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Plant closing could be devastating to town
Published October 30, 2006
The closing of one of the Shaw plants at Stevenson could be devastating to the City, according to Mayor Rickey Steele.
He told the City Council at its meeting Thursday night at Stevenson City Hall that the action by Shaw will result in the loss of 236 jobs, which will affect sales tax through less money to be spent and less tax the city receives from Shaw and possibly laid off employees through North Alabama Electric Co-op member/consumers in the Stevenson area.
Steele said he deeply regrets seeing people losing their jobs and that he is going to be in touch with the governor's office daily in an effort to take advantage of what programs are available if Shaw requests the state to come in and offer its programs.
Shaw has 640 employees including those to be laid off in 60 days from October 24, according to shaw officials.
Mayor Steele said 40 to 45 percent of Shaw's payroll taxes will go away. He said these people also spend a lot of money locally even if they don't live in Stevenson. They purchase gasoline, snacks, groceries, soft drinks and other items.
Steele gave Gov. Bob Riley a letter about the situation Tuesday night and called the governor's Rapid Response team Wednesday. Steele said he told them he wanted them to come in and do what they could to help these people, but was told Shaw officials will have to make that request.
Steele said he was told, if requested by Shaw, the state could offer training, help in the process of writing resumes, help people who have never drawn unemployment compensation before to draw unemployment checks, through their expertise show people how to put resumes on the Internet for other industries in Alabama to see the pool of people they can pull from.
The mayor said Mike Kennamer of Northeast Alabama Community College said the college, if requested by Shaw, can offer training for workers, assist with resume writing through the workforce development program, and related services.
Although efforts were unable to reach Julius Shaw, executive vice president of Shaw Industries, Inc., in Dalton, Ga., Friday morning, it is almost certain the company will make the request for state assistance for affected employees.
Steele said the city will feel the major effect in January of 2008 when the three percent electric tax paid to the city by Shaw through North Alabama Co-op is paid for 2007. The city will receive its usual share for 2006 when it is received in January of 2007.
Steele told council members they were welcome to contact him daily about progress in the situation if they wish. He said he planned to call officials in Montgomery on Friday afternoon although he was not expecting any major change at this point.
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