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Vise-Grip employees ponder what's next for them

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BY CARA PESEK / Lincoln Journal Star

Wednesday, Sep 03, 2008 - 06:39:46 pm CDT

DeWITT — Just about everyone who lives here has worked at the Vise-Grip plant at some point or other, or so it seems to Jean Inderlied.

Inderlied, 88, worked in the tool plant’s packaging department for 9½ years in the 1970s and 1980s. Her children worked there, as did a son-in-law, assorted grandchildren and one great-grandchild.

For most of her life, she said, the Vise-Grip name has been nearly synonymous with DeWitt.

Story Photo
Gary Oden talks on the phone in front of the Irwin Vise-Grip manufacturing plant in DeWitt on Wednesday. (AP)
Vise-Grip Tool Timeline

1915-1920 - Bill Petersen develops first pair of locking pliers (sources give varying dates)

1924 - Petersen is awarded basic patent for locking pliers; begins production at his blacksmith shop in DeWitt

1934 - Petersen Manufacturing Co. formed to manufacture and market Vise-Grip locking tools

1938 - First official Vise-Grip tools plant opens in former DeWitt drug store with a staff of 37

1945 - First National Hardware Show; Vise-Grip tools are there

1957 - Modern-design 10WR Vise-Grip locking pliers go on the market with curved jaw and wire cutter

1962 - Petersen Manufacturing opens a plant in Cumberland, Wisc., for manufacturing twist drills

1962 - Bill Petersen dies; family takes over business

1978 - Petersen Manufacturing workforce expands to 637 people

1985 - Allen Petersen, grandson of Bill Petersen, buys family’s interest, forms American Tool Companies, which acquires Petersen Manufacturing

1993 - American Tool acquires Irwin Tool Co., a manufacturer of power tool accessories and cutting tools

2002 - Newell Rubbermaid acquires American Tool for $419 million. Its revenue in 2001 was $444 million. About 270 people work at American Tool's plant in Beatrice and 664 work at its plant in DeWitt at the time of the acquisition. Some executive offices remain in Lincoln, but are phased out.

2003 - American Tool name officially changes to Irwin Industrial Tool Co., the name of a company American Tool acquired in 1993; company closes divisions in Beatrice, idling 200 workers. DeWitt plant employs 500 people.

2005 - Newell Rubbermaid announces plan to lay off 5,000 of 31,000 employees worldwide and to close one-third of its 80 factories.

2007 - Company announces it would continue to assemble and package Vise-Grips at DeWitt, but would outsource manufacture of the components.

Wednesday - Newell Rubbermaid announces it will close DeWitt factory by end of October, costing the remaining 300 jobs.

Sources: Irwin Industrial Tools Web site; Journal Star archives.

“I don’t think there’s too many people that haven’t worked there,” she said Wednesday as she drank her morning coffee at R.J.’s Bar and Grill.

That will change.

During a Wednesday morning employee meeting, plant officials confirmed what the factory’s 330 employees and most of DeWitt’s 572 residents already knew — that the Irwin Industrial Tools plant where Vise-Grips are assembled will close.

Newell Rubbermaid, which owns Irwin Industrial Tools, will move at least some production to China. Production at the plant will continue until the end of October, though employees were given the rest of this week off, with pay.

After Wednesday’s meeting, many crossed the street from the plant to R.J.’s, where they wondered aloud what lies in store for themselves and for their community.

“I’m 56 years old. What am I going to do?” asked Susie Miller, who has worked at the plant for 34 years.

Her son, who was 4 when she began work at the factory, has worked there for 19 years.

Miller and her husband, a former Vise-Grip employee who accepted a buyout several years ago, own a home and several rental properties in DeWitt. Wednesday, she worried about property values in town, as well as about the other businesses, like R.J.’s, and about nearby Tri County Public Schools, and about the future of her community in general.

Nearly everyone else in town seemed to be wondering the same things.

“We are not sure what this really means, because we have never been without the plant for the past 80 years,” said Randy Badman, chairman of the DeWitt village board.

