Officials Move Quickly to Help Gulistan Workers

Gulistan Carpeet is closing down the plant on N.C. 5 in Aberdeen. Photo by Glenn Sides.

As of Monday, January 7, 2013

BY TED M. NATT JR.

Staff Writer

Randy Ring started working for Gulistan Carpet after graduating from Union Pines High School in 1973, so he was caught off guard when the company let him go late last year.

"I knew business was bad, but it was still pretty much of a shock," Ring said Friday. "At 57 years old, I wasn't quite prepared to retire. I lost insurance benefits and everything else the day I left."

Ring was one of 44 employees whose job was eliminated Nov. 30, a precursor to last week's news that Gulistan is closing its operations in Aberdeen and Wagram, resulting in the loss of nearly 400 jobs.

"My hope was that my round of layoffs would save the company, but apparently not," he said.

Ring said he is collecting unemployment while looking for a job.

"I'm putting in applications," he said. "There are probably jobs out there that I would enjoy, but starting a new career at my age is not likely. I expect it to be tough."

Gulistan employees learned in a letter sent Dec. 28 that the company was "in the process of permanently winding down operations" at its facilities on N.C. 5 in Aberdeen and on Airbase Road in Wagram "beginning immediately and continuing over the course of the approximately the next four months."

The first round of layoffs was scheduled for Friday, but company officials delayed it for at least one week, according to Gene Norton, manager of the N.C. Division of Employment Security (DES) office in Aberdeen.

"It's all based on production," Norton said. "They're trying to get as much product out to fill the orders they have."

Messages left Thursday and Friday for representatives of Gulistan were not returned.

Norton and his staff were planning Friday for a two-day Rapid Response Visit to the plant later this week.

"This is a dynamic situation where there are going to be day-to-day changes," Norton said. "We'll be meeting with employees and providing them with information on the employment services available in Moore County. Our goal is to be proactive and get these people back to work as soon as possible."

Norton said DES personnel will also discuss with employees how to file for unemployment benefits, how to update their resume, how to manage their personal finances now that they're unemployed, and retraining opportunities at Sandhills Community College, among other things.

"It's just a matter of getting them all the information available on programs in the county that can help them," he said. "We want them to understand that the best solution to the problem is to go back to work quickly."

Norton said DES conducted a similar visit to American Growler in Robbins last October when the plant there closed, putting about 50 people out of work. The company built vehicles for the U.S. military.

"I've done tons of them around the state in the past 30 years," he said. "I just hate that all this is happening right after Christmas. Hopefully, we can set some of these people up with job interviews immediately."

The letter indicated that Gulistan has made "substantial efforts" over the past few years to restructure its debts and its business and continue to operate or postpone the shutdown. Those efforts, the letter states, "have been unsuccessful to date."

The letter indicates that some company assets were sold through a private sale conducted by Bank of America, and that Gulistan intends to file for Chapter 11 bankruptcy for the "orderly sale of the remaining assets."

Pat Corso, executive director of Partners in Progress, the county's economic development agency, said Friday that he is "cautiously optimistic" that a buyer can be found.

"But it's going to take a lot of help from the state," Corso said.

Corso and Patrick Coughlin, president and CEO of the Moore County Chamber of Commerce, also plan to meet with middle and upper managers at Gulistan about potentially becoming entrepreneurs.

"It doesn't have to be about textiles," Coughlin said. "Maybe they want to open a coffee shop. If some of them want to run their own business, let's help them."

Meanwhile, the owners of Aberdeen Carpet & Flooring feel fortunate to have an alternative location to relocate their business from the Gulistan campus. Blue McCaskill and Jimmy Frye own the building on N.C. 5 that is home to FiFi's Fine Resale, and has 8,000 square feet available.

"There's a slight possibility that someone might purchase the plant, but I think that's a very slim chance," McCaskill said. "We're trying to get relocated if we have to. We want to keep our same phone number and things like that."

McCaskill said the company has built "quite a customer base" since opening in 1975.

"We've got a lot of loyal customers," he said. "Hopefully, those people will stay with us after the move."

McCaskill said he was taken aback by last week's news.

"It was a real shocker," he said. "We were completely surprised. It's been a real privilege to work with the plant. They've been real good to us. It's been a good partnership "

Contact Ted M. Natt Jr. at (910) 693-2474 or tnatt@the pilot.com.

