Penn Reel's Movin on out - Striper Talk Striped Bass Fishing, Surfcasting, Boating

vineyardblues · 03-14-2005, 12:41 PM

sad news ><> ><> ><>............

Penn Reel to shut down Schuylkill County plant
Approximately 85 jobs to be lost in the process

From NewsItem.com

HEGINS — Penn Fishing and Tackle Manufacturing Co. recently announced its plans to shut down its Hegins production facility, leaving approximately 85 workers without jobs.

“It is unfortunate, but cost pressures from overseas competition make it impossible for us to continue operating at the Hegins facility,” said Kevin Martin, Penn CEO. “We will do everything possible to help our employees find new jobs, and we will make every attempt to sell our facility to an employer that can hopefully bring new jobs to the area.”

The facility, located at 218 Dell Road, has been making fishing tackle, namely spinning reels, since 1968. Roughly 85 employees will lose their jobs beginning in May and continuing through July, according to Martin. The company plans to move some of the operations from Hegins to its Philadelphia facility, while the remainder will be shipped overseas.

“We will continue to offer the products (spinning reels) currently on the market,” said David Martin, the chief financial officer. “But they will be made at other facilities where we can be more cost-competitive.”

Penn employees will be provided with a severance package, and job assistance that will include training on resume writing and how to find new employment.

In addition, Penn will be submitting a trade petition to the Pennsylvania Department of Labor and Industry. Since some of the jobs are going overseas, the trade petition will enable the government to provide the employees with additional training opportunities.

Penn’s Philadelphia manufacturing facility will not be affected by the closing of the Hegins facility. The Philadelphia plant makes a different type of fishing reel.

Penn is a privately owned company that has been manufacturing fishing reels in the United States since 1932. The Hegins plant has been in operation since the late 1960s. Many people employed there have been with the company for more than 30 years. Several employees have been working at the plant since graduating from high school.

“This is what makes it so tough,” said one employee who has spent more than 25 years with the company. “I’d be willing to say there are about 30 of us with more than 25 years of service. Some of us never had to look for a job before in our lives. I don’t know the first thing about where to turn or what to do.”

According to the employee who has been working there all his life, the workers who have more than 20 years of service were told they would receive eight-weeks pay as a severance package.

In a letter dated March 3 to Christine Enright, chief of the Labor Department’s Rapid Response/Trade Coordination Services, Kevin Martin said the shutdown is not expected to occur at one time, but will be done in stages. While an exact date has not yet been established for the plant’s closure, Penn Fishing Tackle expects that the first stage of layoffs will occur May 2, or within a 14-day period thereafter. Penn Fishing Tackle anticipates approximately 86 employees will be laid off.

The longtime employee of the plant said no one was offered to relocate to the Philadelphia facility. “I’m not real sure how long that plant will be in operation,” said the local employee. “They say it won’t affect that plant, but… I believe that particular plant won’t be in operation too much longer either.

“When this company was family owned, it was a wonderful company to work for,” the employee added. “We were treated fairly and with respect, and in the last couple of years it has just gone downhill. I believe there are too many crooks in Philadelphia mismanaging the company.”

fishweewee · 03-14-2005, 12:53 PM

Can't say I'm really surprised, and wonder what took them so long.

The U.S. economy is/has been moving away from manufacturing and towards services.

There would have been some hope to keep jobs here ...

... had the company stayed on top of product innovation and quality.

But they didn't.

Only 8 weeks severance for 20 years of service? Crikey, that sucks.

Steve K · 03-14-2005, 12:59 PM

I agree with Weewee. It is inevitable that their reels are made overseas. I feel bad for the workers but as long consumers continue to shop at Walmart and demand very low prices for goods, manufacturing in the US is going to disappear.

Sounds like someone should hire them to make a waterproof 706 with infinite antireverse.

ProfessorM · 03-14-2005, 01:02 PM

I have a good friend who works in the repair department at Penn. He works in the Philly facility though. He tells me a lot of the manufacturing is being done in North Korea now. I doubt the quality will be that good as they have had many problems with the new spinning reels since they came out. He told me to stay away from them they are junk. Too bad. Global market requires company to seek the cheapest labor which usually means cheap quality. P.M.

