My Home Town ....Thanks To Government
HBI shutdown a blow
Closing puts 470 people out of work
By PAM BUNCH
Daily Courier Staff Writer
FOREST CITY — When Hanesbrands, Inc., announced on Tuesday that the Forest City plant was closing effective immediately, 470 people in Rutherford County lost their jobs. But that was merely a drop in the bucket for the Winston- Salembased company, which announced it will close nine plants and cut 8,100 jobs, moving much of its production to Asia.
In Rutherford County, the announcement came as a shock to everyone from the employees to county and Forest City officials, as well as the Economic Development Commission and the Employment Security Commission.
Matt Hall, media contact for Hanesbrands said it’s all a part of the global supply chain strategy they have been following for a number of years.
“Really, we need to do that because we need to become more cost competitive,” said Hall. “If we don’t become more cost competitive, then we potentially put the entire business at risk. That’s just not the way you survive in today’s world.”
The strategy has three elements to it according to Hall.
“One is we need to move production to lower cost countries. We want to operate fewer large facilities, because we can do that more efficiently; and the third thing is we want to balance our production between the western hemisphere and Asia. And right now, we’re predominately a western hemisphere focused manufacturer.”
Hall said there really shouldn’t have been much of a surprise about the closing since the strategy has been discussed publicly and with employees for a while.
“It’s not a surprise in what we’re trying to do in globalizing our supply chain,” he said.
Rutherford County Manager John Condrey said Wednesday, “ This is a terrible loss for the county, especially for families that are involved in the closing. I can only say that the county is working very hard to recruit new business and work with existing companies to create jobs. The current financial situation of the country makes this a very challenging time for job losses.”
Terry Thomas at the Employment Security Commission said he found out about the closing when he read it in The Daily Courier.
Commissioner Chuck Hill said the closing is going to have a “dire impact” on the town of Forest City, particularly with regards to water and sewer.
“ The job loss is bad enough,” he said. “But then there will be some consequential effects on the town too. It really is a shame.”
Board Chairman Chivous Bradley was notified on Wednesday by the Hanesbrands Human Resources department in Winston- Salem that all of the employees of the company will receive a “severance package of 60 days’ pay plus benefits.”
Tom Johnson, director of the EDC, had also not heard anything from the company, although he said he received a call from the N.C.
Department of Commerce saying that they had heard about the closing.
“It’s obviously devastating to the community and to the 450 or 500 people who are going to lose their jobs,” said Johnson. “It’s a terrible thing.”
As for the timing of the closings, Hall said it really has nothing to do with the current economic conditions nationwide.
“ When we make a definitive decision to close a facility we want to communicate to employees as soon as possible,” Hall said. “And after employees, communicate appropriately with the community on our decision.
“ So in this particular case, it was a fast decision. It was a decision we decided we needed to close the Forest City plant — in fact, we needed to stop production this week because we really don’t need the extra inventory beyond this week,” he said. “I think the most important thing is that it is not any type of reflection on the workforce in Forest City.
“ We’ve got a great workforce there.
We’ve got a highly skilled, highly dedicated workforce that turns out quality products,” he added. “… It was, unfortunately, a very difficult decision that had to be made for the benefit of the overall company, unfortunately, at the expense of moving jobs out of Forest City and moving those to our existing textile plants in Central America.”
Hanes expects to close seven plants in the U. S. and Central America by the end of 2008 and will close one plant in Mexico and one in the U. S. in 2009. The company did not immediately identify which plants would be closed, although sources said that the Edenton plant has also been closed.
The moves will cost $76 million.
Hanesbrands says it has now taken about $204 million of the $250 million in restructuring charges it expects to incur since it was spun off from food maker Sara Lee Corp. in 2006.
Hanes has about 50,000 employees in 25 countries.
Contact Pam Bunch via e- mail pbunch@thedigitalcourier.com.
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I live in one of the largest counties in NC...But we are still a rural area..lots of country..and mountains here.
This county was build on Textiles..and now...We have almost nothing.
A lot of home owners here have already lost their homes, or are in the middle of bankruptcy.
A bunch of government offices where build here a few years ago, and one old mill is being taken over and turned into some type of business for Homeland Security..they will be paying 8.00hr.
Being half way between Charlotte NC where we have a large airport, and Asheville NC, where he mountains are and the water streams down, and bordering up against the SC state line...I just have to wonder......
WTF are THEY up to?
