Freeland losing 225 workers

Hazleton Times // News

November 3

Garland Commercial Industries is expected to shut down in mid-2010.

By Andrew M. Seder aseder@timesleader.com
Times Leader Staff Writer

FREELAND – About 225 employees at Garland Commercial Industries, by far Freeland’s largest employer, were told Monday that Garland’s parent company has decided to close the manufacturing plant on July 1, 2010.

Wisconsin-based The Manitowoc Co., which purchased Garland last year, made the decision based on consolidation plans and the poor economy.

The Freeland plant manufactures commercial ovens, griddles, grills and commercial counter-top cooking equipment for restaurants, hotels and institutions. It opened in 1974 on South Street and expanded in the 1980s.

Peter MacFarland, Garland’s vice president and general manager, said employees were informed Monday morning and were allowed to go home at noon “because of the disappointing news.” He said the second shift was told they could take the day off. But all workers will report to work today, MacFarland said.

Dennis Rooney, Manitowoc’s vice president for human resources, said a “several month review” led to the “painful but necessary decision” that was announced Monday.

He said expansion and consolidation were looked at but the Freeland plant lacked room to grow and the decision was made to close it.

Manitowoc will be transferring production of its Garland branded products from the Freeland facility to other Manitowoc facilities across the country, according to Rooney.

Freeland Mayor Tim Martin said the loss of property taxes and earned income taxes equals about one-fifth of the borough’s operating budget.

“That hurts,” Martin said. “This is something that affects more than just Garland workers and their families.”

He said it also affects borough businesses.

“You don’t realize the loss until you think about it. How many of the local restaurants do those workers get their lunch from every day?” Martin said. He pointed out that Feussners Ford, right across the street from Garland, was a place workers could drop their cars off for service, walk across the street to work, then walk back at the end of the day to get their vehicles.

“A lot of local businesses are going to be impacted by this,” Martin said.

He said he plans to gather company officials and economic leaders to see if they can start marketing the plant to other manufacturers in an effort to keep some of the jobs in town.

“We’re 15 miles from three major interstates,” Martin said. “I’d love to see if we can get some kind of industry back in there.”

Rooney said it’s too early in the process to begin making plans for the future of that facility.

He said meetings will be held today with employees to discuss potential positions within the company or to help prepare them to move on to other companies. He said the decision to tell employees about the closing nearly eight months in advance was “the humane side of it.”

“We don’t want to cheat employees that way,” he added.

Manitowoc, which makes cranes and foodservice equipment, reported sales of $881.5 million for the third quarter of 2009, 20 percent below $1,106.8 million in the third quarter of 2008. The company blamed most of the decline on a 52 percent slide in sales at its crane division.

Andrew M. Seder, a Times Leader staff writer, may be reached at 570-829-7269.

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12 Reader Comments

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Philip G. Pizano said...

How may of these people are eligible for Retirement? Poor Economy or Corporate Greed? They are not going to find a better worker than the one's in Pennsylvania. What Country they going to? Get rid of the Cranes not the People.

November 3, 2009 at 3:58 AM

Rob said...

This is clearly the result of Unions and Liberal Democrats forcing companies to move on in order to be competitive. Why don't people understand this? A fair wage for a fair days work.....not original but factual. Look what Liberal Democrats, strongly supported by Pennsylvanians, are shoving down our throats now!! Wake up folks....

November 3, 2009 at 7:01 AM

Tony (the rat) Pepperoni said...

Simple solution, just create 225 more no show jobs in Loser-n county government. Might as well, everyone else works there.

November 3, 2009 at 8:22 AM

sahm said...

Glad to see the government is doing everything in its power to help businesses like these. Putting a toll on route 80 will help them even more. WAKE UP PA. This is your future knocking.

November 3, 2009 at 8:49 AM

Scott G said...

This company told their employees over 2 years ago they were closing! This is old news. But bad news anyway, too bad the politicians didn't care about another company folding and leaving good ole PA.

November 3, 2009 at 10:03 AM

Rob said...

Its sad to hear another company with well paying jobs has left the area. The politicians better wake up and make job creation their #1 priority. Attracting businesses with "family sustaining wages" is key to any form of recovery in this area.

November 3, 2009 at 10:25 AM

DrDaddy said...

Job creation is partly the job of politicians, but it's also our own responsibility. Most of us have the ability to be creative entrepreneurs, spotting needs in the marketplace, and developing businesses that solve those needs. We as consumers can also help regional economies by purchasing locally-produced goods and services whenever possible. The solution to our problems often begins with the person in the mirror.

November 3, 2009 at 11:01 AM

Steve Williams said...

Don't worry the chosen one will take care of you!

November 3, 2009 at 11:02 AM

george said...

We were led by elephants the last 8 year's with "DUMBO" as our leader, what did it get us, the mess we're in today. Its amazing after screwing up the country the last 8 year's how amazingly intelligent they've become in such a short period of time. They now seem to have all the answers !

November 3, 2009 at 11:57 AM

Ted Link. said...

Scott G is totally correct. The politicians, both parties, could care less about plant closings and layoffs. After all, they, the politicians will continue to keep their well paid and fully benefit paid jobs, at the local, county, state, and national level. Man, have we ever been had!

November 3, 2009 at 5:07 PM

Ziggy said...

DrDaddy, If I were a creative entrepreneur, I would not consider Pennsylvania for a startup, PA is one of the most business- unfriendly states in the country. That's the result of our corrupt politicians and the country's largest and most worthless legislature, and the people who continually vote for them. So ultimately, yes, we are to blame.

November 4, 2009 at 1:10 PM

Rob said...

Scott G, the announcement was made Monday, not two years ago. The parent company did not own them two years ago. George, this is a direct result of OBAMA and his failed policies. one year ago is ancient history in business terms. Do your homework, or keep your mouth shut. Again, my heart goes out to those losing their jobs. Been there.

November 5, 2009 at 2:01 PM