Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 1, 1995                   TAG: 9503010063
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: SHANNON D. HARRINGTON STAFF WRITER
DATELINE:                                 LENGTH: Medium

RUBATEX LAYS OFF 90 IN BEDFORD

Rubatex Inc., a Roanoke-based maker of foam-rubber products, said Tuesday it has laid off 90 of approximately 800 employees at its Bedford plant, the first impact on workers of a company restructuring.

Rubatex would not distinguish between hourly and salaried employees, but did say that the layoffs, effective Monday, affected both.

The cuts are the result of a restructuring plan that started this year when Rubatex's parent, RBX Holdings Inc., acquired Halstead Corp., said Gerald Kirschke, vice president of human resources. Halstead, a subsidiary of Halstead Inc. in Greensboro, N.C., operated plants in Colt, Ark., and Conover, N.C., that now are part of a three-plant operation under Rubatex.

"Although the layoffs are unfortunate, they hopefully will position Rubatex to grow with the appropriate employee population,'' Kirschke said.

Rubatex normally has a fluctuation of 30-35 employees subject to layoffs, said John Coburn, director of operations. "But what happened [Monday] was abnormal."

Improving plant productivity and a drop-off in business caused the large number of layoffs this time, Coburn said.

No changes in plant operations are expected, however. Coburn said the plant has a schedule for March and will operate as planned.

"There are enough people to meet March demand," he said.

The company does not anticipate further layoffs and would not say what other changes may result from the restructuring plan.

Possible severance packages are being negotiated, Kirschke said.

The United Rubber Workers union represented about 685 Rubatex employees before the layoffs. Representatives from the URW in Bedford could not be reached.

Rubatex manufactures foam rubber used for heating, ventilation and air-conditioning insulation; sporting goods; sports medicine products; and transportation-related products, among others.