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Tannery's severance package rejected by union members
By PAT KINNEY, Courier News Editor
WATERLOO --- Forty-three workers at Waterloo's Eagle Ottawa tannery will be laid off on or about Dec. 2, a company human resources official said Saturday.
Meanwhile, unionized tannery workers rejected a company severance package offer for plant workers, and company and union officials will try to meet again Wednesday on severance issues.
The 43 workers represent about half the tannery's production work force, said Scott Landis, Eagle Ottawa's director of human resources for its North American operations.
The company notified the union and other appropriate agencies of the pending layoff as legally required under federal law. A second wave of layoffs could begin on or about March 1 and extend through the summer.
Eagle Ottawa announced last month it was moving automotive leather work from its Waterloo tannery to a facility in Mexico. However, Landis said the company still intends to keep the Waterloo facility open, but with a much smaller work force, and is trying to find non-automotive work to bring into the plant.
"We do have people that are interested in working with us, and we're having discussions with them. It's still fairly early," Landis said. He indicated the tannery here could retain its "wet blue" process of preparing raw hides for shipping to other facilities, for processing into furniture leather or shoe leather, for example.
Landis indicated again that the pace of the layoffs here could depend on how fast the Mexico facility can gear up to take on the work.
To that end, Garth Bowen, a business representative for the United Paperworkers, which represents unionized tannery employees, suggested it is as much in Eagle Ottawa's interest as the workers' to negotiate a favorable severance package to retain the company's skilled Waterloo work force through the transition period.
That's why union members rejected the company's severance proposal in a vote taken Saturday morning, Bowen said. Many members "felt it was totally inadequate," Bowen said. "The biggest issues are the amount of severance (pay), health insurance and other work rules that are still in contention.
"The interpretation we got from the company is they really don't know what's going to happen for sure, whether things are going to work in Mexico or what's going to remain here in Waterloo," Bowen said. "That has really caused us problems trying to negotiate severance when we really don't know what the heck's going on."
If a severance package cannot be negotiated, Bowen said the company's existing labor agreement, which extends through Aug. 1, 2009, remains in effect and any work force reductions must be done in accordance with that document.
Landis indicated the company has been sharing as much information with the employees and the public as is possible on its timetable for shifting work to Mexico.
"We are going to have additional (severance) discussions. We're not sure where those would lead us," Landis said. "It behooves us to try to have an agreement with the union. We were trying to be reasonable and fair with our employees. What we were offering is not required under the contract.
"I'm disappointed in the outcome of the vote," Landis said. "We're planning on meeting with the union to have further discussion."
Contact Pat Kinney
at (319) 291-1426 or
pat.kinney@wcfcourier.com.
Meanwhile, unionized tannery workers rejected a company severance package offer for plant workers, and company and union officials will try to meet again Wednesday on severance issues.
The 43 workers represent about half the tannery's production work force, said Scott Landis, Eagle Ottawa's director of human resources for its North American operations.
The company notified the union and other appropriate agencies of the pending layoff as legally required under federal law. A second wave of layoffs could begin on or about March 1 and extend through the summer.
Eagle Ottawa announced last month it was moving automotive leather work from its Waterloo tannery to a facility in Mexico. However, Landis said the company still intends to keep the Waterloo facility open, but with a much smaller work force, and is trying to find non-automotive work to bring into the plant.
"We do have people that are interested in working with us, and we're having discussions with them. It's still fairly early," Landis said. He indicated the tannery here could retain its "wet blue" process of preparing raw hides for shipping to other facilities, for processing into furniture leather or shoe leather, for example.
Landis indicated again that the pace of the layoffs here could depend on how fast the Mexico facility can gear up to take on the work.
To that end, Garth Bowen, a business representative for the United Paperworkers, which represents unionized tannery employees, suggested it is as much in Eagle Ottawa's interest as the workers' to negotiate a favorable severance package to retain the company's skilled Waterloo work force through the transition period.
That's why union members rejected the company's severance proposal in a vote taken Saturday morning, Bowen said. Many members "felt it was totally inadequate," Bowen said. "The biggest issues are the amount of severance (pay), health insurance and other work rules that are still in contention.
"The interpretation we got from the company is they really don't know what's going to happen for sure, whether things are going to work in Mexico or what's going to remain here in Waterloo," Bowen said. "That has really caused us problems trying to negotiate severance when we really don't know what the heck's going on."
If a severance package cannot be negotiated, Bowen said the company's existing labor agreement, which extends through Aug. 1, 2009, remains in effect and any work force reductions must be done in accordance with that document.
Landis indicated the company has been sharing as much information with the employees and the public as is possible on its timetable for shifting work to Mexico.
"We are going to have additional (severance) discussions. We're not sure where those would lead us," Landis said. "It behooves us to try to have an agreement with the union. We were trying to be reasonable and fair with our employees. What we were offering is not required under the contract.
"I'm disappointed in the outcome of the vote," Landis said. "We're planning on meeting with the union to have further discussion."
Contact Pat Kinney
at (319) 291-1426 or
pat.kinney@wcfcourier.com.
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