Snap-On Tools closing Newmarket facility

[Porcupine]

Hey Guys,

Just saw this through the news although it is a few days old:

Snap-On Tools closing Newmarket facility

More than 100 people will be looking for employment come April.

Snap-on Tools Company LLP is closing its doors, leaving 116 employees out in the cold at the end of April.

Employees of the manufacturing facility at 145 Harry Walker Pkwy. N. that produces tool storage units for the vehicle repair and industrial markets, were called into the cafeteria this afternoon and told the plant is packing up and moving to the United States, according to an employee who asked not to be named for fear of losing his severance pay.

"We were all told to go home. Some have been working here for over 30 years," he said.

"There was no warning. It's quite a shocker and it's really upsetting."

This announcement will leave some families stranded as the facility employed multiple members of families, including husbands, wives and children, he added.

"I don't really understand because we were busy and seemed to be doing well," he said.

"Well, we all have no choice but to look for work elsewhere now."

Snap On Tools spokesperson Rick Secor confirmed the facility will close after April 29 as it is consolidated with a similar tool box manufacturing facility in Algona, Iowa.

It's a business decision based on rationalizing tool box facilities, he said.

"We don't need two identical facilities in North America."

Many factors were taken into consideration in making what Snap-on Tools president Chris Potter said was a difficult decision.

"This plan in no way reflects on the quality of our Newmarket associates or on the support of the Newmarket community," he said.

Snap-on Tools has production plants throughout the United States and Canada employing more than 3,000 people worldwide.


Taken from http://www.yorkregion.com/news/business/article/933374--snap-on-tools-closing-newmarket-facility

 

[briggsguy17]

Wow!! They are actually MOVING production to the USA?!?!? Don't see that very often!

 

[Davefr]

Good for SO to embrace more USA manufacturing!!!

 

[48548]

Lets hope the new stuff made here says "MADE IN THE USA"

 

[Theloniousmonk]

I don't see how this is "embracing" anything - other than reducing costs during a slow economic time. The Iowa plant has existed for quite some time, like decades... I'll hold off judgment until I see 50+ positions open up in Algona...

 

[Boiler]

Though it seems great that they're going to be consolidating business inside the USA, still ***** that they just said "get lost" to all if their workers in Canada.

 

[sk farmer]

i see nothing good about 100 of our canadian friends out of work. lay off whoever is making that blue point import line and move it back here and you will have something good to say.

 

[noid]

I agree, a bunch of tools in here (no pun intended). Theres nothing good about Canadians out of work, as if Americans deserve it more, a Canadian thats been working at a plant for over a decade deserves the job more than a newly employed american.

At the end of the day business is business, its nothing personal.

 

[mrholeshot]

Thats pretty cold how they went about it. While it's good to see some kind of production come to the USA I'm sure you won't see anymore jobs open up in the US plant. Just to call in three generations of families and say "Youre screwed" just doesn't sit good with me. I guess even in Canada that US business practice is alive and well. Really sad

 

[Theloniousmonk]

Thats pretty cold how they went about it. While it's good to see some kind of production come to the USA I'm sure you won't see anymore jobs open up in the US plant. Just to call in three generations of families and say "Youre screwed" just doesn't sit good with me. I guess even in Canada that US business practice is alive and well. Really sad

While not knowing the full story, and just taking the article at face value, I'm a bit unhappy too. I'll rant and say it surprises me that a company that caters 90% of their business to "blue collar" would go about laying people off in such a manner... People tend to define their life, right or wrong, based on their employment. Working at a company like SO, having pride in making a superior product, for 30 years can cause a nervous tick when you get let go with such short notice.

 

[route246]

There are multiple factors that go into this kind of decision. I think the thing that sticks out in my mind is that they are apparently keeping production in North America, more particularly in the USA. I suspect "Made in USA" has more cachet to them than "Made in Canada" and may have also contributed to this.

 

[chadster1]

Thats pretty cold how they went about it. While it's good to see some kind of production come to the USA I'm sure you won't see anymore jobs open up in the US plant. Just to call in three generations of families and say "Youre screwed" just doesn't sit good with me. I guess even in Canada that US business practice is alive and well. Really sad

How were they supposed to go about it? According to the article, the plant will be open until April 29. That is almost three months notice and there was mention of severance pay as well.

 

[mrholeshot]

There are multiple factors that go into this kind of decision. I think the thing that sticks out in my mind is that they are apparently keeping production in North America, more particularly in the USA. I suspect "Made in USA" has more cachet to them than "Made in Canada" and may have also contributed to this.

