Momentive cutting salaries, laying off workers

http://www.bizjournals.com/albany/stories/2008/12/01/daily37.html

Wednesday, December 3, 2008

The Business Review (Albany) - by Adam Sichko

Momentive Performance Materials Inc., a locally based manufacturer, will cut the base pay of more than 40 percent of its workers in Waterford next month.

Union officials immediately vowed to fight the pay cuts in a federal arbitration process.

The company announced the move to the 1,000 employees at the Waterford plant on Tuesday. Spokesman John Scharf said the wage cuts—which will average 25 percent—are designed to keep the company competitive in the “current severe economic recession.”

In addition, up to 20 percent of the plant’s hourly workers have been temporarily laid off in response to declining demand from customers in the automotive, construction and textiles industries.

“Temporary layoffs due to a lack of work are not unusual for our company,” Scharf said. He said workers, laid off on Nov. 24, will return next week.

Dominick Patrignani, president of Local 359 of the IUE-CWA, called the cuts and layoffs “sickening.”

FULL story at link.