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Square D to lay off 31 workers

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By the Lincoln Journal Star

Friday, Nov 21, 2008 - 06:15:16 pm CST

Square D employees were informed Friday that 31 people will lose their jobs at the plant as of Jan. 5.

Plant Manager Mark Henning sent an e-mail to all plant employees Friday explaining the situation. He said a forecast from the company’s sales and marketing group showed “a significant reduction in volumes across the residential circuit breaker business.”

“This reduction in business also means we are faced with the unfortunate need to adjust our staffing levels to align with the 2009 business levels,” he wrote.

Story Photo
A worker keeps track of the quality control of the automated production of circuit breakers at Square D in this Dec. 23, 2002, file photo. (LJS File)

Henning, who started at the plant only a couple of weeks ago, could not be reached for comment.

Jerry Gulizia, president of Local 2366 of the International Brotherhood of Electrical Workers, said the union’s contract allows people to volunteer to be laid off. After that number is determined, he said, the company will then involuntarily lay off workers with the least seniority.

Henning’s letter said more information on the layoffs would be made available to employees on Monday.

Gulizia said business at the plant, which makes circuit breakers, has been down for some time, and employees have been working short weeks.

Square D, which is owned by French company Schneider Electric, has had several job cuts since 2002, when it employed about 700 people.

As of Friday, Gulizia said there were about 260 union workers at the plant and an undisclosed number of salaried employees.


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George wrote on November 21, 2008 5:25 pm:
" Brace yourselves, the storm is going to rage thru Lincoln. This is only the beginning of the job loses. After the 1st of the year some of Lincoln's largest manufacturing facilities will begin to cut staff. If the automakers cannot turn it around soon....I don't even want to think about it. "

Doug wrote on November 21, 2008 6:30 pm:
" Talk about your paranioa. See what happens when they elect a Democrat president? "

Kay Jay wrote on November 21, 2008 6:35 pm:
" The storm is going to rage through the union shops. Plain and simple. Inflated labor costs will and has led to the Big Three's problems. "

whatever wrote on November 21, 2008 8:20 pm:
" It has nothing to do with a Democrat president. I would suggest an education. But "George" is correct. The number of layoffs in the last week in Southeast Nebraska that I am aware of that are NOT being reported is at least 5 times this number. And it's more than companies with "inflated labor costs". I'm sorry but some of the posters and the JS seem to be very naive` we are looking at unemployment figures by years end in excess of 8 percent. Just the layoffs announced nationally this past week easily push the number to well over 7 percent. If the Big 3 go down it's 15 percent by the end of March 2009. Even without a Big 3 debacle unemployment at the very least will be 15 percent by year end 2009 and likely much higher. This is a meltdown that's moving much faster than even I anticipated. Forget the Arena in Lincoln it ain't gonna happen. Pure and simple it's gonna be "can I find something to eat today". "

tp wrote on November 21, 2008 8:41 pm:
" Doug wrote on November 21, 2008 6:30 pm:
" Talk about your paranioa. See what happens when they elect a Democrat president? "
--------------------------------------------------------------------

We did elect a democrat President, thank god. What do you want 4 more years of Bush. I don't think so. We lost to many jobs to china already. four more years of a Republican in the white house and there will be no bobs left in the us only Rich CEOs "

cant help but wonder wrote on November 21, 2008 8:47 pm:
" I read in alot of comments about the inflated wages and benefits. I would just like to know what people would consider a proper wage and benefit package. "

mike wrote on November 21, 2008 9:10 pm:
" its not the unions fault, blame the money grabbers with there big bounises. the unions help prople have a liveing wage. not 7.00 a hour so the ceo can make big bucks. nafta did it to us "

Dan wrote on November 21, 2008 9:20 pm:
" Owned by a French company? Well, there you go. That is your problem. "

What wrote on November 21, 2008 9:44 pm:
" What, Doug? Paranoia? What does a president have to do with circuit breaker sales? Sheesh. I'm not an Obama lover, but that comment was completely irrelevant. People need to stop blaming everything on the president! "

Gee wrote on November 22, 2008 4:57 am:
" I see that Doug forgot about how many Square D jobs were lost in Lincoln in the last 8 years and transferred out of the country. Are these job losses due to Obama's election? "

Fred wrote on November 22, 2008 7:31 am:
" Forget about the President. I didn't vote for him but we have nothing to gain if he fails. It's the Congress that is to blaim for where we are. Democrats and Republicans alike. They are all idiots and so are we for electing them. "

They make circuit breakers wrote on November 22, 2008 7:35 am:
" This is probably caused by the melt down in housing. The fault?? People who did not put a penny down on a house, the real estate broker who talked them into it, the banker who loaned without sufficient collateral, who just passed the loan onto Freddie and Fannie, and our lack of regulation covering such bad loans. "

Get real wrote on November 22, 2008 8:05 am:
" Do you really think that these problems just started on November 4 when Obama was elected President? I'm just glad it won't be 4 more years of Bush or McCain. "

Whos next wrote on November 22, 2008 8:59 am:
" Soon to be announced. NEBRASKA closed for business.
Caution, this may be happening sooner than you think. "

