One Answer To The Economic Downturn: Shared Work

by Bea Peterson
Ask anyone and they will tell you it has been a tough year economically. From housing to retail to manufacturing, everyone is feeling the pinch. Unemployment in New York State in July was 8.7%. Fortunately, New York State is one of 17 states that has a Shared Work Program that benefits businesses and their employees.
According to the NYS Department of Labor, “Shared Work is a voluntary program that provides employers facing a temporary decline in business with an alternative to layoffs. Rather than laying off a percentage of the work force to cut costs, an employer can reduce the hours and wages of all or a particular group of employees. The employees whose hours and wages are reduced can receive partial unemployment insurance benefits to supplement their lost wages.”
Paul Haynes, Plant Controller for Interface Solutions, said, “The program is good for stability.” With Shared Work, businesses avoid layoffs and retain their trained personnel. When business improves their employees go back to full time, and the company avoids the process of recruiting, hiring and training new employees. It’s not a perfect solution for employees who are taking a pay cut, but it means not searching for a new job or going on full unemployment. Employees also retain their company benefits during the short weeks, and they continue their regular job, keeping current with changes so they are ready when business conditions improve and they can go back to 40 hours a week.
At Interface Solutions, said Haynes, all hourly people are currently on a four day, 32 hour week, schedule. They receive their regular pay for the four days and collect one day a week of unemployment benefits. The company will stay in the program next year as well, he added. Haynes is projecting business will go up some next year. “We’re making small steps forward,” he said.
Carla Bellemere, Vice President of Quality Control and Marketing at WCW, Inc., said WCW  participates in the Shared Work program and they will continue to participate in it next year. Shared Work varies from 60% to 20% or from one to three days a week for each salaried employee. Bellemere feels the consumer portion of the business next year will be comparable to this year. “There’s always the unknown of the medical and international side,” she said.
Those working reduced hours aren’t altogether happy with the situation, but they agree it beats not having a job at all. One woman whose company is in the Program said she would much rather be working full time. She is happy, however, that her benefits continue. Benefits weren’t so important to a man on Shared Work as he didn’t feel he used them that often. What was more important to him was a salary that paid more than total unemployment.
Bill Seiberlich, from Saint-Gobain Corporation, emailed from Valley Forge, PA, “In 2009, the Saint-Gobain Performance Plastics location in Hoosick Falls leveraged the New York State Shared Work Program. Most of our production employees, about 115 people, participated in the program. This allowed our business to avoid some of the burdens that were associated with the economic instability faced this past year.
“Currently, the Hoosick Falls location is fortunate to not be actively participating in the program, thanks to an increase in business. While it is difficult to predict what the upcoming year holds, our Hoosick Falls plant is fortunate to have New York State offer a program like Shared Work. This program has allowed for us to retain employees through a difficult economy and spared us the expenses of recruiting, hiring and training new employees.”
Peter McGuire, of Lovejoy Chaplet, said they are not participating in the Shared Work Program. “We had some layoffs in the spring, and we’ve called all but two people back,” he said. For a time they had to cut back hours, but they’re up to a full 40 hour week now. “Right now we have two to three months work in front of us and our backlog is okay,” he said. “January is always slow so the next six to eight weeks are key to us. We have a relatively good amount of potential business so things are going okay.” However that situation could change over the next six weeks. “We’re playing it close to the vest,” he said. “This is a good time to look at ourselves and see where we can improve.”
Overall, it appears the local manufacturing companies are holding tough, utilizing help when they need it, and looking to the future with cautious optimism.