Tennessee Workers Demand Accountability from Mersen, Call on Elected Officials to Act as Company Announces Holiday Layoffs Despite Record Financial Success

Workers’ Union Charges Company with Violating Federal Labor Law

/EIN News/ -- Columbia, TN, Dec. 16, 2024 (GLOBE NEWSWIRE) -- Just weeks before Christmas, Mersen has furloughed 80% of its workforce at the Columbia, Tennessee plant and permanently laid off 25% as of December 15th, leaving families without paychecks or healthcare during the holidays. The announcement comes in stark contrast to the company's recent celebration of a $70 million expansion at the facility — an expansion that was funded in part by Tennessee taxpayers and touted by state and local officials as a win for workers.

In response, IUE-CWA has filed an Unfair Labor Practice (ULP) charge with the National Labor Relations Board (NLRB) alleging Mersen violated federal labor law by refusing to bargain over the decisions and effects of furloughs and layoffs. The cuts follow a successful unionization vote by Columbia workers seeking fair pay, safer conditions, and job security for temporary workers. Rather than negotiate in good-faith, Mersen hired anti-union law firm Jackson Lewis and soon after announced the furloughs and layoffs — a move the union says is clear retaliation.

“The timing is no coincidence,” said Orvin Caraballo, an IUE-CWA organizer. “Layoffs during the holidays hurt families the most. It’s a ruthless tactic to break workers’ resolve, and it’s illegal. To add insult to injury, Mersen is ramping up its hiring of temporary workers — a move that only deepens the betrayal felt by longtime employees.”

Workers and union leaders have also issued an urgent public letter to key Tennessee officials, including Governor Bill Lee, Maury County Mayor Sheila Butt, Columbia Mayor Chaz Molder, State Senator Joey Hensley, and U.S. Representative Andy Ogles. The letter calls for an immediate suspension of the furloughs and layoffs, the preservation of worker healthcare, and the clawback of more than $500,000 in public subsidies if Mersen refuses to negotiate in good faith.

“This is a betrayal of Tennessee workers and taxpayers,” said Carl Kennebrew, President of IUE-CWA. “The public invested in Mersen with the promise of good, stable jobs for this community. Instead, Mersen is slashing jobs right before the holidays while raking in record sales and increased profitability.”

The attack on its workforce comes on the heels of Mersen’s historic financial success. The multinational corporation, which operates 35 plants worldwide and 10 in the United States, reported $1.27 billion in global sales in 2023, with $486 million coming from North America — its highest revenue in years. These results were further fueled by U.S. government investments like the CHIPS Act and Inflation Reduction Act.

Yet, despite this financial windfall, Mersen is gutting its Columbia workforce, cutting jobs while continuing to expand operations elsewhere. Workers and community members alike see this move as a breach of trust, especially given Mersen’s past commitments to create stable, well-paying jobs in exchange for public support.

“They promised jobs, and instead, they’re taking them away,” said Robert Fox, a Mersen Columbia worker and member of the union bargaining committee. “The holidays are supposed to be a time of joy and family. Mersen has turned it into a season of fear and uncertainty for the affected families.”

The letter to elected officials outlines three key demands:

1. Cease and Desist from the Layoffs & Furloughs: Call on Mersen CEO Luc Themelin to cease and desist its illegal actions and immediately bargain with the union as required by federal labor law, including establishing recall rights for laid-off workers, respecting seniority, and preventing unilateral transfer of work to other locations.
2. Worker Healthcare: Demand that Mersen maintain worker health insurance to preserve worker dignity and well-being through the holidays.
3. Hold Mersen Accountable: Take steps to claw back the more than $500,000 in public subsidies and tax abatements if Mersen refuses to negotiate in good faith, and make clear that no future incentives will be granted to companies that betray Tennessee workers and taxpayers.

“When elected officials stood at the ribbon-cutting for Mersen’s expansion, they promised the community that this investment would bring good jobs to Columbia,” said Tracy Jones, a bargaining committee member and Mersen Columbia worker. “Now we’re asking them to keep that promise. Stand with us. Hold Mersen accountable and send a clear message that Tennessee will not reward corporations that exploit our workers and squander taxpayer dollars.”

The stakes are high not only for the devastated workers facing job loss but also for the entire Columbia community. The workers argue that public investment must come with public accountability. If companies can pocket taxpayer dollars while breaking promises to workers, it sets a dangerous precedent for other corporations in Tennessee and beyond.

As the holiday season approaches, Mersen’s actions have left dozens of families grappling with uncertainty instead of celebration. Workers, union leaders, and community members are calling on Tennessee’s elected officials to intervene, protect Tennessee jobs, and stand by the promises made to workers and taxpayers alike.

# # #

As the Industrial Division of CWA, IUE-CWA represents a force of 150,000 active and retired men and women united collectively to seek dignity on the job and a secure future for ourselves, our children and all future generations.

Andrew Lara
                    Communications Workers of America
                    (512) 789-7026
                    andrewlara@iuecwa.org