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Contract's end affects local jobs
Reynolds warehouse deal puts 91 on the line
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Published: November 4, 2009
The ending of a logistics company's warehouse contracts with R.J. Reynolds Tobacco Co. at year's end has put the status of 91 local employees in limbo.
Jacobson Warehouse Co. Inc., based in Des Moines, Iowa, filed a Worker Adjustment and Retraining Notification Act, or WARN, notice last week with the N.C. Commerce Department and the mayors of Winston-Salem and Rural Hall.
The notice covers a Reynolds warehouse at 901 Reynolds Blvd., Building 603-5, in Winston-Salem and one at 200 Forum Parkway in Rural Hall.
Troy DeJoode, the vice president of human resources for Jacobson, said in the notice that Reynolds chose to end the contracts, effective Jan. 3. The jobs are expected to end by Dec. 31, the company said.
Jacobson said it has 51 employees in Winston-Salem -- 46 forklift operators, five customer-service representatives and three managers. It also has 40 employees in Rural Hall -- 33 forklift operators, four managers and three clerical.
Dan Newell, a spokesman for Jacobson, said that the company lost the contract to DSC Logistics of Des Plaines, Ill.
David Howard, a spokesman for Reynolds, confirmed that DSC would be operating the two warehouses as part of taking over management of Reynolds' national supply chain for finished goods in early January.
Newell said he was told that most of the Jacobson workers would be kept on by DSC in the transition.
Tracy Drake, a spokeswoman for DSC, could not confirm whether the Jacobson work force would be kept intact by DSC. Howard said that Reynolds had no comment on the work force since it involves contract workers.
Jacobson also has operations in Greenville, Lexington, Matthews, Salisbury and Shelby.
rcraver@wsjournal.com
727-7376
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