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GE, Parker Shutdowns to Cost Valley 261 Jobs
YOUNGSTOWN, Ohio – The cities of Youngstown and Warren were hit Thursday with bad news from segments of its industrial base, costing more than 260 Mahoning Valley workers their jobs.
Officials with General Electric announced plans Thursday to close its sole remaining area plant in the Valley, the Ohio Lamp Plant in Warren. The closing, which is expected to take place in early 2014, will result in 198 full-time workers losing their jobs.
The company cited shifting customer demand to bulbs made elsewhere and declining volume at the Warren plant for the decision. General Electric had operated four plants in the Valley, two in Niles and one each in Warren and Austintown.
In Youngstown, a decision by Parker Hannifin Corp. to close its Logan Avenue foundry will leave 63 employees jobless at the end of March. The Mayfield heights-based company had announced in 2012 that it would close the Logan Avenue foundry early this year.
Mark Hettinger, the company’s human resource manager, informed Mayor Charles Sammarone and the Ohio Department of Job and Family Service’s Office of Workforce Development in a letter that 63 employees were being laid off permanently between March 15 and 28 based on seniority.
Here is the full text of GE's statement:
GE Lighting has informed union officials and employees at its Ohio Lamp plant in Warren, Ohio, of the company’s intent to close the facility in the first quarter of 2014. This proposed action is due, in large part, to rapidly declining volume at the facility – currently at 1/3 of its total capacity - as customers shift from the halogen PAR lamps and specialty incandescent products made there to more energy efficient lighting products that last longer and cost less to operate and maintain. The declining demand, combined with high fixed operating costs, make it increasingly difficult to make products cost competitively at the plant. GE Lighting operates in a highly competitive, global industry and must regularly assess and adjust its operations to remain a world leader in lighting products. The announcement at Ohio Lamp plant follows a similar announcement made at GE Lighting’s Monterrey (Mexico) lamp plant last week.
If a final decision is made to close the plant, 198 positions would be eliminated. About one-half of the potentially affected employees—95 people—would be eligible for retirement or a plant closing pension option. The remaining 103 potentially affected employees would be eligible for preferential employment placement at up to 10 GE locations, severance, tuition reimbursement for education and retraining, and continued insurance, medical and dental benefits for affected employees and their covered dependents.
“This is a difficult, but necessary, announcement to make,” said George Lopuchovsky, plant manager for the Ohio Lamp Plant. “Any action that affects people’s lives and livelihood is a serious matter. If this action moves forward, we intend to take advantage of the long lead time of a year before closing and GE’s other comprehensive benefits to support our workforce in making a successful transition.”
The proposed action is contingent upon the outcome of decision bargaining with union officials of IUE-CWA Local 722, if requested, who will have an opportunity to offer alternatives to the plan. A final decision on the plant closing would be made after those talks are completed in up to 60 days. If the decision is to proceed, operations will be phased out no sooner than one full year from the announcement date.
Published by The Business Journal, Youngstown, Ohio.
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