Frustration with the callous decision to close the White Furniture Factory
Jones recalls, with some bitterness, the callous way in which the plant's new owners announced its closing. Employees were devastated, Jones remembers, and the owners' inadequate compensation offer was, in Jones's opinion, merely an effort to save face. Jones seems particularly incensed about the fact that the closing was not the result of poor quality or low output: it was "business as usual," he says.
Citing this Excerpt
Oral History Interview with Ivey C. Jones, January 18, 1994. Interview K-0101. Southern Oral History Program Collection (#4007) in the Southern Oral History Program Collection, Southern Historical Collection, Wilson Library, University of North Carolina at Chapel Hill.
Full Text of the Excerpt
- JEFF COWIE:
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How did you first hear that the plant was going to close down?
- IVEY C. JONES:
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They called us all together one morning.
- JEFF COWIE:
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Do you remember why?
- IVEY C. JONES:
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Everybody just thought it was going to be another what we called,
"butt chewing meeting"--you know, where you get your
butt chewed out for not doing something right. They said for everybody
to come out into the Shipping Department. We said,
"Okay." Everybody went out there.
[unclear]
and I had gotten a tip before we went out there, "look,
they are going to shut this plant down."
- JEFF COWIE:
-
Where did that come from?
- IVEY C. JONES:
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It was just a tip that our assistant supervisor had given us. I
don't know where he had gotten it from, or whether he was
just trying to be funny or just speculating, but he said, "They
are going to shut this plant down."
We went ahead and went on to the meeting thinking to ourselves in the
back of our minds that this is highly possible, because the way things
have been going in this company we know it can't keep running
like it's going now. When we went out there the guy that was
the CEO of Hickory White got up and said that the plant was losing
money, they were going to consolidate everything into the Hickory plant,
and we could consider this our sixty day notice.
Basically, that was the gist of it, that was it. He said the plant
manager will give you all the details and he stepped down. You could
have heard a pin drop.
- JEFF COWIE:
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Were there two hundred workers out there?
- IVEY C. JONES:
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Everybody that worked at the plant was in the Shipping Department. You
could have heard a pin drop. People had these dumbfound looks on their
face. Some of the women started crying right on
the spot. Everybody just looked around at each other because verybody
thought business was going good. Word had come back that the furniture
show had gone pretty good. Everyone thought that things were on the
upbeat. The market had looked positive and so when they dropped that
bomb everybody was just dumbfounded. People went back to their jobs and
they couldn't work. They were thinking, this is my job, my
paycheck is gone, I've got a house payment, I've
got a family, and still management said, "You've got
to get your people in gear and get them back to work."
That's basically what came down to us, what we were told, to
get back on the job and get started back up.
It didn't matter that our lives had been devastated, I mean
just totally devastated. Maybe management had gone through this type of
thing before, but why people like me? I had worked "short
time," a week on and a week off, but to be told, "This
is your job and this is it and after sixty days you will have to seek
employment somwhere else. I don't know how you're
going to make your house payment, I don't care, this is just
it, the plant is closed, we are done with you now."
That's just basically the way it was. That's just
basically the way it was. I mean, it was the type of thing that we have
used you now, we're done with you, we no longer need you,
good-bye.
- JEFF COWIE:
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Any compensation, benefits, retraining?
- IVEY C. JONES:
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They said they would pay for sending people back to school for something
like a semester. That was just basically it. Sending people to school
for a semester is one thing, but see, you have to buy books. I had gone
to ACC before and paying for tuition for a semester is fine, but your
books could exceed tuition costs very easily, depending on the type of
books that you've got to have. It was the type of thing where
they say, "We're going to pay for you to go to
school--."
- JEFF COWIE:
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Tuition only though?
- IVEY C. JONES:
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Yes, tuition only. But, if you are unemployed you still have a family,
you still got to buy books, you still have to have transportation to go
back and forth to school. I think it was just a PR type thing to keep
the company from looking so bad.
They also said that they were going to offer the employees severance pay.
That was two weeks pay for people that weren't on salary.
"We're going to offer these people insurance
benefits, you pay your insurance benefits, you have extended benefits
under Cobra, but after four months your insurance rate will be three
hundred dollars per month, family coverage." That was the Cobra
rate.
They said they were going to offer these people insurance, but they
didn't say that after four months these people will have to
pay three hundred dollars for their insurance.
- JEFF COWIE:
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Up from a hundred or eighty or whatever it was before?
- IVEY C. JONES:
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Right, exactly right. So, I mean, you know, a lot of it was PR.
That's just basically all it was, just public relations. I
mean, they want to be able to have good standing in the neighborhood,
good standing in the community by just saying that they are going to lay
these people off, but they are going to do this for them, they are going
to do that for them. But they are not giving you any fine print of what
the things they're going to do for these people are. This is
just basically what we are going to do for them, so they
won't be hurting at all.
It had even been rumored on one of the television shows when they were
interviewing different people that they said everybody in the plant had
been replaced, everybody in the plant had been placed on jobs. Like I
said, this was just a rumor. I don't have any concrete proof
of that, but it had been rumored that somebody in management said,
"Well, all the employees have been replaced." At that
particular time I didn't know of anybody that had been
replaced.
