It is reported that for the second time in a year, employees at United Spiral Pipe in Pittsburg face job cuts or reduced hours due to sluggish orders for the East Bay steel mill.
The company has filed an official notice with state labor officials to cut up to 83 employees out of approximately 100. That doesn't mean all these jobs will be lost, though.
Mr Michael Connally manager of human resources with United Spiral Pipe said that "A decision has not been made yet about layoffs. There is a potential of layoffs based on business conditions."
Mr Connally said that "We didn't lay off anyone. But we reduced the hours and kept people."
Mr Connally said that "Business has yet to improve. The entire pipe industry is facing pretty much the same thing."
Mr Connally said that "We have had some attrition, some positions that we have chosen not to fill. We have a lot invested in these people."
In December 2010, the company disclosed it was planning to lay off about 110 employees. But while those employees were able to keep their jobs, they didn't escape unscathed. The company cut their hours in January from 40 a week to 32, effectively a 20% pay cut. The company said it would rather avoid layoffs, and preferred to cut workers' hours instead. At the time United Spiral opened its doors, it employed roughly 150. The company now has about 100.
Local government officials have reached out to United Spiral to see what sort of training could be offered to anyone who loses their job permanently.
Workers also could participate in a state Employment Development Department program called work sharing. Under this program, employers could participate by keeping all workers on the payroll, and instead reduce their work week. Employees would be eligible for work sharing benefits similar to unemployment insurance, but pro rated based on the reduced hours.
Mr Stephen Baiter, executive director with the Workforce Development Board of Contra Costa County said that "Individuals could receive a portion of their unemployment insurance to compensate for the wage loss."
The USD 135 million United Spiral plant opened in late 2009 amid hopes the factory would be a counterpoint to the sour economy. But the difficulties this year are a reminder that the Bay Area's economic ailments linger.
(Sourced from www.contracostatimes.com)
