GloucesterTimes.com, Gloucester, MA

Local News

October 5, 2006

NutraMax warns of upcoming layoffs

NutraMax Products Inc. has warned the city of upcoming layoffs that could result in more than 100 of the company's 250 employees receiving pink slips.

The layoffs are coming as a result of the company selling its Personal Care Division facility, according to James Todd, the company's president and chief executive officer. Todd declined to comment on who bought the Personal Care Division.

The layoff warnings came in two letters to Mayor John Bell from the company earlier this week.

The two letters, one from Todd and the other from Lisa Newton, NutraMax's human resources manager, were received by the mayor's office Monday. Both warned that there were imminent layoffs, however the number of layoffs stated in each were contradictory.

In his letter, Todd stated: "NutraMax anticipates terminating the employment of approximately 62 employees" and "currently expects to close the Personal Care Division permanently and entirely. Therefore, this will be a permanent layoff."

Newton's letter stated: "NutraMax anticipates notifying approximately 101 Personal Care Division employees that their positions ... will be eliminated. NutraMax anticipates offering positions in its Chew Division to approximately 48 employees." Both letters cited the layoffs beginning Dec. 1.

NutraMax, a source of more than 250 jobs in Gloucester, is a developer, manufacturer, supplier and marketer of selected health and personal care products. The company line ranges from cough drops and dental accessories to travel kits and disposable baby bottle liners.

Todd claimed that he wasn't aware of the second letter sent by Newton and wasn't sure why there was a difference in the numbers he cited in comparison to Newton. Todd added that he couldn't give an exact number on the layoffs in December.

The Personal Care Division, which focuses mainly on female hygiene products, has been on a negative slide, Todd said. NutraMax will continue to be located at the same facility at Blackburn Drive, but will only be operating its Chew Division, which focuses on chewable products such as vitamins.

Workers at the Gloucester plant said that the company informed them Monday of the layoffs, and offered all employees two choices. Employees could wait to see if they were absorbed into the plant's Chew Division, or they could accept the severance package offered by the company, which would provide one week's pay for each year an employee worked at the plant. Employees expressed concern that the move from the Personal Care Division to the Chew Division would result in a pay cut as well as fewer shifts.

"Our first priority is to take care of our employees," Todd said.

Mayor Bell said he knew very little about the layoff and that it was the first time NutraMax had ever warned him of upcoming layoffs, even though he was aware that the plant had seen layoffs in the past.

"Layoffs are never good for the city," Bell said, "NutraMax has had to layoff a considerable number of people over the past few years. The plant is continuously changing their product lines and their work force reflects that."

NutraMax

Located: Blackburn Industrial Park

Current employment: 250

What is it: The company is a developer, manufacturer, supplier and marketer of selected health and personal care products.

Products: Include cough drops, throat lozenges, adhesive bandages, medical gauzes ad tapes, first aid kits, toothbrushes, dental floss and dental accessories, travel kits, dietary supplements, ready-to-use enemas, disposable douches, pediatric oral electrolyte maintenance solution, disposable baby bottle liners.

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