Unlikely Anti-Trade Warrior In the anti-globalization effort, conservative industrialist Roger Milliken is a critical link in a chain uniting organized labor, consumer activists and angry nationalists.

By JONATHAN PETERSON, Times Staff Writer

LA GRANGE, Ga.--When mournful black clouds drifted high above the blazing carpet plant, workers feared it would be left to die, just one more name on the honor roll of U.S. factories abandoned in an era of savage global competition. But in this small Southern town, where entire families have toiled in textiles since the Civil War, the 1995 episode had a surprisingly happy ending. In a furious quest, factory managers hired an army of 3,000 hard hats who labored nonstop to rebuild the plant, toiling through the night under the glare of stadium lights. Six months later, Live Oak was back in business. None of the 600 jobs was shifted overseas. "I believe in America," said Roger Milliken, owner of the Georgia plant and one of the world's largest textile empires. "We put our money where our mouth is." Meet one capitalist who is defiantly out of step with global capitalism, a deeply conservative financier who has found common ground with pierced-and-tattooed defenders of Tibet, a legendary textile magnate who once busted a union but somehow emerged as a hero to many of his employees. Genteel yet steely at 84, Milliken is sometimes seen--inaccurately--as asserting a puppeteer's control over the movement that has risen up against globalization. He was even accused of bankrolling protesters who rampaged through Seattle in December at a World Trade Organization summit. Milliken denies this. Yet he has emerged as a critical link in a chain that unites liberal champions of rain forests and sea turtles with organized labor, consumer activists and disgruntled nationalists on the political right. So bizarre is the coalition that Milliken's Washington lobbyist compares it to the bar scene in "Star Wars," a motley assortment of interplanetary creatures that stumble into temporary haven under one roof. The odd alliance helped derail major White House trade initiatives for much of the 1990s, including efforts to broaden commerce with Africa and the Caribbean, and to expand the president's powers to make trade deals free of revision from Congress. The coalition now is nursing wounds, most notably the recent passage of normal economic ties with China. But it is girding for future battles over free trade in the Americas, a sweeping new global round of economic talks and other matters that will occupy the next administration. "We're very serious. We're very angry. We don't quit," declares Jock Nash, the former Marine who represents Milliken in the capital. "That's what we're about." What Milliken and his unlikely allies share is a profound belief that globalization--the increasingly tight web of trade, corporate and regulatory policies binding together the world economy--is leading to disaster. Milliken argues that international accords such as the North American Free Trade Agreement and the China deal are blows to the nation, making U.S. factories vulnerable to cheap foreign competition and, in the process, harming American livelihoods, households and entire communities. Unlike others in the "Star Wars" melange, he speaks as a successful global industrialist himself, an employer of 16,000 with 65 factories, mostly in the southeastern United States, but with more than a dozen plants overseas. According to Forbes magazine's "Private 500" list, Milliken's company enjoyed sales of $3.1 billion in 1999, making it the nation's 35th-largest private firm. But because his sprawling company remains a family affair, Milliken also differs from industrialists who are beholden to Wall Street demands for short-term profits. While many large manufacturers cut back their American work forces in favor of cheap labor overseas, Milliken argues that a company has obligations "not only to its shareholders, but to its employees who have given their lives to the business, to suppliers and to customers who have made it possible for you to survive." But does his hostility to virtually all market-opening trade deals with the emerging world offer a useful guide for America in an increasingly interdependent global economy? Mainstream policymakers and economists argue that it does not; although there are trade-offs to trade, they are outweighed by the benefits for rich countries and poor, for exporting nations and those that purchase their wares. And many argue that resistance to globalization is futile. "You're going to have globalization whether you like it or not--it's a fact of life," maintains Clyde V. Prestowitz Jr., head of the Economic Strategy Institute, a think tank that Milliken stopped supporting financially after Prestowitz endorsed the WTO. "The issue is what kind of globalization are you going to have. . . . Frankly, I think the discussion has moved beyond where Roger is." Even in his own industry, which has endured a hemorrhage of garment-making jobs to cheaper regions abroad, views on globalization are often at odds with Milliken's. For example, some U.S. textile makers support broader trade ties with the Caribbean and Mexico so that they, rather than Asian firms, can sell to garment factories there. Skeptics believe that Milliken's America-first fervor reflects an element of self-interest, an attempt to protect his own company. Whether it is that, paternalistic concern for American workers or patriotism that shapes Milliken's views, he expresses them passionately. In a rare interview at his Spartanburg, S.C., headquarters, Milliken occasionally raised his voice, such as when he complained: "We're just a bunch of suckers in the way we trade." In person, Milliken is energetic and refined, a product of Groton prep school and Yale, where he absorbed the history of empires that lost their economic influence and, ultimately, their military power. As his 85th birthday approaches, he is constantly on the move, flying in one of the company's three jets to meet with buyers and executives in this country and abroad. Too often, he said, U.S. officials are duped by nations that fail to provide American businesses the same legal rights that this country offers foreigners. "The creation of wealth is