If that were the case they wouldn't be taking USA off the tools. I never had a problem with a Made in Canada toolbox. I'm sure it was a business decision based on slower toolbox sales but to just ruin peoples lives in an instant is pretty cold. I'm sure out of 116 people at least 10 just bought a new car, truck or home.

 

[GTO]

Lets hope the new stuff made here says "MADE IN THE USA"

Oh boy,here we go !!!!

 

[mrholeshot]

How were they supposed to go about it? According to the article, the plant will be open until April 29. That is almost three months notice and there was mention of severance pay as well.

Yeah, little diffferant. I read this and my blood began to boil. Seems as though the rest of the story slipped my mind. Sorry my mistake

"We were all told to go home. Some have been working here for over 30 years," he said.

"There was no warning. It's quite a shocker and it's really upsetting."

 

[Roots]

It's pretty sad, to hear that all of those families will be losing their jobs.

 

[Underdog]

I don't think I saw where they are moving "ALL" production to the US. To me Made in Canada is just as good as Made in the US.

 

[Rickster]

Thats pretty cold how they went about it.

There is no loyalty, there is no "family" in business. Those are buzz words thrown out in team building meetings and year-end reports. You are just an account, a number on their cost ledger that can be eliminated if the cost analysis proves it beneficial to the company’s bottom line. Been there, got the T-shirt and the tire tracks across my back.

 

[48548]

Oh boy,here we go !!!!

On a better note my kra-300f was made in canada and so was my 95 f-bird formula and my silverado because both have a vin 2 to start with which stands for canada.

 

[scott37300]

Plant closures **** weather in US or Canada. In snap ons defence I would rather see them merge two plants to save some money than to out source everything overseas to save money. Sometimes plant closings have to happent, I can't even begin to count all the jobs lost in my area due to paper mills closing.

 

[route246]

Those of us who have been laid off understand this fully. It is a business and employees are employed at will. We can leave at any time and they can discharge us at any time. It is very unfortunate when any of us loses a job. It is most often a traumatic and unpleasant experience. I've changed jobs a number of times and luckily, all but one was my choice. The one that wasn't sticks in my craw but it was a business decision to close down a research and development operation and there was very little any of the 400+ of us could do about it. I moved on and I benefited from it. Some of my former co-workers did not. Snap-on is a rare company that benefits from "Made in USA" because the same cannot be said for many other sectors of the economy. I'm not sure what I would think about a TV set if it were made in the USA today. I probably couldn't afford it, for one thing.

There is no loyalty, there is no "family" in business. Those are buzz words thrown out in team building meetings and year-end reports. You are just an account, a number on their cost ledger that can be eliminated if the cost analysis proves it beneficial to the company’s bottom line. Been there, got the T-shirt and the tire tracks across my back.

 

[PCO6]

I drive by the Newmarket Snap-on plant almost daily and it's very sad to see that it will be closing. It's a large facility in one of the Town's better industrial areas. We have about 40,000 jobs here in Town and some sectors are growing so I'm hopeful for the people that will be out looking.

It's somewhat ironic that I bought a mid 60's Snap-on roller cabinet last week to match my top chest of the same vintage. Both have "Snap-on MADE IN CANADA" stamped on the back.

 

[killerb87]

more jobs here is a good thing fellas. if they were moving jobs here from Mexico i dont think anyone would have a single bad word to say. i do feel for them, but we need jobs here badly.

 

[Monte]

everybody needs jobs....

 

[Hammer1963]

Killerb87 and Monte are both correct. We all need jobs and no one wants to see any person that any of us can relate to be affected. My family has been bitten several times by UAW actions and we all seem to keep on rolling. I myself have 2 Snap-on tool carts made in that Canadian plant and 3 roll carts made in the USA. Both good products, but would you rather have the US plant close..............probably not

 

[matthew]

It's about quality of jobs, and in that case I tend to take the view that it's always a shame to see long-time employees displaced.

As to how it was done, there is no particularly good way to shut down, but generally I think there is something to be said for a couple of rounds of less dramatic layoffs and scaling back before dropping a bombshell - it does prepare employees mentally for it, as well as makes them a little less likely to have just made major purchases and finding themselves in a jam, as someone mentioned already.

 

[chadster1]

It's about quality of jobs, and in that case I tend to take the view that it's always a shame to see long-time employees displaced.

