Hussmann closing; 90 to lose jobs
Company been in area about 50 yearsKAYLEIGH KARUTIS/The Leader-Herald
Article Photos
JOHNSTOWN - Refrigerator parts manufacturer Hussmann Corp., which employs about 90 full-time employees at its town plant, will close in mid-2009 and transfer production to Mexico, company officials announced Wednesday.
The facility, located off Route 30A and the FJ&G Rail Trail just outside Gloversville, has been producing refrigerator parts for more than 50 years. About 75 of the plant's employees are hourly employees in manufacturing, and the rest are salaried administrative positions, said Ingersoll Rand spokesman Paul Dickard. All of the employees are full-time. The Missouri-based Hussmann Corp. is an Ingersoll Rand business.
The plant scaled back employee hours over the summer and paused manufacturing for about a month last December. Johnstown plant manager Ronald Jakubec said the facility is not operating to its full capacity.
"[The] Gloversville plant is already operating at only 40 percent equipment capacity and 20 percent assembly capacity. This production level is unsustainable and unlikely to increase in the foreseeable future," Jakubec said in a news release.
The company will move the production lines in Johnstown to a pre-existing facility in Monterrey, Mexico. The Johnstown plant will
operate at its current capacity until the second quarter of 2009, when it will close.
"This action is consistent with our strategy to improve our competitiveness by leveraging our global capabilities while improving customer satisfaction," Jakubec said.
The community and the company's employees are in no way at fault, Jakubec said.
"This decision is not ... a reflection of the performance of the management, staff, employees or community," he said.
Fulton County Regional Chamber of Commerce & Industry President Wally Hart said the company had been facing difficult times recently.
"They have struggled with trying to figure out how to diversify and brought in leadership to try and find ways to do that," he said. "It was not for a lack of effort on the employees there."
The decision to close the facility was purely a business move, Hart said.
"It's a corporate decision," he said. "In business, unfortunately those decisions have to be made."
Hart said the chamber would look to the state Department of Labor to step in and offer services for the workers at Hussmann.
"[Over the summer, the chamber] started receiving some resumes from people [at Hussmann] who knew they would be looking for a more permanent position," he said. "We know they have some really great employees."
Officials at the Fulton County Economic Development Corp. said Hussmann's closure will be a hard hit to absorb.
"As a relatively small county, it's impact is a little harder for us to take," said Marketing Director Lisa McCoy. "It's not anything the people of Fulton County are doing wrong. It's something our government needs to address at its core: why business is going overseas."
McCoy said the closure is part of a larger trend.
"It appears to be a sign of our times," she said.
Gloversville golf ball manufacturer Callaway Golf's closure in July put 118 people out of work. In the Capital Region, officials at Super Steel in Glenville recently announced the facility will close by April and will lay off its approximately 175 workers. About 19 workers at the Malta-based Starfire Systems were laid off two weeks ago. Voorheesville-based Atlas Copco announced last month it will lay off more than 40 workers over the next year.
"It's just another in a long list of what we keep hearing every day," McCoy said. "That doesn't make it any easier for us to swallow."
Kayleigh Karutis covers Gloversville news. She can be reached at gloversville@leaderherald.com
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harleysdad
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12-08-08 5:59 PM
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Yet they continue to fight wal mart on the super center
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Hunidu
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12-06-08 1:26 PM
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Att:Jr88fanny I think you were ,on your posting at 3:17 pm yesterday refering to me.Re:"the companies that do not sponsor".If you would re-read what I put in on this,you'll see that I mentioned in my post of 12/4/08 @ 10:25 pm,I said you will no doubt find that somewhere along the way a "UNION" is/are/was involved somewhere.And we are paying for their dues/wages/insyrance/and what ever other "bennies" they have.I would like to add to this and say an old saying,and you will agree,and that saying is "THERE IS NOTHING FREE' Some where/some one is paying for "THAT FREE ITEM!!! Thanx for your time.
