thedailytimes.com : Your 24/7 news source

As the sun came up early Thursday morning, about 600 employees of Newell Rubbermaid’s Sanford Brands learned what many had suspected for weeks — that the company was eliminating hundreds of Blount County jobs.

With two Blount County Sheriff’s Office cruisers blocking the plant entrance, employees of Newell Rubbermaid were told at a 7 a.m. meeting Thursday that 200 manufacturing positions will leave the Maryville facility between now and Sept. 1. Production will be moved to existing facilities in Greenville, Texas, and Mogadore, Ohio.

The company said all of the workers who are losing jobs will leave the company around the same time and that the job eliminations will not be “phased.” The reduction in staff is expected to be complete before the beginning of September.
The Newell Rubbermaid facility, located at 1427 William Blount Drive in Maryville, opened in January 1989. It manufactures components for writing instruments, office products and chair mats.

Rubbermaid employees The Daily Times interviewed Thursday, who did not wish to be named because the company recommended they refrain from talking to the media, indicated they were “saddened and concerned” about the news, but not surprised.

“People have been talking about what was going to happen here for months,” one worker said. “I think everyone knew something was coming — but we didn’t know exactly what it would be.”

Steve Heft, the president of Newell Rubbermaid’s Maryville plant, was formerly the vice president of Sanford Europe, where he orchestrated other plant staffing reductions. In August 2006, he closed a distribution center for the company in the United Kingdom.

Elected officials react

Elected officials in Blount County on Thursday expressed disappointment in how Heft and the company handled the announcement.

“I am very surprised that any company would have handled the (matter) in the way this company chose,” said Blount County Mayor Jerry Cunningham.
“Blount County has been completely blindsided by this.

“I am saddened by the result this will have on the 200 positions and the families of those people. Certainly, they deserved more notice and consideration than they have received.

“To say I am disappointed with this company would be an understatement.

“It would have been comforting to hear from Newell Rubbermaid that their intention is to leave the other 400 full-time jobs here on a permanent basis. I would hope this is not the beginning of the end of their operations in Blount County.”

Following the announcement, about 400 employees at the Maryville facility were given the rest of the day off with pay, although the 200 employees who are losing jobs were asked to stay at the plant to begin the transition process.

“The employees whose jobs are being moved were asked not to leave when the companywide meeting ended,” said Connie Bryant, a spokesperson for Newell Rubbermaid based in Atlanta, Ga.

“We explained the supplemental unemployment package, severance pay, finding new jobs and gave them the opportunity to ask additional questions in a smaller group.

“The employees who lost jobs will get unemployment from the State of Tennessee plus additional compensation from Newell Rubbermaid that brings the unemployment benefits up to their current salary level based on their position and their years of service.”

According to Bryant, the additional compensation from Newell Rubbermaid will be extended for two to 13 weeks for hourly employees and four to 25 weeks for salaried workers.

Bryant said about 200 manufacturing and 200 distribution positions will remain at the Maryville facility.

Reduce costs

A press release from Newell Rubbermaid said “the move will reduce costs and improve efficiencies in our manufacturing network.” The company did not elaborate on cost reductions or efficiency improvements.

In 2007, Newell Rubbermaid reported that it employed 750 people, but that number included a combination of full-time and temporary workers the company uses as production levels necessitate.

Bryant said Newell Rubbermaid is using a Knoxville-based outplacement firm to help displaced employees find new jobs. The outplacement firm reportedly has relationships with companies like ALCOA and DENSO, as well as other large employers in the area.

In addition to other separation benefits Newell Rubbermaid is offering its displaced employees, the company has implemented a safety program that rewards employees for accident-free work at the facility. According to Bryant, the safety incentives, which will build over time, could total nearly $250,000.

“We know that employees may not be entirely focused at this time,” Bryant said, “and safety is important to us. We want our employees to remain safe, so we’re offering a safety incentive.”

‘Disappointing’

State Rep. Doug Overbey of Maryville, in a written statement released Thursday, said he was concerned about the loss of Newell Rubbermaid jobs.

“This is very disappointing and discouraging news for our community, but more importantly for the employees whose livelihoods are being affected and their families,” Overbey said.

“While this was apparently a difficult decision for Newell Rubbermaid, it does not ease the pain or anxiety for those who are seeing jobs moved to Texas and Ohio.
“This is a most unfortunate development for those who are losing their jobs and our community.”

Maryville Mayor Joe Swann told The Daily Times Thursday evening that he didn’t know the job losses were coming, but it was consistent with the way other companies have addressed staffing reductions in the past.

“It’s nice if we have some kind of notice,” Swann said, “but, in the past, things like this have happened suddenly.

“I was on the Industrial Board when we recruited Rubbermaid many, many years ago. That’s a sizeable number of employees who won’t be working now, and we’re going to work with anyone and everyone we can to get these people employed.

“This hits close to home and we’re concerned about these people — we’re going to do everything we can to help them.”