Monaco Coach workers worried about future

by Troy Kehoe (tkehoe@wsbt.com)

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Monaco Coach

(WSBT file photo)

By Jim Pinkerton

WAKARUSA — 1,400 Elkhart County workers face an uncertain future after learning that Monaco Coach will shut down its manufacturing plants in Wakarusa, Nappanee and Elkhart, and consolidate its operations to Oregon.

Workers got the news late Thursday morning during a meeting at each of the plants. Some said they'd heard minutes, or in a few cases, even an hour before from friends who'd heard the announcement of the closings broadcast on radio or TV.

By Thursday afternoon, few said the reality of the situation had fully sunk in.

"It's a shock to everybody," said one.

"I never thought this would happen," said another.

The comments echoed across the county in communities stunned by the announcement and now faced by the tough task of starting over.

Workers were sent home following the announcement and told to report back on Monday. Some decided to stay close to each other, holding each other up in the face of uncertainty.

"It feels like someone ripped something out of my heart," said Donna Sharp, who has worked at Monaco's Wakarusa plant for five years. "I had 10 years at UtiliMaster, and when I got hired here they promised me that nothing like that would happen. I know it's not their fault, but they could've done something. Shut down for a month, but not close it all down."

They were feelings repeated across the small town Thursday, as tears rolled down faces now wrought with uncertainty.

"Have you seen the want ads lately?" asked Tina Frederick, a three year employee. "There's nothing there. There's nothing for us. You're just out of luck."

In the letter notifying employees of the pending shut down, Monaco executives called the decision "very difficult, and one that we delayed as long as possible."

"We deeply regret the impact that shutting down these operations will have on our employees, their families, and the communities in which they live and work," said Monaco CEO and Chairman Kay Toolson.

"It was very difficult," added Craig Wanichek, Monaco's Director of Corporate Communications during an interview with WSBT. "[Employees] responded very professional, like you'd expect out of this group, with dignity. But it's been a tough day."

Wanichek said the company has concluded that the shut downs were the only was to remain competitive in the struggling RV market.

"It's in response to where the market is," he said. "It matches our capacity with what's being sold in the marketplace."

Shipments of large luxury "Class-A" RV's like the ones made in Elkhart County have declined for the past four years, according to the Recreational Vehicle Industry Association. Sales dropped 29 percent between 2004 and 2007, and an additional 40 percent so far in 2008, according to Monaco.

Monaco cut back production at its Wakarusa, Nappanee and Elkhart plants earlier this year and cut out a full week of work every month to try and cut costs.

Monaco executives said it simply wasn't enough.

"We cannot continue to be a strong and viable company unless we reduce our production capacity and build fewer units," CEO Kay Toolson wrote in the layoff notice. "In order to maintain our company's health into the future, we must take bold action now."

That bold action will now result in a 33 percent reduction in Monaco's total work force. Many of them have worked at the Elkhart County plants for decades, including many holdovers from the Holiday-Rambler company, which Monaco eventually bought.

"They make RV's, and that's all they know," said Randy Knight. "I've never seen it this bad here. It's going to do some major damage to the economy."

Knight and others also wonder if shutting down was the company's only move left.

"They're just lining their pockets. That's all they're worried about, is their money," he said.

The list of worries is only growing for the 1,400 workers now facing a long list of unanswered questions: How will they provide for their families? What will become of their communities?

"I'm just at a loss," said Sharp. "I'm good at my job, but you can't go into another RV industry because they're really slow [too]. I don't know what I'm going to do. I don't."

Employees who agree to work through Monaco's 60 day "shut down period" will be eligible for a severance package. Employee assistance programs will also be offered to help laid off workers find new jobs.

Monaco's Warsaw plant and Milford and Goshen operations will remain open, and the Holiday-Rambler line of tow-able RVs and engine manufacturing will be moved to the Warsaw location.

The plants are scheduled to shut down on September 17.

Monday, Jul 21 at 1:13 PM c wrote ...

You want to know whats wrong with this country, just look at theese comments. Come on people lets pull together as a counrty before its too late.

Monday, Jul 21 at 9:33 AM Leroy wrote ...

Hey there, Jem! You are truly outragous!! I loved your cartoon in the 80's.

Sunday, Jul 20 at 8:18 AM Ignorant's sister wrote ...

What is with all this "doom and gloom", my stupid brother wants to know. He doesn't understand why people are so worried and aren't spending their money... He just doesn't get it! But this is the same idiot that spends his children's child support checks on Wii's, cell phones and satellite receivers, too. Somebody please enlighten him, PLEASE!!!

Saturday, Jul 19 at 1:46 PM tom branstetter wrote ...

It appears that people are turning this into an american quality issue. Common sence should tell you that has nothing to do with why the plant closed. The only thing that i see as wierd is that are consolidating in oregon. anyways i feel that the economy and gas prices are the causes that were the final blow. Also as the story said rising prices of materials and labor caused the industry to price themselves right out practicality, the same way auto makers are doing. I hope things work out.

