Rheem layoffs could be short-lived

The recent layoff announcement at Rheem’s Fort Smith manufacturing operation should be short-lived if history is a good precedent — and barring a sudden and unexpected retraction of the national economy.

Rheem Manufacturing announced Oct. 26 that it planned a seasonal layoff of approximately 100 employees beginning Oct. 29.

Seasonal layoffs are nothing new at many Fort Smith area manufacturers, especially among the larger operations owned by national or global corporations. Typically, the laid off employees are off for a few weeks or a few months and return when demand and/or inventory reaches certain levels.

Rick Lolley, head of human resources for Rheem’s Fort Smith operation, said 148 hourly employees were part of the 2009 seasonal layoff implemented in July. All employees in that layoff cycle were back by Nov. 3, 2009, Lolley said.

If 2010 is similar to the 2009 cycle, the about 100 employees laid off as of today (Oct. 29) could be back on the job by late January or early February.

There are now 988 hourly and 338 salaried employees at Rheem’s Fort Smith plant. This time last year, the plant had 1006 hourly and 319 salaried employees, according to Lolley.

Even with a hopeful eye to full employee callbacks, the layoffs won’t help a struggling regional manufacturing sector.

September manufacturing employment in the Fort Smith area was an estimated 21,100, according to the federal Bureau of Labor Statistics. The figure is down from 21,300 in August and down from 21,600 in September 2009. Prior to August, the manufacturing sector trended upward since January when the job count was 21,300. Employment in the sector is down 31.2% from a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700.