UPDATE: Up to 150 Union Jobs Lost in Joy Global Plant Shutdown

| March 5, 2016

11986525_1026457577394304_4166046958092125994_n-2FRANKLIN, Pa. (EYT) – Milwaukee-based Joy Global Inc. announced Friday that it is closing Manufacturing Plant No. 1 in Franklin.

Workers were notified at a mandatory 3 p.m. meeting. A video from the meeting was posted on social media on Friday, but was removed a short time later.

Around 150 union jobs are expected to be lost as a result of the closure.

In a press release issued Friday, Joy Global spokeswoman Caley Clinton said the closure is a result of poor market conditions that culminated into a “struggling customer base” and “weak industry demand.”

The plant is expected to close by the end of June.

“The idea is that we’re going to be slowly transitioning the work out of there,” Clinton said. “We’re working with employees right now to figure out who’s going to be affected and how to help them manage this.”

Union representatives are expected to meet with company officials in the coming weeks to discuss “options” for employees who are losing their jobs.

Clinton says operations will continue at Joy Global’s Reno location.

Joy Global Inc. released its 2016 first quarter fiscal results on Thursday, announcing that net sales were at $526 million, down 25 percent from a year ago.

“While market conditions took another step down this quarter, our results were in-line with the company’s expectations heading into the quarter,” said Ted Doheny, President and Chief Executive Officer.

“Our customers are taking unprecedented actions on their equipment fleets to conserve cash as commodity prices have weakened. This has adversely impacted our incoming order rate, particularly in the U.S. coal and copper markets. In the face of these difficult conditions, we continued to aggressively reduce costs and tightly control trade working capital and capital expenditures, resulting in another quarter of strong cash generation.”

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