Several out of work after apparent closure of Phillips Manufacturing plant in Niles
Several employees are out of a job following the apparent closure of a manufacturing plant in Niles.
Several employees from Phillips Manufacturing on Walnut Street in Niles have told 21 News they have been terminated following the closure of the facility. According to the company website, Phillips makes products for the drywall and stucco industry.
Mark Murray, staff representative for United Steel Workers local 1375, told 21 News employees had received a text message at 6 a.m. Wednesday telling them to come to a meeting at 11 a.m. At that time, they were told the plant was closing.
Murray stated that his union had been meeting with the company once a month. Although some shifts were reduced, a total shut down was unexpected.
"We asked if they were going to think about layoffs at any time, and they said 'No, that they weren't'." Murray said.
Many employees from Phillips Manufacturing are now relying on Trumbull County Job and Family Services for help.
Jesse Youngblood was hired at the facility six months ago and expressed his frustration with the company.
"Why didn't they just tell us...listen 'It's no longer profitable for us. We're going to give you guys this amount of time to get your affairs in order'. That would have been more understanding. That would have been a better thing, instead of shutting all of our families out a job," Youngblood said adding, "Now, we got to figure out what to do. We got to sit down here at [the Trumbull County Job and Family Services] building for hours on end just to come up with pennies on the dollar from what we was making in an area where it's already tough to get by."
Phillips Manufacturing has since released a statement to 21 News saying the decision was made to close the Niles location after "extensive discussions and analysis of [its] financial situation and market trends."
"Unfortunately, despite our best efforts, continuing operations at this location is no longer sustainable," the statement reads.
The company says it is working with its employees to ensure a smooth transition by offering career transition workshops. In the meantime, severance packages are being offered to all displaced employees.
Phillips Manufacturing is a company based out of Omaha, Nebraska. In addition to the Niles location, the company also has sites in Phoenix, Arizona, Tampa, Florida, Umatilla, Florida and Sacramento, California.
It is unclear if any of these other locations are closing at this time.
Niles Mayor Steve Mientkiewcz told 21 News that he was devastated by the closure, as the company did not inform him beforehand.