A few years ago, he said, the village updated water and sewer lines for the plant — projects for which the community is still paying.

Many local businesses — including the bank and the town’s two bars — have customer bases comprised largely of Vise-Grip employees.

“It means a lot of business going out the door,” said Ron Hinzman, owner of the Red Zone, where some Vise-Grip employees went for beers after Wednesday’s announcement.

Hinzman himself is a 26-year Vise-Grip employee. Like many plant employees, he saw the shutdown coming. So three years ago, he and his wife, Suzanne, bought the Red Zone for “something to fall back on a little bit,” he said.

Jud Douglas III, owner of DeWitt State Bank, said Wednesday afternoon that he, too, was concerned about what the end of Vise-Grip would mean for both his business and his customers.

“We’ll have to assess the situation and see what we can do to assist individuals,” he said.

And there’s also the issue of the plant itself.

The assessed value of the plant building is $5.62 million — about a quarter of the $22 million total assessed value of all private property in DeWitt, said Saline County Assessor Georgene Eggebraaten.

The Tri County School District encompasses an area with a total assessment of about $100 million, including the town of DeWitt, she said.

It’s too early to say how having an empty plant in town would affect property values elsewhere in DeWitt, Eggebraaten said.

She hopes it doesn’t impact valuations at all.

“We just hope another company will come in and use it,” Eggebraaten said.

Badman said that’s what he’s hoping for, too.

He himself used to work at the plant but was laid off several years ago, after 36 years with the company. Since then, rumors of layoffs or the plant leaving town altogether had surfaced periodically, he said.

At least now they’ll finally stop.

“The uncertainties that the employees and their families have had to face the past several years are somewhat cleared up now,” he said. “But now on the positive side there’s an opportunity to move on.”

Moving on in a way that’s good for DeWitt means working with local, regional and state economic groups and political leaders, Badman said.

He said DeWitt has a good workforce — many of the Vise-Grip employees laid off Wednesday had been with the company for decades — as well as a fire and rescue squad, paved streets, a swimming pool and good law enforcement. He hopes those things attract a new business to town.

“We have a very good, nice quiet town,” he said. 

Thursday, plant employees will attend one of two informational meetings about insurance, 401K and pension packages, education opportunities, unemployment and severance pay, among other topics.

After production at the DeWitt plant stops next month, employees will receive a severance package: one week’s pay for each year they’ve been with the company, for a maximum of 13 weeks.

Regardless of whether all those employees find new jobs, regardless of whether a new business moves in, the community still will have lost something, said Gary Oden, another Irwin employee.

The sign that welcomes visitors to DeWitt and the community’s Web site both proclaim the town the home of Vise-Grip. There’s a Vise-Grip display in the local museum, and everyone in town seems to have a Vise-Grip collection, he said.

“The Vise-Grip name carries a lot of weight,” he said. “To me, once it goes overseas, the name’s gone.”

Wednesday, he said, he still couldn’t quite believe the iconic tool wouldn’t be made in DeWitt any longer.

“Vise-Grip starts in a town of 500 in little Nebraska, and, to me, that has to mean something,” he said.

“I thought maybe that would keep it here.”

Reach Cara Pesek at 473-7361 or cpesek@journalstar.com.


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TD wrote on September 3, 2008 9:23 am:
" Better get use to this pretty soon nothing will be "Made In America". "

saline taxpayer wrote on September 3, 2008 9:26 am:
" Once again good jobs held by legal laborers are going overseas. I hope that each worker can find decent employment. That will be difficult if they want to stay living in DeWitt. It is too bad to see such an iconic brand not made in America. I guess I've bought my last Rubbermade product. "

impact wrote on September 3, 2008 9:41 am:
" Keep this in mind when you shop at places like Walmart that put pressure on companies to lower costs forcing them to move operations to China. This will continue until the government penalizes companies for moving jobs overseas. "

