Japanese Plants in U.S. : Americans May Lose Jobs Under Proposed Sanctions

WASHINGTON — Randy Hodges, a United Auto Workers official from Richmond, Ind., made his first trip to Washington on Monday to talk about Japanese companies and loss of American jobs. Appearing before a hearing on retaliatory sanctions on Japanese imports, Hodges made an eloquent plea on behalf of 190 workers at his home plant. The twist is, it was also on behalf of their Japanese employer, Sanyo.

With Richmond’s Mayor Frank H. Waltermann by his side, Hodges told the panel how the jobs would be lost if the United States leaves refrigerators and refrigerator parts on the final list of Japanese imports to be slapped with 100% tariffs. Like nearly 50 other witnesses before him representing other companies, Hodges asked that his employer be spared from the tariffs list, which is to be announced Friday.

“I don’t think it’s unpatriotic to defend my job,” Hodges later said. “I know we have to defend our country against unfair trading, but I have to start by defending my job.”

Sanyo imports parts from Japan for the refrigerators made in Richmond. Those parts are included in the 17 categories of products being considered as targets of the sanctions, announced by President Reagan on March 27 in retaliation for Japan’s failure to implement last year’s trade agreement on semiconductors.

Former Oregon Gov. Victor Atiyeh, appearing for Fujitsu Ltd., said many U.S. companies that buy sophisticated Fujitsu computer equipment would be hurt by the sanctions. Many of these items are unavailable in this country from other suppliers, he said. “U.S. companies should not be injured.”

Thomas F. Railsback, a former congressman from Illinois, appeared on behalf of Roybi Ltd., a Japanese power tool manufacturer. Imposition of the tariffs “could create a severe hardship for the American construction industry,” he said.

Officials Face Dilemma

The situation at Richmond, Ind., where Sanyo saved American jobs when the previous company was ready to shut down the plant, is typical of the dilemma facing U.S. trade officials who will select the final list of products. Many American jobs depend on Japanese products or Japanese employers, and to target any class of Japanese imports is to endanger American jobs.

This theme was repeated in testimony throughout Monday, and most likely will continue today as more than 70 companies and organizations in all are scheduled to comment on the tariff list.

After the hearing, the panel of Administration representatives will pare down the list to a third of its current size, selecting products that together represent $300 million annually in imports from Japan. American officials say this figure represents the damage done to U.S. semiconductor companies by the repeated failure of Japan to implement provisions of the trade accord calling for the end of worldwide product dumping and for increased access to Japan’s markets for U.S. chip makers.

Hope to Avoid Price Hikes

The sanctions are part of an escalating U.S. effort to boost the competitiveness of American industries and protect them from unfair foreign competition. In drawing up the final products list, the Reagan Administration hopes to avoid increased prices to U.S. consumers and to target those Japanese companies it believes are violating the semiconductor agreement by continuing to dump chips in the world market while refusing to buy more sophisticated U.S.-made chips.

Products on the final tariffs list will face a 100% import duty. Experts say that in many cases, the retail price of the products could double, costing companies sales or even putting them out of business.

Richmond Mayor Waltermann thinks that will happen at the sprawling, 1-million-square-foot plant that Sanyo now operates. Once before, the plant was shut down, costing 3,600 Richmond citizens their jobs.

Sanyo did not ask him to come to Washington, sit through a long day and split his 10-minute testimony time with Hodges before flying back home, Waltermann said. “I came because of 190 jobs,” he said. “That’s what I’ve been fighting for since I became mayor, and by God there’s nothing else to do but fight for these jobs too.”

In Santa Barbara, where Reagan is spending a weeklong Easter holiday, White House Chief of Staff Howard H. Baker Jr. said Monday that it is unlikely that anything will head off the tariff announcement Friday.

“The President is entirely behind the recommendations made by his officials and will go forward,” he said.

The action is expected to be a chief topic of discussion when Japanese Prime Minister Yasuhiro Nakasone confers later this month in Washington with Reagan. “Nobody wants a trade war, but nobody wants to be a patsy, either,” Baker said, referring to the U.S. trade position. “Nakasone will have some pretty energetic conversations.”

Staff writer James Gerstenzang contributed to this story.