More NY Companies Announce Layoffs, Two Leave for Other States

Cuomo touts economic success as companies flee state

New York Gov. Andrew Cuomo (D.) / AP
• July 30, 2014 2:00 pm


Although New York Gov. Andrew Cuomo (D.) has touted recent economic successes in his state, records reviewed by the Washington Free Beacon show that dozens of companies are laying off workers, relocating out of the state, or closing up shop altogether.

Cuomo, who is under fire for possibly running interference for his political allies with an anti-corruption committee he created to "clean up Albany," could face additional scrutiny for the economic situation in New York if he decides to run for president in 2016. That decision is expected to hinge on whether or not Hillary Clinton runs.

Cuomo has highlighted eight companies that will be creating more than 600 jobs as part of the governor’s Start Up New York plan, which incentivizes companies to create jobs in the state by giving them a 10 year tax break.

However, the Free Beacon found 40 companies that have filed Worker Adjustment and Retraining Notification (WARN) notices in the past six weeks. From June 16 through July 30, these companies have announced they are laying off workers; a majority have cited "economic" factors as the reason for their decision.

Additionally, two companies announced they are relocating part or all of their operations to other states.

Newkirk Products, a publishing and printing company, will begin laying off some of its workers in October. In its WARN notice, the company stated it would be relocating its "production operations only to Kansas City, Mo., and South Windsor, Ct."

Kaye Scholer, a law firm, announced its "relocation of operations to Tallahassee" in its amended WARN notice filed on July 22. Twenty-nine workers at the law firm will be out of a job as of July 31.

Numerous health care companies and hospitals in the past six weeks have announced layoffs. They include Eastern Niagara Hospital-Western Region, which is cutting inpatient care at its hospital. Its notice shows 185 workers will be laid off.

The TLC Health Network/Lake Shore Health Care Center is potentially closing, according to its amended WARN notice. A total of 438 employees could lose their jobs by the end of August. SUNY Downstate Medical Center in its amended filing announced 485 employees were laid off between June 26 and July 9.

Another company, Jamaica-based Swissport USA, will lay off a total of 180 workers on Sep. 5. The cargo handling company cited "economic" as the reason for its dislocation.

New York is also losing hundreds of jobs as ConAgra Foods closes its plant.

In its amended WARN notice filed on July 3, the company said it will lay off its 395 workers between Oct. 3 and the end of February 2015. The company also cited "economic" as the reason behind its decision to close its Fredonia plant. Two of the company’s other plants in Dunkirk will also be affected.

The shoe manufacturer P.W. Minor & Sons based in Batavia will close on Sep. 1. Seventy-two employees will be affected.

In mid-September, a total of 239 workers at Stop and Shop Supermarket will be out of work. According to that company’s notice, the workers will be laid off on Sep. 15. It also cited "economic" as the reason for its mass layoff.

Auburn-based Daikin Applied is now in the second phase of its plant closing due to economic reasons. The air conditioning manufacturing company will be laying off some workers on Oct. 12 and layoffs will continue through December 2015. Daikin employs a total of 425 people.

Despite the string of layoffs, Cuomo’s administration has continually touted his economic development successes. In a recent press release the administration said New York has experienced "employment growth in 37 of the past 42 months." Under Cuomo, the release said, the state’s economy has added 487,000 private sector jobs, making the state "one of only 19 states to have regained all private sector jobs lost during the recession."

However, New York’s U6 unemployment rate of 13.4 percent places it in the bottom third of the nation.

The U6 rate counts not only people seeking full-time work, but those marginally attached workers who have become discouraged and stopped looking for work. It also includes part-time workers, according to the Bureau of Labor Statistics. Only 16 states have U6 rates higher than New York.

Published under: Andrew Cuomo