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Plant closing to displace 170 workers
By Marisa Donelan, mdonelan@sentinelandenterprise.com
Posted: 07/22/2009 07:02:26 AM EDT
SENTINEL & ENTERPRISE / BRETT CRAWFORD Dennis Roux, human resources manager for Mohawk Cable Design Technologies, a branch of Belden, talks about the plant closing on Tuesday.
LEOMINSTER -- A longtime Leominster cable and wire manufacturer will be shutting its doors by July 2010, leaving 170 workers jobless, according to company officials.
Belden Inc.'s Leominster plant at 9 Mohawk Drive, will scale back its operations throughout the year, and employee layoffs will likely be staggered over the next several months, said Dennis Roux, the human resources manager at the plant, one of two Belden-owned facilities in Leominster.
A Tolman Avenue site will not see layoffs under the plan, corporate spokesman Gene Pfeiffer said Tuesday.
The closure is part of a corporate restructuring and "work force reduction" that Belden, which is based in St. Louis, began in December, Pfeiffer said.
The worldwide company, which produces fiber-optic cable and copper wire, has struggled in the economic recession, Pfeiffer said.
Roux said employees at the Leominster plant were told about the closing on Monday.
"When you're expecting bad news, you still don't want it to come, and it's still jarring," said Roux. "Obviously there's a great mix of emotions."
The average wage for an hourly worker at the plant is $17.65 per hour, Roux said.
Production lost in the closure will be taken over by workers at Belden plants in Monticello, Ky. and in Nogales, Mexico.
Leominster Mayor Dean Mazzarella said the closure is "sad news" and marks a trend of American industry being sent out of the country, where production costs, including labor
and regulatory expenses, seem to be much cheaper.
"It's tough to see jobs going to Mexico when we're losing them here," he said. "We're getting the cocaine, they're getting the jobs."
The silver lining is there are some manufacturers still in business in Leominster who may be able to train and hire Belden employees, Mazzarella said, noting Leominster does still have some vibrant industrial companies.
Though the enormous factories of the past are not operational, the mayor said industrial businesses are able to use more sophisticated processes to increase production in smaller space.
Robotics and computer technology have cut down on labor costs, but skilled workers -- like the ones being laid off from Belden -- may be able to use their training for positions with other companies.
"Wire and cable is still a big business," Mazzarella said.
State Sen. Jennifer Flanagan, D-Leominster, could not be reached for comment Tuesday afternoon.
City Councilor at-large and state Rep. Dennis Rosa, D-Leominster, said the plant closing is "really bad news" for the city and for the employees, who will likely have trouble finding jobs at their current wage.
"That's what concerns me the most," he said. "I think they'll find a less skilled job, probably with lower pay."
The plant closure is indicative of problems across Massachusetts, which continues to lose manufacturers to other state or other countries with lower costs to operate, Rosa said.
Though Massachusetts offers tax incentives for industrial businesses, other costs -- such as the sales tax, which is rising and which trickles down to all business -- counteract potential benefits.
"The state of Massachusetts has to do business differently," Rosa said. "We keep thinking that in the long run the revenue stream is going to come in (through tax increases) but it's actually gotten worse. We're not living up to our responsibility. We give (tax incentives) out to save businesses money, but we take it back in a different manner."
The company is still working on the details of employees' severance benefits, but Roux said the company will work through the Trade Adjustment Assistance program -- designed to help workers who lose their jobs to foreign trade -- for training and health benefits coverage.
Belden acquired the Mohawk Drive plant about 2 1/2 years ago, Roux said, but the building has been used for cable and wire production for a long time, and as a result, many of the employees have established roots in the area.
"I'm sure most of them are ingrained in Leominster," he said. "Along with their severance packages, we're going to do everything that we can to find them new opportunities."
Roux explained Belden products are used in infrastructure projects at hospitals, schools, military facilities and sports stadiums, as well as in communications and broadcast ventures.
Employees had been hoping for a "rebound" but the economy has not shown positive recovery quickly enough to keep the plant alive, Roux said.
"This recession has been hard, and Mohawk certainly wasn't insulated from declining sales," he said.
