More Layoffs
Eramet latest to announce job cutsBy Evan Bevins, Special to The News
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Fact Box
Eramet Marietta History
- The plant was built as part of Union Carbide's electromagnetic products unit in the late 1940s.
- It was purchased by Elkem Metals in 1981.
- Elkem sold off the power plant in 1987 to American Municipal Power.
- The facility was purchased by Eramet S.A. in 1999.
- Over the years, the plant has drawn criticism from some over its perceived impact on air quality. Studies on the effects of manganese on human health are in the preliminary stages.
- From late 2006 to early 2007, Eramet Marietta workers were locked out during a labor dispute.
- In August 2008, the company announced a $150 million "vision plan" aimed at improving the plant's operational and environmental performance.
- On Thursday, Eramet Marietta announced that in response to economic and market conditions, two furnaces would be temporarily idled and 110 jobs would be cut from the factory's 362-person workforce.
Source: Marietta Times research.
MARIETTA - The latest layoff announced in Washington County is also the largest since the start of the recent global economic turmoil: Eramet Marietta will cut 110 jobs from its workforce.
"The unfortunate situation here is that we need to make these moves, these workforce reductions, in order to ensure the long-term viability of the plant," said Eramet spokeswoman Joy Frank-Collins.
The cuts, which will begin in March, are among steps being taken by the company to "more accurately align production with market demand," according to a news release Eramet issued Thursday. The turbulent economy, automotive industry struggles and subsequent slowdown in the steel market have reduced demand for the plant's products, Frank-Collins said.
The company also plans to idle the Special Products division at the Ohio 7 plant indefinitely starting in early March. The silicomanganese furnace No. 1 will be idled for 60 days in March, and the ferromanganese furnace No. 12 will follow suit in May for a period of 90 days, the release says.
By the time all the adjustments are made, in the third quarter of 2009, the plant's 362-person workforce will have shrunk by 110 jobs.
It's too early to say if there will be cuts beyond that, Frank-Collins said.
"We don't know. If the market doesn't come back the way that we anticipate, we'll have to reevaluate the situation and make decisions then," she said.
Calls to union officials representing Eramet employees were not returned Thursday night.
More than 200 layoffs have been announced in Washington County in the last week.
County Commissioner Sam Cook said the last time he could remember so much bad employment news coming so rapidly was in the wake of the Sept. 11 terrorist attacks in 2001.
"After the 9-11 attacks we had a period of time - about two years - when our unemployment figures shot up and we had about four plants close down," he said. "We came back from that OK, and I'm confident when things straighten up nationally we'll be OK again."
It has not been determined which jobs at Eramet will be cut but the reduction will be split between 80 hourly and 30 salaried positions, Frank-Collins said. Eligible employees will be offered a voluntary termination package that would enhance the basic severance/layoff allowance offered to all impacted employees.
Eramet Marietta CEO Frank Bjorklund and John Willoughby, director of human resources and public affairs, were meeting with employees Thursday and today.
"It is always difficult to make choices that have such an impact on the lives of our employees; however, after evaluating many alternatives, under the circumstances of such a dismal economy, this was the best course of action to take to ensure the long-term viability of Eramet Marietta," Bjorklund said in Thursday's release.
Prior to the decision to cut jobs, contract work at the plant was reduced as part of a cost-saving plan, Frank-Collins said. That toll on area contractors is yet another facet of the local impact.
Current conditions may not derail the $150 million "vision plan" announced in August to improve the company's operational and environmental performance, Frank-Collins said. In fact, some of the improvements may be started while furnace No. 12 is down, she said.
"Pending anticipated market recovery and final approvals, it's our desire that while that furnace is idling, we will proceed with a rebuild project on that furnace that is aimed at vastly improving the furnace's operational/environmental performance," Frank-Collins said.
"It's an opportunity to make some lemonade out of this situation," she said.
According to the company's Web site, www.emspecialproducts.com, the plant is the only producer of manganese ferroalloys in the United States and Canada. Among its main customers are steel companies United States Steel Corp., AK Steel and Arcelor-Mittal, Frank-Collins said.
"They take our product to make steel, and their steel is bought by the automotive industry," she said. "Anything that has to do with steel has to do with our products."
After steel prices reached all-time highs in 2008, the industry was hit hard by the economic downturn as the construction industries in North America and Europe weakened and automobile sales dropped. Stock in U.S. and AK Steel plunged, and by the end of the year, companies were making production cuts and layoffs and facing expectations of a continued slide in demand.
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sickandtiredofitall
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01-12-09 6:34 PM
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There are a lot of fine people that will get laid off that only have 1 income and that being Eramet....It's a shame the person in this article and her husband are both employeed by Eramet. Why not let one of them go and keep another hourly person...seems fair to me...
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mythravere
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01-09-09 8:22 PM
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cat26037 Wow you're a bright one aren't ya? Those bill of rights and other "old" documents would keep us out of the trouble we are in if they where heeded. All thats happening today is the result of reckless and unsustainable economic growth. Economic growth brought about by the massive expansion of the money supply which was in turn caused by our highly intelligent government making our money out of thin air. Are we really making anymore than those say in the 50's? Look at the ratio of income to the amount paid for goods. Now versus then. Our money is worth less. Wonder why and who done it? Those old documents if heeded would do wonders for this country. No wasteful foreign entanglements an economy based on real growth not these bubble economics that are about as pleasant as busting one loose in the tub. But nope all we get is the short end of the stick. And we keep electing the same o'l boys that got us here in the first place. Thats really a shame.
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cat26037
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01-09-09 6:08 PM
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Shutting down plants and laying off employees is not going to fix the economy. Before taking away jobs how about the government do some much needed IN HOUSE budgeting. That's just for starters. Then amean the BILL OF RIGHTS. That document is sooooo old and the world is a new place! Then begin negotiations with other countries. Things in that aspect have gotten way out of hand! Well I'm probably out of room so I will end. May God bless us all!
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hasworkedingovt
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01-09-09 7:43 AM
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Plant jobs pay is tops by a lot in pay over my former government job. But where pay is higher, security of job can be lower. Its a tradeoff when deciding what employment to pursue. We tend to think things will be back on track within a year. These folks will be lucky in that with 6 months unemployment and a couple extensions now in place, they will still have some income. But this is a rough period we are going through as we see.
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Kristine
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01-09-09 6:43 AM
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Plant jobs are bad right now I wouldnt ever wanna be working at one right now!
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LilyOValley
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01-09-09 6:35 AM
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Prayer is fine, but reason can help you help yourself. Don't count on fewer layoffs, count on more. The low-skill small-manufacturing market is the most likely place where jobs will be cut. That sort of labor force defines the mid-Ohio Valley, unfortunately.
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GETRDONE
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01-09-09 6:18 AM
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Just what this area needs more job loses. I pray by the time March gets here they will announce they do not have to lay anyone off.
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