From Duluth News Tribune

STILLWATER, MINN -- When 3M Co. said last month that it would close its Stillwater, Minn., automotive graphics plant this year because of declining demand, the plant's 200 employees were caught off guard.

The workers had been logging extra hours since mid-2004, when mandatory overtime was built into the schedule. Weeks with 56 hours of work became common. Plus, they were told that the plant was behind on orders.

After the closing was announced March 31, workers were told the plant is building inventory to cover the transition while the operations are moved to a 3M plant in Juarez, Mexico. In recent weeks, dozens of temporary workers also have been hired.

Donna Fleming, a spokeswoman for Maplewood-based 3M, says temps are being hired to alleviate the need for overtime. While the company hasn't determined how many jobs will be added at its Juarez plant, Fleming reiterated that the closing is due to a steady decline for the plant's automotive graphics, particularly decals.

Some of the plant's equipment will be moved to the Juarez plant, where 3M already makes certain automotive products, she said.

Workers had heard about the slack demand for the decals, but they were upset to learn that the plant's business isn't successful according to 3M standards.

The plant's workers are finding out that overtime work, temp hiring and seemingly high demand for a plant's products aren't necessarily signs that a company considers the operation to be financially healthy.

Mary Beth Deily, an associate professor of economics at Lehigh University in Pennsylvania who has studied plant-closing decisions, said there are other obvious benefits of moving production to Mexico, regardless of demand.

"Wages are part of it, for sure," she added, noting that U.S. firms also continue to struggle with high health-care costs. If demand for a product is indeed dropping, companies "will usually close the highest-cost plant first. That's just the way it goes," she said.

The plan to reduce overtime includes putting together weekend crews, including the temporary workers, to keep production lines running. The plant has run three shifts for years.

3M says the plant's business has been hurt by automotive design that's moved away from using the type of decorative decals produced in Stillwater. Pick-up trucks that display a "4x4" logo or pinstripes, for example, have fallen out of style.

The plant also produces paint-protection films, or blackout, which is affixed to places such as along the edges of doors and windows. Demand for that product has remained healthy, the company says.

3M has said workers can apply for job openings elsewhere in the company.

Most are gearing up still for their job searches, hoping to find one that pays close to the $13 to $18 an hour they receive now, plus full benefits.

Copyright 2005 Duluth News Tribune. All Rights Reserved.

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