Signs on a door at Travel Supreme tell the story in Wakarusa (WSBT Photo)
Story Created:
Jan 27, 2008 at 9:45 PM EST
Story Updated:
Jan 28, 2008 at 10:55 AM EST
WAKARUSA -- Just days after 200 workers were given pink slips at Monaco Coach in Wakarusa, some are voicing new worries that more layoffs could be on the way throughout the industry.
WSBT News first told you Saturday night about the layoffs. The cuts amount to more than 15 percent of the company's total work force in Wakarusa, and the majority come from Monaco's production department.
Now, there's growing speculation throughout the industry that those cuts are just the beginning, and the last sentence on Monaco's layoff notice given to employees Friday may explain why.
"We regret that a reduction has to take place at this time, but the current business environment leave us no choice," it reads.
Just up the road at the Happy Days Cafe, people are worried.
"It's really tough right now," said Wakarusa resident Dennis Honsberger. "Gasoline's getting higher. Everything's getting higher, but our wages are staying the same. People are really getting scared."
And not just in Wakarusa.
"[We're] very concerned," said Nappanee resident Freida Myers. "The mobile home industry affects all of us."
Even the Happy Days Cafe has seen happier days. Sales have slowed recently as workers uncertain about their job security have tightened their purse strings.
"It's very scary, because every day we don't know what's going to happen," said owner Jean Miller. "We don't know whether we're going to be here, or not going to be here. We don't know if we have a job, or don't have a job."
And some worry it's going to get worse before it gets better.
Just down the road from the cafe at Travel Supreme RV on State Road 19, a sign put up last Wednesday on the front door reads "closed until Monday." Another right next to it reads "We are not accepting applications at this time."
Travel Supreme President Glen Troyer says it's a sign of a slowdown across the industry.
"We're meeting now to decide what our next move will be," he told WSBT Sunday.
Still, Troyer says all 230 of Travel Supreme's employees have been told to report to work on Monday. But he's unsure how long that full staffing will last.
"Everything is on the table," said Troyer. "Including layoffs. In fact, they're very likely."
It's the same story in Nappanee at Newmar RV. Employees there told WSBT they recently went to a 3-day work week, though none would comment on camera out of fear of retribution from the company.
Mayor Larry Thompson confirmed company executives have spoken with him about potential cutbacks, but he said he wasn't aware of any concrete plans for layoffs.
WSBT's calls to Newmar company executives were not returned.
That's left an air of "uncertainty" in towns like Nappanee and Wakarusa, whose work force is represented heavily by the RV industry. But some say it hasn't broken the town's determination.
"We help our neighbors and do what we can for each other," said Myers. "And we'll keep doing that."
"We have to do like everybody else," said Miller. "Just ride the wave."
Those 200 employees laid off at Monaco Coach will lose their health insurance coverage at the end of January, though a letter from the company says all employees will have the option of electing COBRA coverage after that.
Still, some are holding out hope that won't be for long. Even though RV shipments were down sharply in 2007 to their lowest levels since 2003, according to the RV Industry Association, some industry analysts are still predicting a rebound this spring, thanks to recent interest rate cuts and lower fuel prices.
If that is the case, a Monaco spokesman says the company may hire at least some of those workers back.
For more information on this story and how the RV job loss may indicate a recession, watch WSBT at 5:30 with Samuel King and stay tuned to wsbt.com.