November 26, 2024
Business

Sylvania announces layoffs in Waldoboro

WALDOBORO – Osram Sylvania, one of the area’s largest employers, will lay off one-third of its work force over the next two years as it moves some of its production to the Czech Republic.

The reason for the reduction in workers is labor costs, according to plant manager Tim Magoon.

The company does not have a labor union, he said Friday, noting that the average wage and benefits package for employees is equal to $20 per hour. In comparison, the cost for workers in the Czech Republic is $3 per hour, he said.

The lighting-parts manufacturer’s Waldoboro plant, which has been in operation for 50 years, will not close, Magoon said. The plant’s 150 workers were notified June 20 of the pending layoffs, he said, which will affect one-third of the employees.

The first round of layoffs will take place in April 2003, with 10 to 15 job cuts. Over the next two years, a total of 45 to 50 workers will lose their jobs, with five or six of the positions coming from management, Magoon said.

At the Waldoboro plant, Sylvania manufactures lighting components, such as filaments for light bulbs, some of which is old technology, Magoon said. Many foreign companies can do the same work at a much lower manufacturing cost, he said.

The company will move some of its equipment for making parts for incandescent home lighting to Bruntal, Czech Republic, where it purchased business property two years ago.


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