More like this story

TF121 4 months, 2 weeks ago

Corso: "Maybe they want to open a coffee shop." Yes. We need more coffee shops here? Excellent suggestion. Too few as is. Hey, wait just a minute. Maybe four of these displaced managers would be willing to manage those four other Dunkin Donut franchises that Corso's Pinehurst Donuts LLC is obligated to open in the area. Sometimes a conflict of interest isn't a conflict at all.

emb6683 4 months, 1 week ago

Aberdeen Cafe is empty again, maybe they could try their hands at the restaurant business and stay in Aberdeen.

emb6683 4 months, 1 week ago

After 40 years with the company, Mr Ring should certainly be well vested in the company retirement account, and after 40 years of saving, he should also have a comfortable nest egg saved in his own personal retirement savings, IRA or whatever.

If he is not lucky enough to get another job, both of these should carry him until he is eligible in three years to get payments from the third component of individual retirement, which is social security.

Arestorer 4 months, 1 week ago

emb6683---- Hey,if everyone over 62 would leave the workforce,then there would be jobs for the rest of us...Right?

JustAGuy 4 months, 1 week ago

While being empathetic to the plight of "the 400", I can't help but wonder how quickly "officials" are moving to help the, at least, 400 people who were unemployed BEFORE these......

Toda 4 months, 1 week ago

emb6683 => "should certainly be well vested in the company retirement account"

Two thoughts here emb ... first, most who worked in the "mill" earned meager wages, with only a net income to put food on the table. No extra for retirement portfolios or 401k investments.

Secondly, Sandhills Community College provides an excellent opportunity for even older adults to earn degrees in glutted health care positions, landscaping, or culinary arts, and perhaps computer technology. With each graduating class, fewer jobs or positions are available for graduates with two year degrees.

It all looks good on paper, but in reality, the end result for the unemployed older adult is just another statistic until they become a 99'er.

Toda 4 months, 1 week ago

JustAGuy => As a former employee of Fleetwood Homes in Pembroke, the employees were given all the information by the Job Links Service. Some went back to school, others tried in vain to find a trade school for retraining, and a few qualified for truck driving school. Since 1999, when Fleetwood filed chapter 11, many of my former co-workers went back to school for various programs.

I don't know any who have good paying jobs or jobs they studied for at SCC. Just more window dressing for the masses.

emb6683 4 months, 1 week ago

" first, most who worked in the "mill" earned meager wages, with only a net income to put food on the table. No extra for retirement portfolios or 401k investments."

Food on the table probably also included smokes and beer. If you wanted to put a few dollars a week in a savings account, you would find the money.

TooHot 4 months, 1 week ago

Exactly JustaGuy. I can count on my tail all the officials that moved quickly to help me when I had to close my business.

garrecd123 4 months, 1 week ago

First of all emb6683, The people whom have worked at Gulistan have not had a pay increase in the last 10 years! With the astronomical increase in inflation and the fact most hourly jobs at Gulistan are just under $10.00 an hour you try to save on that! The pay many years back was very good in that time, however as for the last 10 it has been hard to pay basic bills, not to mention the expences maintaining our families! How dare you reference smokes and beer... What is your personal story,have you ever struggled to get by and been kicked in the face... Bitterness and Hateful Arrogance Is unbecoming of you!

emb6683 4 months, 1 week ago

"The people whom have worked at Gulistan have not had a pay increase in the last 10 years"

Sorry, that is incorrect. The minimum wage was increased in 2007 to $6.15, in 2008 to $6.55 and in 2009 to $7.25. So minimum wage workers at Gulistan have gotten three pay increases in just the last 5 years.

garrecd123 4 months, 1 week ago

emb6683 You are incorrect and shows a lack of knowledge to post on here! There are no minimum wage jobs at Gulistan. In 1999 the entry wage was $8.88 and increased to $9.86 And frooze there without increase in the last 10 years.You are a fool, you may have gotten 3 pay increases in the last 5years, however the workforce at Gulistan have not.

Toda 4 months, 1 week ago

emb => So what's your point? Apparently you have never worked for an hourly wage in a company struggling to stay operational.

Over the years, I've had several family members who worked at JP Stevens now Gulistan Carpets. You have no idea what you are trying to point out or suggest other than the Republican mantra regarding assets of the wealthy. My aunt and uncle who worked there were/are Christians. Neither smoked or drank. Obviously you are from the high brow north.

Mills are a significant part of our southern culture, until the jobs were sent off-shore before Obama.

Growing up in Vass, the cotton mill was a vibrant part of our community, and a source for employment of many workers within our community. Two very memorable experiences was the smell of cotton doffing and curing tobacco; And one of my uncles mash barrels.

Perhaps The Pilot should start a blog for anyone who has never been raised in the south.