Plastic bag maker Poly-Pak Industries to lay off 146 workers in May

A Melville plastic bag maker plans to lay off 146 of its manufacturing workers on May 1, according to state filings. 

Poly-Pak Industries Inc., which has manufactured plastic bags at the company’s headquarters at 125 Spagnoli Rd. since the mid-1970s and has 177 employees, filed the Worker Adjustment and Retraining Notification on Jan. 29. The state posted the notice on Feb. 6. The layoffs would leave just 31 workers on the Island.

The business in the filing said it was laying off staff because its lease at Spagnoli Road is set to expire.

Officials with Poly-Pak did not respond to requests seeking comment.

The workers are represented by the Workers United New York New Jersey Regional Board, an affiliate of the Service Employees International Union. A union spokesperson said Workers United was assessing the layoff announcement.

Peter Levy, who was the company president in 2024, retired six months ago, he confirmed in a phone call Monday.

Michael Losak, the company's chief financial officer, did not respond to multiple phone messages.

Levy in April told Newsday the company would retain its office operation on Long Island but would relocate the manufacturing and warehousing operations off the Island. 

That followed a statewide ban on plastic retail bags, prohibiting retailers from handing them out to customers, which went into effect in March 2020.

The decision to relocate was not connected to the ban, but because of the high cost of doing business on the Island, Levy said last year. He declined to say where the new factory would be located or where the business’ office would be moved to on the Island.

The company had about 300 employees at the time who, Levy said last year, were "welcome to come with us," as part of the relocation. 

The state Department of Environmental Conservation delayed enforcement of the plastic bag ban until October 2020 after Poly-Pak filed a lawsuit that February to fight the ban, Newsday previously reported. 

Poly-Pak as lead plaintiff and a coalition of packaging companies, bodega owners and others argued the ban was unconstitutionally vague, would hurt some business owners, and give makers of cloth, fabric and paper bags an unfair advantage.

The suit was dismissed in August 2020 by acting Supreme Court Justice Gerald W. Connolly, who upheld the state ban.

"We ask you to not destroy the livelihoods of our 300 employees," Levy, said during a 2020 public hearing in Albany held by the DEC before the ban went into effect.

The planned relocation of Poly-Pak's manufacturing operation coincides with plans to transform its longtime factory and office property into a $137.5 million luxury extended-stay hotel.

Last April, the Suffolk County Industrial Development Agency approved Jericho-based developer Beechwood Organization for $10.6 million in tax breaks over 15 years for the development of the Spagnoli Road site into a four-story, 299-room lodging called the Ferncliff Hotel.

As part of the IDA deal, Beechwood, best known as a major residential housing builder, would pay Poly-Pak $21 million for the property, according to IDA documents.

WARN requires employers with 50 or more workers to file a notice 90 days in advance with the state Labor Department in the event of a mass layoff or closing.