Saturday, Jul 19 at 8:46 AM MM wrote ...

how about using electricity and hybrids to power rv's? electric cars have been around since the birth of the automobile and hybrids are over 30 years old. and the hybrids don't need to use fossil fuels - ever hear of moonshine? nah they'll never try this.it takes brains and money and they are monetarily bankrupt AND STUPID!

Saturday, Jul 19 at 3:34 AM JEM wrote ...

SO LEROY, CAN I ASSUME THAT YOU ARE ONE OF THOSE DEALERS? YOUR COMPASSION FOR THOSE 1400 EMPLOYEES IS UNDERWHELMING! I TRULY HOPE THAT YOU NEVER FIND YOURSELF IN THE SAME SITUATION BECAUSE I FEAR NO ONE WILL REACH OUT A HAND TO HELP SUCH A CALLOUS PERSON!

Friday, Jul 18 at 8:03 PM GRJ wrote ...

I am an engineer from Damon Motor Coach, Class A motor homes, I was laid off back in May 23, 2008. No luck in finding work, it is so bad. Damon is going to lay off more, too.

Friday, Jul 18 at 5:50 PM Leroy wrote ...

This will also hit the drug-dealer community hard as well. Monaco Coach employees are some regulars for them, and now they will have to go elsewhere. Really, really unfortunate.

Friday, Jul 18 at 4:48 PM Elkhart wrote ...

Last I knew, Honda and Toyota did not manufacture RVs. So why all the comments about CAR quality? They are irrelevant. The focus here needs to be how to help these employees, not another chance to bash whatever comes to mind.

Friday, Jul 18 at 4:05 PM bush man wrote ...

anonymous,you are an idiot!!!

Friday, Jul 18 at 3:56 PM Anonymous wrote ...

Coachmen has been laying off for some time now.

Friday, Jul 18 at 3:10 PM J wrote ...

I have bought American cars forever and have not had problems, maybe you people are getting the wrong ones. The end result is everything is going overseas, I don't know about you, but I have bought foreign made clothes(thats all you can find) I usually have a hole in it first wear. You think they have standards, then way were we having lead paint toys sent here and dog food products that were tainted by products we received from overseas. Not everything is better on the other side.

Friday, Jul 18 at 12:29 PM Concerned wrote ...

What hasnt made the news yet is another RV Company laying off. Heartland RV has laid off about 50 workers as of 7/18. Funny thing is, is that it is mostly workers that are considered "older". Aged 45 plus...Isnt that some kind of discrimination?? Couple that with the rest of the layoffs, and about 10% of the local workforce/income is gone.

Friday, Jul 18 at 12:23 PM Happy Camper wrote ...

The RV manufacturer's just don't employ the mgmt talent needed to perdict cycle changes in buyer habits. You have got to meet the demand - not what you think might sell. They should have taken all the massive profits in the good years and invested in people that had the vision to make changes. Too many of these companies held on to long to a product that was dying. It's always the smart companies that survive these hard times and when things are back in order - they become behemoths.

Friday, Jul 18 at 12:19 PM Happy Camper wrote ...

Sure the economy has a part in the disaster but overall it's been bad decision making at the corporate level of these companies. When it's all about the numbers put out the door and the profit - the end result is an inferior product. A majority of the production workers are there for a paycheck. Porducing a quality product goes beyond a paycheck - it's all about personal pride. Unfortunately the US workforce is sick-n-tired of being sick-n-tired and the result shows in the goods.

Friday, Jul 18 at 11:43 AM Linda wrote ...

I agree with every single post I see here. I have a Honda and it is a quality product with excellent pricing. Look around and you will see Hondas and Toyotas are one of the hottest vehicles around. They don't sit on the used car lot very long. If you want to keep it in the United States, then build the quality here, give tax breaks for business to stay in our country and quit overpaying employees then maybe you will see things change. Not before!

Friday, Jul 18 at 10:35 AM Anonymous wrote ...

our nation is going down, but bush is living the sweet life....its all about oil

Friday, Jul 18 at 9:54 AM Steve-O wrote ...

Why is it that everytime i go overseas to another country, i dont see any GM, Fords, or Dodge cars there and only see Toyota and Honda. Its because the Americans dont want to ship cars overseas cause of the cost from paying "american" workers a high salary for making junk. It is the unions fault on that. btw-people buy foreign cause it last and wont break down. Look around on the roads and you will see 20yr old foreign cars, and see 10yr old rusty american cars.

Friday, Jul 18 at 9:22 AM G wrote ...

Maybe if quite a while ago, the American companies were more concerned with building a quality producy instead maximizing thier profit by sacrificing the quality of thier product they would have been able to compete. Its a no brianer when clearly most foreign cars are far superior to domestic ones. I feel bad that all those people are losing thier jobs, but the blame falls on the CEOs of these companies here in the US. Why would anyone buy and inferior product just b/c it was made here?

Friday, Jul 18 at 8:27 AM Me wrote ...

Keep buying foreign cars, goods, oil and we will see a lot more of this as we ship our nation's wealth overseas.

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