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La-Z-Boy plant: 630 Utah workers to lose jobs in summer
81 comments | Read story
It makes you wonder... | 12:36 a.m. April 3, 2008
If La-Z-Boy is using the market slump as part of an excuse to outsource their
labor to Mexico so the upper level management can have bigger salaries. Every
other company does it these days and who wouldn't? When you're making
hundreds of millions of dollars every year, the upper level management will do
anything they can, including lay of thousands of employees just to make fatter
salaries. Proof of this is that when the market turns back around and the
economy picks back up, La-Z-Boy will conveniently leave all their factories in
Mexico.
Sorry To Hear That | 1:39 a.m. April 3, 2008
I'm sorry to hear this news and sorry that these good people will lose
their jobs.
So much for the theory that Utah is immune to what goes on in the national economy.
So much for the theory that Utah is immune to what goes on in the national economy.
Conejo | 1:59 a.m. April 3, 2008
Does that mean the Mexican workers they already employ will get relocation
costs?
Comments continue below
NUTS | 2:40 a.m. April 3, 2008
This means I will no longer buy la-z-boy.
These MBA types just don't get it....
I suppose there is relocation for any/all the illegals working at the plant to go home to Mexico?
These MBA types just don't get it....
I suppose there is relocation for any/all the illegals working at the plant to go home to Mexico?
A giant sucking sound | 3:00 a.m. April 3, 2008
Ross Perot was right in 1992! The giant sucking sound of good paying jobs
leaving the country is killing our middle and lower classes.
Something the federal government doesn't understand about America is that we can't all be Doctors, Lawyers and Indian Chiefs.
America is a diverse nation of people. With diverse needs for employment opportunities.
The American middle to lower classes are getting the big screw-job with all these "free-trade" agreements.
Another thing to ponder. If all these jobs are heading to Mexico and employing Mexicans enriching them enough to in turn by our products. Why do we STILL have illegals crossing the border?
They already have our old jobs back home now.
Something the federal government doesn't understand about America is that we can't all be Doctors, Lawyers and Indian Chiefs.
America is a diverse nation of people. With diverse needs for employment opportunities.
The American middle to lower classes are getting the big screw-job with all these "free-trade" agreements.
Another thing to ponder. If all these jobs are heading to Mexico and employing Mexicans enriching them enough to in turn by our products. Why do we STILL have illegals crossing the border?
They already have our old jobs back home now.
Hooray | 5:10 a.m. April 3, 2008
Chalk up another great success of capitalism. Don't worry, it's really
worth it for us in the long run, 'cause it trains us to not be lazy and
stupid.
La-z-boy not whnt it use to be | 5:19 a.m. April 3, 2008
Does not surpise me about la-z-boy. My husband use to work for la-z-boy in
tremonton for many years, but after the owner died and the kids took over he
could no longer work for them. He would tell me how they would put the chairs
together. Cheap!!! He would say they father must be turning in his grave to his
this happening. The company is not the same as it once was. So for this to
happen does not surpise us at all. The family of the company love the all
mighty buck, and they will get it any way and use an excuse to get it.
Tom | 5:38 a.m. April 3, 2008
The planning necessary to accomplish this took place LONG before the housing
slump, don't kid yourself. The culprit is NAFTA and the greed of
pimply-faced Wharton/Harvard MBA's and misplaced loyalty. The folks in
Tremonton ought to buy the plant, put their shoulder's to the wheel and
make a better product at a lower cost. Take the opportunity to teach the
company a lesson. One cost they've underbudgeted is freight..it's
their Achilles'Heal. Another is the quality of their product will not be
enhanced by this move. I, for one, faced with the decision to buy an American
made recliner or super-soft chair versus one "Hecho en Mexico", if the
price was within 5 to 10%, will opt for the American-made product to sustain our
families and our economy. Create and employee-owned company, gird up your loins
and go for it! Also, learn a lesson from this experience.
Another... | 6:14 a.m. April 3, 2008
example of choosing cheap labor over quality. Shame on you La-Z-Boy....
Maybe... | 6:40 a.m. April 3, 2008
we in America should all consider this the next time we go to buy furniture. I
for one am sick of companies thinking only of the profit margin instead of the
American workers and public who have supported them from the start. This is
just not right. And we the people need to start buying strictly American if at
all possible.
Anonymous | 6:55 a.m. April 3, 2008
This is just the beginning.
