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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Packaging firm cuts workforce

The Spokesman-Review

Pearson Packaging Systems has reduced its labor force by about a third since this spring, an executive said.

The Spokane-based company laid off about 26 employees roughly three weeks ago following a brief downturn in new equipment sales, said Michael Senske, president and CEO. This spring, the company outsourced about 20 fabrication jobs to Valleyford Metal Crafters LLC and other shops, working with those outfits to offer workers equal or better pay, he said.

Some of those workers, who are on a 60-day furlough, could be hired back, Senske said. The 52-year-old company had about 171 full-time employees in May, according to news reports.

While the company had expected $35 million in revenues this year, revenues could be closer to $30 million, Senske said.

The company’s situation was complicated by a $2.5 million order from Frito-Lay it couldn’t fill because of intellectual property issues, Senske said. Competitor Douglas Machine Inc. of Alexandria, Minn., filed a patent-infringement lawsuit against Pearson when the company took an order to make more than 20 machines for Frito-Lay, he said.

The legal matter was resolved through mediation, Senske said. He declined to discuss terms of the settlement, but said the company will be able to accept additional orders in the future.

Pearson will pay outsourced employees’ health benefits until January.

Avista files Oregon requests

Avista filed requests to change the price of natural gas for its 94,000 Oregon customers.

The company has asked to first decrease customer bills by an average of 1.7 percent because of lower wholesale gas prices.

Then Avista will ask the Public Utility Commission of Oregon to allow it to raise rates in that state by 2.3 percent to cover system upgrades and maintenance.

The company is seeking similar actions in Washington and Idaho.

In Washington, Avista wants to lower rates 6 percent in November, then raise them 2.27 percent next March.

In Idaho, the company seeks to lower rates 4.6 percent this autumn.

Boise

PUC seeking device comment

Idaho’s Public Utilities Commission is seeking public comment through Oct. 25 on a proposed Avista deployment of wireless meters and remote disconnect devices in North Idaho later this year.

Avista has said it hopes to install about 250 remote disconnect devices in rural areas of North Idaho and about 350 wireless meters in urban North Idaho. The one-year pilot will study the cost-effectiveness of the devices.

Those eligible to take part are customers who have had multiple disconnects, live in rural areas or reside where utility workers could be at risk for manually performing disconnects or reconnects.

There is no scheduled public hearing. Residents are asked to comment by e-mail through www.puc.idaho.gov, by letter to P.O. Box 83720, Boise, ID 83720 or by fax to (208) 334-3762.