Shaw to lay off 3 percent of Northwest Georgia work force

Charles Oliver

Shaw Industries on Thursday said it will reduce its Northwest Georgia work force by 3 percent through layoffs and attrition through the end of the year.

Paul Richard, vice president of human resources, said he did not know immediately how many workers will be laid off. But he said the firm’s Northwest Georgia work force is between 15,000 and 16,000. If 3 percent of those workers are affected it would be between 450 and 480 people.

Richard said six plants will be affected, including plants 1, 23, 81 and WD in Dalton as well as plants in Eton and Chickamauga. Richard said some layoffs have already begun at all those plants.

He said the company will try to help those displaced workers find jobs at other Shaw plants in Dalton. He said the company stopped outside hiring several weeks ago and current economic conditions make it impossible to predict how many of those workers may be placed in other facilities. But he said the Georgia Department of Labor will have on-site counseling sessions to explain benefits and job placement services.

Richard said some of the firm’s plants may be shut down longer than normal during the holiday season. He said the plants are typically shut down for about a week, but it could be up to two weeks this year at some plants.

The state Department of Labor’s Dalton career center, which serves Whitfield and Murray counties, is at 1406 Chattanooga Ave. The phone number is (706) 272-2301. The department also offers information and assistance at its Web site (www.dol.state.ga.us).

Shaw press release:

Dalton — In response to the continued weakening of the housing market and flooring retail, Shaw Industries Group Inc. announces it is scaling back manufacturing volumes at several manufacturing facilities in Northwest Georgia. These cutbacks will affect roughly 3 percent of the area work force. Shaw is working to place affected employees at other facilities where needs exist.

The continued decline in the housing and retail markets has significantly reduced the overall demand for residential finishes such as flooring. Manufacturing schedules are being adjusted to reduce the volume of product being made so that inventories remain in line with the current customer demand.

Shaw constantly monitors its production vs. demand and adjusts production and staffing levels accordingly.

Shaw is working diligently to identify opportunities to place affected employees at other Shaw locations and will do its best to keep these good people with the company. Shaw will deploy its Central Hiring Office resources to focus efforts in order to help match up displaced associates with

openings at other Shaw locations as they occur. Current market conditions, among other factors, make it difficult to predict how many displaced people may be successfully placed during the coming months. The Georgia Department of Labor will be on-site with counseling sessions to explain benefits, provide out-placement and retraining

Consumers typically make flooring purchases and install new products prior to Thanksgiving and the December holidays, with a subsequent downturn in demand into the following year. This historical buying trend affects the entire flooring industry and production schedules are always adjusted accordingly. The downturn this year came earlier and is more extreme than in years past. Shaw is taking appropriate steps based on current business conditions.