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Jr88fanNY
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12-05-08 3:17 PM
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"Att: redrocket/jr88fanny, re: nascar lay offs sounds good to me because just maybe auto parts might be less money for us to buy because the part houses like napa/checkers/etc.etc.etc can not afford to pay out BIG BUCKS,and then pass this expense on to the public." First off what about the companies that do not sponsor anything in Nascar... their prices are as high as those that do or higher. NAPA was high before they ever where a sponsor and so was Checkers. Auto Zone's prices did not change because of sponsorship. FYI - Most sponsors see a return of more than what their sponsorship is costing them from the fans being loyal to sponsorship products. Last of all like it is a big deal over Checkers there is not one around here. If you want to be on the new bandwagon and going green buy used parts!
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ipaymyway
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12-05-08 9:26 AM
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WHO IS THIS STRATFORD? NAFTA WAS IN THE CLINTON YEARS.
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resident69
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12-05-08 9:22 AM
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...and I am not saying that Hussman's workers were overpaid. I know of GE workers that sat and read a paper for 8 hours due to their crane being broken! Could not sweep the floor as they would be doing someone elses job. Non union shops you are happy to still have a job and will sweep the floor to keep from being sent home for lack of work.
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resident69
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12-05-08 9:16 AM
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Unions and greed are doing in a lot of big companies. Look at the the auto industry: According to Forbes: Labor cost per hour, wages and benefits for hourly workers, 2006. Ford: $70.51 ($141,020 per year) GM: $73.26 ($146,520 per year) Chrysler: $75.86 ($151,720 per year) Toyota, Honda, Nissan (in U.S.): $48.00 ($96,000 per year) According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits). Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D. (see graph above, click to enlarge), and 52.6% more than the average worker at Toyota, Honda or Nissan. Demanding higher wages is killing big business, Maybe union dues should be less to take the burden off the working stiff. How cheap would the cars be if the salaries were not thru the roof? Also, I'm talking the useless executives.
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stratford
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12-05-08 9:09 AM
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Republicans sending jobs offshore or to mexico! What a mess bush made. Good thing he can wave a flag or he would never have gotten elected. Oh and he will let you keep a gun, but will record your every phone conversation.
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Don12134
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12-05-08 12:01 AM
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Thank you Bill Clinton. Your "NAFTA" program just ain't working, is it now.
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NottaPinko
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12-04-08 11:48 PM
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Big Blow to County & Community....Just keep taxing....MORE TO FOLLOW....keep up the good work Gloversville, Fulton County & NYS !!!
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Hunidu
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12-04-08 10:52 PM
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Also, all you good people out there,I know darn well that it is impossible to do away with the unions,probably to many politics involved
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Hunidu
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12-04-08 10:25 PM
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Cont'd Think about your electric bills along with alot of other items,and utilities,etc,etc.I'm sure you will find that there are "unions" involved.Someone is going to end up paying for them HIGH WAGES along with all the bennies and other things. I believe in a person making a good/fair wage.But why in Gods name pay someone so that you can keep working??? This has been "just one mans opion"
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Hunidu
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12-04-08 10:19 PM
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Att: redrocket/jr88fanny, re: nascar lay offs sounds good to me because just maybe auto parts might be less money for us to buy because the part houses like napa/checkers/etc.etc.etc can not afford to pay out BIG BUCKS,and then pass this expense on to the public.Then on the other hand,not to get anyone mad at me,JUST do away with paying someones wages/union dues/each month just so someone can work another month.I don't think that unions are the right way to go.If this company is the same one I think it is I was hired back in the 50's to work night shift.One nite I was asked what I thought of a union comming into the shop,I said I would go with the majority and was fired the next day.I feel bad for the layed off people/families.Alot of companies go south for CHEAPER WAGES.
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Frmerres
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12-04-08 8:28 PM
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I want to know where GWB's bailout of US is? If they REALLY want the economy to boom, give everyone over the age of 18 a million dollar- or even half a mil- it'd cost them less than what they've already given the banks.
