At its peak, the Bloomsburg plant was averaging about seven million books a month; that number dropped to about two million a month, and then picked up to five million in August. Although Donnelley kept reaffirming that the change to digital technology, combined with a decreasing economy, were the problems, there are other truths it didn't tell the workers.
Undermining Its Best Customer
Lower production in Bloomsburg could be because RR Donnelley sales people were leading some potential customers to the company's Crawfordsville, Ind., or Harrisonburg, Va., plants. However, one major customer balked at moving the contract. The Penguin Group, one of the five largest publishing conglomerates in the world, wanted to keep a major part of its production in Bloomsburg. Penguin, which owned one of the presses and one of the bindery lines in the Bloomsburg plant, accounted for as much as three-fourths of all titles produced in Bloomsburg, according to Artley.
One critical issue for Penguin was that RR Donnelley wanted to determine where the books would be printed, perhaps yet another sign that it was planning to phase-out Bloomsburg production. One source in Donnelley management who is familiar with the Penguin situation, and who asked that his name not be used, says that the publishing company preferred the quality produced at Bloomsburg, and the close access to its distribution warehouse in Pittston, Pa., about 50 miles northeast of Bloomsburg. The Bloomsburg plant is also close to I-80, a major interstate that connects the New York City metropolitan area with San Francisco. The union had even agreed in January to extend its current contract, and then signed a two-year agreement, assuring Penguin executives there wouldn't be any labor issues in Bloomsburg. About that time, Donnelley finally agreed to allow Penguin to have its books printed in the Bloomsburg plant and signed a two-year contract. The closing of the Bloomsburg plant, and requiring Penguin to have its books printed in Harrisonburg, Va., and then shipped about 300 miles northeast to Pittston, would increase transportation costs about three times, according to one person familiar with the contract. Because Penguin signed a two year contract with the assurance that books would be produced in Bloomsburg, it would be justified to declare a breach of the contract and move its work elsewhere, or to demand financial considerations from Donnelley.
"More Interested in Profits than in the Workers'
In 1993, RR Donnelley bought Haddon Craftsmen, which produced numerous books that reached best-seller lists, and which had developed a reputation not only for high quality printing but also as a good place to work. Haddon Craftsmen had begun during World War II as a merger of three companies. The Bloomsburg plant was added in 1964. In 1980, six employees bought Haddon, which now had plants not only in Scranton, its main plant, but also Dunmore and Allentown. Sullivan Graphics bought the company in 1989 and then sold it to RR Donnelley four years later. Within two years, Donnelley announced it was thinking about closing the 400,000 square foot press and bindery in Scranton, and unify all operations in Bloomsburg. Steve Zeisloft, a union officer for 10 years, including four years as vice-president, recalls Donnelley "essentially told us the company could expand if we worked with them, and if we didn't they would shut down the plant and take the work elsewhere." The threat of shutting the Bloomsburg plant, however, was undoubtedly a scare tactic. The Scranton bindery was in an old brick building; the Bloomsburg plant was newer, and had significant room for expansion.
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