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Production of Walmart's Great Value lightbulbs is slated to move overseas, and it's devastating news for this small Ohio city and dozens of workers

Áine Cain   

Production of Walmart's Great Value lightbulbs is slated to move overseas, and it's devastating news for this small Ohio city and dozens of workers
Retail5 min read
  • GE Lighting, a Savant Company, is moving production of Walmart's Great Value lightbulbs to China.
  • As a result, 81 workers in Bucyrus, Ohio, are set to lose their jobs.
  • "This is a difficult decision we made based on the needs of our business and one that is not taken lightly, particularly in today's environment," a company spokesperson told Insider.

On Saturday, February 6, protesters will picket over 40 Walmarts all around the US. They'll be seeking to shine a light on impending layoffs at a plant in the northern Ohio city of Bucyrus, one of the last residential lighting manufacturing operations remaining in the country.

There, 81 workers are set to lose their jobs, as the plant prepares to move its entire production line of Walmart's exclusive "Great Value" brand lightbulbs to China.

The Bucyrus Lamp Plant is now owned by Savant Systems, which purchased GE Lighting in July 2020. The plant manufactures A-19 LED lightbulbs for Walmart's Great Value brand. That type of bulb represents 15% of total Bucyrus Plant production.

Now workers and their fellow union members in the IUE-CWA - a union representing around 45,000 people - are focusing their protests on Walmart in the hopes that the retail giant will pressure its supplier to reconsider the move. Environmental and workers advocacy groups are also signing a letter to push the plant to nix its plans.

'Turned over every stone'

The lamp plant in Bucyrus, Ohio, has been a centerpiece of the community for years. In 2013, then-Ohio Governor John Kasich visited to help the factory ring in its seventh decade in the town, Crawford County Now reported. On his visit, the former governor extolled the rebirth of manufacturing in Ohio. The plant is a sizable employer in the small city of 12,000 people - also known as the Small City in the Middle of Everywhere - with a workforce of around 200.

Antonio Wegner, a 21-year-old shop utility employee who only just began working at the plant last year, is one of the workers slated to lose his job. The high school graduate told Insider that he may have to move away from Bucyrus - leaving his mother, younger sister, and friends - because of the tight labor market.

"The biggest thing that I want to say is, alright, so you send these jobs over there," Wegner said. "Well, when you ship American jobs to China, who's going to buy your product? You're leaving families with no other option, but to pretty much work at fast-food places, making eight bucks an hour."

The LED bulbs at the center of the controversy in Ohio offer consumers a higher-efficiency, longer glow, lasting 85% longer than a traditional bulb. But that also means reduced demand from shoppers, who have to purchase the product less frequently.

Read more: Walmart is doubling down on micro-fulfillment centers and working with these 3 startups to cut down on delivery times

"A little less than two years ago we took on the challenge of assembling some of our A-19 LED bulbs at our Bucyrus Lamp Plant - this created 80 jobs that did not previously exist," a spokesperson for GE Lighting, a Savant Systems Company, told Insider. "Since then we've turned over every stone in our attempt to lower the cost of assembly and keep those jobs but admittedly we have not been successful."

The spokesperson for Savant's GE Lighting operations said that the company invested $8 million to launch the A-19 LED assembly in Ohio, and also spent millions on equipment and expertise to "bring down costs." But the company has still not been able to assemble the bulbs "at a cost that the market will tolerate."

"Unfortunately, it's no longer economically viable to continue to operate the line," the spokesperson said in a statement. "Therefore, we are ceasing production of A-19 LED bulbs in Bucyrus and the work will go to other locations that are part of our business continuity plan."

A Walmart spokesperson confirmed to Insider that the company is aware of the proposed layoffs at the Bucyrus plant.

"While we do discuss production with our supplier partners and have urged them to do everything in their power to preserve these jobs, it's ultimately GE Lighting's decision where to manufacture their products," the spokesperson told Insider in a statement.

Back in 2013, Walmart announced its intent to bolster manufacturing in the US. And in 2016, the company doubled down on that commitment, saying that it would source an additional $250 billion in US-made products.

"Despite the changes for this particular product, Walmart is still strongly committed to products made in America," the spokesperson told Insider.

The office of Ohio's Republican Governor Mike DeWine did not respond to Insider's request for comment. Ohio Senator Sherrod Brown has pushed GE-Savant CEO Robert Madonna to reconsider the move in a letter, and Ohio Representative Tim Ryan has also weighed in.

'You see this all across America'

In his 12 years at the lamp plant, local union president Will Evans, said he'd seen a few layoffs - mostly temporary lack-of-work cuts. But Evans said he was "shocked" when company management announced their intent to move the A-19 LED production line to China.

"We catered to Walmart," Evans told Insider. "If they wanted a box change, if they wanted a certain amount of lamps packed in each sleeve. If Walmart wanted it, they did it."

Even with the production of its Walmart product moving to China, the Bucyrus plant will continue to operate and manufacture GE-branded bulbs.

A spokesperson for Savant's GE Lighting business told Insider that the other areas of the plant "are not affected by this action.

"This is a difficult decision we made based on the needs of our business and one that is not taken lightly, particularly in today's environment," the spokesperson said. "It is not a reflection on the hard work and dedication of our valued employees."

But employees who spoke with Insider expressed fears about what the move means for the future. Barb Basore, a third-generation GE Lighting employee who's been with the plant for seven years, expressed such concerns. Basore's job is safe, although her daughter and three cousins are expected to be laid off. Her family has just under a combined half century of experience at GE Lighting.

"I'm just hoping the rest of the shop can survive," she told Insider. "You see this all across America, one part closes and then it's a little bit more of the shop. It's scary."

The situation has also sparked fear among workers whose jobs are safe for the time being, like unit attendant Wayne Sherman. He's worked to package the bulbs at the factory for a decade.

"This is our future. They show us graphs where halogen and fluorescent are declining, and LED is the future. And now they're saying, well you guys worked hard, it's nobody's fault. But we're just going to make more money if we just buy the whole bulb overseas," he said.

Sherman is also a diabetic, and became emotional while speaking to Insider about the stress the layoffs have caused his family, and the prospect of losing his job and health insurance down the line.

"The big thing for my family - what they're having a hard time with is I am diabetic and I have high blood pressure," he said. "I can barely afford my medicine now. And if you take that away - I'm 55. To start at a new company, if I were to lose my job. I'm just not ready to start over."

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