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| SAS Job Loss softened with Generous Severance Package |
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| Written by Brenda Seekins | |||||
| Saturday, 02 February 2008 | |||||
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PITTSFIELD - The shock is over. The tears have dried and the reality is the outcome is not as glum as originally thought, but it won’t change the fact that 140 to 150 people will be out of a job at some point this year. Understandably the announcement that San Antonio Shoe, SAS, would be closing its Pittsfield factory was a sad day for Pittsfield and the affected employees. SAS officials were in town from the parent company in Texas to make the announcement to employees early Monday. The original news was a sad blow. The ultimate outcome is SAS is doing what it has always done “taking care of its people.” “It’s a different kind of company today, but it’s still a people-oriented kind of company,” said former plant manager Linwood “Red” Dunphy. “It’s a tough day. I feel bad for the people.” Still a member of the Board of Directors, Dunphy declined to comment on the decision, citing instead his pride in the dedication and worksmanship SAS employees applied to their work Officials making the announcement also expressed sadness at their decision to permanently close the Pittsfield facility, SAS’ s only Maine facility. The shop was opened in 1984 by the late Terry Armstrong and Lew Hayden. Armstrong was a former employee of the SAS predecessor in Pittsfield, Northeast Shoe, and knew where to find experienced shoemakers when he opted to expand his successful Texas operation. According to a press release from Janice Thomson, SAS legal counsel, “Over the years customer demand for the product has shifted and we are making fewer of the types of shoes that have been produced in Maine. This trend has been going on for years to the point that it makes sense to move the Maine production to the expanded Texas facilities that have excess capacity.” Layoffs will begin April 14, with some of the company’s newest employees likely to go first. Senority will play a part in the layoffs, but production schedules and processes will be considered. Regardless of who leaves and when, everyone is assured of a generous severance package and other benefits. Anyone leaving before their scheduled layoff will forfeit the severance pay that will equal a week’s pay for every year they have been with the company. Any employee working for SAS more than 6 years will be paid one-week’s salary for each year worked. “Some people were upset and crying, but for a lot of us the attitude was we were looking for a reason to get out sometime,” said Joanne Dunphy, an employee of 11 years. “It’s a reasonable severance package and they’ve given us two months notice. I always said I would leave here with a smile on my face, and I’ll be ready to go when they tell me.” Thomson emphasized SAS is not eliminating the jobs, but replacing them in Texas. Some individuals may be offered positions in Texas, but arrangements will be on an individual basis. SAS is voluntarily exceeding the amount of severance pay required by the state of Maine, according to Thomson. Those who continue to work till laid-off will be paid two weeks vacation pay whether they are laid-off before or after the scheduled vacation time. Anyone wishing to continue their insurance coverage after they cease to work for SAS may do so by applying for COBRA benefits and paying 100% of the premium. Also, any employee with a child or grandchild qualifying for the A-Team for school year 2007-2008 will receive their award. In 2003, SAS made headlines across the country as the shoe company that provided a bonus to each employee of $1,000 per year for every year worked. That was the year that hundreds of people called SAS and the Town Office asking “Where can we buy SAS shoes?” Some employees had been with the company 19 years at that point. Annually, the company provided generous gifts and bonuses for employees. The State and Town will work with SAS to assist their employees as the scheduled closure moves forward, according to Town Manager Kathryn Ruth. Governor Baldacci’s office and Senators Snowe and Collins also called to offer aid. “The closure of SAS Shoe is unfortunately a sign of the times,” Ruth said. “ How many factories have closed in the State of Maine and New England? The Town of Pittsfield and the region have been very fortunate to have SAS all of these years after so many other factories closed. “The Town’s diverse economic base will help to provide jobs for some of the SAS employees as the layoffs start,” Ruth added. Senator Snowe’s early intervention is credited with assisting the town in securing a new jobs merely wished for hours before. Late Tuesday, her office made the announcement that a new call center made the final decision to bring its operation and potentially 200 jobs to Pittsfield.
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| Last Updated ( Saturday, 02 February 2008 ) | |||||
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