News
Wheatland Tube in Sharon to lay off 75 people
Wheatland Tube officials confirm they will halt operations at their Sharon facility by the end of August.
Monday, June 29th 2015, 5:57 PM EDT
Updated:
Wheatland Tube officials confirm they will halt operations at their Sharon facility by the end of August.
"Layoffs are never a good day and I think our first concern is for the workers and their families," said Sharon council president Ed Palanski.
Company officials blame surging pipe imports on the indefinite shutdown. Division president Mark Magno says imports have increased by 68% over the course of the year. Business consultant and Westminster College professor Bob Vucenovic says he isn't surprised.
"I buy that argument that we have to halt production because of these foreign imports," said Vucenovic. "These foriegn imports are unfairly being dumped into the United States. It is not the fact, it is not an issue that they make a better, cheaper product. I refuse to believe that. That is in no way possible. We make as good or if not a better product. We are highly automated. They are, however, allowed to dump based on the fact that they've greased the politicians."
As a result of this most recent surge in imports, Wheatland Tube will lay off 71 hourly employees and four salaried employees. Palanski says the layoffs pose a concern to the city's finances.
"The first is the emergency services tax. That is pretty straight forward. It is 54 dollars for every employee that is laid off," said Palanski. "The other thing and it is a little more difficult, how many of these workers live in the city of Sharon. Our earned income tax rate is 1.75% and those laid off workers we will lose that income that."
Wheatland Tube says when unfairly traded imports enter the market, production levels and consequently staffing levels will always be impacted. Calls to the United Steelworkers union have not been returned.