Bissonnette and Gov. Patrick work to prevent more manufacturing layoffs
Date: 8/18/2009
By G. Michael Dobbs
Managing Editor
CHICOPEE -- To try to lower the expenses Callaway Golf has with its Chicopee manufacturing facility, Mayor Michael Bissonnette has been working to switch Callaway from buying its electricity from Western Massachusetts Electric Company (WMECO) to Chicopee Electric Light Department (CELD).
The savings would be $500,000 annually for the company that makes its golf balls in the city.
Callaway recently laid off its third shift, Bissonnette said, wiping out the job gains of 75 to 80 positions made during the last four years.
The question confronting mayors such as Bissonnette is what can they do to prevent manufacturing job loss.
The issue of where companies buy their electricity is a major answer to that question in Chicopee.
"Chicopee is very competitive because of Chicopee Electric Light," he said.
He added the cost of utilities and fuel is the "biggest problem" for companies to stay in New England.
Although one might assume that every electric customer in the city buys powers from CELD, due to long-standing arrangement, some manufacturers cannot, Bissonnette explained.
Jahn Foundry, the Cabotville complex, J.R. Lyman Co. and the Uniroyal/Facemate complex are WMECO customers. Bissonnette said that federal legislation might be needed to change the situation, but he added that a decision from the state's Department of Public Utilities just might be necessary.
He said that when he took office, Callaway's plant manager was one who specialized in closing down facilities. What saved the plant, in Bissonnette's opinion, was "the caliber of the workers." He noted that in some cases three generations of the same family have been making sporting goods at the location. Through the adoption of new production techniques, the Chicopee plant went from an $8 million loss to a $12 million profit in two years, he added.
What has also helped the business stay in Chicopee are the conversations Gov. Deval Patrick has had with the president of the Callaway Golf, the mayor said. Patrick has been trying to persuade the company to move the assembly of some of its gold clubs to Chicopee.
Bissonnette said that Patrick is also working on changing existing tax incentives laws to companies adding additional employees. Presently the law only allows communities to offer tax incentives to businesses building new facilities.
Bissonnette stressed that local officials must maintain good relationshisp with companies. He said he speaks about once a month with the plant management, who did inform him of the recent layoffs before the news hit the press.
He has offered to make infrastructure improvements around the Meadow Street and McKinstry Avenue area to assist in the possible sale of one of the plants buildings. A bio-diesel firm is interested in the building because of the proximity to rail lines.
He has also proposed a partnership with Callaway for a club fitting and demonstration facility at the Chicopee Golf Course.
"They know they can come to us if there is a way to help," he said.
