Spokane jobs move across the border

Garment maker blames high Washington minimum wage, relocates to Post Falls

John Stucke
Staff writer The Spokesman Review

Put these lost jobs in the minimum wage column.

Mark Gantar has moved his All Seasons Apparel Inc. garment-making business from the Spokane Industrial Park across the state line to Post Falls.

Why?

"Cost," he said Wednesday afternoon, standing on the empty manufacturing floor that once buzzed with 200 employees stitching jeans and jackets.

Minimum wage is set to rise from $7.01 to $7.16 an hour in Washington and Gantar said that was it.

"This state drove me out," he said, pointing to Idaho’s $5.15 an hour minimum wage. "I would love to stay, but this is a matter of survival."

The move included about 800 machines and big potential in government contracts, said All Season’s manager Tammy Glassley.

"It’s sad to leave, but it’s for the best," she said during a pause directing clean-up and equipment-hauling crews. "This place treated us well for a long time."

Gantar took his management team and 25 workers to Post Falls. About 50 people were laid off or chose not to take on an Idaho commute for a job that rarely pays more than $7.50 an hour.

Those employees moving to Post Falls will have their base wages cut to $6.50 an hour. Earnings climb depending on productivity.

The base wage for new employees will start at about $5.50 an hour, he said.

The relocation is a familiar battle cry for Spokane business leaders who argue that state regulations and taxes hinder job growth and force companies to move to states with more favorable conditions, such as Idaho.

Besides the wage gap, Gantar pointed to Washington’s cumbersome workers’ compensation program that is costing businesses an average of 40 percent more than two years ago.

"Even my water bill is more. I paid $600 a month (at the industrial park) and my new bill in Post Falls was $177," he said.

The relocation is cause for celebration in Post Falls.

"We’re just delighted about this," said Steve Griffitts, president of Jobs Plus.

The nonprofit economic development agency in Kootenai County has been talking to Gantar about relocating his company.

"To have a well-established, well-respected small manufacturing firm has us very pleased," Griffitts said.

He wasn’t privy to incentives offered All Season’s, but said there could be job retraining money available that businesses can use to defray the high costs of teaching a new work force.

Gantar said he hoped to land several government clothing contracts — from caps and tops for sailors, to Gortex pants and underwear.

If Gantar wins the contracts, he said he could easily hire more than 150 additional employees.

Gantar bought the business in 1984 and routinely collected contracts from clothing companies such as Levi Strauss, L.L. Bean and Land’s End.

Such companies have moved most of their garment manufacturing work off-shore to exploit cheap labor costs. It forces Gantar into a scenario where he either keeps wages and business costs down, or he loses the work to centers in Mexico, China or Indonesia, he said.

He said the move was difficult and unfortunate.

"At least we’re staying close and not moving to Mexico or China," he said.

The leadership of Spokane’s Economic Development Council was unavailable for comment, but the concerns about Washington’s business climate have been keenly expressed in the past.

The EDC, along with the Spokane Regional Chamber of Commerce, has strongly criticized the state’s minimum wage, second only to Alaska’s rate.

The complaint is that Spokane’s cost of living trails that of Seattle and other West Side communities where legislation on such matters is conceived.

Business recruiter Griffitts said Gantar’s move to Post Falls seemed to be for all the right reasons.

"We just want them to be free to come here and afford to own and run their business," he said. "We’re thrilled they’re here."

http://www.spokesmanreview.com/news-story.asp?date=120403&ID=s1450467&cat=section.business