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WNY sees ripple effect of Baum, Pillar layoffs

Mon, Dec 5th 2011 12:00 am

By MATT CHANDLER
mchandler@bizjournals.com | 716-541-1654

On Nov. 30, Pillar Processing LLC of Amherst did what many insiders saw as inevitable: The company, which served as a support operation for the foreclosure law firm of Steven J. Baum, filed paperwork announcing it was shutting its doors and sending 586 employees to the unemployment line.

The filing - required by law when a large-scale layoff is impending - came on the heels on the Baum firm's plan to lay off 67 employees locally and two other local firms connected to Baum filing paperwork to lay off 15 more.

That brings the total number of Baum-related layoffs in Western New York to more than 650.

In a sagging economy, what's the potential impact on the region?

John Slenker is an associate economist with the New York State Department of Labor. He says it's too early to predict the exact impact - calling such a prediction "speculation" - but that the final numbers of those out of work likely won't be anywhere near as high as 650.

"My understanding is that these layoffs won't occur until February, so you have a case where these people are already starting to look for work and hopefully they will be successful in finding new jobs," Slenker says. "This layoff is larger than any we have seen in a while. But that said, you never want to see any layoffs."

Each company listed their individual closing dates as February 2012, though none specified when layoffs would occur. Attempts to reach Pillar Processing for comment were unsuccessful. 

Still, it may not be all bad for the hundreds of people being displaced, according to Slenker.

"Our numbers locally aren't great, but we see them going in the right direction," he says.

There is regional job growth, he adds, and some of those jobs are created by "replacement needs."

"The greatest driving force in the creation of jobs is time," he says. "There are people moving out of the region but also those moving out of the workforce. We all get older and, as people retire, they need to be replaced. So there are jobs out there."

Michelle Alberts agrees. The owner of Selective Staffing Solutions says she has plenty of job opportunities for people with computer skills and a willingness to work.

"I've got 100 openings right now," she says.

Her company has 300 workers out in the field daily and she expects to double that number in 2012. Though most of the positions start off as temporary employment, Alberts says the average job becomes permanent within 90 days. That offers some hope for those who were pink-slipped from Pillar.

"We have a need for a lot of clerical positions and positions for people who are fluent in Microsoft Word and Excel," she says. "There are opportunities for these people out there; they just need to come in."

Slenker, meanwhile, says the Department of Labor has a vital role in assisting those who have lost their jobs. It's a two-way street, however.

"What they really need to do is view their job search as a job," he says. "They need to treat it very seriously and work very hard at it. There are options out there."

Will hundreds of people sharing skills saturate the job market for certain skill sets? Slenker says he doesn't think that will be the case.

"Most people have a lot more transferable skills than they realize. We can help people identify what those skills are," he says.

Likewise, Alberts says with the amount of work available for those with strong computer skills, she sees real opportunities for soon-to-be-former Pillar workers.

"There is a reason why there are so many employment agencies out there: because there are jobs to be filled," she says. "We are seeing more requests coming in all the time."