GOLDFEDER SILVER Co.
Yalesville
UNION DEMANDING TOO MUCH - SILVER FIRM STRUGGLES, MAY BE SOLD
Citing Financial losses, the president of the Goldfeder Silver Co. said over the weekend that unless the company is able to negotiage "a workable and realistic contract" with union negotiators, the plant may be sold to outside interests.
Sol Goldfeder, president of the silver manufacturing firm which has been located at 125, Grove St., Yalesville, for the past 20 years, said that in view of the financial problems of the last three years "it would be impossible to continue operations with the new demands of Local 221, United Electrical, Radio and Machine Workers of America.
He said that copies of the company's financial reports for the last three years, prepared by a certified public accounting firm, have been forwarded to Harry Kaplan, business agent of the union, to illustrate the need for "reaching a three-year contract that would enable us to remain in business."
Reached at his home, Kaplan confirmed Goldfeder's reference to the financial reports and said he intended to distribute copies to the union members. "We've known the company has had economic and financial problems the last year because of some union members being laid off."
However, Kaplan said that the firm had recalled all of the employees laid off during the economic slump. "We also realise that the company produces luxury holoware items and that sales were affected by the recession."
The business agent further said, "We've managed to have pretty good relations with the company in the past and always have tried to negotiate an agreement both sides can live with." Kaplan said the next negotiating session with Goldfeder officials will he held Thursday, June 17.
Goldfeder, president of the firm which relocated to Wallingford two decades ago after having been in operation for 21 years in New York City, said he would not disclose the name of the firm interested in acquiring the manufacturing plant.
In an unprecedented action, the company president made available to the Record copies of the firm's financial reports for the last three years but requested that the amount of each year's losses not be published.
Morever, Goldfeder showed a copy of a mortgage agreement with an area bank which he indicated was necessitated because of the firm's financial losses. "Unless the union modifies the terms of the present three-year agreement which expires on June 30, we simply would not be able to continue operations."
He said that he had submitted a counter-proposal to the union's business agent, a move he described "as the only possible way we can stay in business." The company employs 40 persons, most from the Meriden and Wallingford area, including four foremen.
Goldfeder said that the semi-skilled and unskilled employees average $4.24 an hour excluding fringe benefits. "If we were to add the company cost of the fringe benefits to the overall costs, the hourly pay would be about $6.24."
The company president disclosed that the union has asked for a substantial wage increase, another "floating holiday", a pension plan, a dental program, a $5,000 life insurance policy for each employee, major medical insurance cover, an improved maternity coverage plan for wives of employees; payment of X-rays and eye glasses - all to be paid by the company.
Goldfeder said the firm currently pays the entire cost of the CMS and Blue Cross coverage to employees and their families in addition to paying for 11 holidays during the year.
"Right now we have been negotiating for the sale of this business to another silver manufacturing firm because it is something we may have to do unless we get a workable contract with the union. And I'm not revealing the possible sale simply because of the current negotiations. It's simple economics."
The losses cited by the company president relate to 1973, 1974 and 1975.
Goldfeder noted that the same union in upstate New York had agreed to a new contract on May 27 resulting in union members receiving nearly $3 an hour less for small jobs. "The union said the agreement was approved by the union membership in order to reduce the 25 to 30 per cent unemployment rate among members in Chautaugua County, N.Y.
"I think that the union represents our employees has to take into consideration that we cannot afford higher operational costs. We are not asking them to take a $3 an hour pay cut; we want something reasonable." he said.
The union business agent sounded an optimistic note by saying, "I'm hopeful the company will be in a position to become involved in reasonable bargaining when we meet later this month."
Source: The Morning Record - 7th June 1976
Trev.