EUFALA, Ala. - About 300 workers in a small town in Alabama could lose their jobs making condoms if the U.S. government decides to use cheaper, off-shore condoms rather than those from the Alatech factory.
The U.S. Agency for International Development has distributed more than 10 billion condoms - all manufactured at the Alatech plant - to poor countries around the world in an effort to stem the spread of AIDS. But the lure of lower prices - 2 cents for foreign condoms as opposed to 5 cents for American ones - and the recent move by Congress, which dropped "buy American" language from recent appropriations bills, means the USAID could be looking to save some serious coin.
"Of course, we considered how many U.S. jobs would be affected by this move," said a USAID official, who spoke to the news outlet KansasCity.com on the condition he would not be named.
The government is reportedly about to sign agreements with Unidus Corp. in South Korea and Qingdao Double Butterfly Group for all its condom needs. In turn, officials at the Alatech plant could close, meaning layoffs for its roughly 300 employees.