Tyson Foods just announced that they will be closing down two of its factories. The company divulged that the officials have finalized the decision to cease operations in the facilities located in Jefferson, Wisconsin and Chicago, Illinois. The move will ultimately displace 880 workers.
As the food manufacturing giant made this announcement through press release, it was learned that the workers were shocked, implying that they were clueless of this development until now.
As stated Wisconsin State Journal, Doug Leikness, president of the United Food & Commercial Workers Local 538, the Tyson plant workers' union, said that on Thursday, he met with company officials and was informed that the plant in Jefferson is shutting on June 2016. "The news was a surprise. I didn't see this one coming," Leikness said.
He added that Tyson plant have around 370 union workers and most of them travel far, from Milwaukee, Janesville, Watertown, Beloit, and Cambridge, to work in the factories. The union head revealed that these workers work for $10 per hour and stressed that "they can't find jobs anywhere else."
On the company's part, it emphasized that the move to close the two factories was not an easy thing for them. Donnie King, president of North American operations for Tyson Foods said in a statement, "We examined many options before we turned down this road. This affects the lives of our team members and their families, making it a very difficult decision. But after long and careful consideration, we've determined we can better serve our customers by shifting production and equipment to more modern and efficient locations."
Moreover, Tyson Foods Vice President Rob Tanksley also highlighted the changing product needs of the consumers, far distance of the factory in Chicago from its suppliers of raw materials, and growing cost for renovating the plants because the buildings are already old.
"We've determined that we can better serve our customers' needs by shifting production into more modern facilities," he further said.
For the workers who will be laid off after the closures, the company addressed this subject by stating: "Affected workers will be encouraged to apply for openings within the company. Tyson Foods intends to work with state officials to ensure employees are informed about unemployment benefits and any potential retraining opportunities."
Tyson Foods was opened by John W. Tyson in 1935. The business was passed on to his family with his son, Don Tyson, leading the team. The company prospered and for many years it was only been handled by family members. Currently, John H. Tyson, the founder's grandson, stands as the firm's chairman of the board of directors.
Lastly, Tyson Foods has about 400 factories and offices around the world. In US alone, the company is operating in 100 locations. Over-all, it employs more or less 124,000 employees.
