Fwd: SEALED AIR TO CLOSE PACKAGING PLANT IN CEDAR RAPIDS, IOWA...Teamsters local 238 seeking severance pay for the 215 union workers

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Jan 2, 2009, 6:08:16 PM1/2/09
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from the CEDAR RAPIDS GAZETTE:

Updated December 31. 2008 5:27PM

Union leader hasn't given up hope on Cryovac

By Dave DeWitte
CEDAR RAPIDS — Even as the Teamsters union prepares to talk to Sealed Air Cryovac about severance benefits for its members, a union leader said he remains hopeful the New Jersey company will reverse the plant closing announced Tuesday.

"We still hold out hope maybe somebody who doesn't live or work around here will step back and say, "maybe this isn't the smartest thing in the world to do," said Gary Dunham, who leads Teamsters Local 238 of Cedar Rapids as its secretary-treasurer.

Dunham said the prospect that the plant could be slated for extinction didn't come up in monthly meetings between union representatives and members in the plant.

"We were surprised," Dunham said.

The plant, owned by Sealed Air Corp. manufactures packaging for the food industry.

"We do know this is their most productive pla nt," Dunham said. "It can compete with any plant they have, except maybe Mexico."

Dunham said 215 Teamsters stand to lose their jobs if the plant closes, including about a dozen married couples in which both work at Sealed Air Cryovac.

"We literally have generations of family members who have worked in the plant," Dunham said.

Sealed Air Corp. said in an official statement that the closing was part of a companywide plan to create manufacturing centers of excellence. It said production would be shifted to plants in Mexico, Arkansas, and South Carolina.

Wages or union problems are unlikely causes for the closing decision, Dunham said. He said the union hasn't had a strike in decades, and hourly wages range from about $15 to $22.

The company told the union it plans to close the plant in six to 10 months, but has not given a date. Negotiations on a severance package for union workers will begin Tuesday, Dunham said.

"This has been very difficult," Dunham said. "We're going to continue doing what we do well — making a quality product and supplying it to customers."

Teamsters Local 238 in Cedar Rapids has about 7,000 members in 80 Iowa counties.

n Contact the writer: (319) 398-8317 or david....@gazcomm.com




Updated December 30. 2008 6:36PM

Sealed Air to close Cedar Rapids plant in 2009
By Dave DeWitte
CEDAR RAPIDS - The only good news Tuesday for about 257 Sealed Air Cryovac employees is that they might have a job for another ten months.

Sealed Air Corp. sent letters to Cedar Rapids employees indicating that the company will be closing the food packaging plant at 1125 Wilson Ave. SW in six to 10 months.

The plant has been in operation for 57 years, but employees were cautioned earlier this month that a closing was under consideration. The company confirmed its closing plans Tuesday at meetings with employees and with letters sent to their homes.

In a prepared statement, Sealed Air Corp. said it is working to develop manufacturing centers of excellence in order to improve productivity and efficiency. The work performed in Cedar Rapids will be relocated to several existing facility across the company's network of North American plants, according to the statement issued by Ken Aurichio, a corporate spokesman.

The bulk of the work is expected to go to plants in Arkansas, South=2 0Carolina and Mexico that already make food packaging.

"This was an extremely difficult decision for Sealed Air to make, understanding the impact to our employees and the Cedar Rapids community," Aurichio said in the statement. He said Sealed Air Corp. considered operating costs, strategic location, proximity to other facilities and levels of technology in its decision.

Economic development officials in Cedar Rapids had held telephone discussions with local plant management and corporate officials in an effort to convince the company to stay in Cedar Rapids. They were rejected in their attempts to gain a meeting aimed at convincing the company to stay, according to Mark Seckman, president of Priority One.

"I think it was strictly a short-term, cost-cutting decision," Seckman said..

Aurichio said the decision was a result of a strategic process that began about two years ago. He said the company announced the decision as soon as possible to give employees more time to prepare for the closing.

Seckman said he was not surprised by the closing decision. He interpreted the company's refusal to schedule a meeting with Priority One as an indication that the decision had been made already.

Seckman said the Cedar Rapids location might be at a disadvantages to other Sealed Air plants due to its age and limited site size, "but one thing we know they will not get is the kind of work force they had in Cedar Rapids."

In previous meetings, Seckman said the company has praise d its Cedar Rapids work force as one of its best.

Sealed Air Corp., based in Elmwood Park, N.J., announced plans six months ago to open a new plant in Louisville, Ky. Sealed Air will lease 415,000 square feet of space in an existing industrial center, and employ about 100 in the new Kentucky facility, which was slated to open in August on a limited basis.

The plant will produce new product lines obtained by acquisition by Sealed Air within the last year, according to Aurichio, who said it will not make any products now made in Cedar Rapids.

The Cedar Rapids plant was unionized. Representatives of Teamsters Local 238, which represented plant workers, were not immediately available for comment.

Sealed Air will meet with the unions to discuss severance terms for employees, Aurichio said.

The Wilson Avenue plant will be offered for sale, according to Aurichio, who did not know the asking price.

Seckman said he thinks there will be a market for the plant because of its size and close proximity to I-380.





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