Mersen Manufacturing, USA, a global expert in electrical power and advanced materials used in hi-tech industries, announced a furlough of 80% of its workforce and the permanent layoff of about 25% of its workforce in Columbia, Tennessee according to Global Newswire. The International Union of Electrical Workers/Communications Workers of America (IUE-CWE), which was just voted in by workers at the plant to represent them, has filed an Unfair Labor Practice (ULP) charge with the National Labor Relations Board (NLRB) alleging Mersen violated federal labor law by refusing to bargain according to the Global Newswire article.
“The timing is no coincidence,” Orvin Caraballo, an IUE-CWA organizer, told Global Newswire. “Layoffs during the holidays hurt families the most. It’s a ruthless tactic to break workers’ resolve, and it’s illegal. To add insult to injury, Mersen is ramping up its hiring of temporary workers — a move that only deepens the betrayal felt by longtime employees.”
IUE-CWA contends that it is a retaliatory move by Mersen in response to the vote for unionization. The article goes on to say, “Rather than negotiate in good-faith, Mersen hired anti-union law firm Jackson Lewis and soon after announced the furloughs and layoffs — a move the union says is clear retaliation.”
Workers say they joined the union to fight for better wages and working conditions. Now they feel blindsided because just over a year ago the France-based Mersen spent $70 million renovating a plant they purchased in 2019 from Graftech out of New Jersey. At the ceremony, Eric Guajioty, Mersen Executive Vice President of Advanced Materials, promised their purchase of the facility to be a “wonderful opportunity to revitalize this site, boost the local economy, and bring jobs and people to bring life to this plant.”
“This is a betrayal of Tennessee workers and taxpayers,” said Carl Kennebrew, President of IUE-CWA. “The public invested in Mersen with the promise of good, stable jobs for this community. Instead, Mersen is slashing jobs right before the holidays while raking in record sales and increased profitability.”
The Global Newswire story goes on to say, “The attack on its workforce comes on the heels of Mersen’s historic financial success. The multinational corporation, which operates 35 plants worldwide and 10 in the United States, reported $1.27 billion in global sales in 2023, with $486 million coming from North America — its highest revenue in years. These results were further fueled by U.S. government investments like the CHIPS Act and Inflation Reduction Act.
In a story released by WSMV 4 in Nashville, Mersen responded to the charges against them. They explained, “the electric vehicle market is currently experiencing a slowdown across the US and major industrialized markets that also impacts the semiconductor market. This has resulted in a significant drop in demand for isostatic graphite, [which is what the plant produces]. As a result, we have had to make some difficult decisions and rationalize our industrial footprint, especially in connection with our isostatic production process.”
Mersen went on to say that they put 47% of their workforce on a one-week furlough, with less than 10% remaining on furlough until January 5, 2025. And that, although the employees will retain their benefits and position with the company, the furlough is indeed unpaid. Any employees out for more than one week are able to apply for unemployment benefits.
“In addition,” Mersen explained to WSMV, “we have ceased operations of the isostatic process in Columbia, and we are consolidating US operations of this process back to the St. Mary’s, Pennsylvania location where workers are represented by IUE-CWA Local 502…Operations of the two other product lines, extruded graphite and insulation products, are continuing at the Columbia site.”
Graphite is a key component in many EV batteries, and used by other green technologies. As more countries transition to clean energy economies, the demand for the material is growing at a global level.
Most of the layoffs, according to Mersen are temporary positions, with only 20% of the layoff employees being regular positions. And they intend to continue to invest in the Columbia plant once the market changes.
In a letter written by the representatives of the IUE-CWE to state and local officials, they state, “Tennessee workers and their families deserve better. The community deserves better than to see its public dollars squandered on a company that prioritizes profit over people. We ask you to act. We ask you to stand with Tennessee workers as you did at that ribbon-cutting and send a clear message to Mersen: You cannot exploit Tennessee workers, and you cannot break promises to our communities. The workers and voters of this community will remember who stood with them in this moment of crisis.”
The three key demands of the letter include:
- Cease and Desist from the Layoffs and Furloughs: Call on Mersen CEO Luc Themelin to cease and desist its illegal actions and immediately bargain with the union as required by federal labor law, including establishing recall rights for laid-off workers, respecting seniority, and preventing unilateral transfer of work to other locations.
- Worker Healthcare: Demand that Mersen maintain worker health insurance to preserve worker dignity and well-being through the holidays.
- Hold Mersen Accountable: Take steps to claw back the more than $500,000 in public subsidies and tax abatements if Mersen refuses to negotiate in good faith, and make clear that no future incentives will be granted to companies that betray Tennessee workers and taxpayers.
It is unknown what next steps will be taken by both sides, but several officials receiving this letter have said they are researching the claims.
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