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dogman12
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12-04-08 8:16 PM
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Ross said the sucking sound !! He was so right . Scum is all these companies are
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rvguyglen
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12-04-08 6:18 PM
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let's remember Hillary Clinton was an attorney for the WALMART BOARD OF DIRECTORS before Bill signed NAFTA...... THANKS AGAIN CLINTON'S
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rvguyglen
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12-04-08 6:12 PM
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thanks mr clinton for nafta. we are so happy you could help us out!!!
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Knickman
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12-04-08 6:02 PM
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About 2 weeks ago, in this forum under another news story, I expressed concern about Hussmann, noting that they had a furlow earlier this year, and I would bet they have not seen any improvement. It was not nice to be right, especially for those who are losing their jobs. I think we need to suspend NAFTA and place tariffs on these products and use the money for unemplyment benefits and re-training programs.
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peteoutofstate
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12-04-08 5:28 PM
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Uranus hit the nail on the head. I have been in manufacturing all my life. I currently run a maintenance dept. in Hickory North Carolina. It is a furniture business. When my wife, four children and I moved here, the jobs were endless. Now it is almost getting as bad as Upstate New York. Corporate greed and whatever has been the catalyst to have these jobs move overseas. Trying to compete is almost impossible with cheap Chinese Labor. I voted for Bush last election and have kicked myself in the ass ever since. At least Obama realizes there is a problem? I dont agree with the rebuilding of roads and bridges as the only way to create jobs. We need to start manufacturing again here again. Lets face it, we built the modernized word and need to keep being leaders in this aspect. I dont know all the answers just know what I see. We need to get rid of out of touch politicians, etc.
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Discobulous
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12-04-08 1:40 PM
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Nascar....that's where they run around in circles at high speed, right? I'm not joking when I say people should learn to garden again - every little bit helps and it promotes health and family activity. Hussman? Billie's NAFTA at work again screwing an honest American worker near you.
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Redrocket
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12-04-08 1:24 PM
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Those of you waiting for a politician to "solve" this problem are going to continue, as you have, to be very disapointed. All levels of government should be getting out of the way, instead, they use crisis as a method to expand governments problem. Jr, I agree that nascar is a good indicator for how bad things are. However, Obama ran a campaign and was elected on a platform of higher taxes and stifling business, and even he is starting to realize lower taxes are needed. Unfortunately, he still wants more government control of everything....that's not going to make things better. Sorry.
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Jr88fanNY
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12-04-08 1:05 PM
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Obama has a tough job ahead of him putting his campaign lip service into action. Time will tell if he is going to be able to turn the economy around. He has done one great thing so far...thankfully he has taken Hillary out of NY state. Now we have to keep our fingers crossed that they do not put Cheatin Bill in her place.
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Uranus
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12-04-08 1:01 PM
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The globalization formula is quite simple: When you are willing to work for food, shelter and the rags on your back like the chinese; then you can have a job slaving away in a factory with no safety or enviromental controls. And let's cut the taxes for the rich who profit from this scheme and all thier cheerleaders in the media. The revolution that is coming will be something to behold.
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Jr88fanNY
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12-04-08 12:55 PM
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It is not just Gloversville and Fulton county it is all over the US. When you see massive layoffs by Nascar team owners you know it is bad. The layoffs started there mid-summer with the majority of them the day after the last race in November. The figures that are being given can be a thousand or more. It is not just teams but other aspects of the sport too. Part of it is due to the decline in sponsorship dollars due to the poor economy. Part of it might be the major auto makers are facing troubled times too. When you see this happening in Nascar you know times are tough. Racefans are easy to part with their bucks when they have them. I have seen some buy expensive jackets and race tickets before shoes or clothes for the kids.
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resident69
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12-04-08 12:03 PM
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If walmart knew how to re-order inventory it wouldn't be too bad...once again Thank goodness for Target!. Oh I forgot to add those who lost their jobs at Johnstown Ponderosa.
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ipaymyway
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12-04-08 12:02 PM
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im very sorry for the families. why do companies always give the bad news for christmas. hohoho that *****
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