A deal has been reached to provide compensation for 1,500 former Sumitomo Rubber employees who lost their jobs when the company abruptly closed its Town of Tonawanda plant last month.
Sumitomo Rubber LLC announced that it had reached an agreement on a separation deal with USW Local 135L, the union representing employees of the Sheridan Drive plant.
“Sumitomo Rubber USA, LLC can confirm that the company has reached an agreement on a separation benefits package with bargaining unit representatives from the USW Local 135L. Further information will be available in the near future following communication between the USW Local 135L and its membership,” the company said in a statement issued to local news media.
WKBW News Channel 7 in Buffalo reported that the agreement will provide eligible employees with 2.5 weeks of pay for each year of service, with an eight-week minimum and a 48-week maximum. Eligible employees will also receive 2025 vacation days and sick leave payout, a full year of health, vision and dental coverage paid for by the company, 27 months of life insurance coverage and pensions or 401K benefits, which are fully protected.
The company also indicated that it would provide former plant employees with what it described as “career transition services,” including job search services, letters of references for all former plant employees and access to job fairs.
Sumitomo Rubber made automotive tires for cars, trucks, buses and motorcycles. The company closed the Tonawanda plant on Nov. 7 in a move that shocked the company’s local workforce, which included 1,200 hourly employees.
In a notice announcing the closure, the company said the move followed what it described as an “extended examination of the viability of the facility.”
“While the company did implement cost-control measures, efficiency enhancements, capital investments and other improvements over the last several years, these changes have not offset mounting financial losses at the facility,” the company said in its press release.