Black and Decker officials help employees in wake of plant’s closing
Posted on Thursday, May 29, 2008
DECATUR - Employees of Decatur's Black and Decker plant, which announced its closing in April, are working with the company and government agencies to further their education or find new jobs.
Employee reductions are expected to begin June 23, and the plant should be closed by Aug. 8, according to a letter addressed to the city of Decatur from Black and Decker officials.
Eighty-two employees will be affected by the closing, as well as the city and its schools. Mayor Bill Montgomery said he expects the city to lose sales-tax revenues from the purchases employees made in local stores. School board member Vicky Tilley-Moore voiced concerns at a recent meeting that the school will lose students, and the revenue that comes with them, as parents leave town in search of new opportunities.
"The closing is not much of a shock; we've been sensing it for some time," said Harold George, human resources, engineering and environmental safety manager for the plant. He explained that the plant has gone from producing 4, 000 pressure washers per day three years ago to just 300 or 400 a day in the past year.
Thirty-eight employees were laid off last fall in what was called an "adjustment in manpower," when the plant switched from producing residential pressure washers to commercial pressure washers.
George emphasized that the closing had nothing to do with the employees or the plant's performance but was a result of strategic decisions made higher up in the company. "This is a good group of people and a good place to work," he said.
Workers will be given a severance package," the best I've seen," George said. Employees will receive one week of pay and insurance for each year of service, with a minimum of four weeks.
George acknowledged that the closing will cause financial difficulties for many people, especially with the rising costs of gasoline and groceries. "We tend to spend what we make," he said, explaining some of the programs available to help employees move on.
The Governor's Dislocated Worker Task Force held several workshops for employees this month. Employees were given information about claiming unemployment benefits, dealing with insurance needs and financial concerns, and exploring small- business opportunities. They were also offered advice from a consumer advocate lawyer.
Black and Decker has hired Right Management to help employees with the search for new jobs. Employees attending the two-day workshops receive help with things like preparing a resume, presenting the right image to prospective employers, job interviewing and creating a personal action plan.
Employees of the Decatur plant are also qualified to receive Trade Adjustment Assistance. TAA is a federal government program for employees who have lost their jobs as a result of increased imports or the shift of production out of the United States. According to the U. S. Department of Labor, the program is designed to get people back to work as quickly as possible.
George said that while the Decatur plant's production is not moving directly overseas, employees qualify for TAA because of the company's actions as a whole.
Through TAA, employees can have their tuition paid for up to two years of classroom or on-the-job training. They are allowed an extra 26 weeks if they need remedial education. During that time, they will receive income support and tax credits for 65 percent of their monthly health-insurance premiums.
"This is more than a oncein-a-lifetime opportunity for people who have never been able to get an education," George said.
Sandy Duncan, who has worked at the plant for the past eight years, is optimistic about the future. She plans on attending school through the TAA program and entering the medical field.
Duncan said she views the closing as an opportunity, but wonders how some of her fellow employees will manage. She said some workers who are near retirement are concerned that no one will hire them, and some have a disabled spouse who depends on their income.
"I'm hoping somebody comes and takes the building," Duncan said.
Scott Hardin, a spokesman for the Arkansas Economic Development Commission, said several representatives have toured the Decatur plant and described it as "a very marketable facility. "The ADC will list the plant on the commission's Web site and market it to suitable manufacturers.
Hardin said the ADC's goal is to bring higher-paying jobs to the state by recruiting new companies and helping existing companies grow. He said Steve Jones, of the business retention and expansion team, has toured the facility to identify the type of manufacturer for which the plant would be best suited. Jones reported that the building is very versatile and will be marketable to a wide variety of companies.
Montgomery said, at a recent City Council meeting, that he would like to see the manufacturer replaced within a year.
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