Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 22, 1994 TAG: 9407220113
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
SOURCE: By MICHAEL STOWE STAFF WRITER
DATELINE: MARTINSVILLE LENGTH: Medium
Company Chairman John Franck used the bleak earnings report to defend the fleecewear maker's decision to cut workers' pay and benefits last year - a move that has been repeatedly blasted by union supporters.
"It is unfortunate that a union, external to this community, is trying to convince the Martinsville-area employees that they can protect them from the stark realities that face this company," he said.
"For the past several weeks, the union has made a big deal about our $6 million dollars of profit in 1993. As you can see ... after 18 months, Tultex hasn't been profitable - in fact, we are $2 million in the hole."
The more than 2,000 workers at Tultex - one of the region's largest employers - will vote Aug. 17 and 18 on whether they want to join the Amalgamated Clothing and Textile Workers Union.
The union has failed in its four previous attempts to form in Martinsville, but only by about 250 votes in 1989 and 1990.
Union officials have harped on the fact that Franck and other company executives have received bonuses and pay increases while hourly workers were forced to take cuts in pay and benefits.
Franck, whose salary last year was $240,000, defended his pay Thursday, saying that executives at unionized textile companies like Fieldcrest Cannon and Oneida are paid far more.
"I'm not embarrassed and I don't apologize," he said. "The issue in this thing is not what I get paid. The issue in this thing is the jobs."
The company has maintained that pay and benefits were cut to keep the company competitive and that jobs were saved because of the cuts.
Union officials contend, however, that pay and a benefits increase are the important issues in the union campaign.
Mike Zucker, director of corporate affairs for the union, said the Martinsville plant is vital to Tultex's survival and workers don't have to worry about layoffs if the union is formed.
"The jobs will be here for a long time,'' he said.
Zucker also charged Thursday that the company is trying to intimidate workers who have come out in support of the union.
He said the union is filing a complaint with the National Labor Relations Board charging that the company is stopping employees from distributing union literature and talking about the union while on breaks.
Franck said only that the company is allowing union supporters to do everything that the law allows.
Tultex was having a good year last year until autumn when some of its customers didn't accept orders they had placed.
That left the company with a lot of inventory and little work for its employees.
The company made $5.9 million last year, compared to $13.2 million in 1992.
Franck said he's cautiously optimistic that company sales will improve in the second half of the year.
"We are booked solid for the third quarter and are anxiously awaiting the back-to-school season," he said.
by CNB