Sidney plant lays off 202

Nov 14, 2008 (The Daily Star - McClatchy-Tribune Information Services via COMTEX) -- APH | Quote | Chart | News | PowerRating -- Two Sidney manufacturers have laid off employees because of competition from other countries.

Amphenol Corp., which produces electronic and electrical interconnect devices, has laid off 202 employees, and MeadWestvaco said it laid off 56 workers. Both firms applied successfully to the federal Trade Adjustment Assistance program to help workers retrain and find other employment.

According to Rep. Kirsten Gillibrand, D-Hudson, Amphenol moved some of its assembly operations to Mexico and its nonmilitary aerospace operations to China.

Jerome Monteith, spokesman for Amphenol Corp. in Connecticut, confirmed Thursday that the manufacturer had applied for the federal TAA program. But he refused to comment further and hung up the telephone.

"Any time we have layoffs, it's a significant impact to our economy," said Kevin Price, executive director of the Chenango-Delaware-Otsego Workforce Investment Board, which is assisting the firms and employees through transitions. Price said CDO staff have provided services to 60 individuals from both companies.

Manufacturing jobs are available in the area, Price said, but in most cases, workers have to retrain to overcome a "skills gap."

TAA was established under the Trade Act of 1974. Workers whose employment is adversely affected by increased imports may apply for TAA.

Under the program, the CDO Workforce is able to provide more assistance to laid-off employees, Price said.

The workers may choose to improve skills, retrain or enter another field, such as health care, he said.

Staff from the CDO Workforce Career Centers met with union representatives and employees Oct. 25, and with management and employees from Amphenol on Nov. 5, Price said. While layoffs are taking place at Amphenol, individuals are still being called back for work at the firm, he said.

Sen. Charles Schumer, D-N.Y., and Gillibrand issued media releases this week about developments at Amphenol and the TAA program.

"There is nothing more disheartening than losing a job, which is one of the reasons why Congress set up the TAA system in the first place," Schumer said in a prepared statement. "These payments and training programs are made to help workers get back on their feet and help them find a decent job as soon as possible. In these tough economic times, it is critical that we provide these resources to individuals struggling to stay afloat."

"I was deeply saddened that Amphenol transferred over 200 jobs to our competitors in Mexico and China," Gillibrand said.

She said she hopes the TAA program helps workers "to springboard into another local career so they can stay in our region and continue to make Sidney the great village that it is."

Amphenol's application was approved Oct. 10, and MeadWestvaco's status was approved Aug. 21, according to U.S. Department of Labor documents.

In both cases, a Department of Labor investigator found that a significant number of workers at the firm were age 50 or older, have skills that aren't easily transferable and that competitive conditions are adverse.

The assistance applies to employees "totally or partially separated" from the jobs since Aug. 28, 2007, at Amphenol or since July 9, 2007, at Mead Westvaco.

The closing price of Amphenol Corp. (APH) on the New York Stock Exchange was $23.93 on Thursday, up $1.69 on the day but down 48.4 percent this year.

MeadWestvaco (MWV) closed Thursday on the NYSE at $12.10, up $1.19 on the day but down 58.8 percent this year.

Earlier this month, MeadWestvaco Office Products Group in Sidney said 56 employees were temporarily laid off because of seasonal changes in business, and they were to be called back to work as needed.

About 1,100 people are employed at the plant, a union official said, and the layoffs were from among 750 local Communications Workers of America workers.

The number of Amphenol employees in Sidney was not available Thursday.

In late 2006 and in May 2008, The Daily Star reported Amphenol's local work force at about 1,600.

Since MWV makes such products as calendars, the layoffs are a regular part of the company's business cycle, officials said in the release, though the slowing economy has had an impact on sales.

MeadWestvaco in a prepared statement Thursday said the company's leadership continually evaluates staffing needs to remain strong while operating in a cost-efficient manner.

Last year, seasonal layoffs lasted longer than six months for some manufacturing employees, MWV said, because of the seasonal nature of the business and lower volume resulting from competition from off-shore producers.

"Realizing that overseas competition is a reality in today's business climate, MWV has taken steps to assist our employees," the statement said. "We have spent several months getting the facility certified with the Trade Adjustment Assistance (TAA) program so these affected employees can take advantage of benefits provided."

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