- JEFF COWIE:
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When you say "replaced" you mean found new jobs?
- IVEY C. JONES:
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Yes, already located other jobs. The company was nice enough to let some
of the other companies come in and talk to some of the people that were
interested in employment at some of the other
companies like A.O. Smith. Representatives from A.O. Smith came in and
talked to some of the people and told them if they were interested in
employment after the plant shuts down, they could come to them and put
in an application, and they would consider hiring them. Some of the
people that did work for White did get jobs at A.O. Smith. Some of them
got jobs at DAYCO, some of them got jobs down at the hose plant that
makes plastic hoses and things like that. Some of them took jobs for the
city and different places like that. Some at this particular point now
are still unemployed.
- JEFF COWIE:
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A lot of people in service jobs like flipping burgers?
- IVEY C. JONES:
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I wouldn't necessarily know. The ones I see in Mebane, when I
go through Mebane, I know the particular type of jobs they got. But,
like some of the others, I don't know whether they are in
food service jobs or just what. I would imagine it's just
like anything else; once employment is terminated you have to make some
kind of move even if it is flipping burgers. Unemployment lasts
twenty-six weeks, then you can get a seven week extension, and after
that you are on your own. You either have to take one of these four or
five dollar an hour job--which is better than nothing if you have no
income coming in at all--until you can find something else better.
- JEFF COWIE:
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Okay, we got as far as the big announcement.
- IVEY C. JONES:
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After the big announcement that was just basically it. Everybody was just
dumbfounded. People just basically couldn't work. People
didn't understand why the plant was shutting down because,
"We've got good business, we've got good
owners." They just couldn't understand. The point
they failed to mention was that this wasn't about the plant
shutting down because it didn't have orders, this
wasn't about the plant shutting down because we
weren't getting enough business. This wasn't about
the plant shutting down because we were doing bad work, this was just
business as usual. The company had basically run it's course.
They had drawn all out of the company they could draw out. They bought
the Hillsborough plant and they bought the Mebane plant. They
consolidated the Mebane plant and the Hillsborough
plant into Mebane. They re-sold the building in Hillsborough and made
money off that. They had run this plant [Mebane] as long as they wanted
to run it. Now they were going to shut this one down in hopes of selling
everything out of it and then consolidate Hickory. It is just like a
business chain reaction; you shut one plant down and consolidate to
another one. Basically, if you think about it, this was associated with
Hickory indirectly. This wasn't one of the original plants
that Hickory owned, so they didn't have anything to lose by
running everything out of it they could run out of it and then shut it
down. This wasn't one of their base plants. I mean, it
wasn't like Hickory Furniture, it wasn't like
Hickory Chair or some of these other companies. It wasn't
like they were shutting any of them down. They were just basically
shutting down companies that they had just previously bought, so it was
business as usual. I mean, we run the companies as long as we can run
it, we pull all the assets out of it that we could pull out of it, we
pull all the capital out it, we basically made our money that we paid
for the company by the stock that was sitting on the floor when we
bought it. Plus now we've got the White's name, so
we can still keep producing White because we own the name. We
don't necessarily have to produce it in Mebane. We
don't particularly have to produce it by those people that
have those jobs down there. We own the name. We can go to Japan and make
White Furniture Company, ship it back over here, and it's
still White Furniture Company because we own the name. It is just
basically the type of business decision as usual.
- JEFF COWIE:
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Was there a sense among the employees that the plant could still be run
profitably?
- IVEY C. JONES:
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Honestly we had had some problems--from my experience at being at
White--with production. We had had some problems with quality. I know
that in the last few years, just like everybody else in the furniture
business knows, the furniture industry had been down. From what I had
seen on television this year was one of the most upbeat years it has
been for furniture in the past six or seven years, because everything
looked good this year. They had strong sales at
the market. From what I could gather everybody did pretty good at the
show, especially the high end pieces of furniture. This is the type of
thing where people just new to the plant were beat at. It was just taken
for granted, well, this plant has always run.
This plant has gone through a depression and survived. This plant has
gone through being burnt down to the ground and rebuilt, and it
survived. I mean, you think about it, if you went to a plant applying
for a job and this plant had been in business for five years and the
plant over here had been in business for a hundred and five years, which
plant would you want to work at? You would think that the hundred and
five year old business would be more stable. Naturally, a new business
starting out--
[pause]
If you are going to fold the first five years you are in
business is when you will fold. That's when the new
businesses go under, in the first five years of business. A company that
has been based here for a hundred and five years, gone through a
depression, gone through the great fire and still is producing, still is
employing people, yes, I would want to go to this plant.
That's the sentimentality that a whole lot of people had that
this company will always be here, this company will always run. But what
they didn't figure on was new people coming in with new
business ideas thinking in the 90s rather than loyalty to the employees
brought on the base of the 50s thing. I think this is basically the way
this thing was to get in here and make money, make a good turnover, make
a good profit, be able to buy this name and put it on another product
and get out. I feel like it was just a short-term business.