Philips to lay off 22 workers

Philips Lighting announced Wednesday that it will lay off 22 employees in November at its plant in Salina because of a drop in demand for fluorescent lamps.

"Twenty-two jobs were let go because of a reduction in the demand of the products made at the (Salina) facility," said Silvie Casanova, spokeswoman for Philips Lighting.

The layoffs come in the area where linear fluorescent lamps are made.

Gaye Kinnett, human resources manager at Philips Lighting in Salina, said plant managers met with employees Wednesday evening to deliver the news.

Kinnett and Dan Mendicina, plant manager, said they couldn't comment on the layoffs.

Casanova said Philips employs 420 people in Salina but that will drop to fewer than 400 after the layoffs.

"We have tried very hard to ensure we mitigated as much of the job losses as we could," Casanova said. "Unfortunately, it has still resulted in 22 layoffs."

Casanova said the reduction of jobs also comes at a time when the plant is not filling positions when employees quit or retire.

Dennis Lauver, president and CEO of the Salina Area Chamber of Commerce, said the losses could have been higher.

"We certainly feel bad for the people being impacted by this announcement, but my understanding is that Salina isn't seeing quite as negative an impact as other plants have seen (that are) making the same product," Lauver said. "This is because of the high productivity levels at the Salina plant."

Casanova said other Philips plants have laid off people in the past, but not recently.

Lauver said a reduction in demand for fluorescent bulbs is partially to blame for the job loss, but so are regulations that have increased the cost of making the bulbs.

"There has been a drop in fluorescent lamps, but part of the problem is at 1600 Pennsylvania Avenue (the White House)," Lauver said. "The increased regulations have impacted fluorescent lighting so we can lay some of this on the feet of 1600 Pennsylvania Avenue."

Lauver said the White House and the U.S. Department of Energy have attempted to reduce the use of T12 light bulbs, which is the primary light bulb made in Salina, through higher energy standards.

"The is a case of err on the side of regulation, which is the approach this White House has taken," Lauver said. "It has made it more expensive to produce light bulbs because the cost of phosphor has increased. This is the standard light bulb. They are trying to kill off the demand for these light bulbs."

Salina city commissioners voted in January 2011 to give Philips $750,000 over three years in special sales tax money from the Salina Economic Development Incentive Council fund in an attempt to secure a plant expansion and bring 50 jobs to the city.

At the time, Philips said the 50 jobs would bring an additional payroll of $2.35 million and the company would invest $5 million in Salina.

The amount is the largest given out by the SEDIC. The city also gave Philips $150,000 in June 2010 to bring 22 jobs to Salina.

The state of Kansas invested between $275,711 and $499,755 in June 2010 and planned to invest almost $500,000 more in 2011.

Mendicina said the jobs being eliminated are not those that were added with the money given by the SEDIC and the state. Therefore, that money is secure.

"The jobs that were brought here from other closures have been added and we are making products," Mendicina said.