Eagle Ottawa employees ponder option as jobs moved to Mexico
News ยป Top Story
6 comment(s)
Ray Berry, a seventeen-year worker at the Eagle Ottawa Waterloo tannery plant, gives his comments after his shift Wednesday afternoon September 17, 2008. The plant announced it would move it's automotive leather operations to Mexico. (BRANDON POLLOCK/Courier Staff Photographer)
Thursday, September 18, 2008 12:02 PM CDT
Eagle Ottawa employees ponder options as jobs moved to Mexico
By JIM OFFNER, Courier Business Editor
WATERLOO --- Employees of Eagle Ottawa tannery are pondering their next move after learning this week their jobs were going to Mexico.
For some of the 108 workers at the automotive leather processing plant, it will be their first foray back into the job market for most of the 20 years the plant has operated in Waterloo.
"It's pretty bad," said Jason Manning, a utility worker at the plant who said he'd be marking his 13th anniversary with the company in January --- roughly when the first round of substantial layoffs is scheduled to occur.
The first round will cut about half of the plant's work force, with another round in March, said Robert Harris, a 20-year Eagle Ottawa employee and president of United Steelworkers Local 827 the past seven years.
Harris said the mood Wednesday was somber.
"There's a lot more conversation happening during the workday than usual, and that's to be expected," he said. "I think a lot of that (will) be eased by us as union representatives get with the company and get that thing hammered out."
The "thing" to be worked out is a severance package and how workers would qualify for it.
Until that happens, workers likely won't know whether to stay or go before the layoffs get under way.
"(At that point) they have a solid figure to use to make that decision: 'Am I going to stay here under these conditions or am I going to go on to my next position and forego that?'" Harris said.
Manning said that could be a tough choice because the delay could be costly for workers looking to land on their feet.
"That's the thing that kills people," he said. "A lot of these people don't know where to go and, by the time they make their decisions, IBP (Tyson) is gonna be full, John Deere's gonna be full. And, they're talking about the first layoffs starting Dec. 1."
Some hope remains that the company would retain some preliminary hide-processing work, known has the "blue-hide" stage, and keep about 30 workers, Harris said. But even that appears iffy, he noted.
"I heard a lot of people comment that if it comes down to doing just the blue processing, those people won't feel real secure in those positions because they don't know when that's going to go to Mexico along with the other positions," he said.
Robert McBride, a production worker with 13 years at the company, said some employees were clinging to some hope, however faint, that the company could somehow maintain its work force in Waterloo.
He said he did not share their optimism.
"There was rumors that if we could save $4 million a year, we could compete with the plant in Mexico, but there's no way we could do that," he said.
The local business establishment certainly had not given up hope.
"We have already been working with them (company officials) to provide whatever kind of support we can from the Cedar Valley and the state of Iowa to retain operations here," said Steve Dust, chief executive officer of the Greater Cedar Valley Alliance economic development group. "We fully understand international operations are going to shift, sometimes, their production operations from place to place from time to time. But it's important we keep Eagle Ottawa. We'll work with them however we can to bring additional production here and increase the work force again."
Ray Berry, forklift operator and 17-year employee, said he wasn't sure what he would do.
"Either find a new job or ride it out and see whether they want the blue-hide product, whether that will work out," he said. "It's a gamble."
Manning noted the shock that had pervaded the plant.
"Most people in there are pretty upset, heartbroken," he said. "We're gonna lose our insurance, whatever happens. A lot of people are sad. I can't let myself fall into that situation; I've got a family to feed."
Dust said his organization would be working with the business community in hopes of finding alternatives for Eagle Ottawa workers who lose their jobs.
"In the meantime we have a number of employers who are searching for good employees," Dust said. "We've very fortunate in the Cedar Valley. Our existing business is driving growth."
Courier News Editor Pat Kinney contributed to this report.
Contact Jim Offner at (319) 291-1598 or jim.offner@wcfcourier.com.
http://www.wcfcourier.com/articles/2008 ... 623097.txt
