Weymouth Steel Corporation Employee Memo

Weymouth Steel Corporation

To: All Salaried Employees of Weymouth Steel Corporation

CC: Mr. Harrison, VP for Public Affairs

From: Carl Weymouth, Chairman of the Board

Date: 2/11/2014

 The company has attempted to keep you informed about the economic recession, recent decline of orders and increase in competition from other companies that has occurred within the past 8 months. This decline reflects an overall 25% decrease in sales. In recent months the company has been proactive by streamlining production costs. These measures have included elimination of smaller mills, plant modernizations, restricted use of overtime, limited travel, and department meetings held locally whenever possible. To date the company feels that we have made strides towards better budget constraints.

In the history of this company many sacrifices have been made when there has been a recession upon the demands of our product and the company has been successful at continuing production. A progressive company must periodically reassess and evaluate utilizing careful management of our resources, maintaining existence and an optimal goal for future growth.

Looking to the future it is evident that changes have to occur to remain competitive. Some of these changes need to include: installation of new processing machines, improving required anti-pollution standards and developing more efficient operating mills. We have been carefully measuring required staffing numbers and overall sales strategies to obtain an acceptable operating budget. Every member of this company will need to assist with the reduction of production costs.

Maintaining current salaries, benefits that include dental, life, and medical insurance, vacation time and provisions for retirement are important to this company. Upon review of all of these variables it has become evident that it is necessary to make workforce reduction. The numbers were calculated based upon attrition rates, promotions, retirements and unfortunately, termination. All salaried employees with one year or more service are eligible for termination payment including reimbursement for unused vacation time for the year 2004 and 2005. Current health insurance will continue for one month after layoff.  The supplemental employment benefits (SUB) will not be available for laid off salaried personnel.

We are saddened by this decision but we understand that you are paramount in assisting this company to remain financially sound, in production and contribute to the future of all employees. Thank you for your faithful commitment to our company. For the effected employees and your families the company will be providing, through a reemployment company, retraining programs and assistance for those seeking future employment. Future department meetings will occur to address unanswered benefit concerns. We must remain realistic about current market trends, to reduce costs to maintain a successful company.