Elder Manufacturing to cut 60 jobs

Sewing operation going to Costa Rica

Business Today

DEXTER -- Four months after 10 employees were laid off at Elder Manufacturing, the apparel company has announced that two-thirds of its Dexter operation -- the sewing and pressing sections -- will be shut down. The move, which is scheduled to take place in August, will mean the loss of about 60 jobs in the company's workforce of 120.

The pending layoff was announced May 23 by Bill Kitchens, Elder Manufacturing plant manager and vice president.

"The company regrets that the action is necessary," Kitchens said in a prepared statement. "However, in spite of excellent cooperation from its employees and union representatives, the company's sewing and pressing room cost put its products at a significant competitive disadvantage with products sewn outside of the United States."

The sewing and pressing operations will be moved to a contract operation in Costa Rica, Kitchens said. The company, which makes school uniforms, intends to maintain cutting and related operations along with sample making in the Dexter plant.

Elder's announcement was made only a day after it was reported that Stoddard County had the lowest unemployment rate in the Bootheel. How this move will affect the county's jobless rate has yet to be determined.

This will be the second major layoff by a Dexter manufacturer in the past year. Last autumn, Paramount Headwear shut down, putting 80 people out of work.

The pending loss of apparel-industry jobs at Elder could be offset somewhat by jobs that will be offered by VPI Headwear of Oran. The company has been advertising for applications for sewing positions at a factory it plans to open in Dexter.

Dexter officials have declined to discuss the plans for the Headwear company, noting that details are still being worked out. However, the Dexter Daily Statesman has reported that 25 to 30 jobs could be available at the VIP facility.