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Cutbacks at Coty, Inc.

READ MORE: Cutbacks at Coty, Inc.
As employees at the Coty facility in Rocky Point left work for the day, they likely had one thing on their minds; they will soon be leaving for good. General Manager for Coty's two local facilities, Cary Newman, echoes what we have been hearing all too often recently. "We have been struggling with very challenging economic times," he described. More than 500 Coty employees learned Thursday they will lose their jobs. "As one of those employees, I can tell you that Coty will be doing everything possible to transition to their futures and land on their feet," Newman said. Coty manufactures and distributes cosmetic products for Sally Hansen and New York Color Nail lines. A returns processing center and promotional assembly center in Leland will be completely shut down by December 31st, and in Rocky Point, manufacturing will gradually be shut down over the next year. Distribution will continue for the time being. The closures will be a big blow to the local economy, and heavily shape unemployment numbers. In March, Brunswick and Pender county's unemployment rates were 11.4 percent. "The thing I feel most is real empathy for so many people that are really talented that have done really great work here and really it has nothing to do with their work or their effort that we are where we are today, so that hurts," added Newman. Newman said career counseling and career fairs will be offered to the employees, as will generous severance packages. Coty has been in Rocky Point since 1997.

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Why is there a now hiring

Why is there a now hiring sign out by the road at DEL Labs in Leland if they are closing? Why are they giving out applications if they are closing?

This is why!

It's simple. Coty/DEL may now need workers with different skills. However, we must also realize that this is not always true since the skills Coty/DEL now needs very well likely were already possesed by the people they just recently laid-off. Specifically, the people Coty/DEL laid-off were people who made a good salary and now, the people Coty/DEL hires are "hard-luck" cases digging through gtarbage cans for food. Coty/DEL, like most other companies, is laying-off its own people and then intentionally hiring other people who have been unemployed for a while at lower cost. The unemployment situation that exists today is made worse by companies who play these games to drive down costs. Not because of lack of work mind you. Many people who have jobs now are complaining that they are being asked to work longer hours and do more work and say thank you to their boss at the end of the day for having a job. This is how unions started at the turn of the century. People realized that sticking together, forming a union, and bargaining with the company/employer collectively was more advantageous. Either the company hired everyone in the union at a decent rate of pay or closed it's doors down because of a strike. The only way people are going to get their salary back to where it should be or to where it once was is by forming a union. If Joe is willing to work for $6/hr Tom won't be hired at $7/hr. If everyone sticks together both Joe and Tom will get $6.50/hr. This is a very simple example, but it's rather easy to understand. Right now, it's everybody for themselves in the employment world. Everybody should pick up a phone book, call information or "Google" unions in their area and reach out and then get the employees who are already in the comapny to sign on. Now the comapany is stuck and has to either close it's door or make a deal. 99% of the time, a deal is struck and it it is to the benefit of both employee and employer. The reasons are this- For employers, it's bad publicity to screw employees because they are customers too and in a close knit community people stick togther and will boycott the comapny's products when they shop; it's bad business to shut down for days or weeks and loose money; and it costs too much to re-locate and also if you were to re-locate there is no gurantee that there is no union at the new place either. If you don't like unions because of some reason, then deal with unemployment, loss of your home, your possessions and your family because boss-man has no sympathy for your situation.

Boy are you brain washed.

Boy are you brain washed. Unions will kill this country. Look at the auto sector and tell me other wise.


If this country is made up of all business and no people, then you are right in your analysis. The interests of the workers are not the interests of the company. Workers and companies are two countervailing forces. The company wants to get the most work out of a worker for the least amount of money and the worker wants to get the most amount of money for the least amount of work. Somewhere in between is a happy medium for both.

Regarding your example of the auto workers, be advised that it is the companies that agreed to the contracts with the unions. If they did not agree, then they can move out or close up. There is no law that says that a company has to automatically agree to what a union wants. Think of it this way: You open up a corner grocery store and have a 5 year lease. After the 5 years, the landlord doubles your rent seeing that you are profitable. You can leave or stay. If you stay, your profits are cut in half, but you still have plenty of money and all that extra money you made the first 5 years isn't all that bad either. If you move, there is no guarantee your store will be as profitable in the new location or that the new landlord will not try to do the same to you like the old one did. In essence, your landlord becomes your silent business partner. And with auto workers, like all workers, are silent business partners.

You can not have a business with out cost. A business tries to minimize their costs and maximize their profits. A worker tries to maximize their pay and minimize their workload. Countervailing forces; you can not escape reality. No worker goes to work every morning saying, "I wish I had more work and less pay."

