Simmons factory lays off 52
Podcast Episode
Kyle Geissler talks with Janesville Gazette business editor Jim Leute about layoffs at the Simmons bedding plant in Janesville.
JANESVILLE A continuing downturn in the U.S. economy has forced the layoff of 52 workers at Simmons Co. in Janesville.
The workers learned of the layoffs—some of them permanent—last week.
Simmons isn't alone in its struggles, as its main competitor in the bedding industry, Sealy, said Monday that it will reorganize to reduce costs and maintain its competitive position.
"As the rebound in the domestic economy continues to elude us, we feel it prudent to take additional actions that will position Sealy to weather the current economic storm and make a strong recovery when market conditions finally improve," Sealy CEO Larry Rogers told Furniture Today, a trade publication.
Simmons officials in Janesville referred questions about the layoff to an Atlanta-based public relations firm.
Before the layoffs, the Simmons' plant on Adel Street employed about 330 workers.
Earlier this year, the plant laid off 71 workers but was able to call back most of them.
The Atlanta-based Simmons operates 19 conventional bedding manufacturing plants in the United States, Canada and Puerto Rico.
Last month, the company said it would close a plant in Ontario, Canada, and cut 153 workers after a strike by union workers created unacceptable losses in revenue and customer business.
Seventy-five percent of the Ontario plant's production was expected to transfer to Simmons' plants in Janesville and Pennsylvania. Had that work not transferred to Janesville, the local layoffs could have been more extensive, sources have told The Janesville Gazette.
Earlier this summer, Simmons reported a second-quarter sales decline of 3.7 percent. For the first six months of 2008, net sales were $544.6 million, down slightly from the $545.3 million posted in the first six months of 2007.
"The economic environment we operated in during the second quarter was very difficult because of reduced demand and increased costs..." said Charlie Eitel, Simmons's chief executive officer. "Despite the difficult sales environment, our products continue to be among the best performing at retail."
Oct 17, 2008 at 5:40 p.m.
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sounds like a few spoiled people at simmons can't take accountability for their own actions
Oct 14, 2008 at 9:28 p.m.
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I can understand after what I seen from a Ohio meet/greet with Obama where a Plumber asked Obama why do you want to raise my taxes. Obama replied to spread the wealth. Meaning take from those that work hard, and give to those that are unwilling to work.
Oct 14, 2008 at 8:54 p.m.
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Well newstome, I am glad you still have your job but can you say that you are happy with your job or that you go to work everyday with a big smile on your face?? I am sure people have thought about quitting before the "big lay-off" at Simmons but didn't and yes that is their fault for not taking action. That does not mean they get to be threatened and humiliated by their superior, does it?? Some employees that I know did not report Chuck's behavior to corporate because they were scared of losing their jobs or being put on a lay-off simply because Chuck did not want to "deal" with them. This is not a matter of being wronged or righted, this is truly about how a so called leader could put so much fear in his employees to have "plant of the year" or any other achievements he got to celebrate because of his workers and then say see ya! How can some policies have been followed for some before but NOW they are going to follow policies across the board? If you know so well that this was fair, what was the determining factor in choosing what employees were laid off? Because it what not based on senority, obviously!
Oct 14, 2008 at 5:57 p.m.
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Yes I still work at Simmons and no one can say even myself what the next day will bring the way the economy is heading. I also work on the shopfloor so I do know what is going on and not in the office getting someone his coffee? By the way does Chuck drink coffee, since you think someone has the job of getting him his coffee you must know. Oh and by the way even office workers have been laid off so not just on the floor. How much do you really know of Simmons practices? The decisions come from Atlanta and who ever out there think Chuck is the controller of all futures is so off base. Everyone has a boss and I bet he has several. We have learned through the years that some people abuse rules and when finally addressed they act like they have been so wronged. It was a very sad day to see others leave and because some bent the rules- it had to come to a straight across the board layoff. Some people have thought that employees can play the game and think it has not been adressed. As my spouse said to me when I said this-"You know it is none of anyone's business how they handle it and besides they are not going to address things right in front of others". Oh and for comment of being in the top ten you may think you are safe- I am not in the top ten so I feel sorry for the people that just have to spout mean words- so they are unhappy. But if someone is so unhappy at Simmons or anywhere else why not quit? If you are so unhappy what is stopping you? Can't find another job huh--where you make the money you make now and insurance is pretty good too. But then is this your place for letting off steam as no one else will listen to your constant complaints?
