- THE MAGAZINE
Pursuant to the federal Worker Adjustment and Retraining Notification (WARN) Act, officials of American Standard Americas issued a formal notice on December 5, 2007, to the GMP Local 7-A, its employees and local government officials that it anticipates that its plant in Tiffin, Ohio, will close, eliminating 165 hourly production jobs and 35 salary jobs. According to the WARN Act, this constitutes a WARN notice.
Exactly when the closing will occur is being discussed with union officials, though the company anticipates the plant will cease operations within 60 days of the December 5 announcement. The company is committed to assisting in easing the transition for employees and will fully comply with its obligations. Should job eliminations occur before the estimated closure date, affected employees will receive the wages and benefits they would have earned during that period, to the extent required by WARN. Management will meet with union officials to discuss whether other types of assistance may be provided.
The company appreciates the responsiveness of GMP Local 7-A and the constructive discussions it has had with the union. “It is regrettable that there are not less painful solutions to the serious economic problems facing the company,” said Juan Cruz, vice president, Business Productivity, American Standard Americas.
Officials of American Standard Americas cited external factors, including the collapse of the new home construction market, excess housing inventory, the decline in consumer spending for home remodeling, negative sales trends at major customers and problems in the financial markets. “These factors have led to increasing amounts of inventory oversupply and mounting storage costs that have already led the company to make major cutbacks in five other facilities in 2007, affecting plants in Brazil, Canada and Mexico,” said Cruz. “We see little hope for economic recovery in 2008.”
Visit www.americanstandard-us.com for more information.