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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

3224.0. "WFO to phase out " by SLICK1::GIBSON () Thu Jun 30 1994 12:20

Worldwide News                                 LIVE WIRE

Manufacturing operations to be phased out ...               Date: 30-Jun-1994

Page   1 of 1  
                Manufacturing operations to be phased out at 
                          Westfield, Mass. facility 
   
         Digital said today that it plans to phase out the enclosures 
   manufacturing operation at its Westfield, Mass. facility.  The plant, 
   which currently employs approximately 340 people, manufactures the 
   metal housings for computers. 
         The enclosures work done at Westfield will be outsourced to 
   existing businesses outside the company, and the workforce will be 
   gradually reduced over the next nine months.  The phase-out process is 
   expected to be complete by March 1995.        
         Employees learned details of the phase-out process in a group 
   meeting held earlier today.  Digital will offer the affected employees 
   a number of benefits including a financial support package based on 
   years of service to the corporation; continuation of medical, dental 
   and life insurance for a specified period; and professional 
   outplacement assistance.  
         The plant will stay open during its previously announced one-week 
   shutdown periods in August and December in order to facilitate the 
   outsourcing of the work.  
         Dan Jennings, Digital's vice president of Worldwide Manufacturing 
   said, "Digital has embarked on the next phase of its strategic 
   redirection program designed to strengthen and sharpen our focus, and 
   enhance our competitive position in core markets to resume profitable 
   growth. Our manufacturing strategy at Digital centers around investing 
   in businesses that support our core competencies and divesting 
   ourselves of those that do not differentiate us. While we are very 
   proud of the contribution the Metal Enclosures Manufacturing Unit has 
   made to our product offerings, it does not represent a core competency 
   for the company. The difficult decision to close our Westfield plant is 
   one facet of our ongoing commitment to a return to profitability." 
         The 535,000-square-foot facility opened in 1970 to supply Digital 
   with an internal source for metal enclosures.  
         The disposition of the site, which is owned by Digital, has not 
   yet been determined. The corporation will work with state and local 
   governments, as well as outside organizations, to find an external 
   alternate use for the plant.

                       FOR DIGITAL INTERNAL USE ONLY

T.RTitleUserPersonal
Name
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3224.1financial support?ODIXIE::SILVERSdig-it-all, we rent backhoes.Thu Jun 30 1994 12:531
    Hmmm, sort of deflates the 'no packages in FY95' rumours???
3224.2Don't jump to conclusions so fastABERT::ABERTIt's quiet - too quiet...Thu Jun 30 1994 13:0211
    
    I'm from WFO. Since this Plant closing was announced in Q4 '94
    everyone is "locked" in to the current TFSO package. This is consistant
    with the way previous Plant closings were handled. Don't ASSUME that
    there will be no changes to the Q4 TFSO simply by this announcement.
    This is Q4'94, not Q1'95...
    
    Trust me, the folks affected by this action richly deserve every
    red cent they get!
    
    Carl
3224.3FY94 Package in FY95?CSOA1::SMITHThu Jun 30 1994 14:496
    I thought the TFSO package offered was the package available at the
    time a person was TFSO'd, not the package available when a group is
    notified their organization is to be downsized.  
    
    Maybe Plant closures follow a different process.
    
3224.4Plant Closings Are DifferentLOCH::SOJDAFri Jul 01 1994 00:2921
    RE: .-1
    
    When the Burlington plant closing was announced in October of 1992,
    everyone received a TFSO notice and was locked into the then current
    package.  People were notified officially in November and in December
    with the first people leaving in January 1993.  Because this was a
    plant closing the process was slightly different from a normal TFSO
    (so we were told) and everyone had to get a 60 day notice.
    
    In Q3FY93 (January of 1993) the normal TFSO package was reduced.  This
    did not effect the BTO people, the last of which left in June 1993
    and still received the "locked in" package.
    
    It sounds like the some process is being used in WFO.  Therefore, I
    would caution anyone that assumes that because a package is being
    offered to the Westfield people, that anyone TFSO'd in FY95 will
    get an equivalent one.
    
    Larry
    (Former BTO TFSO survivor (maybe victim))
    
3224.5WFOV12::STONE_AThe big T.S.!Fri Jul 08 1994 12:393
    
    looks like we're (WFO) not alone. ABO and Mexico were pegged today.
    read livewire!
3224.6Sould be a VERY interesting month!!AKOCOA::OUELLETTEFri Jul 08 1994 13:097
    
    
    
    	Well, that leaves only ASO in the USA. Which I hear might go also..
    	But then I hear it is also up for posible sale..
    
