Orchard Park, N.Y. (WBEN) - Like the employees and several others in the Town of Tonawanda and beyond, Erie County Executive Mark Poloncarz and other officials in local government were completely shocked by the sudden and immediate closure of the Sumitomo Rubber plant on Thursday.
Poloncarz is upset, because the county has worked to invest in Sumitomo over the years, and have only heard good things back from the company.
"Two nights ago, around 9:30 at night, I got a call from Dave Wasiura, from the Steelworkers, who said, 'Mark, I got some really horrible news. We just found out that the Japanese board voted to close Sumitomo.' I go, 'What?!' Because they just did $140 million investment in the plant, and we gave a $3 million tax break. And all we had heard is that they were going to continue to invest, and they love the plant, they love the workforce. And then all of a sudden, you hear out of the blue that it's closing. No contact with us," said Poloncarz of the plant's closure.
Poloncarz can't help but feel for the more than 1,500 employees who are now without a job, but he also is angry, because he understands what these people have to go through.
"Having lived through something similar when Bethlehem Steel closed, and my father worked at Bethlehem, I understand the pain that these workers and their families are feeling, because it's devastating," Poloncarz said. "Sumitomo's closure is not gonna be the same as Bethlehem, because that was 20,000 people, but I'm really mad.
"Here's a company that's maybe not owned that facility, but that facility has been there for basically a century. And 1,500 good paying jobs, represented by organized labor with good benefits are being closed because some corporate board members in Japan decided, 'Well, we just don't want to do it anymore.' I'm angry. I'm sad for the workers, having lived through it when I was a teenager and seeing the impact it had in Lackawanna and everyone else. It was terrible, and I know it's going to be terrible for these families."
Poloncarz was not the only local official blindsided by the decision from Sumitomo to close so suddenly.
"I immediately called the governor, she had not heard of it, at that point. No one had reached out to New York State. We called [Chuck] Schumer's office, no one had reached out to them. And now we're starting to scramble to see what we can do, and they were like, 'Well, the decision has been made. We're closing,' which is horrible," Poloncarz said. "It's a harsh corporate decision that's affecting 1,500 families directly in Erie and Niagara County, because a lot of the Sumitomo workers live in Niagara County. But it affects everyone who relies on those dollars."
Poloncarz also brought up the recapture policy in place between Sumitomo and the Erie County Industrial Development Agency (ECIDA). He reiterates that if those jobs are not able to be saved, the county will go back after Sumitomo for the tax breaks that were given.
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In the meantime, Poloncarz is working with other local agencies and groups to help the 1,500-plus workers get back on their feet and assist them with seeking new employment.
"We are working through Workforce Buffalo and the New York State Department of Labor, through the New York State Department of Labor Strike Force and the Workforce Buffalo teams at the One Stop Centers to assist the workers find new employment. We've got lots of jobs open this area. The problem is they don't all pay the same as what those workers were getting in the benefits. So it's just really disappointing," Poloncarz noted.
In addition, officials are looking into Sumitomo's closure and whether or not the company is in violation of the state and federal WARN Act, that's intended to give the workers plenty of notice of an impending closure. Poloncarz feels Sumitomo dropped the ball on the WARN Act for its workers.
"The federal government has a 60-day [policy], New York State has a 90-day under its Department of Labor. They didn't even have the courtesy of issuing a WARN Act, but nevertheless, telling their employees before they put their press release out," he said. "I found out about it not yesterday, but the night before late, so Wednesday. And it was only because it appears someone in management had just found out and contacted the Steelworkers and was apoplectic, like, 'I can't believe they're closing this tomorrow! And they didn't give us any warning.'"
And it's not just the blue collar jobs that are being terminated at Sumitomo, it's also the white collar jobs.
"Sumitomo appears to be closing all of its North America operations, because they're going to be laying off the CFO and the counsel, people like that. Those are really good paying jobs. I believe they violated the WARN Act. They can still close, but there will be repercussions associated with that," Poloncarz added.
In a recent interview with WBEN, Tonawanda Town Supervisor Joe Emminger said the closure of the Sumitomo Rubber plant would have a significant impact on the town. He feels it will have a financial impact in the coming years, especially if ever a suitable replacement company can't be found.
Poloncarz believes if Sumitomo is planning to sell its facility in Tonwanda, there is only finite time to do so, perhaps within the next 60 days.
"Once they start taking equipment out, it becomes less an issue of being a facility that manufactures tires, and now it's just a building. And they just made a $140 million investment, so they got new equipment in there, which is is still the boggling part," Poloncarz said. "It was one of those things we felt very comfortable that Sumitomo was not going anywhere for, at least, a couple decades, because a company doesn't make an investment like that. If it was a $2 million investment with a plant that big, 'OK, I could see why they wrote it off.' But $140 million? And if they're closing their facilities here, then they're going to probably take that equipment and move it overseas."
So what kind of a ripple effect could this closure of the Sumitomo plant have in Tonawanda? While Poloncarz does not believe it will be to the magnitude of when Bethlehem Steel closed back in 1983, deputy county executive and Tonawanda resident Lisa Chimera feels it will be felt locally.
"We had individuals who were working there, who dedicated their life, some of them. I've heard heartbreaking stories, but these are individuals who were then reinvesting in our community. Purchasing cars and going out to dinner, so of course it will have a ripple effect," said Chimera of the Sumitomo closure. "Manufacturing jobs, these were great paying jobs for individuals. And I'll tell you, in the Town of Tonawanda, we were incredibly proud to have them in the town. It's devastating. It is devastating, and my heart goes out to those families. I've heard just really terrible stories."
Chimera adds there's long range planning being done by the town supervisor and the Town Board, as well as the school district to properly address the closure so that there is no immediate threat of any sort of tax increases for residents of the town.