Eljer to layoff 200 in coming year

By Mitch Fryer
LEADER TIMES
Wednesday, September 6, 2006

FORD CITY -- Eljer Manufacturing said Tuesday that about 200 workers will be laid off at its Ford City plant within the next year due to the outsourcing of jobs.

Those jobs will end up in Mexico, China or South America, officials said.

Eljer plant manager and vice president of operations Jim Kutsch said negotiations are under way in an effort to produce most of the company's plumbing products outside of the United States.

As a result, employment will be reduced at the Ford City plant from 266 to about 60 to 70 production workers, and from 310 to about 100 total jobs in the plant.

"This is difficult for all of us and a devastating blow to the community," Kutsch said. "It comes down to a global economic market. I don't know what we could have done to prevent this."

Kutch said he did not expect the layoffs to begin for several months. Currently no workers are laid off, he said.

"The company's goal is to complete the outsourcing by Sept. 1, 2007," Kutsch said. "As we go along and get more outsourced, we will scale back here."

"It could happen sooner or later, but it will probably take a year," he said.

The primary function at the Ford City plant will be to supply the market for colored plumbingware products.

The Schenley distribution center in Gilpin Township will continue to operate.

"If we sell it in white, silk or natural, we will be outsourcing it," Kutsch said. "We are very good at producing colors here in Ford City."

On Friday, the company informed members of Local 158 of the United Steelworkers of America of its decision.

"Everyone is upset," said local union president Duke Zellefrow. "It will affect people with 30 years of employment.

"It was unexpected. We helped every way we could."

Zellefrow said the move leaves no incentive-earning jobs in the plant.

"There won't be enough product here for that," Zellefrow said. "They took away everything we could make a dollar on."

Zellefrow said the next step is to bargain for a severance package for its laid-off workers.

The layoffs will be made according to the contract agreement. However, the terms are negotiable with the union.

"I assume that it would be based on seniority," Kutsch said. "It could be by job classification, but I'm not saying that's what it would be."

Mitch Fryer can be reached at mfryer@tribweb.com or (724) 543-1303 ext 242.