Tuesday, May 01, 2007

ET manufacturers announce cutbacks


Greeneville, Morristown furniture makers to lay off number of workers +

By MICHAEL SILENCE, silence@knews.com May 1, 2007

Cutbacks at two East Tennessee furniture makers will result in the loss of 155 jobs, the state Department of Labor and Workforce Development reported Monday.

According to the state, MECO Corp. in Greeneville is laying off 115 employees effective June 15. The company manufactures residential and commercial folding furniture, outdoor barbecue grills and motorcycle accessories. It markets the consumer products under the MECO, Samsonite and Aussie brand names throughout the United States.

An official with MECO parent company Unaka Co. is disputing the number of layoffs reported by the state. Human Resources Director Dominick Jackson said the number is more like 80, but he declined further comment.

Unaka, also in Greeneville, issued a brief statement Monday that said "economic losses" leave it unable to "continue operating most of the manufacturing part of the plant."

The statement described the action as a "mass layoff" but did not indicate a number of job losses. It said employees have been given 60 days' notice of the job terminations.

In the statement, Jackson said, "There will still be some manufacturing employees at the MECO site, as well as those who will be supporting the distribution and shipping of products to our customers. In addition, there will still be some office employees who will be supporting Unaka operations in Tennessee, South Carolina and Indiana.

"We are saddened to announce the mass layoff. Our employees are our first concern, and we will make every effort to work with them in their search for new employment," Jackson continued.
The state said it has also received notice from University Loft in Morristown that it has laid off 40 people and closed.

University Loft vehemently denied the closing, saying, "that facility is going great guns," according to Susan Winter, human resources director for the University Loft operations in Indianapolis, Ind.

She said the company had hired 70 to 80 temporary workers to fill a large order, but she wasn't sure that the number of temporary workers who are no longer there would total 40.

"We do not have massive layoffs. Business is going great," Winter said.

She added that the company has several years left on its lease and has "no intentions of closing that facility."

She said the company, which makes furniture for colleges and universities, would be following up with the state on Monday's statement.

Milissa Reierson, spokeswoman for the labor department, said a company official notified the department on April 19 via telephone that it would be laying off people and closing.

Michael Silence may be reached at 865-342-6310.

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