CS wrote on September 3, 2008 9:41 am:
" Wow. A WHOLE 13 weeks? The company didnt have to even do that, but really thats not going to do much but cover-as stated in the article, where are they going to go? Someone has to do manual labor and these people were working their whole lives, its not like they can just go back to school or get another job now. This is going to kill Dewitt. "

Steve wrote on September 3, 2008 9:54 am:
" How is it that the state will celebrate when Nebraska get 50 jobs from Yahoo!, but will not even try to keep a plant that has been a staple in Nebraska for over 50 years. Has anyone from the Governor's office even been in DeWitt to try to keep the plant there. Rubbermade has over the past 5 years been declining the benefits, removing higher paying jobs and in general not concerned themselves with the well being of the community, they just care about the bottom line and what makes the share holders happy. This is happening all over the US, but it hurts a lot when it's a small community in the heartland. "

Michael wrote on September 3, 2008 10:22 am:
" The writing was on the wall when they changed names from American Tool to Irwin. Probably should have just went straight to Chang Tools. "

realistic wrote on September 3, 2008 10:47 am:
" Sounds like this plant and company did a lot for this town for a long time. I don't hear the employees bashing it, mainly the bloggers. The company was able to work with the town for a long time, now that period is over. I'm guessing the employees buy cheap goods at Walmart like the rest of us, and have no intention of stopping. "

connie wrote on September 3, 2008 10:49 am:
" HOW SAD!!!! I thought that the Newell-Rubbermaid Company was American. Why are they stooping so low as to move to China. Didn't I read someplace that because of the cost of fuel, that businesses were taking there business out of China. To expensive to send back and forth. Wake up Newell, keep the business in NEBRASKA. "

beans wrote on September 3, 2008 10:49 am:
" Maybe Heineman can sell Rubbermaid some beans to send to China along with those jobs. That's what these laid off workers in DeWitt will be living on. "

CS wrote on September 3, 2008 10:52 am:
" By definition a corporation only SHOULD care about the shareholders in a capitalist economy-anything above and beyond they do on their own. This is why I laugh when the 'anti-socialist brigade' shows up in here from time to time. I don't see a lot of non-prosperity in the European countries that have mixed economies and i've been to some of them. If you hue and cry for the 'market' to fix everything, this is what you get. "

MG wrote on September 3, 2008 10:57 am:
" This thing happens every day in strong manufacturing sates.

Look at Illinois, Ohio, Michigan whose unemployment rates are all over 7% right now. "

insider wrote on September 3, 2008 11:05 am:
" And the funny thing is....they can't even produce the Vise Grip's cheaper in China! The ones that have already came back are a piece of junk. Lots of greedy people at the Newell Rubbermaid headquarters. Enjoy your personal Lexus' that you drive there--provided by the company--as many of us are now wondering how we are going to move on. "

What Future wrote on September 3, 2008 11:38 am:
" What types of positions could these former workers be trained for? Anything done behind a computer is going offshore. In addition, the job market for well-paying jobs in NE is dismal. "

CS wrote on September 3, 2008 11:48 am:
" Certain things done behind a computer are going offshore-programming, for example. Project management, certain 'niche' specific support roles, anything requiring vetting by background or security is usually safe, along with physical installation. There is money on computer related work, you just have to be careful what you specialize in. "

DL wrote on September 3, 2008 11:48 am:
" Very sad for this company!
It appears America is "for sale".
No country will militarily counter America. No need for that mess when foreign countries can BUY American Companies and bring us to our knees with NO jobs. Pretty simple strategy.
America is up for sale throwing American jobs overseas. "

se wrote on September 3, 2008 12:36 pm:
" Wonder what will become of Tri County School?? I'll bet a good many of the current students have ties to Irwin Tools. It's like the domino effect. One thing leads to another....... "

Rob wrote on September 3, 2008 12:57 pm:
" Isn't capitalism a great thing!!! Probably not a good move by the Petersen family to sell in the first place. "

