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RHI Monofrax could close

FALCONER, N.Y. – A union leader representing workers at RHI Monofrax said corporate leaders are discussing options that would create changes for the Falconer plant.

Karl Krauss is the president of chapter 266 for the National Conference of Firemen & Oilers and Service Employees International Union local 32BJ. He represents about 120 workers at the Falconer plant. He said during a meeting with upper RHI Monofrax management Thursday, the business’ parent company, RHI-AG in Austria, made the decision to proceed with one of three options that could lead to employees losing their jobs at the Falconer plant.

The first option would be to scale back production to only producing raw materials for the company’s other plants. The second option would be to sell the plant. The third option would be to close the plant, which would eliminate between 150-175 jobs.

“If they select the option with the raw materials we might have 50 percent or more of the employees who are going to lose their jobs,” he said. “If they go with the sale plan, we don’t know what will happen. It depends on if they can find a prospective buyer to keep the plant running. If they go with the third option, which is closing, everyone in the building, all management and union employees, 150-175 people, (will lose their jobs).”

Krauss said company officials want to make their decision by April 1 with the outcome of their decision to be completed by July 1.

“My personal feeling is I think they’re going to close the plant. Hopefully I’m wrong. Hopefully they find a buyer,” he said. “We produce products that cannot be produced anywhere else in the world. If we can find a prospective buyer, then we can keep more than (150-175) people working.”

In February 2015, RHI Monofrax employees returned to work after the ratification of a five-year deal by both unions. Prior to reaching a deal, for more than four months employees stood picketing outside the plant’s gates, citing chronic low wages, rising health care premiums and frozen pensions as issues with management. Throughout that time, management and the labor unions held several meetings in efforts to work out a deal. Several rallies also were held with the support of various local unions.

Krauss said he believes the contract negotiations, with employees picketing outside the plant, might have led to the parent company’s decision to possibly close the Falconer plant.

“That is not what they told us at the meeting, but that is my personal feeling that it did play some role,” Krauss said. “The reason they stated was the last two years we’ve been in negative numbers, losing more money than they expected.”

A union meeting will be held Sunday where Krauss said he will inform the employees about the three options.

“What we have so far is we have information. We don’t have anything clear cut,” he said. “They’re going to make the decision by the end of the first quarter. By April 1, we will know what they are going to do. I’m going to inform all union members what the options are, and we can go from there.”

In March 2014, it was announced 74 laid-off RHI Monofrax employees would return to work by the first week of June, thanks to a $1.5 million order from the Department of Energy and a spike in business. The federal order was secured by U.S. Congressman Tom Reed, R-C-I-Corning, who was instrumental in helping Monofrax continue its 70-year presence in Chautauqua County.

“We remain committed to ensuring that we have quality, family-sustaining jobs throughout our region, especially in the field of manufacturing. We have fought hard to ensure RHI Monofrax was able to stay within our community, which is why we worked with the Department of Energy to bring the $1.5 million contract to the plant,” Reed said Friday. “We believe that utilizing the bricks produced at RHI Monofrax is both about creating good jobs right here and also a benefit to public safety. We will continue to monitor the situation by remaining in contact with RHI Monofrax and will continue to offer assistance as necessary to ensure they can succeed. We must continue to work together to build the economy of Western New York and bring opportunities for generations to come.”

RHI Monofrax is a global operating supplier of high-grade refractory products. The company employs approximately 8,000 workers within 33 production facilities and more than 70 sales offices.

The Falconer-based plant, located on New York Avenue, is mainly utilized for the glass industry, but does supply other industries with material. The federal government purchases materials from RHI Monofrax to clean up nuclear waste.

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