LUFKIN, TX (KTRE) - With tight economic conditions, companies and employees are learning the costs and benefits of sacrifice. But for public companies like Lufkin Industries, accountability to stockholders is a major factor in deciding if employee jobs will be those sacrifices.
Both public and private companies are feeling the pressures of the economy.
"We have a lot of financial closures that we make - a lot more operations disclosure, and as a result of that, there's a burden to support that," explained Paul Perez, Vice President of Lufkin Industries.
Perez says Lufkin Industries has shareholders scattered all over the world, and bottom line, shareholders invest to earn a profit. "We love it when business is real strong and we report and make shareholders happy," said Perez.
In poor economic conditions, Perez said hanging on to shareholders is important. He said the company has to control their expenses and sometimes it is at the employee's expense.
"Sometimes they're required," said Perez. "We have in the past. We hope we're reaching a basis of operations where our head count reflects the work level."
Perez said they are not working on any layoffs at this time. Atkinson Candy Company is a privately owned corporation. Eric Atkinson said he has considered becoming publicly traded.
"Basically it's like taking on a partner, and quite frankly, a lot of times the partner ends up telling you how to run your operation, and it may not be the best thing for the employees," said Atkinson.
He believes private companies give employees job security.
"We understand that they have lives, to the extent that we can accommodate that, and that's the difference between a private corporation and public corporation because they really don't have that lead way," explained Atkinson.
He said the pay and benefits might be greater in a public company, but he worries about that lasting. "At the end of the day, we have employees who've left Atkinson Candy Company to go to work at a public corporation only to come back when they got laid off," said Atkinson.