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Worthington Industries Plans Temporary Plant Shutdowns
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Worthington Industries is announcing a week-long shutdown of four steel processing plants, in addition to other measures to cut costs. The company is reacting to the recent turmoil in the domestic auto industry which makes up 25% of its business.
The four plants scheduled for a week-long shutdown in July are: Columbus, Ohio; Delta, Ohio; Porter, Indiana; and Baltimore Maryland. VP of Communications Cathy Lyttle says Worthington Industries chose the plants because they are tied directly to their automotive customers.
“It’s strictly because of the shutdown. We’re paralleling what’s happening in GM and Chrysler and closing down for a week,” says Lyttle.
In addition, Worthington Industries is implementing sliding scale pay cuts: 3% to 20% for salaried employees and a 25% pay cut for the CEO. The company is also suspending its 401-K matching program and holiday pay for eligible employees. Lyttle says that these measures are temporary.
“We just want to ensure that we can come through the summer months without having to lay folks off. So we have determined that we can really ask the company and its employees to make some sacrifices here through the summer months while we get through the GM and Chrysler extended summer shutdowns,” says Lyttle.
Worthington Industries employs 2,200 people in Ohio.