SIGNS OF A TANKING ECONOMY? 644 MONTGOMERY COUNTY WORKERS ARE NOW RECEIVING UNEMPLOYMENT BENEFITS.
RED OAK— CDS Global, the magazine fulfillment plant that is part of the Heart Corporation, permanently laid off 22 workers on Friday, May 8.
On Monday, May 11, workers at Red Oak Die Casting learned the plant will close sometime this summer.
Red Oak Chrysler-Dodge-Jeep, however, was not one of the 789 dealerships eyed for a shutdown.
CDS GLOBAL
CDS plant manager, Jeff Pierson, said the lay-offs at CDS represented nine percent of the work force.
“Our volume is down 13 percent year to date,” Pierson said.
“The lay-offs are painful for the employee and for the manager that has to sit across from them and tell them. We’re a small community. It’s not like Des Moines or a big city. Our paths cross and it’s uncomfortable for both of us, but we need to keep the business running.”
CDS’ yearly payroll is $5 million.
“This was an all business decision, based on sound economics and data and statistics. We have to be competitive if we’re going to keep operating. We’re still the largest magazine fulfillment center.”
Pierson said that magazine advertising is down about 35 to 40 percent because of the slow economy. Revenue from advertising is how magazines make a profit.
“We have only six seasonal staff in the operational part of the building. We’ve kept 226 full-time positions, and we’ve connected a big data line to improve communication.”
The new data lines will aid work production for some of the company’s data entry crew. Pierson believes more workers will soon be able to work from home in the Red Oak area.
RED OAK DIE CASTING
Dan Comstock, plant manager at Red Oak Die Casting said he and his workers knew their orders had been slow the past several months, but orders fluctuate between slow and high in the die casting business.
Just over a week ago, Don Taylor, the operational manager for the company based in Moline, Ill., visited the Red Oak workers to inform them of the plant closure. The company president signed it over to creditors.
“I don’t think any one of us over here saw this coming,” said Comstock, who has been with the business for 10 years. Some employees have worked there for 20 years.
“The pension won’t be affected, but there will be not severance pay,” Comstock said. “This was strictly where the economy is taking a downfall and this is a result of that.
“I’ll tell you, this is not our group’s fault. This had nothing to do with our group’s performance. I have a good group of guys and a couple gals and I would recommend them to anyone. They are pleasant to work with. They’re hard workers. I have taken it upon myself to write a letter of recommendation for each and every one of them,” Comstock said.
He arranged for Iowa Workforce personnel to speak to the employees last Friday, explaining options and assistance that they might get if they choose to further their education.
Comstock said he is considering his options for the future.
“To find another position like I have I’d have to relocate, and I’m not in a situation where I can do that,” he said. “I have two daughters in high school and I don’t want to do that to them.”
Red Oak Chrysler-Dodge-Jeep
Mickey Anderson, owner of Red Oak Chrysler-Dodge-Jeep is grateful his dealership was not ordered closed Thursday, but he feels badly for friends at dealerships in Shenandoah, Harlan and Rhoden Auto in Council Bluffs where closings are expected.
“Red Oak Chrysler-Dodge-Jeep was notified on Thursday May 14 that it will continue as a Chrysler-Dodge-Jeep dealership,” Anderson said in a prepared statement. “I’m especially happy for our employees and our loyal customers. On the other hand, some of my closest friends and colleagues are having their franchises terminated. (We) will provide support for each and everyone of our dealer friends during this time.”
Anderson’s dealership has been a family business since the 1960s and at the Red Oak location since 1977.