Adam Huening
With the Dow Jones erratically fluctuating, the economy still waiting for stimulation and the automotive industry flagging down the government for a jump start, many local companies are feeling the crunch.
Sintering Technologies (STI) was another local factory to join the ranks of those imposing layoffs in the hopes of keeping the doors open and remaining viable. Monday ended a two-week period in which about 65 of the company's 211 full-time workers, or around 30 percent of its workforce, were let go, according to STI manager of human resources Michael Hauk.
"Our problem is like those of many companies. We're suffering severely from a drop in sales. That coupled with the sluggish economy and the troubles of the automotive industry have left us with the unfortunate decision to layoff some of our employees," Hauk said.
The company is a Tier I and II supplier to the automotive industry with major customers ranging from the Big Three in Detroit to Honda, Nissan and Toyota. All the companies, he noted, have slowed production, which trickles down to the supply level. With less parts moving out the doors, he said the workforce reduction was "inevitable."
About 20 employees came to work Monday for a plant-wide meeting and left without a job and no benefits. While Hauk agreed the situation was unfortunate, he noted STI has been holding meetings in preparation for this day. STI, he noted, organized seminars for employees to learn about the unemployment process and how and when to apply. In addition, a hyperlink to Workforce One's Website was added to the company's intranet. Employees were directed to Elwood Staffing to seek potential temporary placement within the factory, he said, but temps at the plant could be "almost counted on one hand." If the economy turns around and business booms, those employees would have the option to rehire through normal channels.
In the end, Hauk lamented the company's decision but said it was necessary to ensure STI was being "good stewards of the business."
"It's a sad day for STI, but we're hoping for a good and bright future and that's what we have to strive for," Hauk said. "We owe a lot of (gratitude) to those who have gone, but we also owe those who remain to ensure we are positioned to stay competitive and profitable when the auto industry picks back up again."