Feds to probe role of foreign competition in Hartz closure
Aug. 17, 2006
By JOSEPH M. DELEON News-Post Staff
jdeleon @ fredericknewspost . com
FREDERICK — The U.S. Department of Labor will investigate whether foreign competition forced the closing of clothing manufacturer Hartz & Co., which will shut down after 75 years in Frederick on Oct. 13. About 230 employees will be laid off by the time the plant closes.
The company filed a Worker Adjustment and Retraining Notification (WARN) dated Aug. 8 with the Maryland Department of Labor, Licensing and Regulation. WARN is required to be filed with the department within 60 days of a layoff or closure that affects more than 100 people.
After receiving the WARN notice, Patrick Baker of the Department of Labor filed a Trade Act Petition with the U.S. Department of Labor, a standard practice when manufacturing companies shut down.
The petition calls for state funds to help employees of Hartz & Co. under the Trade Adjustment Assistance program, Mr. Baker said. The program helps people who become unemployed because of an increase in imports from foreign countries or if their jobs have been moved overseas.
The process typically takes about 45 days, but could take longer, he said. If the federal government determines that foreign trade contributed to the closure, the employees could get help.
The assistance may include income support, relocation allowances, job search allowances, occupational training and a health coverage tax credit.
“If someone is not happy with the outcome, the union, company and worker have the right to appeal the decision with the Department of Labor, but I can't do that,” Mr. Baker said.
Relief
Workers are eligible for career transition assistance at the Frederick County Workforce Services center.
Stacie Clark, career services manager of the center, met with about 200 workers at the Hartz & Co. plant Tues- day to introduce them to the agency and collect surveys.
The surveys rate workers' interests and goals, which will help match them with the right services at the center, such as training, job hunting and resume writing.
Additional assessments given at the center help match workers' abilities with the right job.
While the agency is known for its educational programs, Ms. Clark said many workers expressed little interest in training.
“Some people can't afford to be out of work, and others are just plain scared to be going back to school,” she said.
Ms. Clark said the Spanish-speaking workers at Hartz & Co., who comprise between onethird and one-half of the workforce, may have a difficult transition to another job.
“The hardest part is assessing them because our tests are in English, so it's probably not a fair assessment,” she said. The center hosts English as a second language classes, which help prepare clients for other training programs and jobs.
Mr. Baker said the language barrier is a common obstacle in the manufacturing industry.
“We will be working locally to be sure these folks have the types of services they need to be more effective communicators so they can move into more employment opportunities after leaving Hartz,” he said.
Skills, ethics transfer
Laurie Holden, director of Frederick County Workforce Services, said assessments often reveal skills that can be transferred to another job.
“They probably have more transferable skills than they might imagine,” she said. “Perhaps those skills could be transferred to biotech manufacturing.”
Biotechnology is one of several highdemand industries in Frederick County, according to Frederick County Workforce Services.
Other industries include hospitality and retail, truck driving, financial services, construction and health care.
The center funds occupational training programs that could take as long as a year to complete, Ms. Holden said. Programs are determined by a client's ability and interest, available funding and market demand.
She expects it will take between six months and a year to evaluate and train or find jobs for the workers; each person will be served individually.
“One thing we hear from employers is that a good work ethic is more important than a particular skill and many are willing to train,” she said. “And these workers have a lot to offer employers.”