Good for America | 6:57 a.m. April 3, 2008
Producing these chairs in Mexico is good for America and good for our neighoring
Mexico. If they can lower their costs by producing the chairs in Mexico, then
that will mean lower costs for people in the United States buying chairs.
Plus, it's good for Mexico and the Mexican economy. If we're going to solve the illegal immigration problem, then we need to strengthen Mexico's economy.
However, the company and our society need to help provide training for the workers being laid off. They will need retraining and will probably need to move to a different geographic region to find good employment.
Plus, it's good for Mexico and the Mexican economy. If we're going to solve the illegal immigration problem, then we need to strengthen Mexico's economy.
However, the company and our society need to help provide training for the workers being laid off. They will need retraining and will probably need to move to a different geographic region to find good employment.
rick | 7:00 a.m. April 3, 2008
American greed is alive and well even in Utah. these companies make millions off
the backs of their workers and then it is still not enough so they cut the
people who made them rich and send their jobs out of the country. profits. The
only way to save our middle class is to organize vote, boycott. I wont be buying
no lazy boy chair. The reason that the illegals won't go along home is that
they don't want to work for the same employer who will have them do the
same work at a fraction of the wage they're not stupid. however if working
class america doesn't get it right we are all going to be in trouble. we
should have listened and elected the fellow that was warning us about the
sucking sounds taking our jobs. other countries are more proactive in
maintaining their jobs. sad to say that americans are ignorant and very lax when
making changes that is why these companies do what they do. we like to vote for
yo yo's who tell us that our auto jobs are gone and nothing we can do. that
lazy boy is gone
Understand Free Trade | 7:08 a.m. April 3, 2008
If you are interested in learning how free trade benefits America and our
trading partners, I suggest you learn about 2 economic topics: Comparative
Advantage and Opportunity Cost.
Go to Google and search for "Comparative advantage". Read the Wikipedia article. It will help you understand why many economists think free trade can raise the standard of living for the American people.
Go to Google and search for "Comparative advantage". Read the Wikipedia article. It will help you understand why many economists think free trade can raise the standard of living for the American people.
Gary | 7:16 a.m. April 3, 2008
How do you say "la-z-boy" in spanish and will this be a part of their
marketing campaign here in the USA now that they are no longer an
"American" company?
Jeff | 7:24 a.m. April 3, 2008
This is a catch 22. We wouldn't be saying anything if this were one of the
other named plants that was closing. It seems that this one simply had to close
to sustain the viability of the company to pay and support its other US workers.
Believe me, Utah has benefited from this
I understand people are upset, but let me throw out another example. We have the Crandall canyon mine disaster from last summer and everyone, including congress, going after its boisterous owner to shut the mine down. What about the other hundreds of miners who lost their jobs? I sure haven�t heard much in defense of their livelihood.
Just a thought.
I understand people are upset, but let me throw out another example. We have the Crandall canyon mine disaster from last summer and everyone, including congress, going after its boisterous owner to shut the mine down. What about the other hundreds of miners who lost their jobs? I sure haven�t heard much in defense of their livelihood.
Just a thought.
no to la-z-boy | 7:26 a.m. April 3, 2008
well, i was in the market for 2 chairs and this just made it easier. buy
american.
Great... | 7:24 a.m. April 3, 2008
This solves my furniture problem. I have been in the market for a new
sofa...et.al. Now I know. A La-Z-Boy will never even be considered.
Roscoe | 7:27 a.m. April 3, 2008
It's all in the name of "increasing shareholder value". La-Z-Boy,
you reap what you sow.
Dave | 7:29 a.m. April 3, 2008
The reality is business has to be concerned about their profit margin, if they
don't they will soon be in bankruptcy .To compete in a global economy they
are forced to do whatever is necessary to compete. Instead of bad mouthing the
owners we should be figuring out what it takes to keep them here.We are quick to
compain about tax breaks, but this is the alternative.
Observer | 7:51 a.m. April 3, 2008
Another case of a company expecting undying loyalty from it's workers,
while the corporation(the people who run it) are only loyal to money. The
working people in this country have been sold a bill of goods by politicians on
both sides of the aisle, and by the corporations as well. It's greed, pure
and simple. We have politicians getting fat feeding at the corporate trough, and
corporate big wigs gettting fat by sending jobs out of the country. Who, in
their right mind, can still defend NAFTA? There are only so many jobs for
educated people, and not everyone has the ability to attain that level of
education. So what are people who work at places like Lazy Boy supposed to do?
