Lincoln Electric, Cleveland / Profit-Sharing and No Layoffs for 64 Years

Economics correspondent Paul Solman revisits Lincoln Electric, a welding manufacturing company based outside Cleveland, Ohio. Through its use of merit-based profit-sharing and a no-layoff policy, the firm is an unlikely Rust Belt success story that hasn’t laid off anyone for financial reasons since World War II.

PAUL SOLMAN: A bright light in Rust Belt America: Lincoln Electric, making welding equipment in Cleveland for over a century.

Four million U.S. factory jobs lost in a decade, a quarter-million in Ohio alone, yet here, they protect jobs, and did so even through the crash of ’08, says CEO John Stropki.

JOHN STROPKI, Lincoln Electric: We didn’t lay off any of our employees during that tremendous recession.

PAUL SOLMAN: That’s because, after three years, workers here are guaranteed at least 30 hours a week as long as they continue to meet quality standards.

Journalist Frank Koller is the author of “Spark,” a book about the firm.

FRANK KOLLER, “Spark”: Every CEO, when it comes time to announce a layoff, always says two things, first, our employees will remain our most valuable asset, even as we lay off 10, 15 percent of you, but second, we had no option.

The Lincoln Electric example does provide evidence that it is possible to protect people, as well as profits.

Watch Cleveland Company Welds Job Security With Profits on PBS. See more from PBS NewsHour.

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via Cleveland Manufacturer Welds Together Job Security, Profits | PBS NewsHour | July 13, 2011 | PBS.