By Marisa Donelan, mdonelan@sentinelandenterprise.com
Posted: 07/22/2009 07:02:26 AM EDT
SENTINEL & ENTERPRISE / BRETT CRAWFORD Dennis Roux, human resources manager for Mohawk Cable Design Technologies, a branch of Belden, talks about the plant closing on Tuesday.
LEOMINSTER -- A longtime Leominster cable and wire manufacturer will be shutting its doors by July 2010, leaving 170 workers jobless, according to company officials.
Belden Inc.'s Leominster plant at 9 Mohawk Drive, will scale back its operations throughout the year, and employee layoffs will likely be staggered over the next several months, said Dennis Roux, the human resources manager at the plant, one of two Belden-owned facilities in Leominster.
A Tolman Avenue site will not see layoffs under the plan, corporate spokesman Gene Pfeiffer said Tuesday.
The closure is part of a corporate restructuring and "work force reduction" that Belden, which is based in St. Louis, began in December, Pfeiffer said.
The worldwide company, which produces fiber-optic cable and copper wire, has struggled in the economic recession, Pfeiffer said.
Roux said employees at the Leominster plant were told about the closing on Monday.
"When you're expecting bad news, you still don't want it to come, and it's still jarring," said Roux. "Obviously there's a great mix of emotions."
The average wage for an hourly worker at the plant is $17.65 per hour, Roux said.
Production lost in the closure will be taken over by workers at Belden plants in Monticello, Ky. and in Nogales, Mexico.
Leominster Mayor Dean Mazzarella said the closure is "sad news" and marks a trend of American industry being sent out of the country, where production costs, including labor
and regulatory expenses, seem to be much cheaper.
"It's tough to see jobs going to Mexico when we're losing them here," he said. "We're getting the cocaine, they're getting the jobs."
The silver lining is there are some manufacturers still in business in Leominster who may be able to train and hire Belden employees, Mazzarella said, noting Leominster does still have some vibrant industrial companies.
Though the enormous factories of the past are not operational, the mayor said industrial businesses are able to use more sophisticated processes to increase production in smaller space.
Robotics and computer technology have cut down on labor costs, but skilled workers -- like the ones being laid off from Belden -- may be able to use their training for positions with other companies.
"Wire and cable is still a big business," Mazzarella said.
State Sen. Jennifer Flanagan, D-Leominster, could not be reached for comment Tuesday afternoon.
City Councilor at-large and state Rep. Dennis Rosa, D-Leominster, said the plant closing is "really bad news" for the city and for the employees, who will likely have trouble finding jobs at their current wage.
"That's what concerns me the most," he said. "I think they'll find a less skilled job, probably with lower pay."
The plant closure is indicative of problems across Massachusetts, which continues to lose manufacturers to other state or other countries with lower costs to operate, Rosa said.
Though Massachusetts offers tax incentives for industrial businesses, other costs -- such as the sales tax, which is rising and which trickles down to all business -- counteract potential benefits.
"The state of Massachusetts has to do business differently," Rosa said. "We keep thinking that in the long run the revenue stream is going to come in (through tax increases) but it's actually gotten worse. We're not living up to our responsibility. We give (tax incentives) out to save businesses money, but we take it back in a different manner."
The company is still working on the details of employees' severance benefits, but Roux said the company will work through the Trade Adjustment Assistance program -- designed to help workers who lose their jobs to foreign trade -- for training and health benefits coverage.
Belden acquired the Mohawk Drive plant about 2 1/2 years ago, Roux said, but the building has been used for cable and wire production for a long time, and as a result, many of the employees have established roots in the area.
"I'm sure most of them are ingrained in Leominster," he said. "Along with their severance packages, we're going to do everything that we can to find them new opportunities."
Roux explained Belden products are used in infrastructure projects at hospitals, schools, military facilities and sports stadiums, as well as in communications and broadcast ventures.
Employees had been hoping for a "rebound" but the economy has not shown positive recovery quickly enough to keep the plant alive, Roux said.
"This recession has been hard, and Mohawk certainly wasn't insulated from declining sales," he said.