Skeptic wrote on September 3, 2008 1:01 pm:
" To CS: It's not just IT jobs that are being offshored. My MRI results are read by radiologists overseas. Also accounting and even legal jobs have gone to India. Companies pay for Indian citizens to attend law school in the U.S. and then work in India. In addition, the NY Times recently reported that Wall Street is going to offshore 40% of its research and development jobs. My advice is to work in a field where your physical presence is required. (Medical, the trades) Americans also need to become more entrepreneurial. However, the above does not help the 50-something laid-off factory worker. "

Former Employee wrote on September 3, 2008 1:41 pm:
" When Petersen owned the company they marketed their tools as "Made in America". But the American consumer doesn't care about that anymore.
Cheap from China is just fine. Stockholders that used to care about such things as long term health and growth, now just want a quick buck and who cares about tomorrow.

No wonder Newell-Rubbermaid changed the name from American Tool to Irwin when they bought the company. Makes it look a bit better when they ship the company to China. "

CS wrote on September 3, 2008 1:42 pm:
" We deal with local govt accounting software, we contract out a few years at a time. We code our own stuff and our clients are somewhat notoriously nationalistic. I also do physical installs on the side, and 1 to 1 training as well. I made sure to get a management component to my Info Systems degree, too. We'll see. "

old guy wrote on September 3, 2008 1:48 pm:
" If they want to transfer any part of production to China nobody should buy another vice grip. "

Im sure of it. wrote on September 3, 2008 1:56 pm:
" I'm sure that when the Peterson family sold the business they where told the plant operation would remain in Dewitt. I've been around them when I worked at the airport in Crete in high school. They don't just look out for themselves. Selling may have been there only option at the time. That doesn't make what Rubbermaid is doing there falt.quit buying the china crap I SAID QUIT BUYING THE CHINA CRAP! I know it is hard not to but any effort can't hurt. And for god sakes get out there and vote for labor friendly candidates. "

worried DeWittian wrote on September 3, 2008 1:58 pm:
" This problem we are facing has been faced in other states but when it is your home, it hits hard. But, America is losing! Corporate is sending jobs over seas for whos benefit? Definately not middle class Americans. This needs to stop. I agree. We need to rethink what we buy. When I was young, I heard people talk about buy American made. Now, I'm a believer. "

Not Just DeWitt wrote on September 3, 2008 3:00 pm:
" Those of you who think this can't happen to you beware! The DeWitt employees exhibited great endurance and heart in order to keep this company as long as they did. They took pay cuts, additional work, switched shifts, demotions, etc. in order to make Newell's bottom line. And after all the sacrifices, Newell is still quoting competitive pricing as justification for moving to China. Not only is this rationale a complete fabrication, but just ask the employees how much of what was previously outsourced has already flown back to DeWitt because the work performed overseas was substandard. Get real Newell, this isn't about competition, this is about corporate mismanagement. What company is going to bail out your platic kitchen containers once DeWitt is no longer here to mask your Rubbermaid losses??? "

Reality Check wrote on September 3, 2008 3:20 pm:
" Bound to happen someday in a town that hardly even has rail service. I'm surprised it didn't happen sooner. Dewitt milked this as long as they could. Now the town will probably drop below 300 residents in the next two years. "

denny wrote on September 3, 2008 4:33 pm:
" I wonder if they would have stayed in the USA if they got a tax break from the federal government if they stayed? "

DF wrote on September 3, 2008 4:33 pm:
" This is an absolute disgrace. I also work in a large manufacturing plant in Lincoln, and we have lost over 400 jobs to Mexico. I work with tools for a living and I will never buy an Irwin tool product again. All the cheap tools from China are junk. I don't shop at Walmart and conciously
avoid buying products made in China as much as possible. "

Arkie wrote on September 3, 2008 4:43 pm:
" Why not slap a tariff on all goods made in China. Free trade is not a panacea. "

Astounded wrote on September 3, 2008 5:45 pm:
" In addition to the Governor and Congressman Adrian Smith, where was the local State Senator? The politicans do not care. "

Dave wrote on September 3, 2008 7:05 pm:
" It is all about profits. Anyone here who invests in the stock Market via mutual funds or 401K expects a return on your investment. You probably don't look to see that those corporations are acting responsibly with regards to workers, the environment, or safety. Corporations have one function only: TO MAKE AS MUCH MONEY FOR SHAREHOLDERS AS POSSIBLE. All we citizens can do is not support those corporations with either investment or purchases, and make sure to research candidates and VOTE.