JohnR · 03-14-2005, 01:08 PM

Well, it's official. One of the very few reasons that would steer me to still purchase new Penn Products has caught an Airbus over the Pacific.

Mike P · 03-14-2005, 01:10 PM

Say good-bye to Made in USA Slammers, Liveliners and SS, and say good-bye to the 704 and 706 period.

TheSpecialist · 03-14-2005, 01:32 PM

Quote:

“It is unfortunate, but cost pressures from overseas competition make it impossible for us to continue operating at the Hegins facility,”

Really, so why are Shimano, and Daiwas so freikin exspensive then....

MAC · 03-14-2005, 03:34 PM

Quote:

Originally Posted by TheSpecialist

Really, so why are Shimano, and Daiwas so freikin exspensive then....

made in Japan. Penn will probably be made in Taiwan.

lurch · 03-14-2005, 03:47 PM

Why is it that everyone thinks that the quality goes down when the product is made overseas, isnt Toyota and Honda made in Asia (as well as in USA)?

I surprised to see that low level jobs are still here. If the American worker demands higher saleries the jobs will be shipped over seas. Lets face it everyone a person slapping a reel together should not be making a high salary. It is unfortunate that everyone needs a good salary to survive but workers have to realize that their job is a low paying job and should not expect a high salary. The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

I feel for the folks who have been with the company for a long time and losing their job....its has got to suck!

I was joking to some folks at work about this subject and said I can see a college / high school or even middle school classroom with a video feed from India teaching a classroom in the heartland of USA with a low paying security guard watching the kids making sure the students are not messing around.

It will save millions on a school budget as the person in India with a PHD in math will be teaching students for 50-75% less than a teacher makes here plus the school system will not have to pay benefits which include a retirement. The only cost will be the fee for the teacher in India, the cost of the security guard, the related building costs and the cost of the video feed (video over IP). The feed will be free as most schools have free internet access mandated by the FCC.

Looks like a new bidness to get into

JohnR · 03-14-2005, 04:02 PM

Quote:

Originally Posted by lurch

Why is it that everyone thinks that the quality goes down when the product is made overseas, isnt Toyota and Honda made in Asia (as well as in USA)?

I surprised to see that low level jobs are still here. If the American worker demands higher saleries the jobs will be shipped over seas. Lets face it everyone a person slapping a reel together should not be making a high salary. It is unfortunate that everyone needs a good salary to survive but workers have to realize that their job is a low paying job and should not expect a high salary. The united states leads the world in innovation but we cannot compete with the labor force in asia or india for low level jobs

I feel for the folks who have been with the company for a long time and losing their job....its has got to suck!

I was joking to some folks at work about this subject and said I can see a college / high school or even middle school classroom with a video feed from India teaching a classroom in the heartland of USA with a low paying security guard watching the kids making sure the students are not messing around.

It will save millions on a school budget as the person in India with a PHD in math will be teaching students for 50-75% less than a teacher makes here plus the school system will not have to pay benefits which include a retirement. The only cost will be the fee for the teacher in India, the cost of the security guard, the related building costs and the cost of the video feed (video over IP). The feed will be free as most schools have free internet access mandated by the FCC.

Looks like a new bidness to get into

Interesting concept but it would not work. Not to say that are schools do not need fixing - they certainly do - but the number one problem facing schools and students these days is the lack of support from the parents of many of these kids. Really sad.

lurch · 03-14-2005, 04:46 PM

I agree!

However, the savings are still there. The parents are not going to get involved if the best or worst instructor is there so why not save the money...

Sorry for the hijack

capecodder · 03-14-2005, 05:07 PM

Reminds me of a US based outboard mfg. complaining about dumping by the Japanese... Never a mention of how Japanese products are priced higher than US but still seem to thrive. My Toyota 4 Runner is signficantly more expensive than many US competitors but it still sells pretty well.

Lurch is right on about the labor market. Its a global market and if the additional cost of distribution from Asia can be overcome by labor savings while at the same time maintaining or improving quality, its a pretty simple equation. When composition of a product is largely lower skilled workers, bye-bye...

Interesting idea about education. I think it works in theory, but in practice it is a stretch... the teachers union is just too powerful!!!