EDEN — Layoffs this week at the 81-year-old Karastan carpet and rug maker will shrink its work force by half.
Georgia-based Mohawk Industries , which owns Karastan, will lay off about 140 people over the next few days, leaving about 130 workers at the mill, said Anthony Coles, district manager of the employees’ union, Workers United .
Coles said the union negotiated severance packages averaging $4,000 to $5,000 per employee in addition to temporary health coverage and other benefits.
Mohawk Industries attributed the job cuts to the sluggish economy.
The company said in a statement that it will work over the next several months to put in place its new business plan and to assist employees who lose their jobs.
“This plan will not impact quality or fashion in the products we deliver,” Darin Quesinberry , Mohawk’s Eden plant manager, said in the statement. “I am proud of the people at Eden. ... Reductions in force are always painful, and my thoughts are with the men and women from our facility who will go through outplacement as a result of this change.”
Coles said workers became aware of potential layoffs last week.
“I think they knew that it could happen, that things were slowing down and it became financially difficult for the company,” Coles said.
Contact Morgan Josey Glover at 627-4881, Ext. 119, or morgan.josey@news-record.com
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