Layoffs for 212 loom in E. Rapids
EATON RAPIDS - A motor manufacturer that had pledged to add 159 jobs over the next seven years instead is warning it could lay off all of its 212 local workers.
Von Weise Inc. already has cut 142 jobs at its three Eaton Rapids plants, state Rep. Mike Simpson said Wednesday. The company said it has fallen on hard times.
Simpson, D-Blackman Township, helped shepherd the company through the process of getting a state tax credit worth more than $1.1 million over seven years earlier this year.
In exchange, Von Weise was to consolidate two out-of-state operations into its Eaton Rapids operations. It also was to get $800,000 in state aid to help buy equipment and machinery for the expansion.
"It just frustrates me to death," said Simpson, who was meeting with local officials in an effort to save the local jobs or find workers new ones. "I've got 212 families who are in a quandary."
Von Weise said in a statement it's been hurt by the weakness of the U.S. auto industry and the loss of some key, unnamed customers.
"Despite efforts to affect a turnaround in the prospects for the business, we have reached the difficult but necessary decision to restructure Von Weise's operations," the company said.
"The sharp drop in our revenues demands that we reduce our cost structure as quickly as possible, so we have initiated an ongoing downsizing of our three facilities and a reduction in force.
"We regret that this action is necessary."
Not called yet
Work force development agency Capital Area Michigan Works expects to be involved with efforts to find other jobs or training programs for any displaced workers, spokeswoman Kate Tykocki said.
"We will be involved in whatever capacity the company wants us to, but we haven't been called in yet," she said.
For other area plant closings, the agency's work has ranged from job fairs to help filing for unemployment benefits to connecting workers with education programs.
"There are a lot of different things we can do in this situation," Tykocki said.
Michigan Economic Development Corp. spokeswoman Bridget Beckman said Von Weise hadn't yet received any benefit from state incentives.
$529 weekly wage
Von Weise had pledged to add 159 jobs over seven years. Those jobs were to pay an average weekly wage of $529, or about $13.25 an hour, according to the MEDC.
A company spokesman declined to comment about the incentive package.
The company makes small motors for a range of uses, from car seats to garage-door openers to lawn equipment.
The Eaton Rapids operation, which traces its local history to 1940, was bought by Boca Raton, Fla.-based Sun Capital Partners Inc. in December 2007.
Von Weise Inc. already has cut 142 jobs at its three Eaton Rapids plants, state Rep. Mike Simpson said Wednesday. The company said it has fallen on hard times.
Simpson, D-Blackman Township, helped shepherd the company through the process of getting a state tax credit worth more than $1.1 million over seven years earlier this year.
In exchange, Von Weise was to consolidate two out-of-state operations into its Eaton Rapids operations. It also was to get $800,000 in state aid to help buy equipment and machinery for the expansion.
"It just frustrates me to death," said Simpson, who was meeting with local officials in an effort to save the local jobs or find workers new ones. "I've got 212 families who are in a quandary."
Von Weise said in a statement it's been hurt by the weakness of the U.S. auto industry and the loss of some key, unnamed customers.
"Despite efforts to affect a turnaround in the prospects for the business, we have reached the difficult but necessary decision to restructure Von Weise's operations," the company said.
"The sharp drop in our revenues demands that we reduce our cost structure as quickly as possible, so we have initiated an ongoing downsizing of our three facilities and a reduction in force.
"We regret that this action is necessary."
Not called yet
Work force development agency Capital Area Michigan Works expects to be involved with efforts to find other jobs or training programs for any displaced workers, spokeswoman Kate Tykocki said.
"We will be involved in whatever capacity the company wants us to, but we haven't been called in yet," she said.
For other area plant closings, the agency's work has ranged from job fairs to help filing for unemployment benefits to connecting workers with education programs.
"There are a lot of different things we can do in this situation," Tykocki said.
Michigan Economic Development Corp. spokeswoman Bridget Beckman said Von Weise hadn't yet received any benefit from state incentives.
$529 weekly wage
Von Weise had pledged to add 159 jobs over seven years. Those jobs were to pay an average weekly wage of $529, or about $13.25 an hour, according to the MEDC.
A company spokesman declined to comment about the incentive package.
The company makes small motors for a range of uses, from car seats to garage-door openers to lawn equipment.
The Eaton Rapids operation, which traces its local history to 1940, was bought by Boca Raton, Fla.-based Sun Capital Partners Inc. in December 2007.
Labels: layoffs, Michigan, Von Weise Inc.
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