Adam Huening, Greensburg Daily News
The local Delta Faucet Co. plant is reducing the number of people streaming through its doors.
Effective today, 53 full-time employees and 17 temporary employees will punch their time cards for the last time as another mass layoff sweeps through the factory. According to a statement released Tuesday, this recent reduction is based on the floundering real estate market.
"The housing market has been down for some time with a resulting softness in orders for our products. Housing starts were down 12 percent in 2006. Projections for 2007, and the cutbacks by major builders and others, indicate a continued downturn. This reality has caused the company to take the unfortunate action of reducing its full-time workforce," the statement said.
While employees will have "callback rights" for "a period of time," it all depends on the market, according to Greensburg plant manager Roy Howard.
"There is the possibility of a recall but that all depends on re-starts and the housing market," Howard said.
This recent cutback comes on the heels of another series of changes in late December. In an e-mail dated Dec. 21, 2006, Howard announced the reduction of temporary employees as well as a number of shifts and department changes that effected 59 workers. At the time, the company was looking to tighten the ship, according to Howard's e-mail.
"These changes are being made to make our plant and our company better and stronger, helping us face the challenges that lie ahead," Howard wrote. "This is a difficult situation for all of us, especially during the holiday season."
This latest round completely eliminates temporary employees from the building, according to Howard. With the recent reduction, Howard hopes the business will be better suited to compete.
"Unfortunately, these moves must take place to ensure we are a viable option in the industry of faucet sales," Howard said.
Despite the layoffs, Howard said people should not harbor any fears the factory will close its doors for good.
"Delta Greensburg is key to the Delta operations," Howard stated. "There has been no discussion of closure and there is no planned discussion of closure. The intent is to be key in the production of Delta faucets."
In addition to the Greensburg plant, 27 full-time workers will also be laid off at Delta's other facility in Jackson, Tenn.
According to Americasgreatestbrands.com, Masco Corp., Delta's parent company, was started by an Armenian immigrant, Alex Manoogian, who came to Detroit in the early 1920s with a suitcase and $50. After founding Masco Screw Products Company, with two other partners in 1928, a designer brought him an idea for a single-handled faucet. After trying to sell the design to other faucet companies, Manoogian sold faucets out of the trunk of his car. In 1954, the Delta Faucet company was born, and the first factory opened in Greensburg.