Showa gave notice as required by the WARN act, of a significate reduction of work force to Chattooga County government on July 22.
The Notice said: Production will cease at our Menlo facility. This is very unfortunate. Given the lower volume and the cost, our owner has elected to make this move.
“We will be working with the Georgia DOL to discuss options for our people.”
Showa will be giving severance pay.
Due to high cost and reduced demand all Menlo Glove Production will be permanently discontinued by September 30, 2021. As all the jobs will be eliminated, there will be no bumping rights. In other words, you do not have the right to take another employee’s job. Layoffs will not begin before September 22, 2021. Distribution employees (shipping and receiving) and maintenance employees will not be included in the layoff. Certain production employees will be offered the opportunity to work for an additional period of time for clean up and handling of equipment and machinery following the shut-down. At present, however, the company does not know which employees will be offered this option.
Menlo will remain the corporate headquarters for Showa in the Americas. All distribution will remain in Menlo.
Beginning on the day of this notice, Showa will implement a $2.00 per hour “Staying Bonus” for production workers. We are offering this bonus and severance package to help you and the company make the transition.* This bonus will be paid out the time of layoff. Severance pay for hourly production employees affected will be as follows:
1-5 years service 2 wks pay
6-10 years service 3 wks pay
11-15 years service 4 wks pay
16-20 years service 5 wks pay
21-25 years service 6 wks pay
26-30 years service 7 wks pay
31+ years service 8 wks pay
Jeffrey Richardson Director of Operations said Showa will be available to discuss options as well as placement. “We thank each of you for your loyalty in contributing to Menlo Production all these years, Glenda and I along with your supervisors are available discuss this transition with each of you. We appreciate your contributions and your loyalty.”
* Employees who do not remain until layoff will not receive the hourly Staying Bonus or the severance pay