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The U.S. Department of Labor recently announced a grant of nearly $780,000 to assist workers who lost their jobs… just as the company involved was announcing high earnings and a $276 million plan to purchase a competitor. The  federal grant will benefit workers who were laid off when a plant operated by Sensata Technologies in Standish, Maine closed.

According to sources at the Department of Labor, the grant totals $779,392. Of that amount, $454,998 will be released immediately. The grant will benefit about 125 workers who were displaced when the plant closed.

In separate news, Sensata Technologies recently announced high profits for the first quarter of 2007, and the planned $276 million acquisition of a competitor.  The company reports cash reserves on hand of $89.8 million, even after the acquisition of SMaL Camera Technologies, Inc. and $18 million in capital spending.

“This $780,000 grant will help workers access employment services and training programs so they can transition to good paying jobs in growing industries,” said Secretary of Labor Elaine L. Chao.

Announcing the company’s higher earnings, Tom Wroe, Chairman and Chief Executive Officer of Sensata Technologies Inc. said, “We are executing on each of the five key elements of our stated strategy; product innovation, customer relationships, being a best cost producer, pursuing acquisitions, and recruiting and retaining top talent. We are expanding our core customer and product revenues and our acquisition strategy is expanding our current and future product capabilities.”

On January 1, Sensata Technologies announced the closure of its Standish facilities, effective June 1. The state of Maine immediately scheduled Rapid Response sessions, which were conducted during the months of March, April and May. The sessions were designed to provide the affected workers with information on the services available to assist them as they prepare to return to work.

Sensata Technologies, Inc. also plans to acquire a competitor, Airpax Holdings, Inc., in a $276 million purchase. Sensata Technologies Inc recently announced that it has reached a definitive agreement with Chicago Growth Partners and Airpax senior management to acquire the company. Airpax is a manufacturer of components and systems for power protection, sensing and control applications. The $276 million purchase, which is expected to be completed this month, “affirms Sensata’s position as a leading global supplier of sensors and controls across a broad array of markets and applications” according to company sources.

During the Rapid Response session, laid-off Sensata workers were advised that they may possibly qualify for assistance under the federal TAA program. TAA provides employees who have been downsized and face long-term unemployment due to plant closures with additional benefits. Under TAA, employees may be able to collect unemployment benefits for a longer period, while they learn a new skill. When an employee accepts a lower-paying job, TAA benefits may provide supplemental payments for up to 2 years. It is not yet clear if the workers in this case will qualify for TAA assistance.

This grant, awarded to the Maine Department of Labor, will provide this group of workers with a wide array of employment-related assistance to include assessment, case management, and career and occupational skills training.

Sensata Technologies is a leading designer and manufacturer of controls and sensors. The company produces Klixon devices, sensors, controls and protectors for industrial and OEM applications. According to Sensata, its sensors improve auto operation and make the car’s heating and cooling system more efficient. The company’s controls and protectors help prevent damage from heat and fire in refrigerators, cars, planes, and lighting.

The company currently has plants in Brazil, Mexico, the Netherlands, Japan, Korea and Malaysia. The company has two plants in China, and one in the U.S. at Attleboro, Massachusetts.

According to the company’s most recent earnings report, revenue in the first quarter of 2007 was $328 million, an increase of 11.5% over the same quarter last year. Sensata Technologies earned $33.8 million more than over the same period last year.

Company profits were also higher than last year, at $84.8 million. This is $6.4 million higher than the same period last year, or 8.2% more. All of these figures reflect earnings before interest, taxes, depreciation and amortization (known as EBITDA). The company also reported higher cash balances on hand, with $89.8 available, up from $84.8 the previous quarter. 

When you become an employer in the state of Maine, you are supposed to register with the Main Department of Labor, in particular the Unemployment Tax Division. Why is that? Well, my new but soon to be loyal reader, you become liable for unemployment insurance taxes as soon as you take on employees in your business. The Unemployment Tax Division will then determine just how liable you are for those taxes, and assign you an account number with them.

Then down the road—as you pay taxes every year into this unemployment tax account—you may one day let an employee go. In that case, that employee can make a claim with the Department of Labor for unemployment benefits in Maine. When they do, and it is determined that they were let go for no fault of theirs and that you were their last employer, your account will then get charged for their weekly unemployment benefit payments.

The interesting part here becomes, as we saw in the blog entry on Louisiana, when an employee starts getting benefits that you don’t think they deserve. If the state Unemployment Tax Division agrees with you, then they will decide that you have been overpaid on your unemployment benefit taxes. Then it is up to the Maine Unemployment Tax Division to retrieve that extra money from the employees. Good luck, you say?

Such protesting is important for you and your unemployment tax account. That’s because every year the Maine Unemployment Tax Division tallies how much money has been charged and “taken out” of your account to pay for former employees’ benefits. The more benefits paid out of your account, the higher the tax rate the state is going to charge you for the following year. The way to get your tax rate down, then, is to have the opposite happen—have less money charged to your unemployment tax account.

By law, every employer must post Maine Unemployment Insurance posters. All new and reactivated claims for unemployment benefits are filed either by telephone, mail, or by Internet.

Maine Unemployment Insurance posters carry this warning; “Do not delay in filing your claim once you are out of work. CLAIMS CANNOT BE BACKDATED.”

Telephone would be the choice for individuals who are deaf or hard of hearing and for non-English speaking applicants. TTY services are available, and language interpreter services in approximately 140 commonly spoken languages can be arranged. Maine Unemployment Insurance posters advise those who do not have a phone, to use phones, free of charge for this purpose, at any Department of Labor Career Center.

Maine Unemployment Insurance posters provide information about basic eligibility requirements. To establish a claim, an individual must have earned two times the annual average weekly wage in Maine in each of two different calendar quarters, and a total of six times the annual average weekly wage in Maine in the whole base period. The “base period” is a one-year period that includes four calendar quarters. As an employer, it is imperative that you keep good records of the earnings of each of your employees to help determine if they are truly eligible for funds.

When individuals are laid off from their last job due to a lack of work, no additional investigation is required. Employees separated from their last job for reasons other than lack of work will be scheduled for a fact-finding interview before a determination is made regarding eligibility for benefits. Employers will want to participate in the fact-finding interview. During this interview, have the employee’s hours, wages, and reason for leaving employment. Maine Unemployment Insurance posters list weekly eligibility requirements including being able to work and being available for work, making an active search for work (unless their work search has been “waived”), not refusing offers of suitable work or referral to suitable job opportunities. If you suspect that you are paying for a claimant that is not following these rules, contact Maine’s Department of Labor.