Mettler-Toledo Layoffs in New York State
Lab equipment company Mettler-Toledo International Inc. (NYSE:MTD) is closing its plant in Dryden, New York and is relocating the jobs to Florida. This will result in 69 employees receiving layoff notices. All of the workers to be cut in the Mettler-Toledo layoffs are non-union employees.
The Mettler-Toledo layoff notices will be given out to employees beginning in March 2018, but the workers will be all notified about their situations by January. The plant will officially close in July 2018.
Some employees will elect to simply retire, but others will choose to continue working at the Dryden plant until they are laid off. Those individuals may stay in the New York area and look for work locally. Another group of employees will be relocating to Florida and continuing to work for Mettler-Toledo.
Why Relocate to Florida?
The plan by the company is to move to a new $30.0-million, 250,000-square-foot facility. The move is strategic because Mettler-Toledo owns other operations in the Florida area. This includes metal detection and x-ray inspection businesses. The company’s strategy is to streamline its business divisions.
The new warehouse is located near its new office. This will give the management team the ability to keep a closer eye on its operations and employees.
Is This a Good Move for the Business? Or for America?
Mettler-Toledo has poured millions of dollars into the new facility in Florida. The business, of course, wants to make its money back from its facility investment. In order to do this, the business operations need to be running smoothly during the transition period.
On paper, the Mettler-Toledo layoffs sound great for the company, but there are a few issues to deal with. As a result of the move, the workforce in the Florida warehouse will not be as experienced as the workforce in New York. By laying off longtime employees and hiring new ones, it means that the skill level of the employees will dramatically decrease. This may cause a slowdown in the business operations.
In terms of America, the move is not great because it means that the new employees replacing the existing staff will get lower wages. The reason for this is that the loyal employees had gotten pay raises for their time spent in the company. With the lower wages paid out, it means the size of the country’s overall gross domestic product (GDP) will shrink.
The move will also put America in a worse financial position in another way: employees in Florida do not pay state income taxes, so government revenue will drop.
“WARN Details,” New York State Department of Labor, November 22, 2017.
“Mettler-Toledo in Dryden to begin layoffs in March,” Ithaca Journal, November 29, 2017.
“Mettler Toledo fails to tell locals of relocation plan,” Ithaca Journal, August 27, 2017.