KANNAPOLIS — More than half the workers let go earlier this summer when Pillowtex closed a sheet-making plant and part of its towel production have been rehired, a company official said today.
But workers who haven’t been rehired after losing their jobs at Plant 4 were dealt another blow last week. The U.S. Department of Labor denied them extended unemployment benefits.
Don Mallo, vice president of human resources for Pillowtex, the parent company of Fieldcrest Cannon, estimates that nearly 50 percent of the 220 workers laid off at Plant 4 have taken jobs at other plants within the company. Around 75 percent of the 390 laid off from Plant 1 towel departments have returned to the company, he said.
Some of the workers have filled job openings. The laid-off employees also had the right to displace workers on probationary status with the company.
The Labor Department declined to extend benefits for former Plant 4 workers for up to 52 weeks beyond the standard 26 weeks, finding that the company didn’t show that foreign competition cost those workers their jobs, a requirement for consideration.
Pillowtex, which filed Chapter 11 bankruptcy in November, is reorganizing and officially closed Plant 4 for good July 15. But many of the workers there lost their jobs in the months preceding that date.
Workers laid off at the same time from towel-making departments at Plant 1 were awarded the extended benefits. The problem at Plant 4 apparently lies in the amount of foreign competition for the sheets made at that plant.
Mallo said the company is gathering the data needed to appeal the decision.
“Foreign imports had an impact on our customers and our company in our decision to close Plant 4,” he said. “We’re working together with Congressman (Robin) Hayes’ office as well as UNITE to put together an organized activity in support of the workers.”
The Union of Needletrades, Industrial and Textile Employees and Hayes, the 8th District Republican from Concord, have been working with Pillowtex to secure the benefits.
“We’ll certainly make every effort to turn up the heat on the Labor Department to re-evaluate all the information that was furnished,” said Hayes, grandson of Cannon Mills founder J.W. Cannon.
The workers, he said, “are certainly deserving ... Foreign competition has been devastating.”
Contact Scott Jenkins at 704-797-4248 or sjenkins@ salisburypost.com
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