Hammond's Premiere Candy Co. in need of sweet deal

HAMMOND | The local candy plant that has produced chocolate-covered cherries for 83 years is in imminent danger of closing unless its owners receive additional financing or it is sold.

The majority of the Premiere Candy Co.'s about 150 hourly employees have been on layoff since February, and all production ceased in July.

Tuesday, just hours after Premiere Vice President John Vilcins denied the company was for sale or might close, the company's attorney told The Times he didn't know if it could or would reopen.

"It's a hugely competitive business," attorney Harold Abrahamson said. "We've been negotiating without success with its principal lender. Without a commitment from the lender, it can't reopen and manufacture or recall the workers. We've been exploring other options. But they are only in the talking stage. It doesn't look too rosy, but we're trying."

Robert Lofton, international representative for District 7 United Steelworkers, Sub-District 5, said the company's workers are waiting for their 2005 vacation pay without any assurance they will get the money or their jobs back.

The company normally laid people off in April or May and would shut production completely down in July to prepare for its fall changeover, Lofton said.

"This year they laid off almost everyone in February," he said. "They told us they would recall 60 people in July. That never happened. Then they told us they'd give everyone their vacation pay on Aug. 11. It didn't happen."

The labor agreement between the USW and Premiere originally expired in May, but the agreement has been extended until Nov. 30. Since late spring, talks between the company and union haven't been productive, Lofton said.

The company's owners have refused to meet with the union, Lofton said early Tuesday.

He later talked with Abrahamson, who said he agreed the employees have a right to know what's going on. Abrahamson also said Premiere is aware of its financial obligations to its employees, but currently isn't in a position to determine if it will be able to meet them.

"We can't afford to make the product unless we can generate a profit," the Hammond-based attorney said. "The employees are entitled to know that, but we do not have a definite answer on whether the company will be open or not, especially if we are able to reach accord with our principal lender, and as of today we haven't."

The company is owned and operated by a group of investors who purchased the building, machinery and equipment from Hershey in 1992. The plant, which originally housed a medical supply company, was converted into a candy plant by Queen Anne Co. in 1923.

The union hasn't take any official action against Premiere because it didn't want to "run off any potential buyer," Lofton said.

Bernice Dotson, president of USW Local 7-521, said she was the only production worker working at Premiere since April. She has been employed at the plant for 22 years.

"Our members are truly upset," she said. "We want answers."

In addition to vacation pay, Dotson said she also hasn't been paid for the last 2.5 weeks she worked before being laid off in July.

"I was told there was no sense giving me a check because the bank wouldn't honor it," Dotson said.

Dorien Hollis of Hammond and her mother both are employed at Premiere.

"They've been keeping us in the dark," she said. "I don't think they have the money. We haven't got profit sharing in more than five years. They said they haven't had any profit.

"We've seen people carrying out their personal belongings. We think they're closing."