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Employees, community react to DPI closing

News Photo by Steve Schulwitz A pair of security guards stand guard at the entrance of Decorative Panels International in Alpena on Thursday. Early Thursday morning, employees were sent home and other staff were told not to come to work. Eventually, the company issued a statement about its intent to close the plant. More than 150 people are losing their jobs.

ALPENA — Employees at Decorative Panels International in Alpena are without jobs, as the company announced Thursday morning it was shutting down operations at the plant.

The layoff and upcoming closure of the plant will impact more than 150 employees.

The company said, in a press release, that financial challenges have proved significant and insurmountable, leading to the decision to close the plant in Alpena and another one in Ohio.

The company said the decision was made after careful consideration and in-depth exploration of alternatives.

Certain segments of the business will halt operations immediately, while others are scheduled to wind down later in the year. Key leaders and essential personnel will remain with the company to oversee the closure process.

According to several employees at the plant who asked to remain anonymous, workers were escorted out of the plant shortly after 4 a.m. Thursday. Other employees were notified by telephone not to come in for their shift Thursday and that follow-up information would be forthcoming.

Now, orange cones block and security greets anyone trying to enter the plant, and only a lucky few on a list they hold are allowed into the plant.

Daryl Clendenen, general manager of DPI, said, in a statement, closing the plant and laying off employees was a hard decision to make.

“Closing DPI has been an incredibly difficult decision, and we are grateful to our extended families in Alpena and Toledo for their dedication and support over the years,” he said. “As we bring things to a close, our priority remains the well-being of our DPI employees and the communities we served.”

DPI Human Resources Director Kaitlyn MacRonald did not immediately return a message seeking additional information and comments.

As the news spread around Alpena and the impacts of the job loss became clear, Interim Mayor Cindy Johnson tried to soothe the employees and their families, but also called into question the way the company handled the mass layoffs. She said she has been in contact with administrators at the plant and stressed to them they need to do what is right to help the affected employees.

“It is a sad day for Alpena and the employees of DPI and our hearts go out to the men and women who worked at the facility and we hope the company they were loyal to does better by their employees than what they showed them today,” she said. “Alpena will rally and support the families who lost their jobs this morning, it is who we are as a community. We will weather the storm and rise to the challenge.”

Alpena resident Jeff Whaley has been employed at DPI for 22 years. He began as a general laborer and went back to college to become a certified electrician, which increased his responsibility at the facility.

He said there was no indication a closing of the plant was imminent or mass layoffs coming. He said he received a text on Thursday morning at about 5 a.m. telling him not to come to work and little else. Since he was informed about his layoff, he said he has experienced a whirlwind of emotions.

“I’m scared, I’m angry, and wonder what my future holds now,” he said. “We had no idea this was coming. I have been on vacation for the last six days and today was supposed to be my first day back. I still have thousands of dollars worth of tools there, but they won’t even let me in to go get them.”

Whaley said he knows there were about 158 union employees at the plant and estimates when non-union employees are added to that total, the full staffing at the plant was about 200 people. Union President Mike Sobeck told The News that effects bargaining has begun between the union and the company.

Effects bargaining is a type of bargaining that involves certain decisions that are within the management’s right to make. This has an impact on mandatory subjects of bargaining. This is common to some business decisions like laying off and transferring employees.

Dennis Bruning has worked at the plant for seven years. He said there have been some indications the plant could be in trouble and not as profitable as the company might like. He said to cover his bases, he said he’s been preparing for the possibility of something happening, but disapproved of how the company handled informing the employees they were losing their jobs.

“I’ll be ok because I can go almost anywhere and work and I’m paid ahead on my bills. But, a lot of people aren’t,” Bruning said. “The way they handled this wasn’t fair to the employees. Actually, it’s indecent and inhumane.”

State Representative for Northeast Michigan Cam Cavitt, R-Cheboygan, offered his help to any of the impacted employees.

“Please encourage anyone affected by the plant closing to contact my office. We can help guide them through the unemployment process and be a resource as they navigate this difficult time,” Cavitt said. “People are waking up to difficult news this morning. Please know that you do not have to go through this alone. There is a whole community behind you. We’re ready to help.”

The plant was built and opened in 1957, as the Abitibi Company. It has had several owners over the years but has always been a hub for employment and good-paying jobs in Alpena.

Mike Mahler, economic development director for the Alpena Area Chamber of Commerce, said his heart goes out to the employees who lost their jobs. He added besides that awful news, other impacts could be felt locally. Mahler said the loss of income for the employees could trickle down to other businesses and impact their bottom line.

“This closure has the potential to disrupt other related businesses in the region such as the loggers that feed material to the plant,” Mahler said. “The ripple rings move out in all directions and go a long way when a long-standing large employer like DPI closes its doors. This is a sad day for the community. ”

Mahler added that he is ready to lend a hand in any assistance the plant needs moving forward or with another developer who may decide to invest in Alpena where the plant is today.

“We feel for the families and community and will leverage any resources we have to help bring about some solution to restoring these jobs should that opportunity present itself,” he said.

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