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AGC Flat Glass to cut benefits, freeze wages

Post Time:May 25,2009Classify:Company NewsView:369

KINGSPORT — AGC Flat Glass is cutting employee benefits and implementing a salary and wage freeze in response to the ongoing global economic downturn.

“The financial pressures of our economy and the state of our industry require that we take additional steps to structure our organization for both short-term and long-term competitiveness,” President and CEO Brad Kitterman said in a news release.

“We have considered and debated these changes responsibly and with personal empathy for the impact they will have on all of us,” Kitterman added. “While I am certain the decisions better position our business for growth and competitive strength, they are also painful. We are not wavering on our commitment to provide competitive benefits, pay and a safe environment for our employees. However, during this economic downturn, we must be realistic about what we can — and cannot — afford.”

Though not specific, AGC’s release said the employee-related cuts involve the company’s 401(k) plan, pension plan, retiree medical plan, and 2009 salary and wage increases.

Headquartered in Alpharetta, Ga., AGC operates glass factories in Kingsport and Church Hill, employing about 500 people locally.

Earlier this week, a company spokesman said AGC has no plans for layoffs. AGC recently restarted its tempering line at the Kingsport plant and recalled about 30 of the 100 people who had been laid off.

At the Church Hill plant, AGC shut down one of two production lines last spring and laid off about 250 people there. Company spokesman Chris Correnti said AGC hopes to eventually restart the Church Hill line in the next several years, depending on business demands.

Kitterman complimented AGC’s employees for their efforts.

“Employees have stepped up to meet every challenge we have faced over the past few years. Their commitment to providing our valued customers with high-quality products and services and to the future of the company is extraordinary,” he said.

Source: timesnews.netAuthor: shangyi

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