Channellock Inc. is planning voluntary layoffs later this month at the Meadville-based maker of pliers and hand tools.
Channellock has been on a four-day work week since Feb. 9 in an effort to avoid layoffs of its 405 employees because
of backlog of inventory and slower demand for its products.
However, the company now is looking to have 20 to 25 of its employees take a voluntary layoff for up to three months, said Don Hornstein, Channellock’s director of human resources. “We still have a good amount of inventory. Demand has not picked up enough to reduce the inventory,” he said.
“It’s strictly voluntary,” Hornstein said of the furloughs. “Who they are is yet to be determined. If there aren’t enough volunteers, then we’ll look at reducing junior people.”
The company will continue to pay its share of health care costs for those employees who take a voluntary layoff, Hornstein said. The voluntarily furloughed worker would have to pay his of her share, he said.
The layoffs are expected to begin July 13 and would last until around Oct. 4, he said.
Workers could be recalled sooner than October, if inventory is reduced and demand picks up before then, he said.
Channellock is Meadville’s largest industrial employer with about 405 total workers at two area plants.
It has around 310 workers, administrative and office personnel at its main plant on South Main Street and about 90 workers who do finishing work and packaging operations at its Plant No. 2 on Route 102 in Vernon Township.
Keith Gushard can be reached at 724-6370 or by e-mail at kgushard@meadvilletribune.com.
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Channellock planning voluntary layoffs
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