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NEWS > BUSINESS > LACK OF STIMULUS LEAVES CONDOM MANUFACTURERS LIMP
LACK OF STIMULUS LEAVES CONDOM MANUFACTURERS LIMP
March 24 2009
Eufaula, AL – Fannie Thomas has been making condoms all her life. For nearly 40 years she has been making sex safer for people around the world but now it appears that is all coming to an end. The U.S. Agency for International Development has announced that it will be ending its contract with Thomas’s employer, Alatech Healthcare. The end of the contract will likely mean the closing of the small town plant and an end to the industry that has provided for Thomas and her family all these years.
The Government agency, which distributes condoms worldwide, has found suppliers in China willing to make the prophylactics significantly cheaper. With no stimulus in sight Alatech is in danger of becoming just another one of the many tragedies of this limp economy. Fannie Thomas of course will be in lock step with her employer in a world no longer safe for workers who have made the world so safe for sex.
"We pay taxes down here, too, and with all this stimulus money going to save jobs, it seems to me like they [the US government] should share this contract so they can save jobs here in America," Thomas said.
The workers and the company have pledged to fight the decision, even going so far as to consider a lawsuit to force the government to buy American made condoms.
“I've made condoms here for 20 years,” said Cindy Robinson, an employee at Alatech. “I understand why they bid the contract overseas, but they should buy American first, and I feel they are going back on their word.”
At least part of the reason for the switch has been complaints about the quality of the products which have endured multiple breakages, a definite no-no when it comes to the basic use of the product.
“It’s kind of like buying a car that doesn’t start, or a banana that won’t peel. It’s kind of the whole point and in the case of condoms, well that’s kind of important. You can take a banana back to the store but it’s a little different with semen,” said Scrape TV Business analyst Ken Green. “The difference is significant, 5 cents versus 2 cents. When you are talking about billions of pieces that’s a lot of savings and it would be irresponsible of the government to do otherwise. Of course buying condoms from a nation with a billion and half people might seem a little irresponsible as well, but in the end their interest is primarily about the budget not results. This is the government after all.”
Though many are predicting the demise of the company some do see a bright spot in the relatively low cost of the prophylactics compared to those at retail.
“Condoms aren’t cheap and if they can find some way to sell to the general public at those prices then they may have something. They really couldn’t keep a bulk deal going. There’s buying in bulk and then there’s buying in bulk,” continued Green. “The issue of the stimulus package is an interesting one though. The idea is for the money to go to the best place it can to help create the most jobs and you’d be hard pressed to make the stimulus argument for a
condom factory in a small town in Alabama, especially when there are similar resources. Banks and insurance companies are a much different story.”
Alatech has also been plagued not only by breakage issues but significant distribution problems which may have played a part in the decision. The company though insists that the responsibility is on the part of the government and not the company to bring the necessary tools to the realtionship.
“In a business relationship it’s important for both sides to take responsibility. Inevitably blaming each other all
the time is going to result in a split. Fortunately in this case the two were able toseparate before any real damage was done,” continued Green. “The condom industry is like any other and inevitably if you make outrageous demands and don’t give back in kind, you’re going to get left behind, unless of course you can find some other sucker.”
Alatech is reportedly very depressed about the end of the contract. Talk of them spreading rumours about the government has proven to be unfounded.
William Ashford, Business Correspondent
NEWS > BUSINESS > LACK OF STIMULUS LEAVES CONDOM MANUFACTURERS LIMP
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