The difference between slave labor and middle class is UNIONS! The history is inescapable.

True union story

Local folks of a giant telecommunications provider were unionized a few years ago.

* Their bonuses dropped from 10% to 5%, costing each employee thousands of dollars every year

* The health plan got much better. The dental plan became absolutely worthless. Four years later, the health plan is absolutely worthless, too.

So for losing thousands of dollars in bonuses, their dental plan, and now seeing no protection against the rotten health plans permeating industry, the employees stupid enough to have voted and joined get to pay the union a share of their labors every month.

Moral of the story: There's no such thing as a free lunch - you pay for any "benefit" you receive. A union is nothing more than a business that makes its money off YOUR sweat.

By the way, study the NLRA and NLRB rulings if you want to see how badly the deck is stacked AGAINST any company trying to stand up to a unionization effort.

Not every case is a win for

Not every case is a win for either unions or businesses. Take note that the example you gave first, about the auto workers, proved to be beneficial to them where the second example you gave about the telecommunications works did not to be very beneficial as you pointed out. Unions, like people, can not be judged solely on one single instant occurrence or contract negotiation. Do businesses make mistakes? Do unions make mistakes? We all make mistakes. Car companies made mistakes giving too much to unions and unions made mistakes giving up too much to the telecommunications company. It happens.

What I am saying is that there is strength in numbers and a better negotiating position. If the people negotiating don't know what they are doing, then somebody suffers. If I walk into a company an negotiate a salary, I would not be so well disposed to do so than if I was part of a greater whole.

It's the parasite and host scenario. Companies see themselves as the host and the workers as the parasites that feed off of them. Workers see companies as the parasites feeding off of them. Truthfully humans existed before companies did and that companies are the parasites that feed of the labor of the worker. When you look at a company, what is it really other than a group of men of like mind set on a course to enrich themselves off the labor of others. True, the men have the idea and skills to organize but they can't do it without the work of others and that is the crux of the issue: how much profit should the workers share in? What should be their pay for their work? What is fair?



They have had that sign up

They have had that sign up there for months now, even the Del/Coty has been on a hiring freeze. They just haven't taken it down; they aren't really hiring.

true numbers

And I question the true numbers of those affected. Is 510 only counting those that directly work for Coty? There are a number of vendors, contractors, and temporary employees that will lose their jobs as well. And if these are included in that number, those people will surely not receive any sort of severance pay. Immediate impacts will affect local business as well. Especially food establishments in the Castle Hayne, Rocky Point and Murrayville areas as many workers have their lunch delivered or the ones that have longer lunch breaks go out for lunch. It's a shame

saw it coming from miles away

As a recently new employee of Coty Inc. in Rocky Point, one of the first things I questioned after being in the company was, "How can they possibly be in business?" Piss poor management, horrible choices, lack of true leadership and the inability to enforce basic employment guidelines lead to horrible efficiency, ultimately dooming this facility. Hindsight is 20/20 though. Oh well! To Coty’s credit, they bought out Del Labs. This was a Del Labs problem, not a Coty problem. This closure has nothing to due with the economy. It has everything to do with the people who make the top dollar getting too comfortable with their salaries and forgetting the very basics what it takes to run a business. Well, guess I’m off to start looking for a job. Cheers!

When will it stop.

I just seen an advertisement that the north carolina lottery just hit a 1 billion in sales. But the employment in this area is dropping like flies. So when will it stop? Now with this news north carolina will now be the highest in unemployment. So as a resident of north carolina I say we cut are goverments salaries to what the max would be as if they were the ones to have to go and collect uneployment. and maybe they would be more amp to find a solution. And bring all US based companys back in the us.

"And bring all US based companys back in the us."

Sure, pal! I long to pay $8.99 for one undershirt, instead of paying $5.99 for a pack of three. Cheap foreign labor has given the American consumer trillions in surplus capital to save, invest, or spend as they wish. Thousands suffer, but millions prosper.

Bring back U.S. based companies.

You have got to be kidding! It is thinking like that that has caused this problem in the first place. If our own gov't would not tax the businesses that operate here to death(i.e. import, export, property, sales, distribution, stock taxes), just to name a few. Maybe not letting products made by slave labor be sold in the U.S. most of which are garbage. As a warning do not buy any safety equipment made in China, Japan, Korea or any other garbage dealing country, It could cause your dismemberment or death. Maybe if The majority of products sold in the U.S. were made here and not elsewhere, price would not be an issue!


