Eastman Layoffs Sting Region

A caller Tuesday morning urged us to put some good news in the newspaper.

She was dismissive of Tuesday’s editorial noting that yet another business had failed in the Linden Square shops in Bristol, Va., and suggested we write about how business at some area restaurants still seems to be booming. We realize parking lots look pretty full, but managers have said food business is slowing down. And patrons have noticed that there are reduced waits in restaurants that once were famous for torturous ones.

To spend on extras, like meals out, citizens must have disposable income. This region long has been blessed with anchor employers that pay wages sufficient to meet all the basics and much more. None historically is a bigger anchor than Eastman Chemical Co.

But on Monday, the Kingsport, Tenn.-headquartered company announced it will cut another $100 million by eliminating up to 300 jobs and cutting the pay of remaining workers. It’s the second round of cost-cutting in four months for the company that makes specialty plastics, coatings, adhesives and chemicals. In December, the company announced it was reducing contractors, part-time labor, some managers and the maximum amount of vacation time an employee can hold. Forty full-timers lost their jobs.

Monday’s news is a terrible blow for the company, its employees and the region.

No longer can jobs with Eastman be seen as secure, lifetime positions, despite the fact that many of the employees there have advanced degrees for specialized work. As the economy has worsened, all types of technical and professional jobs that once were considered safe have fallen into jeopardy.

These layoffs mean our neighbors are forced to look for work in a bleak local job market where they are unlikely to find jobs that pay anything close to what their old ones did. They will be forced to leave the region or take much lower-paying jobs, if they can find someone willing to hire them at all.

In this recession, many employers are so focused on hanging on that they are not adding any employees. Regardless of training, education and skills, employers do not have the resources to add anyone right now. Fear is gaining a toehold in all business decisions.

The Eastman employees forced to take a 5 percent pay cut are more fortunate than their soon-to-be laid-off counterparts, although anyone being told to take a cut may not feel that way right now. Those workers retain their jobs, their health insurance and the hope that eventually their company will regain its strength, and with it, their future raises.

This recession is reaching out to all types of workers, including professionals, engineers and others in highly skilled jobs who are required to have advanced degrees.

And these layoffs and pay cuts translate to more people who are tightening their belts in our region.

To our Tuesday morning caller: Eastman’s announcement will mean more residents struggle to pay mortgages, medical bills and other needs. Dinners out will be for truly special occasions, not just because it’s Friday night. All these cutbacks ripple through a smaller community like ours, where businesses rely on the dollars those employees typically spend.

And a few nuggets of good: Eastman is working to turn things around. The majority of the company’s 7,000 local employees won’t be laid off. And take heart: a 5 percent pay cut, especially at a good-paying job, is always better than losing it outright.