More Joy Layoffs

From the Derrick — written by Judith Etzel:  Two more rounds of employee layoffs have occurred at Joy Underground Mining in Franklin.

Within the last two weeks, 43 workers have received furlough notices at the Franklin plant. The employees affected are hourly workers who are members of the International Association of Machinists.

The most recent roster shifts bring the total number of employees who have been furloughed at the manufacturing plant to about 350 in less than four months.

The local plant listed about 1,300 employees at the beginning of 2012.

The company has had no comment on the layoffs that began in mid-July. Each layoff has numbered less than 55 workers and has come in spurts since summer.

Other area industries that serve the Joy operations are also reportedly experiencing job layoffs. Machine shops as well as ancillary businesses such as electronic component manufacturers have furloughed employees. No information has been available as to the number of layoffs.

Joy, a division of Milwaukee-based Joy Global, is a leading manufacturer of surface and underground mining machinery. It is the largest private employer in Venango County.

The job furloughs come on the heels of a significant decline in the coal market, due primarily to a slowing economy in China which is a prime customer for Joy products and a competition in the energy fuels market because of inexpensive shale natural gas.

In its last quarterly report, Joy Global focused on its financial outlook and suggested recovery would be “sluggish.”

The company is responding to the lackluster market by implementing “actions to reduce costs” for the remainder of 2012 and into 2013, according to the financial statement.

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5 Responses to More Joy Layoffs

  1. C S Hansen says:

    The ads are deceitful on Obama & Casey war on coal. Read Joy’s statement regarding China’s economy & lower natural gas price reductions caused the layoffs. Governor Corbett fought for Natural gas production & the Tea Party funded the false ads. Warning: Beware of Thy who Deceit to win. Vote for God’s version of truth.

  2. admin2 says:

    Tea Party funded the false ads? And your proof is where?

  3. roger says:

    joy is opening a new plant in china next year .. its going to be way bigger than the ones in the united states …im one of those who was laid off .. regulations make it difficlut for any business in the united states,, obama does have obligations to the enviromentalists . to deny that is being dishonest ..these jobs wont be coming back to america..
    no matter how much you try you cant stop people from digging into the earth .. they lobby against the united states coroprations . to shut them down so the business moves to their country and they get rich .. in the name of global warming .. go over there and make that equipment ,,so i can tax these people .. for co2 emissions … we will defeat america because they are bought and paid for .. starting with obama

  4. Chris Morgan says:

    Joy had decided to go with “economies of scale” that is like most multi-national corporations. When the economies are booming and materials are in supply excess production will be shifted to foriegn companies. What I think is going on with China is the exact opposite, with a large economy, few enviromental controls it makes business sense for JOY to build in China. Any excess production or repairs can be made at the JOY plant here in Venango County for the declining coal mining business in the U.S. This benefits JOY, because it allows them to furlough or retire older and less prodcutive employees (which will increase profits). When the industry is in the “boom” cycle, JOY can add an extra shift to meet demand in the US (this is what excess production capacity is all about). Gone are the days of soveriegnty and patriotism, this is the era of the Multi-National Firm, bottom line is profits, not your family or communities well being.

  5. Chris Morgan says:

    Good news for Joy: Coal will remain the backbone of global energy use and will resume growth in the U.S. market as more efficient plants dominate electricity generation in America and overseas, according to the president and CEO of the National Mining Association (NMA).

    Speaking at a recent U.S. Energy Association Industry Forum in Washington, Hal Quinn quoted the International Energy Agency (IEA) saying Asian and industrial economies alike will push coal demand to 1.2 billion tons annually by 2017—exceeding oil as the world’s top energy source by 2015.

    Coal has met half the rise in global energy demand over since 2002, according to Quinn, while the global south is poised to increase coal use by 80% through 2020. America’s premiere industry, he added, will strongly benefit.

    Coal will remain the key for global electricity and infrastructure needs and pivotal for quality of life around the world—particularly in its largest, fastest-growing economies. “For developing countries, coal is the driving force lifting humanity out of poverty,” said Quinn

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