Loss Of Contract Big Blow To Cardinal Center
July 28, 2016 at 4:25 p.m.
Cardinal Center Inc. may have struck an iceberg.
The tip of the iceberg is Dana Corp., Spicer Axle Division, in Fort Wayne.
CCI was ranked 11th out of 66 Dana suppliers, based on an eight-factor quality ranking system.
Despite that, Dana dropped the company after 10 years of service.
The $4.5 million loss could very well sink the company.
CCI is unable to maintain its overhead, said Jane Greene, CEO of Cardinal Center, who said CCI is losing money and cannot even cover its expenses.
The full extent of the damage is uncertain but, according to Greene, the company was forced to lay off 10 adults with disabilities and five hourly employees. All 15 employees were associated with the Dana contract.
Although Greene expressed hope there would not be a need for layoffs in other areas of CCI, she said, in a letter sent to the public on Feb. 19, "People with disabilities served by Cardinal Center now have very little work to do. ... Will you please look for opportunities for Cardinal Center?"
According to Tamra Ummel, vice chairman of the CCI board, CCI is "aggressively" placing bids for contracts but has not been able to obtain any.
The hidden parts of the iceberg, which pushed Dana to drop CCI, are Ford and Chrysler corporations.
The automakers threatened Dana with a loss of 25 percent of their quality points if Dana did not comply with their desire to work with more minority-owned businesses.
Gordon Wall, of Dana Corp. in Fort Wayne, said several other issues were involved in the decision of the automakers, and the minority issue was only part of the decision.
He had no choice in the matter, however, and did not fully understand the situation himself. The orders came to him through Dana Corporate Headquarters in Toledo, Ohio.
The automakers do not consider CCI a minority-owned business because it is owned by the community, and they do not recognize adults with disabilities as minorities.
The auto companies only recognize businesses owned by individuals of ethnic origin and females as being minorities.
While the outcome of the automakers' decision was probably not malicious toward CCI, the job opportunities for adults with disabilities are threatened at CCI and companies like them.
CCI helps find jobs, offers basic training and assists in finding jobs for adults with disabilities. CCI works toward helping its clients maintain a sense of belonging and self-respect.
CCI has established 15 group homes, 10 of those in Kosciusko County, for adults who need assistance with daily living requirements. It also provides encouragement for clients to be self-supportive and self-sufficient.
A new general manager was hired and began work Monday after CCI's former general manager abandoned ship, taking a position with the minority-owned business that replaced CCI.
In compliance with Dana's pledge to try and locate possible contracts for CCI to bid on, Wall said he has been looking but has not found anything in the last five to six months.
He also said he would "like to find something that would benefit both companies." [[In-content Ad]]
Latest News
E-Editions
Cardinal Center Inc. may have struck an iceberg.
The tip of the iceberg is Dana Corp., Spicer Axle Division, in Fort Wayne.
CCI was ranked 11th out of 66 Dana suppliers, based on an eight-factor quality ranking system.
Despite that, Dana dropped the company after 10 years of service.
The $4.5 million loss could very well sink the company.
CCI is unable to maintain its overhead, said Jane Greene, CEO of Cardinal Center, who said CCI is losing money and cannot even cover its expenses.
The full extent of the damage is uncertain but, according to Greene, the company was forced to lay off 10 adults with disabilities and five hourly employees. All 15 employees were associated with the Dana contract.
Although Greene expressed hope there would not be a need for layoffs in other areas of CCI, she said, in a letter sent to the public on Feb. 19, "People with disabilities served by Cardinal Center now have very little work to do. ... Will you please look for opportunities for Cardinal Center?"
According to Tamra Ummel, vice chairman of the CCI board, CCI is "aggressively" placing bids for contracts but has not been able to obtain any.
The hidden parts of the iceberg, which pushed Dana to drop CCI, are Ford and Chrysler corporations.
The automakers threatened Dana with a loss of 25 percent of their quality points if Dana did not comply with their desire to work with more minority-owned businesses.
Gordon Wall, of Dana Corp. in Fort Wayne, said several other issues were involved in the decision of the automakers, and the minority issue was only part of the decision.
He had no choice in the matter, however, and did not fully understand the situation himself. The orders came to him through Dana Corporate Headquarters in Toledo, Ohio.
The automakers do not consider CCI a minority-owned business because it is owned by the community, and they do not recognize adults with disabilities as minorities.
The auto companies only recognize businesses owned by individuals of ethnic origin and females as being minorities.
While the outcome of the automakers' decision was probably not malicious toward CCI, the job opportunities for adults with disabilities are threatened at CCI and companies like them.
CCI helps find jobs, offers basic training and assists in finding jobs for adults with disabilities. CCI works toward helping its clients maintain a sense of belonging and self-respect.
CCI has established 15 group homes, 10 of those in Kosciusko County, for adults who need assistance with daily living requirements. It also provides encouragement for clients to be self-supportive and self-sufficient.
A new general manager was hired and began work Monday after CCI's former general manager abandoned ship, taking a position with the minority-owned business that replaced CCI.
In compliance with Dana's pledge to try and locate possible contracts for CCI to bid on, Wall said he has been looking but has not found anything in the last five to six months.
He also said he would "like to find something that would benefit both companies." [[In-content Ad]]