Sunoco, one of the Philadelphia region's largest companies, says it will lay off hundreds of workers by the end of the year to save money as the economy worsens.
The oil company with headquarters on Market Street and massive refineries in South Philadelphia and Marcus Hook, Pa. says the layoffs will come from its salaried workforce.Twenty percent of Sunoco's salaried workers 750 people will lose their jobs.
Most of the job losses will come from the Philadelphia region.
"It is never easy to take steps that impact the lives of employees and their families," said Sunoco CEO Lynn Elsenhans in a statement."While the company has enjoyed several years of strong financial performance, we are now facing a different and more difficult economic reality."
Sunoco posted $874 million in profit last year, but company officials say the cuts are needed to remain competitive.As recently as 2002, Sunoco lost money.
Sunoco says the lay offs will help it cut $300 million in costs by the end of the year.
"You got 750 people that contributed to the success of this company over the last number of years, and they're going to throw them out on the street in this economy in an effort just to make more money," said Jim Savage, president of United Steelworkers Local 10-1, the bargaining unit at Sunoco's Philadelphia refinery.
No union employees are being laid off, but Savage says his union has concerns.
"The more people they take out of the refinery the more difficult it's going to be for us," he said."There's no confidence on our part that the impact on how the plant will be run has been taken into account."
Sunoco says safety will not be impacted.
"We're committed to safety," says Sunoco spokesman Thomas Golembeski."Safety is one area that will not be compromised."
All employees affected have been notified.
To further cut costs, the company also will offer voluntary buyouts to union employees: two weeks of pay per year of service.
But several workers who spoke with CBS 3 on Friday, say the offer is not very enticing in this economy.
"Not with two kids still in college," said Rich Sim."Not yet.Retirement's still the 12th of never."
Even 65-year-old Lee McGill says he's not interested.
"With taking a beating on your 401(k)s and all that, it'd have to be something else, something more maybe," he says.
Reporting