Union rep: Note spelled demise of Niles plant
NILES — Word of a Niles manufacturing plant’s closure was delivered on a piece of paper during a meeting at Girard’s Avon Oaks Ballroom, a United Steelworkers staff representative disclosed Friday.
“As of right now, we’re shutting the doors,” Mark Murray, United Steelworkers Local 1375, said of the note he received from USG Corp. representatives Wednesday.
The workers discovered their fates starting at 11 a.m. after the initial meeting with union representatives.
The producer and seller of building supplies, USG is the owner of Phillips Manufacturing, which it acquired in November 2023.
The plant’s 43 union-represented employees and an unknown number of managers have been locked out of the Walnut Street facility since. The action occurred after the union said it had been assured no layoffs would take place.
“No notice. No anything,” Murray said. “A month before they told us they were not going to lay off anybody.”
On Thursday, USG called the closure “a difficult decision, which came after extensive discussions and analysis of our financial situation and market trends.
“Unfortunately, despite our best efforts, continuing operations at this location is no longer sustainable.”
An email to USG’s media division requesting additional information had not been returned as of press time.
The city of Niles is assessing the human costs and economic damage in the closure’s aftermath.
Mayor Steve Mientkiewcz said he went to the plant to obtain answers from company officials.
“I had stopped there at around 9:30 (Thursday) morning to try to talk to someone,” he said. “There was no one there. There was no communication whatsoever to my office that they were considering closing.”
Because of the extended Easter weekend, Niles officials must wait until Monday to determine how the closure affects city finances.
“We’re trying to gain some more information on why the closure occurred,” Mientkiewcz said. “Why the lack of notice to the employees? Why was there no notice to my office?
“Very upset over that and what the future holds for the company, the facility.”
Murray said the workers will receive their last company paycheck April 24. It will include severance pay and any money due under terms of the collective bargaining agreement. Meetings with Ohio Department of Jobs and Family Services representatives to outline unemployment procedures took place Thursday.
However, the displaced workers have started to receive leads for new employment through the union and multiple Trumbull County businesses, Murray said.
“There were quite a few that were hiring,” he said. “So, we were able to guide some of those people to submit resumes and applications.”
In its initial news release, USG said it would provide career transition workshops. Murray said that has not happened.
As of Friday, the company did not file notice under The Worker Adjustment Retraining Notification (WARN) Act. Murray said the union is determining if any violations occurred.
The approximately 10-acre site has long been associated with the construction trades industry since 1955. National Gypsum Co. sold the property for $825,000 in August 2011 to Phillips Manufacturing. USG Corporation acquired Phillips Manufacturing in November 2023.
The United Steelworkers have represented plant employees since 1998, Murray said.