va., which it said was newer and closer to Northeast markets. Unlike in Eden, the Shenandoah workforce is not represented by a union.
Phil Berger, the state Senate leader from Eden, doesn’t buy it. He and state Rep. Bert Jones (R-Rockingham) wrote a letter to a former colleague, U.S. Sen. Thom Tillis (R-N.C.), who now serves on the Antitrust, Competition Policy and Consumer Rights subcommittee, asking for an investigation.
The Eden plant is MillerCoors’ best-performing brewery, they noted. They suspect the real reason it was targeted was to facilitate a proposed merger of SABMiller and Anheuser-Busch InBev. “The only conceivable explanation is that its parent company, SABMiller, was working behind the scenes with Molson Coors, its partner in the MillerCoors joint venture, to identify and eliminate assets that would have complicated the looming merger,” their letter said. It was signed by more than 100 state legislators of both parties.
It’s tragic that hundreds of workers, the small town of Eden and a region that’s still feeling the effects of the recession will pay a high price for the profit-driven maneuvers of large, multinational corporations. We hope these efforts to intervene succeed — as unlikely as it seems that help would come from politicians who rarely stand in the way of corporate profit-seeking.
Chances are also poor that new jobs could match the pay level of those that will be lost. “Jobs that pay as well as the jobs here are not that prevalent in North Carolina,” Berger said at a Teamsters-organized rally in Eden Tuesday.
The union was instrumental in winning those high salaries, but unions generally aren’t welcome in North Carolina, which has the lowest proportion of unionized workers in the country — 1.9 percent, according to the Bureau of Labor Statistics. The next-lowest, at 2.2 percent, is South Carolina, where Republican Gov. Nikki Haley said last year: “We discourage any companies that have unions from wanting to come to South Carolina because we don’t want to taint the water.”
The North Carolina Republican Party has a page on its website telling labor unions to “stay out of North Carolina and leave our right to work laws alone!”
Yet, when hundreds of good jobs are hanging in the balance, North Carolina politicians and a labor union can suddenly find common cause.