Rutland Plywood slashing 76 jobs, about half its workforce
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By Patricia Minichiello Rutland Herald - Published: November 21, 2008
RUTLAND – Rutland Plywood Corp. is permanently laying off 76 employees, or about 50 percent of its workforce, effective Nov. 30.
The company, established in 1951, will operate a single shift as opposed to two shifts starting Dec. 1.
A continuing drop in sales from all major customers has forced this reduction, according to Rutland Plywood President Jack Barrett.
The company has seen a steady drop in orders since May and that decline has become substantially worse over the past two months. In an effort to prevent the closing of the business, Barrett said the company had to take action, giving the affected employees less than 60-days' notice. There is no union in place.
"If we felt this was a temporary slowdown, we would not have taken such a drastic course of action," he said.
Rutland Plywood Corp., according to Barrett, has experienced "a lack of customer orders and sudden economic downturn" over the past several months. Rumors circulated Thursday that the company, which makes plywood veneer for products ranging from snowboards to gunstocks, recently lost a major account, which forced the layoffs.
Barrett would not confirm the rumor, though he said Rutland Plywood has maintained a continuous effort to support and improve the personal status of employees, and the decision to reduce the workforce was extremely difficult and painful.
Barrett, who joined the company in 1971, said his goal is to bring back those employees affected by the layoffs as quickly as they can.
"Just like the rest of the business world, we can only hope for a rapid economic recovery, but see no short-term signs this may happen. Like any business in today's economy, we are prepared for any changes in demand for our products."
David Mace, spokesman for the state Agency of Commerce and Community Development, said his department was aware of the significant slowdown in business at Rutland Plywood and that the industry is being affected by the slowing housing market in the U.S.
"We're certainly disturbed that this is happening, but it can't really come as a surprise to anybody who's been watching the downturn in the construction market," Mace said.
At this time, Mace said, they're working with the Department of Labor and the Department of Economic Development to help them find jobs for workers who were displaced.
"The closure of Vermont Tubbs and other employers in the area has been distressing for this administration and for the people in Rutland County and we're looking to do everything we can to help," Mace said.
Larry Sudlow, regional manager of the Vermont Department of Labor, said Thursday an employee resource consultant will lead a team of people from his office to talk to employees Monday.
"There's going to be people from the agency of human services to talk about getting signed up for Catamount Health or any kind of other financial assistance that people might need. We're going to have people there from our unemployment division to talk about how they get signed up for unemployment," Sudlow said.
A few people have contacted the Department of Labor already asking questions about how to sign up for unemployment and what, if any, jobs are available.
"We're here for anyone that wants our help. We'd be glad to do what we can to help people find another job," Sudlow said.
Jamie Stewart, executive director of Rutland Economic Development Corporation, said his office was notified of the layoffs Wednesday.
"Hopefully what this means is that the company is taking the steps that it needs to take to ride the current downturn and ultimately come back stronger," Stewart said.
Rutland Plywood Corp. has two plant locations, including one in the city on Park Street and one in the town on Ripley Road.
Mayor Christopher Louras said the uncertain economy is affecting communities across the country and translating into layoffs in the manufacturing industry.
"It's an unfortunate national trend," Louras said.
Stanley Rhodes III, chairman of the Rutland Town Select Board, said hopefully we're reaching the bottom of this economic downturn.
"It's unfortunate for everyone, because those people are our neighbors and our friends," Rhodes said.
On Thursday workers on break who gathered outside the Ripley Road plant were tight-lipped about the layoffs. One employee, who wished to remain anonymous, said her hours had been cut from five days a week to four, but she still had a job.
"I'm lucky to have four days a week now," she said, noting that many positions were eliminated altogether.
Another said employees from both shifts — 7 a.m. to 3 p.m. and 11 p.m. to 7 a.m. — were affected by the cuts.
The mood was dismal outside the plant and worsened when a foreman stepped outside to join the group.
"That's the boss," one worker whispered as silence fell among the circle.
Contact Patricia Minichiello at patricia.minichiello@rutlandherald.com.
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