Oct 13, 2008 at 8:10 p.m.
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It sounds like a few of you may still work for Chuck at Simmons. A few people close to me were laid off from Simmons, Lear, and GM. Yes they can stand up and dust themselves off but the reality is that Simmons treated their employees like crap. Maybe the people I am close to worked out on the floor doing manual labor rather than shuffling paperwork in the office and making sure Chuck has enough coffee. I understand there were policies but then they need to be in place for EVERYONE, you do not get to pick the ones that get an occurence for an absence and the ones that don't. Hey therealtruth - When were people warned that they would lose their jobs if they were sick?
Oct 13, 2008 at 2 p.m.
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Hey tangofor I still work at Simmons and I have been there alot longer than you I will bet. I have seen Simmons do some terrible things to its employees over the years but this was the worst. This company used to care about its employees we were supposed to be family. Its laughable to make that statement now. Maybe it was a corperate deal and then again maybe not. I saw alot of good trained people being taken like sheep to slaughter. And for what? So that the Simmons investors can make some money before they shuffle us off on another group of idiots. Simmons has made alot of millionares over the years and it all came off the backs of us the Simmons workers. Like I said I still work at Simmons and unless your in the top 10 on the list of seniority I suggest you quit kissing butt so hard and watch your back.Then again seniority means nothing at Simmons.
Oct 13, 2008 at 1:08 p.m.
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bottom line is that a new policy went into effect this year and it was targeting a specific group of people (those taking advantage) and there was some good workers who like one said didnt take FMLA who payed the consequences, I would have liked to see this policy been grandfathered in, there are just to many exceptions for some workers, I wonder if Chucky still has those applications for McDonalds he once offered (or threatened) to associates from second shift
Oct 10, 2008 at 4:28 p.m.
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Actually you can take up to 12wks to care for a sick child. Yes we were thinking clearly and did not think our jobs were in jeopardy. We did not want to use the FMLA until it was absolutely necessary. This has nothing to do with what happened at Simmons. My point was that maybe you need to think before you speak. Be thankful you still have a job.
Oct 10, 2008 at 4:23 p.m.
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I cannot get over the negative remarks- some of these were workers at Simmons Right? In other words since they did not follow the rules they no longer have a job-- and they were warned ahead of time. I know -- they have great benefits there and some people make great money depending on job qualifications etc. People no longer in the employ now are badmouthing the place. Some good people no longer have jobs and that is sad- heartbreaking to say the least. Do you people out there realize that employees from G.M.-Lear- and others are not making nasty remarks about losing their livelihood and blaming their workplace? They know it is happening and after the shock have dusted themselves off and are going to make it somehow- I wish them all luck in the future. Yes I work there and have for awhile and to the person blaming Chucky for the downfall is really grasping at straws for blame. Do you really think he has that much power?? Come on think about it!! Yes I do work there and have for a while now and feel fortunate to be working with the economy the way it is .
Oct 10, 2008 at 6:44 a.m.
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The FMLA law states clearly that you are allowed up to two weeks for a sick child. To put your job in jeopardy when you are protected under the law is not thinking clearly. I have used the FMLA protection and yes, it was for a sick child.
Oct 10, 2008 at 5:50 a.m.
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THATS TO BAD .
Oct 10, 2008 at 1:19 a.m.
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My heart truly goes out to all whom have lost there job over the last couple of months in this town....
Oct 9, 2008 at 9:23 p.m.
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As for tangofor's comment about people playing "the game",my spouse was one of the people let go from Simmons after many years of hard work and commitment. We had an ill child and I had already used all of my sick time at work and that left my spouse to have to call in. Intead of using FMLA as a crutch as many people do at many employers we chose to hold out and call in as long as we both could. So is this considered "playing the game"? So maybe you should consider the situation before you make comments on others situations.
Oct 9, 2008 at 7:36 p.m.
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I do shipping over at LKQ. I can gather up some old cardboard and tape it all up and build us all some nice cardboard homes if things keep heading this way.
Oct 9, 2008 at 6:51 p.m.
