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Congressman Joe Courtney

Representing the 2nd District of Connecticut

The Day: Impact of tariffs helps former Garbo employees be eligible for additional benefits, training

January 28, 2019
In The News

Groton — When China implemented a 25 percent tariff on seafood from the United States in reaction to U.S. tariffs, last summer, company officials at the Garbo Lobster facility on Thames Street reported that they got calls overnight from China to cancel orders.

The Groton facility shuttered six months later, and East Coast Seafood Group, Garbo Lobster's parent company, announced it would move the operations to its other facilities in the Northeast.  

The state Department of Labor asked the company last week if tariffs imposed by China had any direct impact on the closure, since when a facility closes due to foreign competition employees are eligible for additional benefits under a federal program. The company said the closure was a relocation due to a planned restructuring, according to state Department of Labor Communications Director Nancy Steffens.

East Coast Seafood Group said in a statement last week that the consolidation "is the result of years of careful planning and the next step in a unique partnership between East Coast Seafood and Garbo Lobster." The company is moving the bulk of the work that was carried out in Groton to a 100,000-square-foot Prospect Harbor, Maine facility that East Coast Seafood and Garbo Lobster jointly acquired in 2012, and the rest to the company's "new state-of-the art lobster processing line" at its facility in New Bedford, Mass.

But after gathering more information, including by talking to several employees and reading news articles, state Department of Labor officials filed a petition with the federal government requesting that the employees be certified eligible to receive federal Trade Adjustment Assistance funding, Steffens said this week. The funding can be used for training, education and job-search services for employees affected by foreign competition. 

East Coast Seafood did not immediately respond to a request for comment on the Department of Labor's decision.

"I'm really pleased that the commissioner just went ahead on behalf of the employees to get this application submitted," said U.S. Rep. Joe Courtney, D-2nd District. Courtney said his office assisted the department with the application by flagging the news of the closure, and one of his staff used social media to find former employees who will be part of the application.

It was during Courtney's visit last summer to the Groton facility on the impact of tariffs that Garbo Lobster President Dave Garbo said, "The tariff is putting us out of business," while Garbo Lobster General Manager Chris Brown said, "It was like a light switch. Overnight, we got the phone calls to cancel," The Day reported.

Courtney said that based on the comments made last summer and the effects of the counter-tariffs reported up and down the coast, "it would sure seem to me there is a credible basis to get more help for people who lost their jobs."

He said there is no surcharge or cost to an employer to provide access to the program, which provides enhanced benefits to employees whose company closed because of trade-related causes, including access to job training and educational programs. He said the program helped employees when Crabtree & Evelyn closed a facility in Woodstock, as the company faced competition online from overseas producers of soaps and lotions. 

Steffens said the Department of Labor activated the Rapid Response Team it has to help employees faced with layoffs find new jobs, as soon as the state agency read the news that the 33,000-square-foot Garbo Lobster facility would close on Jan. 17. Garbo Lobster, which described itself as "the largest wholesale distributor of live lobsters in the world," was founded by Dave Garbo and his brother in Stonington 36 years ago, according to the company's website.

The team informs employees about how to file for unemployment benefits and services available at the American Job Center, including "career specialists, résumé writing services, computers, workshops, our CTHires job bank, recruitment events employers hold at the centers, and related services, such as childcare providers or transportation services," she said. The company invited the agency to provide informational packets to the employees.

East Coast Seafood Group said in last week's statement that it is "offering positions at other subsidiary locations where possible, absorbing benefit costs of covered employees for a period of time, offering severance to each employee affected, and providing recommendation letters and other support requested by employees during their transition. The company's first priority is the employees affected by the consolidation and providing them the support they need as they move to alternative employment opportunities."

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Read the full article at TheDay.com