JANESVILLE, Wis. -- A Wisconsin city that has seen its share of manufacturing jobs leave is experiencing pain again, prompting workers and financial-reform advocates to speak out about the impact of private equity firms.

Janesville-based Hufcor, which was acquired by OpenGate Capital in 2017, is scheduled to close its plant in the near future. OpenGate is moving the operations to Mexico, where workers will build specialty room dividers that have been made locally for many years.

Kathy Pawluck, one of the nearly 150 workers affected by the move, said she was close to retirement when she found out, but pointed out it will be much harder for other staff who really need the stable pay and benefits.

"When we were Hufcor and owned by Mike Gordon, it was a wonderful family-oriented company to work for," Pawluck recounted. "That all changed when we were bought out by investors."

Those calling attention to the situation acknowledged not all private equity firms are bad, but argued there are too many examples of profits being placed ahead of affected communities. OpenGate did not respond to a request for comment before deadline.

A bill in Congress, co-sponsored by Sen. Tammy Baldwin, D-Wis., would boost regulation of private equity funds.

Carter Dougherty, communications director at Americans for Financial Reform, said there are scenarios where it makes sense for an outside firm to come in and take over, because of its expertise, however, he contended the Hufcor situation is not a good example.

"It's about buying this company, squeezing it for cash, and then moving on to the next deal," Dougherty asserted.

He pointed to another case involving OpenGate, when it closed Golden Guernsey Dairy near Milwaukee, in 2013. As for Janesville, the Hufcor closing comes more than a decade after it saw General Motors shutter its assembly plant there.

More than 1,100 caregivers at Portland's Providence St. Vincent Medical Center have voted to unionize, joining the Service Employees International Union Local 49.

Hospital staffers, including certified nursing assistants, cooks, lab assistants, pharmacy techs, environmental workers and patient representatives, will soon begin collective bargaining with management over a new work contract.

Finn McCool, senior food service attendant at Providence St. Vincent Medical Center in Portland, said changes to working conditions in the hospital were a major driver to organize.

"There's a lot that makes St. Vincent a great place to work, but we've also seen just tons of changes over the years around staffing and benefits," McCool explained. "My fellow caregivers really knew that jobs were only going to get harder."

The St. Vincent caregivers will join thousands of other unionized workers at Providence hospitals in Oregon, Washington state and other parts of the country. Providence officials released a statement, recognizing the union and saying they were prepared to work with it toward a new contract.

McCool noted the company made several changes to staffing and work policies without feedback from its employees, with changes to the employees' health care benefits causing a major upheaval.

"It's been a recent change to our health care plan with Aetna switching over, and that was probably a very large reason why a lot of us decided to vote yes," McCool pointed out. "We had our own internal health care system. We changed to a different thing. Co-pays changed. Things were definitely a lot harder with increased deductibles."

McCool stressed political uncertainty, particularly in the government's health care policies, was also a significant concern.

"We're seeing a lot of changes going on with the government with cuts, especially right now," McCool observed. "What threatens us is cuts to Medicare and Medicaid. Our CEO said, 'These cuts are threatening the hospital.'"

The multistate Providence Health System announced it will close the maternity center at one of its Montana hospitals in October.

Opponents are hoping the corporation will reverse its decision at negotiations starting next week. The Family Maternity Center at Missoula's Providence St. Patrick Hospital has delivered about 450 babies each year over the last several, and serves many people from the surrounding small towns.

Robin Haux, labor program director for the Montana Nurses Association, said the layoff notification came as a big surprise and will affect moms and babies, nurses and Missoula's other hospital.

"Not only were the nurses provided just a four-month turnaround, so was the community, so was Community Medical Center," Haux explained. "This has triggered a pretty large scrambling of trying to get prepared."

The cut comes as U.S. lawmakers close in on the "One Big Beautiful Bill Act," the Republican budget megabill proposing cuts to Medicaid which could close rural hospitals. Providence said the closure is due to "declining birth volumes" and "workforce shortages."

Megan Carey, labor and delivery nurse in the Family Maternity Center at Providence St. Patrick Hospital, said no one from the Family Maternity Center was included in the decision.

"We were told there was a discernment team as well as external stakeholders," Carey pointed out. "It's just really disappointing that administration could not look inward to better go about this process."

Carey added Providence sent what she calls an "unsettling" message informing nurses they could apply to work in other departments at St. Patrick Hospital but there would not be enough jobs for them all.


get more stories like this via email

As more women enter the construction industry, a group in Philadelphia is working to support them and advance diversity amid political challenges to DEI programs.

The U.S. Bureau of Labor Statistics reports a nearly 45% increase in women in construction over the past decade.

Amy Novak, president of the Philadelphia chapter of Professional Women in Construction, said recent federal actions against DEI initiatives have prompted the relaunch of their empowering committee, which focuses on development and educational sessions.

"We choose to focus on empowering women to solve issues, be a part of the resolution of issues," Novak explained. "And also to feel supported, to be an advocate for diversity, equity and inclusion programs."

The Biden administration implemented widespread diversity, equity and inclusion initiatives across nearly all areas of the federal government from military operations to airline safety policies. Critics argued the programs amount to unlawful and unethical discrimination.

Novak said a recent Professional Women in Construction report showed strong support for diversity, equity and inclusion among those involved with the group. She added her group is committed to growing the talent pipeline in construction, architecture and engineering from trades to professional roles by expanding partnerships that boost early STEM interest, starting in middle school.

"We have our Connecting Committee, which goes out and regularly interacts at college campuses," Novak pointed out. "Not just to women who are in engineering, architecture, construction majors, but those majors as a whole, educating them about different careers within construction."

Novak stressed the goal is to expand into high schools next year, to reach students as they start making career decisions. She added the group's Student Recognition Program, launched in 2020, highlights young women pursuing careers in STEM and construction, aiming to inspire younger girls and strengthen the future talent pipeline.


get more stories like this via email