The family-owned Ames Safety Envelope Company, will close, causing the loss of over 150 jobs for its factory workers. ~ Photo by William Tauro

Current economy, high tech forces 150 Somervillians out of work

By Julia Fairclough

One of Somerville's largest, non-governmental businesses for nearly a century, the family-owned Ames Safety Envelope Company, will close, causing the loss of over 150 jobs for its factory workers.

The Properzi Way business, owned by the Fitzgerald family, was bought by Tab Products Co., an international company specializing in record management. The sale will be finalized in early March.



"Last week, I had to tell 160 people that you won't have a job in four to eight months; that is a hard day's work." said Bill Shea, CEO of Ames. "Some of them have been with the company for 30 and 35 years."

Shea said that Ames Safety Envelope Company is being sold for multiple reasons. Computer-driven digital solutions have increasingly replaced the company's principal markets of x-ray and medical filing products. In addition, the Boston area has become an expensive area to operate a manufacturing operation.

Unfortunately, a number of the company's endeavors to supplement the product downturn have been unsuccessful, Shea added. The company has downsized from its highpoint-with a staff of 575 people- in 2002. Shea, who had been with Ames for 37 years, had to come out of retirement a few months ago to help the ailing company, and there were only 190 people left. He had retired in 2002.

"The world has changed and we could not change as fast as we could have," he said. "It's a tough world out there right now, with the general economy being as it is. But I told people to remember the good times, because there were a lot of them."

Shea added that employees will be able to roll over their retirement accounts which in sum are valued at $14 million. "We were generous when things were going good, and that has helped people," he said. "Though it doesn't replace a job, it makes the situation less financially painful."

TAB operates a number of facilities in North America. The Ames operation will be integrated into TAB's, Mayville, Wisconsin facility. Most of Ames' sales department employees will continue on as employees of TAB, and continue to be based in the Boston area.

Regretfully, most Somerville factory positions will be terminated during the six to nine month transition period. This will result in the loss of approximately one hundred and fifty jobs. Ames Safety Envelope Company's Human Resources Department will work with the terminated employees to help them to locate jobs in similar converting industries and other manufacturing operations.

TAB will expand its manufacturing operations in Mayville, Wisconsin as it integrates the production of Ames products in its facility.

 

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