Mueller and Sheet Metal Workers' Local 208 Announce "Yes Vote" on New Labor Agreement
(PressMethod) - Paul Mueller Company (Pink Sheets:MUEL - News) announced that the employees of Sheet Metal Workers' International Association Local 208 voted today to accept a new three-year labor agreement. The prior contract was set to expire on April 21, 2010; but Company management and representatives of Local 208 elected to open the negotiations early in order to achieve a new agreement prior to the expiration date.
The current economic crisis that began during 2008 has had an adverse effect on Company performance, primarily during 2009. In late November and early December 2009, the CEO/President, with his senior staff in attendance, held employee communication meetings for all Springfield employees. During those meetings, the financial performance of the Company was reviewed and discussed. Performance was reviewed by "Business Unit," "Product Line," and "Operational Facility." The Company acknowledged that, due to the recent economic climate, the strategy adopted in 2005 of growing the top line revenues to achieve long-term bottom-line profitability was, in the short term, no longer sustainable. As a result, the Company put into place a cost-control plan for 2009 focused on cash flow and emphasizing quality new order bookings. At the same time, an extensive reevaluation of the entire operation was undertaken. All scenarios for change were considered, including (but not limited to) consolidation of existing fabrication facilities, moving production to localized satellite facilities to better serve specific markets, elimination of product lines, etc. A key element of the evaluation, and the ultimate solution, was to recognize that the financial results clearly indicated that the product lines fabricated at the main Springfield plant have not been profitable. As a result, during 2009, the Company implemented what it refers to as a "Right Sizing" plan committed to turning around the operations in Springfield.
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