Inside Guy wrote on November 22, 2008 9:40 am:
" It has nothing to do with a Democrat President or Inflated labor costs. It just pure and simple there is no work, circuit breakers for residential homes are based on demand and its pretty clear that the housing industry it getting hit hard with new home sales way down. This is just the beginning of it and soon the commercial industry will get hit hard also, I do agree this storm is just starting and faster than I thought also, there will be a trickle down effect that will cripple this city so I also agree forget the Arena in Lincoln. Right now people are thinking about how to get through until the economy makes a turn around which could be a long time. I think you will see cuts being made by the working class that will effect most businesses from the Mom & Pop specialty store to the service industry and much more. Owned by a French company, yes this is a problem and they are dealing with their own economic problems also. When manufacturing plants in Mexico that pay very low wages start shutting down production its not due to over paid workers and benefits, again it goes back to demand of the product. More attention should be placed on the CEO's and the bonus packages and bail outs they will be using to jump ship from sinking company's. Everyone needs to start looking at this crisis and plan for the worst and hope for the best... "

mike H. City of Lincoln wrote on November 22, 2008 9:45 am:
" good news for those being laid off at square D with the opening of the 3rd walmart in Lincoln they are still hiring for positions at the new store thank god Lincoln has walmart god bless you walmart for holding this city together "

huh wrote on November 22, 2008 9:51 am:
" What does this have to do with the new presidency? Square D lays off all the time and turns around and rehires. What I can't figure out is why lay off the ones with the least seniority? Lay off the workers with the lowest performance and some of the door knobs that have job security just because they have been showing up for the most amount of time. Why keep the bad workers? Thats where the efficiency is low. You are not utilizing your 6 sigma!! "

Jimmie Hoffa wrote on November 22, 2008 9:57 am:
" Mike, you are somewhat correct when you say it's not the union's fault, but they play in to part of it. Unions did have a place in time and unfortunately that was 50-100 years ago. The only things unions do these days are protect the sub-par worker and increase labor costs above their actual market value. "

Union shops wrote on November 22, 2008 12:05 pm:
" I've been on both sides of employment in a union shop and I'm telling you straight out that the unions really hurt business. Obviously, bad business decisions hurt business, but the inflated wages and bene's have to be passed on - and that's a bad decision in a competitive market. #3 on the list is these people working in a union shop that don't live within their means. New cars, new houses, this and that, and you're split decision away from seeing it evaporate over a solid oak meeting table in a big room - why - because businesses are in business to make money. Not make circuit breakers, not to make cars...to make money. If they can't make money they are out of business and on to the next money making widget adventure. IN BUSINESS TO MAKE MONEY. That's it. For those of us (myself included) who think these places owe us jobs and a paycheck because we come to work everyday and we have houses and cars, etc... wake up. Wake up, tighten up, make better decisions for your family. We are not in survival mode, and that includes the business men and women whom we have depended on for decades. It's over. Be grateful for what you have and make plans for tomorrow. Some of these same people who will lose their jobs have hated their jobs for years, stole time/money from the company, abused the union system and so on, AND, when the company will pay for your school they decide they don't need to get any further education because they're making $$/hr. and that's "good enough". "Good enough" is not sitting at the bank for sale. Make better decisions people and be responsible and grateful for everything. We'll make it...but it'll be an eyeopener. Gather your family and be grateful and make better decisions for tomorrow. "

i agree wrote on November 22, 2008 4:14 pm:
" I agree with Union Shops. All this doom and gloom and blaming everything on everybody. Ridiculous. Everyone needs to take responsibility for themselves. But I do agree that the government, which has been out of control helping the rich get richer, needs to take a stand and help the workers that make the products, which, in turn, people buy, it's all related. We all play a part. "

AStar wrote on November 22, 2008 7:08 pm:
" Tough times for everyone. Godspeed to all. "

Working Together wrote on November 22, 2008 8:18 pm:
" Just so you know those of you that continue to thing that Union wages and benefits are the reason a company like Square D is laying people off, you are wrong. Actually the Union and the Company work together to make improvements and create the best possible quality product in a cost effective manner while making the profit needed to be number one, doing what other company's have failed to do, create a Quality Product Made In The United States. Lay offs are needed only to adjust for changes in the market, if new housing was up and existing houses were being updated the headline in the LJS would have been Square D increases work force. "

Dan wrote on November 22, 2008 8:44 pm:
" You can complain all that you want about Republicans or "W" for that matter. It will not change the fact that we are in a "GLOBAL" economy. (Remember your good buddy, Bill Clinton?....he passed NAFTA) A major problem with the Big 3 is the bloated salaries of the union workers. Japanese assembly line workers make less than the US. And Korean assembly line workers earn less than the Japanese. "

The Good Life wrote on November 23, 2008 9:27 am:
" The good life, but wait, there will be so few left to experience the good life, that all of the sudden in 10 years the good life will become, the life that was good but know is tough. "

Broke but still working.... wrote on November 23, 2008 10:37 am:
" The union took a 20% cut in wage and benefits in the 3 year contract 2005-08 to keep the company out of Mexico. In September of 2008 we signed another 3 year contract with a 2% wage raise but the benefits ate that raise up.

I hope Obama can turn this ecomony around! "