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February 5, 2007
TOWN OF LOCKPORT — For the last few weeks, things have been pretty quiet at Franbilt.
Michael Burns, Vice President of the steel fabrication company, said the company has temporarily laid off some of its workers due to a “significant contract that has stalled.”
Several Franbilt employees have called the Union-Sun & Journal over the last few weeks claiming the company laid off part of its workforce on Jan. 19. Callers claimed their payroll checks had not been coming through and several learned the company was no longer paying their part of 401(k) plans.
Burns said he could not comment on human resources issues such as payroll. The company declined to say how many employees were laid off.
Kiewit Construction, of Omaha, Neb., has the “stalled” contract with Franbilt. Burns said he has been in negotiations with representatives. He said Kiewit’s steel is the reason Franbilt is at a standstill.
“The customer’s steel is in everything,” Burns said. “We’re trying to get out of (the contract) or get paid.”
Kiewit spokesman Kent Grisham said Franbilt has received a notice of default on their material subcontract with the construction firm that they have failed to fix. Kiewit is slated to work on the Hamilton Avenue Bridge, which sits over the Gowanus Canal in Brooklyn.
“We’re having to take some steps to protect the interests of our client, the New York City Department of Transportation. We always remain hopeful that there will be a positive solution.”
Franbilt signed the $4.9 million contract with Kiewit on Aug. 5, 2005. According to Grisham, some of the materials involved in the subcontracting deal are still at Franbilt.
Burns said the only reason Franbilt employees have been laid off is because of the steel pile-up at their Akron Road location. Franbilt employs 40 people.
Lewis Staley, the Executive Director of the Town of Lockport’s Industrial Development Agency, said it is not uncommon for a company to lay off employees if a project is suspended.
“There are times when some of our local manufacturing firms delay the order or wait until they have an inventory in and lay off employees until the order has come in,” Staley said. “It’s a cyclical thing.”
Staley said the IDA calls local businesses twice a year to check in on their employment and business status. The next report is due in March; Franbilt has not yet been contacted this year to report their status.
The plant has a payment-in-lieu-of-taxes agreement through the town’s IDA. In May, former operations manager Bruce Fideli said the company was looking to bring on new machinists, welder fabricators and a quality control employee.
Town Supervisor Marc R. Smith said he was not aware that Franbilt had laid off any employees. Smith said the last time he heard about the company was when it changed ownership last year.
As of the end of January, Burns said several people were still working at the company. Burns invited the US&J to tour the plant to see the steel, but canceled one appointment and failed to show for two others.
As of Monday afternoon, two of the company’s phone lines have recorded messages informing people that the number cannot receive incoming phone calls. The reception area and several offices at the plant appeared to be in use. The last recorded visitor in the plant’s log was dated Jan. 17.
Burns has said the company is not preparing to file for bankruptcy.
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