I don't shop at Walmart and I avoid other "made in China" stores and franchise stores and restaurants. Whenever possible, I try to buy local and union. One person doesn't make a difference, but if everyone did this we would witness a sea-change in the way business is done.

It will get worse before it gets better. I am fortunate to have a building trades union job-- It's difficult to ship that overseas. As long as we maintain some type of selective immigration policy like every other developed nation...

I feel bad for the families and workers in and around Dewitt. There are union opportunities in the building trades up around Omaha; the Laborers union would be a good place to start. "

Guess Who wrote on September 3, 2008 7:27 pm:
" I left employment with Newell after I came to the conclusion that it didn't matter how hard we worked or how much improvement we made, the end state was already determined. Newell is following a policy of exiting manufacturing wherever possible. It is short sighted and foolish. People should be aware of how well the DeWitt plant has performed in the face of the threatened closing over the last several years. Goals were set by Irwin management that if met would give the plant an opportunity to survive. All of those goals were met or surpassed but they never intended to honor their empty promises. I will always consider the people at this plant to be the most dedicated group of people with whom I have ever had the pleasure to work. I will always consider this to be one of the vilest and most unjustified actions I have ever witnessed. DeWitt NEVER lost a dime, and in fact the locking pliers that will be coming from China will bear a higher total cost than those produced in DeWitt. I wish everyone at the plant the best.

Maybe the folks from the Huntersville headquarters (Eeyore, Token, Grasshopper, Mr. ViseGrip, and our favorite Valley Girl) can get over their sympathy for the plant employees by going to the gym at lunch and working out their glutes really really hard. "

mmsl wrote on September 3, 2008 7:28 pm:
" The quality of the vise grip tools has been in the decline since Rubbermade bought the company. Being made in China won't make it better. I hope the employees can survive. They deserved better. Good time to kiss Rubbermade goodbye! "

and we wounder why wrote on September 3, 2008 7:38 pm:
" This should be no surprise. Nobody cares about American made until their jobs go overseas. How many of these workers have a car in the parking lot that was made by a foreign owned company. So if they don't care about America and American jobs why should some one else care about where their vise grips are made. "

About Taxes wrote on September 3, 2008 7:46 pm:
" It is all about taxes. The way the Republicans in this administration has the tax code set up. They actually get a tax break to move jobs over seas. So why wouldn't they want to do it? Cheaper labor, cheaper taxes, no money for them. No reasons to keep the jobs here. "

BLY wrote on September 3, 2008 9:56 pm:
" What an awful blow to the entire area, not just DeWitt, but all of the surrounding towns that have people that work at Peterson's. I lived within a couple blocks of Peterson's while growing up and this is a big shock. If Rubbermaid feels that they can do better in China they could have at least offered a better severance package. I live near Norfolk and when Tyson closed the meat plant here 3 years ago they gave the employees a 6 mon package as long as you had worked there a certain amount of time, none of this 13 week max stuff. I feel for those that have worked there for decades and have devoted their lives to the Vise Grip name. Rest assured I will no longer purchase Irwin or Rubbermaid products. "

cushman wrote on September 3, 2008 10:24 pm:
" they bought it to sell it from the get go nothing they could of done would change that fact even if every car in the lot was made in Detroit or how many concessions i wish them well as a former cushman employee i know it will be hard to replace the job with something equal i have not yet and know of VERY few that have. your time and heart you have put in you will never get back "