manufacturing, mining, fishing and farming," he said, citing an axiom that may seem quaint in a "new economy" that doesn't attach much value to those old-line industries. "God help the nation that ignores that fact." These are hardly the concerns that motivate street protesters who have seized on the global economy and some of its key institutions as unfairly rigged against poor people, traditional cultures and the environment. What Milliken shares with the protesters is a desire to rethink basic assumptions, such as the one that says trade is automatically a good thing. They also agree that the WTO, which rules on trade disputes among nations, is a dangerous incursion on U.S. sovereignty. The movement howled into public view at the WTO summit in Seattle in December, when street protests engulfed the convention center in chaos. "I thought it was fabulous," Milliken said. "You know why? Because only 3% of the population in the United States knew what the hell the WTO was. Today, a much larger percentage does. . . . This was an uprising of people wanting to be heard. . . . " But Milliken denied financing a large protest contingent linked to consumer advocate (and presidential candidate) Ralph Nader, a financial tie that has been speculated in print. "I haven't" supported Nader, said Milliken, a longtime Republican activist who in this election is supporting Reform Party candidate Pat Buchanan. Milliken does not wish for total retreat from the global economy. But he argues that when a rich country such as the United States imports products from have-not nations with much lower wages or regulatory standards, competition goes awry with grave social fallout. "We've got 12 plants in Europe that sell to Europe," he said. "We've got one plant in Japan that sells to Japan. If we get a product that's so good somebody in an emerging nation wants to buy it, fine. But we'd never put a plant in a country that pays starvation wages . . . at the expense of United States employment." It's "no problem to try to compete with somebody that has to live by the same rules and costs and taxes and government regulations as we do," he added. "That's competition. The other is subsidy at the expense of the environment, at the expense of [Americans] who are in poverty." While his admirers are moved by such sentiments, make no mistake: Milliken & Co. has long been known for its unsentimental demand for efficiency. Even today, Milliken remains notorious in some circles for his decision 44 years ago to shut down a mill that was unionizing in Darlington, S.C. The closure, he said recently, was triggered by the union's resistance to the sorts of modernization needed to compete. Can the same owner be labor's friend and its enemy? "Here's a guy who shut a plant and is about as hard-core right wing as it gets--but at the end of the day, he's a business leader who's arm and arm with labor," said Ivan A. Schlager, a trade attorney and former chief counsel to the Senate Commerce Committee. "To me, it's the ultimate irony. "People charge that Roger is just a rank protectionist. In terms of execution and business vision, he's just unparalleled." Visits to Milliken factories leave an impression of modern technology creating a dizzying array of fabrics and chemicals. Milliken products are used in crayons, casket liners, baseball uniforms, spandex, military camouflage, auto upholstery, dashboards, air bags, carpet tiles, space shuttle flight suits, computer ribbons, Holiday Inn signs, tennis balls, pool tables, flags, table linens, parachutes, shower curtains, playpen webbing and graduation gowns. Private industry's most prestigious quality awards are displayed at headquarters, where the company's safety obsession--and the boss' paternalistic imprint--cannot be missed: "Please hold handrails while using stairs," requests a sign in the lobby. Monitors in orange vests regularly pop up on the service road to check whether employees are using their seat belts. Inside the Live Oak carpet factory and design center, employees scramble to keep up with a surge of orders from as far away as China and the Middle East. Longtime employees such as Nita Adcock, 50, who tearfully recalls the
1995 fire and dramatic rebuilding effort, hope factory jobs will survive in the region: "I think that's what Mr. Milliken and other leaders are fighting for." Yet Live Oak has been transformed in a way that illuminates the knife's edge between safeguarding workers and safeguarding profits in the global economy. Employment rolls have plunged from about 700 before the fire to 435 today, a decline achieved through attrition rather than layoffs, managers say. Many of the jobs eliminated were of the old-economy "muscle" variety--pushing, pulling, stacking and lifting. The plant, meanwhile, is producing more carpet, with more varied designs, than ever before. While workers were scrambling to rebuild Live Oak, Milliken was forging informal ties with organized labor, Nader and others, a coalition that helped bring Clinton administration trade initiatives to a halt for several years. "We share intelligence. We share access to people on the Hill," said Ann Hoffman, legislative director of UNITE, the union of needle trades, industrial and textile employees that once opposed Milliken in the South Carolina labor war. " . . . It is a useful collaboration." These days are not so heady for the movement. Congress this year approved market-opening deals with China, Africa and the Caribbean, exposing U.S. firms and workers to intense new competition in the making of low-cost products. Presidential candidates Al Gore and George W. Bush are sympathetic to the global economy. Yet public opinion polls show that Americans' attitudes are mixed. And when prosperity inevitably fades, opposition to globalization will inevitably grow. "The chickens will come home to roost," predicts Terence P. Jeffrey, editor of the conservative journal Human Events. "There will be a time when the political establishment pays a price for selling out the sovereignty of the United States--and communities of the United States--in the name of profit. And when that time comes around, people will have Roger Milliken to thank for keeping the flame burning."

Copyright 2000 Los Angeles Times

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