Crawl off and die? This country is losing it's soul, and it's all
about money and greed.
JCS | 7:59 a.m. April 3, 2008
Of course my question is this: who are they planning to sell their product to?
All of those workers they put out of jobs? All of those people who don't
have a paycheck anymore because the big bosses wanted to go with cheaper labor?
All those people who can no longer afford to buy anything of theirs?
Ema | 8:01 a.m. April 3, 2008
Wow, this is going to have an enormous impact on the Tremonton/Brigham City
area. I know quite a few people who work there, and I can't imagine how
hard this is going to be on them. Proctor & Gamble is supposed to be
building a plant in Box Elder County, but it won't be happening quick
enough to help these people much. SHAME ON LA-Z-BOY for putting profit before
people.
Family | 8:07 a.m. April 3, 2008
My aunt has worked at that plant all of her life. I hope she gets a good
severance package. I am not inclined to be buying furniture from Lazy Boy in
the future.
Paul | 8:13 a.m. April 3, 2008
Odds are, it is because of American buyers that they did this. If people buy
cheap(er) goods, without any care where the goods come from, then why not move
the manufacture out of the US? One could almost ask why they stopped in Mexico,
instead of just moving it to China, to save some real money.
Adam | 8:28 a.m. April 3, 2008
I realize people don't like to see jobs leave their home town, home state,
etc. BUT, why didn't Lazyboy shut down one of the other 5 US based
factories instead of the one in Tremonton? The danger with blaming others for
our problems is that we fail to look at ourselves and ask the hard questions.
Anonymous | 8:34 a.m. April 3, 2008
Lay off people
Existing staff carries load (like troops in Iraq)
Overhead lowered
Earnings per share increaseD
Stockholders happy
Bonuses awarded to management
THESE ARE FABULOUS TIMES TO BE RICH!
Existing staff carries load (like troops in Iraq)
Overhead lowered
Earnings per share increaseD
Stockholders happy
Bonuses awarded to management
THESE ARE FABULOUS TIMES TO BE RICH!
no more middle class | 8:35 a.m. April 3, 2008
but, but, but gov. huntsman is good for business . . .
Anonymous | 8:56 a.m. April 3, 2008
what good are cheap chairs made in mexico if we dont have jobs to have money to
buy them. i say boycott lazy boy and any other company that moves jobs out of
the country out of greed......they are turning this counrty into a third world
nation...all our good paying jobs are going away, and they ones that are here
have illegal aliens working there to keep wages low... enough is enough....i
will never buy another lazy-boy
My opinion... | 8:56 a.m. April 3, 2008
My opinion,in short, is that there should be no corporate taxes, it is just
passed on to the consumer. HOWEVER, if a company choses to re-locate to a third
world country and displace American workers, there IS A COST that the company
should incur. This cost would be: (1) unemployment compensation costs,
reimbursed to the government, (2) health insurance continuation costs,
reimbursed to the employee, (3) re-training costs, reimbursed to the employee,
(4) wage differential adjustments, since most of the workers will be making less
working at Walmart now. By imposing these costs on the exiting company, they
can compensate the community affected for their decision to move, AND it may
well affect the decision if they KNOW what the REAL costs are going to be. My
two cents worth. Now a REAL RESPONSIVE government would be "creative"
in this way and enact legislation to make this kind of cost imposed on
companies. But we have a government of the rich, owned by the rich, for the
rich, and we get shafted. Consider this when you pull the lever for the
elephant....what do they really do for YOU?
never again | 9:09 a.m. April 3, 2008
I will NEVER buy Lazyboy again. NEVER. I hope all of America will join the
boycott.
Just curious | 9:13 a.m. April 3, 2008
I wonder how many who are commenting on not buying a La-Z-Boy chair now that
they will be made in Mexico, a once in a while purchase, will continue shopping
at places like Wal-Mart because they are cheaper. True perhaps, but the
majority of stuff is produced elsewhere. If you want to amke a difference, you
need to buy American ALL THE TIME, not just when you buy a sofa.
Colton in Utah | 9:21 a.m. April 3, 2008
Lz boy is amazing and i love em. Hmmmm but it bull what they are doing.....i
dont even know. Amen god bless....
David | 9:45 a.m. April 3, 2008
TO Good for America: Don't kid yourself. Lower costs have never resulted
in lower prices, just higher profits.
