Tom, that's great to hear. I had just read a news article on them laying off over 33% of their workforce, and possibly having to close the plant. It's reassuring to read your comments about them.
------------------------------------------------------------------------
Warning could foreshadow Gudebrod closing
Michelle Karas,
mkaras@pottsmerc.com
01/12/2007
POTTSTOWN -- Longtime Pottstown-area manufacturer Gude-brod Inc. announced Thursday that it has issued "warn notices" to its employees that there will be a "significant" layoff in March due to the loss of a major customer.
No decision has been made regarding a possible plant closing, company officials said in a prepared statement.
Company President W.E. "Nat" LeGrande Jr. declined further comment.
However, according to a copy of the letter sent home to workers and accessed by The Mercury, workers were warned that in addition to the layoffs, "a plant closing may follow."
The letter also indicated "there are no opportunities for transfers to other positions, departments or locations."
The letter is a requirement of the Worker Adjustment and Retraining Notification Act, better known by its acronym WARN, that became law in 1989.
The law applies to companies with 100 employees or more and requires the notice be sent to all employees, according to the U.S. Department of Labor.
The family-owned company, which makes braided lacing tape for the aerospace industry, dental floss and medical cords, rod-winding and fly-fishing thread and silk thread, employs about 200 at its 274 Shoemaker Road headquarters.
The Labor Department fact sheet on the WARN law notes that it is triggered by either a plant closing or "mass layoffs," which it defines as at least 33 percent of the plant’s active, full-time work force.
The letter sent home said the layoffs will occur between March 9 and March 23.
"Obviously, if this comes to pass in March, this will be a blow not only to the plant’s workers and their families, but to the Pottstown economy," said Pottstown Economic Development Director Jim Fairchild, who leaves the job at the end of January, "particularly because they have such a long, strong history here in Pottstown."
In addition to the plant closing and the potential to lose earned income taxes generated by those workers, a plant closing would also have a "ripple" effect throughout the region among local companies that provided services to Gudebrod, Fairchild said.
"But you know, and not to minimize this because obviously the first, best option is for Gudebrod to stay in business and continue to grow in Pottstown, but I often try to look at news like this and ask how do you turn this into an opportunity," Fairchild said.
If the worst happens, and the plant closes, "that property has been maintained in prime, A-1 condition and it would be extremely marketable as an economic development opportunity," Fairchild said.
"Obviously, we’re all hoping that doesn’t happen and the facility remains a vital part of Pottstown’s economy," Fairchild said.
Gudebrod’s roots date back to mid-1800s, according to the company Web site.
It began as a company called Belding Brothers Silk Co., established in Middletown, Conn.
In 1885, that company was sold to Christian Gudebrod and was renamed as the Champion Silk Co.
In 1895, brothers Christian, Frederick and Philip purchased the assets of the John B. Cutter Silk Mills in Bethlehem. Two years later, they found an idle plant in Pottstown and moved their business south to Old Reading Pike in Stowe, renaming the company The Gudebrod Brothers Silk Company Inc.
Brothers Edward and Charles Gudebrod joined the company around 1900.
The company had its peak employment during World War II when its products helped support the war effort.
In the 1970s, the company changed its name to Gudebrod Inc. to better reflect its product diversity.
Gudebrod Inc. is one of the oldest companies in Pottstown.
