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Eden plant closings to eliminate 720 jobs

Thursday, September 25, 2008
(Updated 9:54 am)

EDEN — For James Jeffries, expectation tempered anger when he learned he would soon lose his job at Hanesbrands.

“Being in textiles, I expected it,” said the 47-year-old Jeffries, who stopped for cigarettes and a drink at the Eden Corner Exxon station Wednesday afternoon at the end of his shift. “It really bothers you because Eden’s just about dead as far as anywhere to go to work.”

Hanesbrands announced Wednesday that it will close nine plants in five countries, affecting about 8,100 employees. In Eden, 720 jobs will be lost when Hanesbrands closes its yarn and knit-fabric plants here.

At Eden’s yarn plant, production is expected to wrap up by the end of the year, when 120 employees will be out of a job. The knit-fabric plant is expected to close by the end of summer 2009, affecting 600 employees.

Hanesbrands spokesman Matthew Hall said the layoffs are part of the company’s ongoing efforts to reduce costs and become more competitive.

That initiative includes producing products in countries with lower costs, operating fewer and larger plants, and balancing production across a wider geography, primarily between the Western Hemisphere and Asia, Hall said.

Two years ago, Hanesbrands had no company-owned production in Asia, Hall said. Today, the company has about 4,000 employees there, he said.

Local employees were told about the layoffs beginning Tuesday night, Hall said.

“It never, ever gets easier,” he said. “These are extremely difficult decisions to make.”

The average base salary for affected employees is $13.50 per hour, Hall said. Employees will receive a severance package based on their tenure with the company, he said.

The loss of a textile company is all too familiar to Eden officials, who witnessed the exit of Pillowtex in 2003.

“Everyone talks about retraining and education, etcetera, but we got a lot of people in our community who’ve been affected ...” said Eden Mayor John Grogan. “What do you do when you’re 55 years old? Retrain to do what?”

On Wednesday, state Rep. Nelson Cole spoke with Gene Byrd, director of business retention and expansion with the N.C. Department of Commerce. Cole, D-Rockingham, said Byrd or one of his representatives will meet with Eden leaders and Hanesbrands officials in the next couple of days to determine whether some of the jobs can be salvaged.

Cole said he was frustrated by Hanesbrands’ decision to leave Eden, and he cited residents’ strong work ethic as one of the best things Rockingham County has going for it.

“At some point in time, the greed of many American businesses will come back to haunt them,” Cole said. “We can’t keep America going on service jobs alone. We have to have manufacturing.”

Officials in both Eden and Rockingham County said they are actively recruiting businesses but it’s been a tough sell.

“It’s taking a little longer than we would like, but yes, things will turn around,” said commissioners Vice Chairwoman Amelia Dallas, who lives in Eden. “I’m a very positive person, and we just need to be open to other opportunities.”

Jeffries, who is on his second stint with Hanesbrands, said he’ll be marketing his skills as a maintenance mechanic to companies in Greensboro and Winston-Salem. He also plans to seek more hours with his part-time job at Advance Auto Parts.

Jeffries said he can’t blame Hanesbrands for moving its operations to save on costs.

“As far as the economy, America needs to look up,” Jeffries said. “The next man in charge has got a task on his hands to straighten this out, and I don’t envy him one bit.”

Contact Jonnelle Davis at 627-4881, Ext. 126, or jonnelle.davis@news-record.com

Accompanying Photos

File photo (Associated Press)

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