NEWARK, Ohio -- Due to the recession, Owens Corning says it will shutdown production at its Newark plant for five separate weeks between now and the end of the year.
NBC 4 reported with the FAST FACTS.
The unpaid furloughs were to affect about 500 of the 660 employees at the Newark plant, with only maintenance and support personnel remaining during the shutdown weeks which are between Sunday, July 26, and Saturday, Dec. 5.
Company spokesman John Shea said Owens Corning is taking this action now because it meets the needs of its customers and it's the right thing to do from a cost standpoint.
Shea said it also was sensitive to the needs of company employees, as this advance notice allows them to plan their personal time accordingly.
One employee told NBC 4 he's glad the company is doing what it's doing.
He seemed thankful to have a job at a time when many people are being laid off permanently.
“Well, it's like anybody else. No matter how large or how small a family, it puts everything behind two months,” said Frances Binckley, whose husband works at Owens Corning.
Owens Corning announced in January that its wool factory employees would receive 93 furlough days this year, but Shea said the latest furlough announcement also would affect the liner and pipe factories.
Glass, Molders, Pottery International Union (GMP) has been negotiating furloughs with the company all year long.
“A lot of people are just thankful to have a job, but the thing you need to remember about this is, even the people we have that still have a job are still hurting. They're still losing lots of money the weeks they're out. They're still suffering,” GMP President Dan Swonger.
Many workers with seniority have accepted the furloughs as a sacrifice to help other union members as a whole.
Swonger estimated workers will lose anywhere from $10,000 to $15,000 this year.
The city's hit will be larger.
Mayor Bob Diebold said Owens Corning has played a strong role in the community for years. He said the furloughs will affect the city's income tax revenue.
“Financially, just for tax-revenue basis, what we would take in, in income tax, we project $80,000 to $100,000 reduction in our collectibles,”
The local plant was forced to cut half its lines at one of its three factories last year because of economic conditions.
The nation's economic stimulus efforts, which could drive up demand for insulation, have not yet had much of an effect, Shea said.
About 50 employees scheduled for furlough, though, were brought back this week because of increased demand for metal building insulation.
The current round of layoffs saved about 150 jobs. Workers said they hope it's the last round.
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