David | 9:55 a.m. April 3, 2008
to never again - Why stop with Laz-y-boy? Boycott all non American made
products.
Conejo | 9:51 a.m. April 3, 2008
Maybe that is why their stuff is overpriced. It was still made in America? I
thought China had cheaper labor. Why not their?
Jobs | 9:59 a.m. April 3, 2008
For those who are in the over 40 group - you will have that hardest time looking
for work. It is happening nationwide. The reason - because employers can pay the
young people without experience less. The job posting may read for example: 6
months experience working in quality assurance. If you have 3months experience
you won't get the job but someone with zero experience will. I know- I have
an associated degree (2 years of college) but someone with a certificate that
took them only 6-9 months to earn (less schooling) has been getting the jobs. I
know because I am over 40, I get calls for an interview because I have a great
resume but because I am over 40 I have yet to get hired for a job even with what
little experience I have
Relocation | 9:54 a.m. April 3, 2008
I hope that a few top execs are on the move also or will they let Mexicans
become executives? I doubt both. Quality will definetly take a hit though. Like
others have said folks, just make sure that what you buy in the future(all
things) reads made in the USA. Also please do not forget these kind of issues
when you vote this fall and other upcoming elections--local and national. Get
rid of the incumbents--they are the ones that have voted for and allowed these
type of things to happen.
NAFTA? | 10:03 a.m. April 3, 2008
NAFTA has no impact on this. These kind of chairs already enter the U.S. duty
free regardless of where they're sourced from.
Retort | 10:07 a.m. April 3, 2008
I don't want to make this sound too harsh and I am one of those
"pimply faced" MBAs you are talking about, but a few things I will
fire off at random.
1) Read Atlas Shrugged or most anything else of Ayn Rand
2) Are you really asking companies to lose money to keep people employed at all costs? Was the Tremonton facility producing good quality at a good price, was it the best facility? I don't know and neither do you.
3) Are you the consumers willing to pay more for a recliner made in Utah than one made in Mexico? Historically with every other product the answer is absolutely no. So we cry when people are put of work, but we collectively have power to speak our mind and tell companies what is supposedly important for us with our money, but we don't.
4) If we want a hand-out, say so.
I am sorry the plant was closed in Utah. I grew up there and want to see the state do well. However, these decisions are NEVER easy for executive despite the perception are just as loyal to the US as you or I.
1) Read Atlas Shrugged or most anything else of Ayn Rand
2) Are you really asking companies to lose money to keep people employed at all costs? Was the Tremonton facility producing good quality at a good price, was it the best facility? I don't know and neither do you.
3) Are you the consumers willing to pay more for a recliner made in Utah than one made in Mexico? Historically with every other product the answer is absolutely no. So we cry when people are put of work, but we collectively have power to speak our mind and tell companies what is supposedly important for us with our money, but we don't.
4) If we want a hand-out, say so.
I am sorry the plant was closed in Utah. I grew up there and want to see the state do well. However, these decisions are NEVER easy for executive despite the perception are just as loyal to the US as you or I.
Lee | 10:30 a.m. April 3, 2008
How ironic! My wife & I were going to more than likely going to buy a Lazy
-Boy sofa very soon. Not now.Of course Lazy-Boy will continue to sell here in
the U.S. All of those companies do. But we are not buying it!
Mikey B. | 10:28 a.m. April 3, 2008
When it's all said and done, it's the people told "don't let
the door hit you on the way out" that I feel most sorry for. I used to
deliver to the Tremonton and Brigham City areas. Believe me, there aren't
many rich people there. This is really going to hurt!!! Hang in there folks
and may God bless you in the difficult times to come.....for Lazy Boy all I can
say is, "you reap what you sow"!
Unfortunate | 11:52 a.m. April 3, 2008
I grew up in Brigham City, and I can't imagine the impact this will have on
Box Elder County. That place has experienced its share of hard knocks in the
last couple decades, and I suppose this is just another milepost in its
unrelenting decline.
This plant closing is unfortunately just the reality of the modern, global marketplace. For those of us who live in large urban centers, we can easily transition from an industry that has taken a hit to an up and coming, fresh industry. It is much harder in places like Brigham City, where good jobs in other industries are incredibly scarce.
At the same time, there really isn't anything we can do about this. To avoid this plant closing, we'd have to build a wall around America, cease all imports, and outlaw technological innovation. The cost of that would be a nightmare. Do we really ever stop and think of the ramifications of only "buying American?" To do so, we'd all probably be employed, but our wages in real terms would buy us bread and little else.
