Creative Apparel workers face uncertainty with layoff decision

Workers at the Creative Apparel plant in Eastport were informed during the week of July 31 that they will be laid off, at least temporarily, because of a drop in orders by the federal government for the chemical protective clothing produced at the plant. Approximately 30 full-time and a half a dozen part-time sewers are affected by the layoff. The cutting operation, which employs six people, will continue in Eastport. The layoff will take place gradually over the next three or four weeks, beginning sometime next week.

Defense Supply Center Philadelphia, which awards the federal contracts, and National Industries for the Severely Handicapped, which determines how many of the chemical protective suits the company will receive, notified Creative Apparel that the orders by the federal government for the chemical protective suits would be dropping, according to George Rybarczyk, co-owner of J&P Apparel Inc., which owns Creative Apparel with the Passamaquoddy Tribe. Rybarczyk says the orders for suits have decreased from 20,000 a month to 12,000. He says "money is tight now" for the federal government, because of the war in Iraq, so not as many suits are being purchased. "We had to make a decision where we could reduce staffing on a temporary basis."

He says the company is continuing to look for other work, but if it's unsuccessful in obtaining more contracts, then the layoff probably will become permanent. Creative Apparel regularly bids on the federal contracts and had been awarded a $25.6 million contract in May.

"We're having to reduce hours all around," he says of the Creative Apparel facilities, because of an excess capacity in producing the trousers. "It has nothing to do with the employees," he says of the layoff. Along with the Eastport plant, Creative Apparel has plants in Indian Township, Belmont, Harmony, Dover-Foxcroft and Fort Kent, with approximately 375 employees. Rybarczyk says workers at the other plants will be on reduced hours. "I hope this is the extent of any layoffs."

Eastport City Manager George Finch says, "Due to the nature of the business and competition among companies for the work, Creative found itself on the bottom end of contract volume in the current awards." Some workers will have the opportunity to work at the Indian Township facility, where there is still a sufficient amount of work.

Finch notes that the company has no plans to cut back its lease of the facility in Eastport. Creative Apparel was the first tenant in the Eastport Business Development Center, having been there since 1998.