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Commercial, union reps expect company to be bought
By Kalea Hall
YOUNGSTOWN
The United Steel Workers and leadership from the local Commercial Metal Forming plant are working together to make sure the profitable company stays open.
Commercial Metal Forming’s parent company, Constellation Enterprises LLC, filed for bankruptcy in May, consequently leading to the sale of its subsidiaries.
The auction of Commercial, a tank head and tank head accessory producer, and other companies under Constellation will take place Aug. 9, and an announcement of new ownership will take place Aug. 13.
“We believe that there will be no disruption in the workforce, but if there is, it will be very short-lived,” said Jose Arroyo, USW business representative of the 75 USW members at the Commercial plant on Logan Avenue.
However, in a July 15 Worker Adjustment and Retraining Notification Act notice sent to the Ohio Department of Job and Family Services, the company says it will have to terminate all of its employees before the transaction closing.
“It is the successful buyer’s responsibility to extend offers of employment for the new entity,” the notice reads.
The company says it will conduct employee separations through Sept. 13. The WARN Act lists 90 affected employees.
Bob Messaros, president of Commercial Metal Forming, explained that the WARN notice was filed because the potential for terminations exists.
“The real story is that it is great news for Commercial because it will get us out of bankruptcy,” Messaros said. “Our people are highly confident that we will come out and grow.”
Arroyo explained that Commercial, which has two other locations in Texas and California, is still a profitable company, which is why the union expects the 100-year-old company will be easily sold and maintained.
“We have gone through numerous ownerships, upswings and downswings,” Arroyo said. “We believe we will come out a stronger company and a stronger union.”
Constellation filed for Chapter 11 of the U.S. Bankruptcy Code to restructure its debt obligations. The company said it suffered from significant operational issues and from the effects of the weak oil and gas industry and industrial manufacturing industry.