This plant closing is unfortunately just the reality of the modern, global marketplace. For those of us who live in large urban centers, we can easily transition from an industry that has taken a hit to an up and coming, fresh industry. It is much harder in places like Brigham City, where good jobs in other industries are incredibly scarce.
At the same time, there really isn't anything we can do about this. To avoid this plant closing, we'd have to build a wall around America, cease all imports, and outlaw technological innovation. The cost of that would be a nightmare. Do we really ever stop and think of the ramifications of only "buying American?" To do so, we'd all probably be employed, but our wages in real terms would buy us bread and little else.
Cal Reader | 12:12 p.m. April 3, 2008
I would like to add my comments about NAFTA to those of other readers. I just
don't get it. How in the world does it benefit American society to have
all the good manufacturing jobs here in our country exported to Mexico. Here in
our area in California, Hershey just shut down a large operation and sent the
jobs to Mexico. Can anyone tell me of one job that has been created for
American workers as a result of NAFTA?
To the MBA man.... | 12:18 p.m. April 3, 2008
MBA man, from a fellow MBA man (Arizona State, 1995)...The REAL costs of
unfettered free trade are very difficult to calculate precisely, but they are
LARGE. The theory of free trade, which I am sure you are familiar with, does
NOT account for "income transfer costs" and "inability to
re-train" costs. Income transfers are the unemployment paid to displaced
workers, welfare, food stamps, etc. The other unaccounted cost is due to the
inability to feasibly re-train displaced workers into new jobs. Added to this
is the real world problem of age bias. You may be re-trained but are
unemployable because companies want younger workers, after all, they will need
to learn the job and will be "happier" with lower wages and will have
more years to "pay back" the learning curve costs that the company
incures. From the inception of our country to the second decade of the 1900s we
imposed tariffs on imported goods. The result of this was the growth of the
United States into the greatest manufacturing power the world has ever seen.
Additionally, we did without an income tax. The REAl costs of outsourcing
should be passed to companies.
GOP Economic plan | 12:19 p.m. April 3, 2008
George W Bush's long term economic plan at work - "OUT SOURCING".
I'm sure the good folks in India and Mexico love GWB since he continues to
strengthen their economy's by encouraging the out sourcing of US jobs. But
hey, that tax refund check that the hard working people of Brigham City will be
getting in June will more than make up for the loss of their jobs....right???
NOT!
As a "former" member of the GOP I have to say that I can't wait until the November election when we can finally boot out the remainder of the GOP and put the democrat's back in power.
As a "former" member of the GOP I have to say that I can't wait until the November election when we can finally boot out the remainder of the GOP and put the democrat's back in power.
Tbones | 12:32 p.m. April 3, 2008
We're all sad to see this, and our outrage lasts all of about 10 minutes
--just long enough for us to traipse on down to the local big-box store in order
to stock-up on tons of cheap made in China/mexico/India goods. Companies
respond to consumer demand. If we didn't buy foreign goods as much, or
complained to store management, then we wouldn't be seeing this as much.
Vote with your dollars! If an American-made good is of higher quality and
slightly higher in price, then buy American! Has anyone noticed the poor
quality of clothing these days as compared to 10 years ago? That cheap $5 shirt
looks great on the store rack, but after a couple of washings, is ready for the
rag heap. Iconic American brands of the past can no longer be counted on for
quality. That's sad, but we only have ourselves to blame.
talked about this a decade ago | 12:50 p.m. April 3, 2008
Recommended reading:
"Downsize This! Random Threats from an Unarmed American" - Michael Moore
Academy and Cannes Award winner Mr. Moore, predicted over a decade ago what is happening today.
Conservatives need not bother. Just go back to your Rush Limbaugh Show for the latest economic updates.
"Downsize This! Random Threats from an Unarmed American" - Michael Moore
Academy and Cannes Award winner Mr. Moore, predicted over a decade ago what is happening today.
Conservatives need not bother. Just go back to your Rush Limbaugh Show for the latest economic updates.
This is great! | 1:15 p.m. April 3, 2008
We need more outsourcing to Mexico so that illegal workers don't come to
the US for jobs, they can stay in Mexico.
Business, not charity | 1:28 p.m. April 3, 2008
For all you people that love to be outraged at anything, you should learn what
the difference is between a business and a charity. If a business wants to
compete in this economy, they have to reduce costs. It's that simple.
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