    	Hold on to your hats people. The bumpy ride is far from over..
3224.7and SalemSALEM::DODAWorkin' on mysteries without any cluesFri Jul 08 1994 13:130
3224.8Not quite Daryl...AKOCOA::OUELLETTEFri Jul 08 1994 13:244
    
    
    	Oh yeah.. But then I have a hard time considering NIO a
    	manufacturing plant. 
3224.9Here's the messageDELNI::HICKOXN1KTXFri Jul 08 1994 13:2650
  
 Worldwide News                           LIVE WIRE

             Operations to be phased out at Albuquerque, Chihuahua
                          manufacturing plants
 
         Digital said today that it intends to phase out operations at 
   its Albuquerque, N.M. and Chihuahua, Mexico manufacturing plants. 
         The Albuquerque plant, which began operations in 1976, 
   currently employs approximately 440 people who assemble, test and 
   integrate computer systems, as well as perform order consolidation 
   and shipping.  The Chihuahua plant, which opened in 1986, currently 
   employs approximately 630 people who assemble and test computer 
   modules.
         In addition, Digital employs 85 people in sales and services 
   functions in Albuquerque, and about 185 people in sales and services 
   functions in Santurce, Guadalajara, Mexico City and Garza.  These people 
   will not be affected by this closing.
         The manufacturing work done at the facilities will be consolidated 
   within existing Digital plants, primarily in North America.  The 
   workforce will be gradually reduced over the next six months.  The 
   phase-out process is expected to be complete by January 1995.
         Employees learned details of the phase-out process in group 
   meetings at the two facilities.  Digital will offer the affected 
   employees a number of benefits including a financial support package 
   based on years of service to the corporation; continuation of medical, 
   dental and life insurance for a specified period; and outplacement 
   assistance.

         Dan Jennings, Digital's vice president of Worldwide Manufacturing, 
   said, "Digital's strategic redirection program is designed to strengthen 
   our competitive position in core markets to resume profitable growth. 
   That competitive position is much enhanced by the manufacturing function 
   making the most efficient use of our existing capacity.  Over the years, 
   the people in our Albuquerque and Chihuahua facilities have made 
   significant contributions to Digital's success.  It was very difficult 
   to make this decision to close the plants, but the company's commitment 
   to return to profitable growth makes this consolidation of North 
   American manufacturing resources necessary."
         The disposition of the sites has not yet been determined.  The 
   Albuquerque site is owned by Digital and the Chihuahua site is leased. 

   The corporation will work with country, state and local governments, 
   as well as outside agencies, to find external productive uses for 
   the plants.
         Digital has other manufacturing plants in Augusta, Maine; Ayr 
   and South Queensferry, Scotland; Batam, Indonesia; Colorado Springs, 
   Colo.; Hudson and Shrewsbury, Mass.; Kanata, Ontario, Canada; Penang, 
   Malaysia; Salem, N.H.; Singapore; and Tachi, Taiwan.

3224.10Word from the Wild-Wild-WestELMAGO::AWILLETOR U Green?Fri Jul 08 1994 14:2714
ABO (Albuquerque New Mexico *USA*) finally got the axe.

We just came out of 2 meetings: 1st) a Plant-Wide all-shift Meeting, 2nd) a
Departmental/Functional Group Meeting.

We basically got the same thing as WFO; that is, we've been secured with the
FY94-Q4 severance package with all the trimmings.  That last of us should be
here by December, but most 440+ of us will be TFSO'd in waves.

Thought you'd best hear a word from someone from AMO Entity (ABO + MEX).

Regards,

Anthony
3224.12ISLNDS::YANNEKISFri Jul 08 1994 16:1711
    
>    	Well, that leaves only ASO in the USA. Which I hear might go also..
>    	But then I hear it is also up for posible sale..
    
     ASO ... networks
     SHR & CXO ... storage
     NIO .... CSS and Repairs
     DAS .... distribution
    -----------------------------------------
     KAO .... PCs (well it's in the Americas)
    
3224.13SCHOOL::DESAIFri Jul 08 1994 16:292
    where do they build Alpha systems? I thought it was ABO but with ABO
    gone, where will they get build - now that volumes have gone up too!
3224.14ISLNDS::YANNEKISFri Jul 08 1994 16:3813
    
>     ASO ... networks
>     SHR & CXO ... storage
>     NIO .... CSS and Repairs
>     DAS .... distribution
>    -----------------------------------------
>     KAO .... PCs (well it's in the Americas)
    
    Whoops forgot one ...
    
      HLO ... chips 
    
    
3224.15It's all going EAST...ELMAGO::AWILLETOR U Green?Fri Jul 08 1994 16:5112
We were told at ABO that all our work would be sent to:

	- Kanata,

	- Agusta,

	- Salem.

As per specifics of which products go to which facility, I don't know.  I'm sure
that there will be some shimmy-ing amongst the 3 to accommodate their new charters.

Just an FYI...
3224.16Can You Spell H.O.M.E.? :)HOTAIR::ADAMSVisualize Whirled Peas!Fri Jul 08 1994 16:545
    Of course, DC just moved into the "Palace" adjoining the ABO plant
    (along with Sales and the other orgs from the business office). I
    wonder what that means for us.
    
    --- Gavin
3224.17SSDEVO::BRADACHPurity Of EssenceMon Jul 11 1994 17:1813
>     ASO ... networks
>     SHR & CXO ... storage
>     NIO .... CSS and Repairs
>     DAS .... distribution
>    -----------------------------------------
>     KAO .... PCs (well it's in the Americas)
    
    Whoops forgot one ...
    
      HLO ... chips 
  
One problem, if the sell to Quantum goes through they
will own SHR and lease CXO.