A local company is sold to a New York based company, leaving some employees with out a job. The deal between Climax Packaging Incorporated and Saint Joseph Packaging became official October 31st. The plant, located in the St. Joseph industrial park, manufactures folding cartons and printed packaging. A Climax representative said the acquisition will enhance the company's packaging options with multi-plant operations. Climax also has two facilities in New York.
Former St. Joe Packaging President, Chuck Hamilton, says the facility currently employs 65 people. He confirmed to the St. Joseph News Press on Monday that some employees were laid off last Friday, but wouldn't comment on how many. Mr. Hamilton, who's now the company's sales manager, said the reason employees were laid off was, "They're just not being hired by the new company."
We spoke to a couple of the laid off employees on Monday. Both men were employed for at least ten years at St. Joe Packaging and said they were shocked they were let go. They speculate the lay offs had to do with having participated in or currently being on workman's compensation. Mr. Hamilton said, "I doubt all of them have a workmen's comp. claim", and said the new company just isn't hiring.
The former St. Joe packaging was a family owned business for more than 100 years.