O’Sullivan Cuts Worker Pay

February 4, 2007  by in UnCategorized   

By Home Furnishings Business in Case Goods on February 2007 O’Sullivan Industries, Lamar, Mo., will cut the pay of its 800 workers by 6.6 percent in March in a move company officials describe as a necessary, but temporary step in its turnaround plan, according to Associated Press reports. O’Sullivan, which makes ready-to-assemble furniture, announced the decision to employees Friday, saying both production workers and management-level personnel will see paycuts. The company’s factory in Lamar is its sole production facility after the company closed a smaller plant in Martinsville, Va., in mid-2006. In a written statement, Kelly Terry, O’Sullivan’s senior vice president of operations said the company tried to avert paycuts. “We investigated every possibility we could to avoid reducing the compensation and benefits of our employees,” Terry said, according to the AP reports. “However, our turnaround plan requires additional temporary cuts to enable us to maintain the liquidity we need to operate efficiently. We plan to increase salary and wages to their former levels as soon as financial results allow.”