Champion Enterprises, makers of manufactured and modular homes, seems to prefer delivering bad news to their loyal factory employees around holidays.
If you recall, the last notice of a plant closing occurred around Christmas, with no warning. (See 11-29-07 Champion Modular Homes...Merry Christmas)
Now, a day after Easter, Champion Enterprises has notified the Mayor of Silverton Oregon, that it would shut down its Redman plant by May 23. Nice timing! No warning of any kind, according to the Mayor of Silverton.
Champion Enterprises stated its action was based on significant housing and general economic market factors. Did you think that Champion management would do anything else but place the blame on others as opposed to themselves. Ha, of course not!
Do you think for one minute, Champion Enterprises ever thought about what effect laying off 160 employees, some who had worked 23 years for Champion, in a town of 9000 would have, to say nothing about what such a short notice does to the 160 families! Jobs are not exactly plentiful right now.
The impact on a small town can be staggering. Champion Enterprises was easily ranked among the top five employers in Silverton. When you displace 160 employees, the trickle down effect is enormous, not that Champion cares.
The notice was "completely out of left field. I had not heard they were having difficulties," said Mayor Ken Hector.
To add insult to injury, look for Champion Enterprises to file a property tax appeal saying that the factory is no longer worth the $6.9 million assessment since it is vacant and no longer producing income. Gotta save anywhere they can without cutting management salaries and bonuses at corporate. Although, in the last month, a former vice president of operations did leave the company, wonder why? Maybe there was no need for a VP of operations?
Champion Enterprises had a $5.9 million fourth quarter loss to close out '07, versus a year-ago profit of $3.56 million. Champion continues to purchase companies in Canada and the UK in the hopes of building foreign sales to offset domestic losses, even though buying foreign companies with the declining dollar makes them even more expensive. But if you can't make money the old fashion way by earning it, smoke and mirrors works fine.
Here's a suggestion for Champion, try building quality products and treating your employees with some respect and dignity. Don't keep throwing them out to make your bottom line look better!
