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Show McNalley awaits study results By CINDY LLOYD For the past two months employees em-ployees at McNalley Mountain States Steel have been working on a feasibility study of the proposed Employee Stock Ownership Plan. Over 120 employees have donated $100 each towards the study. Mountainlands Association of Governments in Provo, has used its (unds to. match the donations. Professor Warner Woodworth and students of BYU have been conducting con-ducting the study along with McNalley Mc-Nalley employees. Taking into account that the closing of the company is partially due to foriegn competition, the main objective of ESOP is to bring overhead down and at the same time become more productive. Several committees have been organized to : formulate diffrent plans with the I BYU students contributing to each j committee. Each of the committees are assigned different departments to redesign. These include equipment costs and maintenance, organizational restructuring, finance, personnell and marketing. The members of these committees are meeting weekly. The design of ESOP is to make all employees equal owners and profit sharers. All will vote on main issues and will have the same incentive to cut costs and become more productive. To begin with the Employee Stock Ownership Plan expects to have 100 direct labor employees and 25 indirect labor employees. No outsiders will be allowed to become owners. Currently only people that have been employed at McNalley in the past year are being recruited for hire and ownership under the Employee Stock Ownership Plan. Some of the goals the committees are working towards include cutting indirect labor and direct labor, establishing credit, arrange for working capital, bonding capacity; and researching for a new labor contract. So far in talking with past customers of McNalley Mt. States the response has been encouraging in that the customers seem to be receptive to the employee buy out. The feasiblity study should be completed no later than mid-April. If the employee buy out does come about it could be three to 10 months before the recruited employees are called back to work. Other employees em-ployees of McNalley may seek other employment or opt for retraining. The government has approved 52 weeks of unemployment benefits for laid off employees of McNalley Mt. States. |