Ballard Medical (Pocatello) to transfer 150 jobs to Mexico plant

In an effort to cut production costs and improve the bottom line, Kimberly-Clark Ballard Medical will transfer about 150 jobs from its Pocatello plant to Magdalena, Mexico, by not replacing people when they leave.

By Tanna Barry – Journal Writer

Plant Manager Dan Lachmann explained the decision to employees Thursday morning. Another Kimberly-Clark Health Care plant in Draper, Utah, will also have an unknown number of jobs transferred.

Both Draper and Pocatello plants will remain open. Once the 150 jobs are moved from Pocatello, there will be about 250 Ballard Medical employees left in Pocatello.

Ballard’s products fall into four broad categories: feeding tubes, defibrillator pads, airway management products and endoscopy products.

"Labor costs are lower in Mexico, which will improve the cost of manufacturing," said Lachmann, explaining the more technical jobs will remain here.

The company will not lay anyone off. Instead, Lachmann said when people quit here, those positions will not be filled. This means natural employee attrition will dictate how long it will take to move the 150 jobs.

Lachmann anticipates between 35 and 50 positions will move each year for three years. Pay for the jobs is about $9.50 an hour plus benefits.

Several community representatives were surprised by the news.

"It’s another piece of news that we don’t necessary need," said Bannock County Commissioner Jim Guthrie. "This is better than saying people will be laid off tomorrow.

"The community will have time to make adjustments."

Bannock Development Corp. Executive Director Ray Burstedt said Ballard Medical faces similar conditions to many other companies nationwide.

"We’re all in this together," he said. "We’re not an isolated entity being hammered on; it’s happening to everyone. Businesses are struggling."

With the lagging economy, he said business are forced to find ways to reduce operating costs to remain competitive.

"You have to really hand it to Kimberly Clark because they are doing this out of necessity, but they are trying to do it in a way that will have the least effect on the Pocatello economy," he said. "I give them credit for doing that."

Pocatello Mayor Roger Chase said he appreciates that Ballard Medical is simply not filling jobs when people quit instead of doing layoffs, but he is still upset.

"It’s a disappointment to me," he said. "Any job loss hurts a community."

The unemployment level has dropped from 7.1 percent in March 2002 to 5.5 percent in March 2003. Chase hopes there is a way to aid Ballard Medical to bring more work to Pocatello.

"We want to make it profitable to bring other product lines here," Chase said. "Ballard has been a great company for Pocatello."

Lachmann said Kimberly-Clark Health Care wanted to minimize the impact of this decision on its employees and the Pocatello community.

"We see Pocatello as a location where we would want to continue doing business because of the cost of living, the quality of life and the strong work ethic here," Lachmann said.

Kimberly-Clark Health Care is currently searching for acquisitions to help business grow. In the future, Lachmann said the company could bring more technical and higher paying jobs to Pocatello.

"We feel that we want to do business long term in Pocatello," he said. "We don’t want to end any relationships that we have here with this facility and community.

"We still think we can continue to grow as we purchase more health care manufacturers and relocate here."

Tanna Barry covers health care, ISU and serves as the Web editor for the Journal. She can be reached at 232-4161 Ext. 241 or by e-mail at [email protected].

http://www.journalnet.com/articles/2003/06/27/news/local/news01.txt