Well, Papa went back to work yesterday only to get a notice that they will be closing his work in 60 days. The company is not telling the whole truth to the media. There is a gag order until Monday on the workers. Then, the truth will come out. There is more to this than anyone at Interlake is saying.
By John Faddoul
Pontiac Daily Leader
Tue Dec 30, 2008, 01:42 PM CST
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Pontiac, Ill. -
Interlake’s Pontiac plant “may be” permanently closed about the end of February, according to a required notice given to employees this week, although efforts today by The Daily Leader to reach corporate spokesmen on the future of the plant were unsuccessful.
The notice was required under federal and Illinois laws about possible plant closings, but a source who spoke with The Leader this morning said that employees were told there would probably be a large layoff, to about 150 workers, representing one shift. The notice given to employs refers to 262 employees. It also says that the plant “may be” closed, not that it will be closed.
Pontiac Plant Manager Ron Bakos referred questions to United Fixtures Interlake offices in Naperville, but The Leader this morning was unsuccessful in reaching spokesmen in the Human Resources office there.
The Illinois Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days advance notice of pending plant closures or mass layoffs. The notice about the Pontiac plant was provided to employees pursuant to that and the federal WARN Act.
Interlake Material Handling Inc. “may be closing” its facility at 701 Interlake Drive in Pontiac because of “unforeseen business circumstances, namely a significant and unexpected drop-off in business over the last several months, due to the faltering economy,” read the notice, dated Dec. 29 and signed by Interlake President and CEO Daniel P. Wilson. A copy of the notice was obtained by The Daily Leader.
The plant closing, “if necessary will result in the separation of all of the approximately 262 employees,” says the notice.
Following is the text of the notice to employees obtained by The Leader:
“It is with regret we must advise you that, due to unforeseen business circumstances, namely a significant and unexpected drop-off in business over the last several months due to the faltering economy, Interlake Material Handling, Inc. (the "Company") may be closing its facility and discontinuing its operations at 701 Interlake Drive, Pontiac, Illinois, 61764.
“The Company has been seeking, but has been unable to secure, capital which would allow us to continue our operations. We have also been in discussions with a potential purchaser. Unless we are able to obtain sufficient capital or to finalize a sale, the Company likely will implement a plant closing that will result in the termination of all operations at the facility. Although it is difficult to predict what will occur in light of the current situation, the Company anticipates that the plant closing, if necessary, will result in the separation of all of the approximately 262 employees. The expected employment separations, if necessary, are likely to occur during the fourteen-day period commencing on February 15, 2009 or soon thereafter. The facility would be completely closed shortly thereafter. The plant closing, if necessary, is expected to be permanent. As a result, any bumping rights you may have would not apply.
“This notice is being given to you pursuant to the Federal Worker Adjustment and Retraining Notification Act and the Illinois Worker Adjustment and Retraining Notification Act, which require employers to give official notice to affected employees of a pending mass layoff or plant closing. We realize that this decision will cause hardship to our employees, and we can assure you that we hope to accomplish the closing of the facility, if necessary, with the least possible disruption to the lives of our employees and their families.
“You will receive further information in the coming weeks regarding the closing of the facility and your opportunity to continue healthcare coverage (if you are currently enrolled in Company healthcare plans). In the meantime, the Company official you should contact for further information on this matter is” and lists Plant Manager Bakos. Interlake is the largest manufacturer of steel storage racks in the Americas, the company’s Web site says, and is division of United Fixtures/Interlake, Interlake Material Handling is headquartered in Naperville and employs more than 650.
IAC, Ill. - About 260 employees of a central Illinois storage-rack factory are at risk of losing their jobs, in what would be the latest blow to the community of Pontiac.
Layoffs at Interlake Material Handling could start on Feb. 15 if the plant can't secure fresh capital or find a buyer and the company could close soon after that, according to a letter obtained by The (Bloomington) Pantagraph.
Interlake Material Handling CEO Daniel Wilson wrote the letter, posted Tuesday on the newspaper's Web site, to the company's board chairman, Bill Fairfield.
Wilson blamed "unforeseen business circumstances" for the company's woes, which he said included a drop in business over the last several months amid the global credit crunch.
Interlake is Pontiac's sixth largest employer, and Mayor Scott McCoy said Tuesday that he holds out some hope the plant will find a way to stay open.
"The information I've received so far indicates to me that there are possible solutions to this situation," he said. "I'm committed to do what I can to help retain all local businesses and jobs."
Employees were informed about the possibility of layoffs Monday, said Ralph Timan, president of the United Auto Workers Local 2488, which represents more than 220 plant workers.
"Obviously, it's devastating for our members," he said.
It wouldn't be the first Interlake layoffs.
The company laid off nearly 70 workers in April, then let go 45 hourly workers and four salaried employees in August.
Word of the latest layoffs also comes as embattled Gov. Rod Blagojevich's plan to close Pontiac's second largest employer still looms. If the Pontiac Correctional Center shuts down, 570 prison workers could lose their jobs.
Pontiac officials have accused Blagojevich, arrested earlier this month on charges he put President-elect Barack Obama's Senate seat up for sale, of using the plan to close the prison as a big stick to batter political opponents.
But administration officials have said the closure is a cost-cutting measure based on economics, not politics.
