Hugo Boss keeps Ohio Plant Open!!!!

Hugo Boss reversed a decision to shut down a factory in Ohio, succumbing to an aggressive union-led campaign against the German fashion house and its private-equity owners.

Workers United union and Hugo Boss announced an agreement Friday to keep the plant open after a year-long negotiation. The pact is expected to save about 300 of the 375 jobs at the facility. The deal calls for pay cuts from $13 per hour to $10 per hour, according to a person familiar with the deal.

"We stood up against a multinational corporation and reversed the trend of globalization," said Bruce Raynor, president of Workers United.

"We are delighted that—together with the trade union and our employees—we have managed to find a way of keeping our Cleveland location open while we attempt to attack the competitive imbalance at this facility," said Andreas Stockert, chief operating officer of Hugo Boss, in a statement.

Last year Hugo Boss, which is controlled by U.K. buyout firm Permira, announced that it would close its sole U.S. factory at the end of April because it was not "globally competitive."

The company had been unable to negotiate a new contract with the Workers United, an affiliate of the Service Employees International Union. It planned to move the manufacturing capacity to Europe where most of its production is located.

The announcement of the plant closing precipitated a zealous protest against Hugo Boss and Permira. Top Democratic political officials in Ohio including U.S. Senator Sherrod Brown and Governor Ted Strickland voiced their support for the union. Mr. Brown announced hearings that had been scheduled for next week on the role of private-equity firms and the U.S. economy.