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I agree with realtruth. I have been employed at Simmons for many years and feel out of any employer I have worked for, Simmons shows compansion for all of us workers. This current lay-off affected not only the people let go, but the rest of us still working. It is very sad when a few individuals can not open their eyes and look around and see the current state of our economy. I read many blogs on the Gazette, but none as slanderous as against Simmons. I know the wages in our area and most of us make far more than the average wage in the Janesville area. Facts101 has no idea what they are talking about. It is obvious to me, that this must have been one of my co-workers that chose not to follow policy and felt that they somehow would not be affected. From what I heard in the meeting, this policy only affects those that "play the Game". I have been coached by my supervisor and can tell you all that there are many steps taken before anyone is terminated.
Oct 9, 2008 at 5:28 p.m.
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I would like to clarify the statement about someone heard it was the local management decision to use the new layoff policy instead of the old one.The new policy was presented to all Simmons plants months ago and at that time the operations manager showed major concerns to the corporate office. He was able to use the old policy on the first lay off earlier this year. He was told this was the only time he could do this and the next time he would have to follow the new policy. We had a plant wide meeting in June and he told us about the new policy. It shocked us all but we were all told in advance about this new policy. This is very hard for us to loose our good co-workers and we don't need people making it worse.
Oct 9, 2008 at 7:56 a.m.
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Sounds like Monkey Mills back in the mid 1980's. They encouraged employees to vote against an attempt to bring in a union, and shortly after the union was voted down, they built a new building for a French fabric dying machine, bought or leased Japanese fork lifts, and Junior (owner's son promoted to management) drove his Italian sports car to work and announced an across-the-board pay cut - with "select" exemptions, claiming it was necessary due to heavy foreign competition.
Oct 8, 2008 at 11:49 p.m.
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Simmons has always done what they wanted in the last few years. Chucky will get the seeds he has sewn.
It's really a shame, it was a great place to work several years ago.
Oct 8, 2008 at 10:10 p.m.
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From what I hear some of the people let go under Simmons new policy have retained legal council. I wish these people well in fighting this very unfair policy. And I also have been told that this "new policy" was up to the plant manager to do it this way instead of the old way. If this is true shame on him for doing this to people who have helped build this company with countless hours and blood sweat and tears. From great company to work for to the dung heap how interesting.
Oct 8, 2008 at 9:16 p.m.
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I can relate to you nowaydog - let's have a billion/trillion dollar buyout to help those who were too irresponsible to hold jobs or make mortgage payments but what about the people that report to work everyday and are struggling? Not only will they get screwed on taxes but now with job losses. This economy is getting a little ridiculous! I have a theory - get rid of CEOs of companies like simmons and see the wonder of having the money to keep employees. I hate being so negative but when your family has to start surviving on 1/3 of the income they are used to...it is a struggle. What I hear is that Simmons wasn't exactly fair with the lay offs. Is this true? I thought the more senority you have the more secure your position was? Either way it is sad for everyone involved.
Oct 8, 2008 at 8:42 p.m.
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I can shed some light on this layoff,I did have over 10 years in there, but due to a new policy not any more, feel sorry for the ones like me and the ones that are still there, just watch your doings you could be next. Just remember dictator, new policies, and at-will employer. Good luck to the survivors!
Oct 8, 2008 at 7:23 p.m.
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big lots is mostly products that change labels or packaging so you are still supporting them just not as much money is going back to them.
Oct 8, 2008 at 5:39 p.m.
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It's my fault, I bought a serta mattress at big lots... shame shame.
Oct 8, 2008 at 4:05 p.m.
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"localboy": LMAO :)
Oct 8, 2008 at 3:59 p.m.
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They need to build one with a safe option. That way you can lock your money up under your mattress.
Oct 8, 2008 at 3:48 p.m.
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I'm surprised mattresses aren't selling better considering they're the best place to put your money right now.
Oct 8, 2008 at 3:39 p.m.
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I'm willing to help the economy by buying a new box spring and mattress. Besides, I really need a new set. Where can I get a great deal on a Simmons in Janesville?
Oct 8, 2008 at 3:23 p.m.
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Not good. More decent paying jobs leaving the area. I wish all of those affected the best of luck.
Oct 8, 2008 at 12:03 p.m.
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Layoffs even AFTER consolidating production. Mattresses can be a luxury item but the bulk of sales is probably at the lower end. People are just saying they'll "sleep on it a bit" (longer) for this and many other fairly basic durable goods. This economy is in for a rough ride, folks.
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