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Layoffs Begin At Packaging Plant
April 20, 2009
The layoffs are underway at Graphic Packaging in Cantonment as the company begins the process of closing the facility, a process that will eventually cost up to 243 people their jobs.
The company announced in February that the layoffs were on the way, and the first group of employees received their pink slips last week.
Graphic Packaging says they are closing four U.S. facilities, including their multi-wall bag packaging facility in Cantonment, by September 30. Company officials have said their more senior staff will remain at the facility until the final day in September.
“We are continuing to push aggressively in 2009 to integrate assets and streamline operations, as well as achieve a minimum of $90 million in synergy savings expected from our combination,” said David W. Scheible, president and chief executive officer of the company.
In March 2008, Graphics Packaging merged with Altivity Packaging. The Cantonment facility was previously operated by Smurfit-Stone as Stone Container. Employees have been told that no concrete decision has been made on offering employee transfers to other facilities. The Cantonment production equipment is to be moved to a facility in Georgia.
Non-union employees will be offered some level of assistance, and the company will work with the United Steelworkers union on any assistance for their union employees, a company official said.. The company previously announced the closure of a Tennessee carton plant, and the closure of plants in Tuscaloosa, Ala.; Morris, Ill.; and Muncie, Ind.The company lost $42 million on $3.03 billion in sales during the first nine months of 2008.
Company officials declined to comment on this story.
Comments
5 Responses to “Layoffs Begin At Packaging Plant”
The company I work for also has Union and non-Union workers. In these hard times our co. has made MAJOR cut backs, to the non-Union or Company people as they are called. We, the Union people work under a contract and so far thank God the contract has been honored. My point to C is, those Company people at Stone are just up the proverbial creek. When you have a contract the company you work for is more apt to uphold it because of the law protecting Union contracts., it doesn’t matter if the worker has been there ninety days or ten years ,he comes before a non-Union worker.
My dad has worked at Stone for over 20 years. From what I’ve heard from him, I think their local management is doing the best they can at being fair with the layoffs. The managers didn’t want the plant to close either. Maybe if they would’ve made some changes years ago they wouldn’t be closing the doors now, but that is just speculation. What we need to be doing is praying that those being laid off will be able to find a new job. It doesn’t do us any good to try and place the blame.
Non union workers were not given any level of assistance. Some people that worked there 30 years were the first layed off while employees that have been there 6 months are still working able to draw a paycheck. Where is the fairness in that? Either way it’s sad to see innocent people’s lives affected by the corupt corporate world.
The company says non union employees will be offered some level of assistance and union employees will get assistance.Whoopee! What about the contractors who worked there?Too bad the company won’t pay their contractors who helped keep that plant in Cantonment running. The company owes our company back invoices from 2007 to 2009 amounting to several thousand of dollars.I say good riddance to them.
I worked at Stone Container for several years on the Trash Compactor Bag line. I know most of the people still working there. Some of them have worked there all their lives and it is the only job they know. It is a real shame but I guess it is a sign of the times. I am glad I don’t work there anymore because at 59 it would be hard to find another good job, especially in North Escambia.