Temporary Wage Reduction for PenPly Employees
Hourly employees at PenPly will be getting a 10% wage reduction, starting with the next pay period. Company management has already taken a 10% pay cut. The pay cuts will be reviewed after 90 days.
The pay reductions will save the mill $25,000 a month.
PenPly President Josh Renshaw said the mill attempted, unsuccessfully, to get a loan to cover additional costs.
The pay reductions will save the mill $25,000 a month.
PenPly President Josh Renshaw said the mill attempted, unsuccessfully, to get a loan to cover additional costs.
posted by Tom Harper at 10:30 AM
24 Comments:
I though the comments by "Millwife" at the PDN site were interesting. And, how unemployment taxes, and others have not been paid. A LOT more than $25k seem to be owed.
Damn environmentaists screw up everything.
Two or three plywood mills in Oregon recently closed.
Oh well, nice day, I'm going boating.
sounds like their problems run deeper than a 10% wage reduction can solve.
No financing
$350K in back taxes
Increasing raw material costs
These guys are done
The smart move. Maybe the union could come and make things worse.
Oh wait
Let 'em close and the those folk that work for them move to Gray's Harbor or Enumclaw or some other place.
Nippon and ACTI are next!
No wonder PenPly management couldn't secure a loan. Owing hundreds of thousands in back taxes doesn't make this particular business model a very safe bet for a lender.
I feel sorry for the employees.
Hey! It's all great, and getting better. Remember? That's what we keep being told.
Go out and buy lots of stuff. Sign up for more debt. Don't pay any attention to those loser "doom and gloom" people who worry about the future. The future is NOW.
Buy, buy, buy.
Wow - you're right about interesting comments on the PDN site following this article about the wage reductions. Could it be true that the managers/investors at PenPly are as heartless, greedy and ruthless as they are being portrayed? Most of those comments from mill workers or their wives sure have the ring of truth, unfortunately.
"Could it be true that the managers/investors at PenPly are as heartless, greedy and ruthless as they are being portrayed?"
Here, in ever successful Port Angeles? Where the former mayor ..
Okay, I won't remind every one of all the past business leaders of this community who have ..
Well, some people made some money on this whole thing. Isn't that what matters? Why worry about anything else?
Hmmm. We're still here. Damn. And I thought it was all going to be over, today.
Guess it's back to work, Monday.
The news clips about the $5 billion State deficit, and the country hitting it's debt ceiling are not encouraging. "Painful" cuts to budgets, programs and services ahead. For years.
Temporary wage cuts for PenPly? Let's hope so. But the Big Picture economic situation doesn't look good.
Let's face it, PenPly can't continue because nobody is buying or building. We were over-building in the Bush years even before they crashed the housing market. Now with the real estate market upside down with short sales and the economy still realing who has the money or incentive to build? This straw-man arguement about the environmentalists is getting a little old. When will you wake up?
"This straw-man arguement about the environmentalists is getting a little old"
Noooo it's not the environmentalists it's Max Mania! It's all his fault PenPly is failing. Max and the Unions. Yes, the Unions are definitely the reason Port Angeles is emptying out. Unions and liberals driving Priuseses... Port Angeles will be a wasteland because of Max Mania and Unions driving Priuses! Damn them!!
"Yes, the Unions are definitely the reason Port Angeles is emptying out. Unions and liberals driving Priuseses... Port Angeles will be a wasteland because of Max Mania and Unions driving Priuses! Damn them!!"
Oh, absolutely. It is just AMAZING to watch how those evil people mezmerize otherwise good, God fearing Americans, and MAKE them change their God Fearing American ways. Their very presence turns life-long devoted Christians into Devil worshippers.
No one has ANY choice, once Max Mania and Union people come into a room. Any people who had opposing views are melted into puddles instantly.
Yes, you are SO right. All the problems in Port Angeles are because of the absolute evil that is Max Mania and the Union people. Everything was GREAT before they showed up.
And, don't you DARE look under your bed! You know what is lurking THERE.
Dick Goodman, you miserable, horrible troll - we know you did those last two posts. Do you think we're stupid and don't know who is behind this continual persecution of Max?
It's you, Edna, Karen, Dick Pilling and your assorted gang of half-wit hangers-on!
Waste your time all you want - but we know it's you!
I think I must have been exposed to a Red somehow. My brain is oozing out my ears.
So did anyone else notice the Public Notice in today's (5/25/11) PDN about the State wanting to give Pen Ply a Community Development Grant? I have several thoughts in reaction to that idea.
The first is the same thought I've had since they announced that this mill was reopening: It's not a viable business model. When you're propped up with State and Federal giveaways and grants, and defered rent...And when you're saddled with having to hire a certain number of employees by a certain time, regardless of the demand for your product, and then have big balloon payments coming due to the defered rent...This just isn't a "business" model that says success. And it's the kind of government subsidy that right-wingers usually scream about, except in this case, they all want a job at the mill, so they'll keep quiet.
And now it seems like the State wants to pour good money after bad and try to keep this mill propped up, despite a total lack of evidence this is likely to succeed, even with more handouts. Pen Ply is behind on their rent, behind on their power bills, behind on their payments into unemployment and other required costs...And on and on and on.
It's time for Port Angeles to face facts, and move on. Mills ARE NOT going to be a big success here. Not now, and not for the foreseeable future. They are relics of the past, not the path to a better, more prosperous future. Those of you who are working at Pen Ply should get yourselves retrained and educated ASAP, because the house of cards you're working in is about to come crashing down.
A legal notice in the PDN says the City is considering a proposal to give money to Pen Ply under the state's Community Development Block Grant program. Huh??? I thought that program was intended to pay for things like community facilities and affordable housing and projects to help low and moderate income people. I realize that if Pen Ply goes out of business, the workers will suddenly become low-income, but if Pen Ply has been mismanaged thus far to the point of being hundreds of thousands of dollars in arrears to the state, does giving them a wad of public money (for what? to pay their overdue bills?) sound like a wise expenditure?
".... but if Pen Ply has been mismanaged thus far to the point of being hundreds of thousands of dollars in arrears to the state, does giving them a wad of public money (for what? to pay their overdue bills?) sound like a wise expenditure?"
Isn't this how things are done in Port Angeles? Figure out ways to get grants to start "business" projects that ultimately fail? To figure out ways to get taxpayers' money into your pockets?
Doesn't this have a familiar ring to it?
Hmmmmm..... A former council member who served in the bad old days with KR & LW is one of the investor owners of Pen Ply. This infusion of public cash into a failing enterprise does smell a bit like an insider deal, courtesy of old friends at city hall. Political access apparently means a lot!
it sounds to me like the leaders at Pen Ply need some advice from some of the successful leaders around town, and i mean private leaders not public, such as Bill Herman, Michael Rauch, Jack Harmon, Ron Allen
So - according to the story in today's PDN, Pen Ply also owes the Port back rent, and has received a federally backed loan from the Department of Agriculture. This atop the hundreds of thousands already in arrears in state payroll taxes.
If Pen Ply now wants a half million dollar grant of public funds, then I hope that its managers make a full public disclosure of all debts currently owed before the city council considers facilitating a pass-through of that grant money.
If Pen Ply hasn't been paying unemployment insurance premiums to the state, does this mean that its employees will not be eligible to receive unemployment checks if Pen Ply goes out of business?
Thats exactly what it means, I have an interview there tomorrow but after research here and other sites I will now have fuel and ask them the direct questions and most likely I will be lied to but hey, I will reply tomorrow and let everyone know what was said.....I should record it...
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