Union official discusses Mohawk layoffs

Lewis Dishmon, president of the local Workers United Union in Rockingham County, recently spoke about layoffs at Mohawk Rug Mill in Eden.

It was announced in December that Mohawk Industries would be laying off 140 workers from its Eden plant. Dishmon said there were rumors for a while, but workers were officially notified around Dec. 15.

Company officials did not return repeated requests for comment.

“We had heard rumors for a while that they would be downsizing the place, but we had no idea it would be the number of people we actually lost,” Dishmon said. “This not only affected the regular workers, but also the executives – they took a hit, too.”

The number of people who were laid off triggered the Worker Adjustment and Retraining Notification (WARN) Act, which gave workers a 60-day notice of the planned layoffs. Dishmon said workers were offered severance pay ranging from $4,000 to $7,000 and were given two months of free health insurance.

“This is the first time anyone here has received any type of severance package for being laid off,” Dishmon said. “I think the company has done the best they can during this downsizing, but it’s hard to call the numbers fair. I’m laying off some people who have between 30 and 40 years in this place. How do you say $4,000 is a fair amount for 30 or 40 years of service?”

Dishmon attributed this large downsizing to the state of the economy, foreign competition and the amount of foreclosures in the area. He also said the Karastan name brand, one which is manufactured in Eden, is top of the line in quality. Cheap imports create competition and some consumers can’t meet the price guidelines for the product.

Because of this mass layoff, many workers will be forced to collect unemployment and start a job search. Dishmon said some workers at the plant, like mechanics and those in electronics, have skills which are transferrable to other jobs. He said most skills that are used to make the rugs don’t transfer to many other local industries.

“We’ve been fortunate to place some of our workers with Miller Brewing and some other local industries,” Dishmon said. “Good mechanics and electricians are always in demand. They do fairly well in any type of economy.”

Dishmon said the future of manufacturing in this area doesn’t look promising. He said there are a few smaller textile industries left, but most are being outsourced for cheap labor.

“When a plant closes with that number of people, it not only hurts the unions, but it hurts the people in that community,” Dishmon said. “It hurts the tax base as well as the City of Eden. The unions are suffering a loss, and it’s felt all over the community.”

There are more than 50 workers who have recall notices. If there is work within a year’s time, they will be called back to their jobs before the company goes outside to hire. Dishmon said with current business conditions, it seems unlikely that this will happen.

The Workers United Union is an affiliate of Service Employees International Union, which is one of the largest unions in the world. It represents more than 2.2 million employees.