Tariffs wrote on September 4, 2008 4:55 am:
" This is all a product of "Free Trade" How about suspending sales tax by federal law on all products under 500$ made in the USA? "

tm wrote on September 4, 2008 6:48 am:
" I know the job losses are pain full but can anyone honestly tell me that setting around stamping metal is worth 11 to 22 dollars an hour.Its all about how much training and skill is needed for the job.Its hard to make your company grow when your paying those kind of wages which need no skill. "

what next wrote on September 4, 2008 7:54 am:
" se is right, TC school is all but done. Heck Wilber is all but dead too every kid will get hurt by this. Where is our state senator? He would be taking credit on the front page if the plant were about to open. Maybe they will lower our real estate taxes to keep people in town. Who will live in all the empty houses? "

Brenda wrote on September 4, 2008 7:57 am:
" tm - you are so wrong about these jobs! There is absolutely a skill, an art even, to many of the jobs in this plant. Yes, it's hard work and it's physical work, but it definitely requires skill and training. "

how dare you wrote on September 4, 2008 10:30 am:
" tm- Have you ever been to the factory to see how things work? Unless you have, it's better to just shut up. My father has worked there for 37 years - longer than I've been alive - and I've seen and heard about it all. I'm guessing you have a nice office job somewhere - try working in an un-airconditioned building with many, many machines running (just stamping metal!) not to mention larger very hot oevens when it's 90+ outside. Then we'll see how much you think the job is worth. "

Unemployed too wrote on September 4, 2008 11:00 am:
" Having recently lost my job with a large manufacturer in the Lincoln area due to the company closing it's doors, I empathize with the workers in DeWitt. I hope that something new and better will turn up for them to allow them to support their families. Maybe it is time to start retooling and revamping some of the equipment and processes in these situations and invest in American workers, rather than just walk away. Best wishes to you all. "

Dottie wrote on September 4, 2008 12:34 pm:
" I knew years ago, when newell rubbermaid shipped my husband's job to china (also part of that business...American Tool) that it wouldn't be long before they shipped DeWitt's jobs, also. It's a shame, because in the past I also worked there years ago, and there were so many decent people that worked there and liked their jobs, and took pride in them. I just think in this cut throat world, it's always about who can we get to make it cheaper, even if the quality goes down, and it's sad because I'm sure if the original owner fathomed that they would break down his proudly made in the USA product and shipped it overseas costing American jobs, I doubt he would've done it, but even more depressing...they can still stamp "Made in the USA" on the product...simply because there's an office for the product within the USA. I stopped buying rubbermaid products long ago, because if my american husband wasn't good enough for them to let him and his other co-workers keep their jobs, then our american money is better spent elsewhere. Which by the way, I'm hoping the next President does make it harder for big business to "sacrifice" their american workers! "

Dewitt resident wrote on September 5, 2008 3:59 pm:
" I feel sorry for all of the employees that were still at the factory but yet on the other hand not due to the fact that when they started offering the buyout to people years ago it was just a matter of time before they closed the doors. People should have read between the lines and seen it coming. Now all of them that are still employed there are at a loss. They should have gotten out then and looked for other employment a long time ago. Now there is an abundance of people who are going to be looking for jobs. How lucky are they going to be trying to get one now? The company used to be a close nit group of people but when Peterson's sold it they knew what they were doing and lining there own pockets. Didn't matter how it affected the workers.The economy has gone to hell in a handbag and gone fast. But that's what it all comes down to...Money talks and BS walks. "

Craig Warner wrote on September 19, 2008 11:53 am:
" Time to boycott them. DONT BUY LIST
You can now compare them to Wally World and GE "

Andrea Michigan Resident wrote on October 6, 2008 5:43 pm:
" I too am sick of watching our jobs go to oversea country's that have no standards in production and that destroy the environment with their business practices. How can America compete with these countries that have sub standards and can make the product cheaper because of the standards. I for one have started boycotting as many "made in china" products that I can. We as the American people need to start voting out of office our elected officals that can't fight for us, and our jobs! So if the American people are jobless they can be too! "