A once-proud company enters its final chapter

The contrast in business philosophies could not be more striking.

In 2001, during National Manufacturing’s 100th anniversary, Glen Sedig, an executive with the company, then locally owned, remarked in a Sauk Valley Newspapers story:

“We don’t lay off at National. As our technology advances, we may have to reassign people, but we don’t lay them off.”

Instead, the builder’s hardware and home-improvement products maker relied on attrition to adjust its work force. In 2001, National had 875 employees at its Sterling and Rock Falls plants, a 300-person sales force, 200 workers in Canada, and 1,150 employees in Mexico.

National’s centennial motto reflected its philosophy: “People making a difference.”

Compare that way of doing business to the current owners, Stanley Black and Decker. (Stanley Works bought National for $170 million in 2005; Stanley’s $4.5 billion acquisition of Black and Decker was completed on March 12 of this year.)

Stated Nolan Archibald, executive chairman of Stanley Black and Decker, when the merger was announced in November:

“The driving motivation of the transaction is the present value of the $350 million in annual cost synergies and the combined financial strength and product offerings of the merged companies.”

That’s a fancy way of saying that $350 million in cuts will be made. What’s the quickest way to cut costs? Consolidate production, close plants and lay off workers.

However, another “driving motivation” has become apparent. As the Hartford (Conn.) Courant reported on April 28, Archibald personally would benefit, to the tune of a $45 million payout, if Stanley Black and Decker succeeds in cutting that $350 million in expenses.

Hence, previous company layoffs in Maryland, Rhode Island and Tennessee – and now 250 layoffs in the Sauk Valley, along with the loss of 120 jobs for temporary workers.

There is no good way to announce a plant closure. At least, Stanley Black and Decker didn’t padlock the doors immediately. The closure won’t be completed until spring 2011, which gives employees and the region time to prepare.

Had the full import of Stanley Black and Decker’s $350 million cost-cutting plan been widely known, the closure of National Manufacturing might not have been such a shock when workers were told about it Tuesday.

Still, for most people, it was a shock. Community leaders and the populace expressed surprise, sadness, anger, sympathy for the workers, concern about the ripple effects in the local economy, and a feeling of disheartenment and déjà vu, recalling other plant closures from the past decade.

Also surprised by the move were the region’s representatives in Congress. Because of the crazy way that congressional districts were drawn in 2001, U.S. Rep. Phil Hare represents the location of National’s Sterling office, and U.S. Rep. Bill Foster represents National’s factory east of Rock Falls. They issued a joint statement Wednesday:

“We were deeply sorry to learn that National Manufacturing will be closing in 2011 and disappointed that our offices were given no advance notice of this announcement. Our hearts go out to each and every worker who will be affected.

“We plan to contact National Manufacturing directly to see if we can persuade them to keep their operations up and running in Whiteside County.

“At the very least, we will be urging them to do everything in their power to make certain this transition is as smooth as possible for their workers and this community.

“We will be working together to ensure all displaced workers are aware of and receive the federal benefits they are entitled to.”

Hare has worked to save factory jobs in the past, most recently at a Hartmarx clothing plant in Illinois.

As the reality of the closure sets in, National’s centennial slogan – “People making a difference” – takes on a new meaning.

It will take a lot of people, working together, to ease the blow to National’s employees and temp workers.

Let’s get started.