Snorkel to lay off up to 125 workers by late September
Decreased demand for aerial lift trucks leads to decision
Decreased demand for aerial lift trucks leads to decision
The tough economy soon will get tougher for some employees at a local manufacturing plant.
Snorkel International has announced that it will lay off up to 125 workers by the end of September at its factory in Elwood, Kan.
The move is a reaction to decreased demand for the company’s aerial lift trucks, according to Dan Jenkins, spokesman for Snorkel’s parent company, England-based Tanfield Group. Mr. Jenkins said increased costs in the construction industry have slowed many projects, which had led contractors to order fewer Snorkel products.
“If those guys see a downturn in their business and reduce their purchasing plans, then almost overnight you have a downturn in our industry,” Mr. Jenkins said.
Snorkel employees voted to form a union June 27. Mr. Jenkins insisted that the recent unionization had no effect on the decision to lay off workers. Tanfield owns multiple international manufacturing facilities, many of which are unionized, he said.
“Snorkel manufactures a unique product that we market internationally. This isn’t a situation where we would shutter a plant and move production elsewhere,” Mr. Jenkins said.
Steve Galloway, special representative for the International Association of Machinists and Aerospace Workers, said that the timing was unfortunate, but he doubted that the union vote played a role in the layoffs. The union has yet to negotiate its first contract, he said.
“It reflects on the business of construction,” Mr. Galloway said. “They’re depending on the construction business, and the construction business is flat right now.”
Other domestic lift truck manufacturers have felt the pinch as well. JLG Industries — one of Snorkel’s largest competitors — told its workers in late July that it planned to lay off about 375 people at three of its plants in Pennsylvania.
Unemployment in the St. Joseph metropolitan area, which includes Doniphan County where Snorkel operates, was at 5 percent in June.
When Tanfield executives visited the Elwood facility in October 2007, the company pledged to invest $10 million to expand the plant and said it would add at least 100 jobs within the year. The company increased Snorkel’s Elwood work force from 360 to 400 people in its first three months of ownership and to 450 workers by the time it announced the current round of layoffs.
“We did grow the company,” Mr. Jenkins said. “This is an example of us hunkering down to weather the storm.”
Information regarding compensation for Snorkel employees who lose their jobs and the total number of layoffs should be available once Tanfield makes its final personnel decisions in late September.
Business reporter Clinton Thomas can be reached at clintonthomas@npgco.com.
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The economy is in bad shape.
It's going to get worse before it gets better.
Bad timing, I'll go with what the management is saying.
They have other union shops, the finger could be pointed in many directions, not one.
Posted by chooseliberty on August 19, 2008 at 5:21 p.m. (Suggest removal)I extend my sincerest sympathies to those affected by the recent announcement of Snorkel layoffs. I wish I thought this was an isolated case, but I fear many more companies will be making similar announcements in the coming months.
The economy is, indeed, going to get worse long before it gets better. We all have the Federal Reserve (and its best friends, the politicians) to thank for that. Until "We the People" start demanding the cessation of the debasement of our currency via printing press, the cessation of corporate bailouts, and the cessation of deficit spending via big (much too big) government, we can only expect more of the same. Problems cannot be solved by the very agencies and policies which created them; to believe so is madness.
I would encourage all Americans to read up on the history of the Federal Reserve (and any writings from the Austrian School of economics via mises.org) to better comprehend the current situation. Until we understand what has gotten us into this economic crisis, we surely have no chance of getting out of it!
Posted by MichaelH on August 19, 2008 at 10:24 p.m. (Suggest removal)Revolution!
Posted by StJoeMoe on November 6, 2008 at 6:49 p.m. (Suggest removal)Anyone else hear about the big bigger biggest layoff that was announced?
I find it odd the news press has not covered this -
what else are they hiding from us?
Posted by StJoeMoe on November 6, 2008 at 6:50 p.m. (Suggest removal)Letters were sent to employees -
After the first of the year, like half the remaining jobs will vaporize?
Anyone confirm any of this?
Posted by StJoeMoe on November 6, 2008 at 6:51 p.m. (Suggest removal)Oh - here we go -
__________________________
Layoffs Leave Midland Empire Workers in Limbo
Reported by: News Staff
Thursday, Nov 6, 2008 @04:44pm CST
The economy has dealt a major blow to dozens of Midland Empire workers.
Job cuts have been announced at two companies and a third is warning layoffs could be coming.
The news comes as unemployment soars to its highest point in 25 years nationwide.
In St. Joseph, workers at Gray Manufacturing now join that statistic. The plant has announced it's downsizing its work force by about 10 percent. That amounts to roughly 20 of 220 jobs. This is the first downsize for Gray in nearly 10 years.
Company President Stet Schanze says the move will help Gray compete in the changing global economic climate.
The company manufactures automotive parts.
In Atchison, more workers at MGP Ingredients are now looking for a job.
The company has signed off on a supply agreement with ConAgra Mills, closing the flour mill in Atchison. That move along with the restructuring of protein and starch operations cuts about 55-60 jobs. Some of those workers are taking early retirement.
The layoff impacts both union and non-union employees.
MGP does not anticipate further layoffs at this time. The company will bring in potential employers to help its employees find work elsewhere.
In Elwood, workers at Snorkel have been told additional layoffs are possible.
Dan Jenkins, a spokesman for the Tanfield Group, said in an email it depends on "how well the business is performing."
Snorkel shut down production a week ago because of slow business. Back in August, the company laid off 100 workers.
Snorkel manufactures aerial platforms and lifts, which have been seeing decreasing sales. Snorkel still employs about 350 workers.
Stay tuned to KQ2 Your Hometown News for more on these breaking news stories.
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