19-inch color televisions were much SOOOO much better when they cost $800 and were made by IBEW employees in Illinois. You got to see your local TV repairman every year or so, plus replace the set every five or six years. Now we're stuck with all these Panasonics, Toshibas, and Sonys that last indefinitely and rarely, they only cost $300! Instead of worrying about off-shore "slave labor," why not plan what you're going to do with the $500 you saved. It's a new world, pal, based upon global trade. That genie is never going back into the bottle, simply because most imported products are of equal quality to what could be manufactured here. Learn to live with it and thrive in it or become one of the Luddites who sit around pining for what USED to be. This isn't 1955.


You must either be retired or very well off. Some of us need to work to feed our children, and thinking like you do, where do we work if every product we buy is coming from overseas. Do you suggest every head of the household moves overseas to support the family here in the US. So if you thoughts are correct, how long do you think the goverment can give everybody welfare because they have no jobs. Concerned AMERICAN Citizen..

Time only moves in one direction

The United States has been in decline as a global manufacturing giant for many, many years. For example, compare our ship-building industry of fifty years ago to now. Compare the quantity of steel domestically produced to that which is imported over the past three decades. Take a look at what is going on in the American automotive industry right this minute. With the exception of large, industrial items such as airliners and bulldozers, we are rapidly moving to a service-based economy because of one simple rule: If you can manufacture an item off-shore and ship it to the local domestic market for less than it costs to manufacture it locally, the item WILL be manufactured offshore. If you force the manufacturer to pay ridiculously high wages to produce the item locally, that cost is passed onto the consumer and the item doesn't sell. Imports from non-US based companies will sell cheaper. Are you proposing that we halt imports, and violate about a dozen treaties we've signed? It's not a matter of emotion, it's a matter of simple economics. Your grandchildren may be UPS drivers, doctors, lawyers, telephone technicians, nurses, or any one of a host of other service-based jobs, but they will likely not be working in a factory manufacturing anything.

I don't know where you shop

I don't know where you shop but the last 19 inch color tv I bought was $150 fropm Wally World and it lasted for eleven years without a glitch until it took a hit of lightning. Maybe you could try comparison shopping. Anyway, I doubt that outsourcing is the reson for this. It would not pay the company to ship product out of the country and then pay to get it brought back in so that they can charge two bucks for a bottle of nail polish.

Del Labs moved here from NY

Del Labs moved here from NY to reduce labor costs. I guess it was bad management, not bad labor.

So now where do we turn here

So now where do we turn here in New Hanover County and the US in general? How many more people? How Many more job cuts? How much mor can we all take. This is just rediculus and should be such a wake up call to all american citizens. As a resident of this community I am outraged I am friends with so many people who work for coty and am so upset for them right now. As a person just barely surviving myself I have to wonder how these poor people will make it. Maybe the trusty folks at the employment commision will help......what a joke that is. Farewell North Carolina im living next month for least they know how to treat their people


Where will we turn next? You have to be kidding me right? Looking for a helping hand? Try the one and the end of your arm. You obviously are one of those bleeding hearts looking at the government and everywhere else for yours. I hope Canada keeps you. We need no more of that here. We need folks that are willing to look into the future and adapt quickly to the changing environment around them. I too feel saddened by all of the job losses however, it is not my pocket that they should be reaching into to solve the crisis.

Don't be a part of the problem....

Everyone seems to have an openion about everything but where are the solutions. I work for Coty, in the next year I will no longer be working for Coty. I am thankful for every opportunity that I have been afforded to excell, and financially support my family. Change and the unknown can sometimes be a hard adjustment but in life, attitude is everything. Always focusing on the negative will never allow you to see the good in each day. Somebody didn't even get to wake up today so let's embrace today and focus on what we do have. When one door shuts, another one will surely open.Let's be a part of the solution.

You are in a dream state.

You are in a dream state. Everything is happy and everyone is OK. Attitude you say is everything. Have you been able to pay your bills with attitude?

The world is full of many types of people. One type is willing to drop their pants and grab their ankles because boss-man said so and the other type is on the other opposite side of the coin.

Corporation are an American creation and they were created for the benefit of society. Take a look at the laws and charter of every corporation granted permission to operate in any state. When a corporation behaves in a manner that is not in keeping with public good, their permission to operate can be revoked by the Secretary of State of the State in which they operate.

If you think Coty is God's gift to the State of North Carolina because they let you drink the water you washed their feet with, good for you. Not everybody is as grateful to a company who, perhaps, is not as good a public citizen as they can be. Specifically, although laying off people or closing a plant may be good for the company's bottom line so fat cat boss-man can pay for his extra toys, but what good is that plant closing or layoff doing for society?

Back to the law books friend. You don't even know what a corporation is supposed to be or what it is entrusted to do.