As to how it was done, there is no particularly good way to shut down, but generally I think there is something to be said for a couple of rounds of less dramatic layoffs and scaling back before dropping a bombshell - it does prepare employees mentally for it, as well as makes them a little less likely to have just made major purchases and finding themselves in a jam, as someone mentioned already.

And who is to decide which employees get laid off first.

 

[matthew]

And who is to decide which employees get laid off first.

Labour agreements would likely dictate that, which may or may not help... But in any case, my point isn't that the affected employees wouldn't still be hurt or wouldn't blame management for the decision, just that they tend to be more ready to accept a decision they've seen coming, and can move on.

 

[GeorgiaHybrid]

I'm sure that a bunch of on here have been laid off or have had a plant close that we were working at. It's not pleasant for either side but I will admit, they are going to finish up and close at the end of April and get severance pay in addition to that. I had a LOT worse and even in the better situations, nothing that was done as nice as this.

The worst was the day we got our last check and a notice they were closing at the same time. They gave us that afternoon to pack our stuff and we were gone. No back vacation pay, no severance pay, not even a kiss my a$$. That one sucked.

Any company right now is having to make very hard decisions that affect the lives of workers and suppliers. Not all are nice but it comes down to staying alive or going out of business.

 

[vssjim]

I read the statement and I did not see anything about putting in any new workers in Iowa just closing a plant in Canada and making those products in Iowa. Most companies would have said your job will be there in Iowa if you want to move but I didn't see that. I also think alot has to do with the US and Canadian money now being close to the same so no money to be made on dollar exchange with Canadian made goods like in the past.

 

[Skin]

more jobs here is a good thing fellas. if they were moving jobs here from Mexico i dont think anyone would have a single bad word to say. i do feel for them, but we need jobs here badly.

They arent making more jobs, they're consolidating production into a facility that already exists.

Any company right now is having to make very hard decisions

I'll never feel sorry for a company that makes hundreds of millions of dollars.

 

[Cougar67]

That's very sad for the families involved. The good news for Canadians is their unemployment rate is 7.6 % v. 9% in the U.S. Canada added 69,000 jobs in January 2011 v. 36,000 jobs added in the U.S. I'm hoping the laid off workers find something quickly. It looks like they have a better chance in Canada than here.

 

[GeorgiaHybrid]

I'll never feel sorry for a company that makes hundreds of millions of dollars.

I didn't say to feel sorry for them, just that they are making hard decisions. The companies are responsible to the shareholders (in this case Snap-on is a publicly traded company) and that might affect your 401(K) or other retirement fund.

Another thing to remember is that a company is not in business to give someone a job, they are there to make money. If they can not turn a profit, they will close it down.

 

[joemh22]

That ***** for the people that work there. Hate to hear about anyone losing their jobs.

 

[impulse922]

probably has something to do with the exchange rates as of late too.

 

[King Bojack]

Job loss anywhere is undesireable. I guess the silver lining for them is they get to keep their health insurance as opposed to US lay offs. Any word on any kind of severance package?

 

[diesel research]

The USA is a good source of cheap labor right now. Read about "back shoring".

 

[chadster1]

I'll never feel sorry for a company that makes hundreds of millions of dollars.

Companies are supposed to make money. It's the reason they are in business.

 

[thrifty bill]

Yeah, little diffferant. I read this and my blood began to boil. Seems as though the rest of the story slipped my mind. Sorry my mistake

"We were all told to go home. Some have been working here for over 30 years," he said.

"There was no warning. It's quite a shocker and it's really upsetting."

Sounds to me like they sent everyone home with pay, rather than risk having distraught and distracted employees attempting to do their job. Sounds like the humane, safe, and prudent choice to me.

I have been on both sides of such announcements in my working career. I can tell you no one can focus on work after such an announcement. Sending people home "WITH PAY" is the right approach.

Since they are giving three months notice, and severance pay, I am assuming they are going to give them pay for a few days to recover from the news, then return to work, complete inventory, and shut down.

"There was no warning", having been on the management side of some of these, anyone giving any warning risks losing their job and severance pay as well. Its a difficult situation.

 

[killerb87]

They arent making more jobs, they're consolidating production into a facility that already exists.



I'll never feel sorry for a company that makes hundreds of millions of dollars.

unless they didnt need any of that Canadian production they will still need someone to produce what they did in Canada. Consolidating saves snap on facility costs, thats a huge savings. they will have to ramp up production to meet what the Canadians were producing somewhere which means more jobs or at least overtime for the american workers. the only question is were sales so low that they dont need to increase production. who knows.