For hundreds of Wisconsin workers, the upcoming holiday season will not be a cheerful one.
Several plants in Wisconsin announced Monday layoffs and closures in light of the struggling economy and decreased demand for their products, including Allied Automotive Group and General Motors in Janesville, and Appleton Papers.
AAG, an automobile shipping company based in Atlanta and employed by GM, announced it would close its Janesville plant Dec. 23, resulting in the layoffs of 117 workers. That is also the day GM will end its sport utility vehicle production in the Janesville area.
AAG is not the only GM supplier to pull out of the area. Lear Corporation, which supplies seating systems and interiors, announced it will idle about 370 workers, and two other companies that stage materials for the GM assembly line, Flint Services and LSI, will lay off about 190 workers collectively.
GM announced in June it would cease operations in Janesville by 2010 or sooner, depending on economic conditions. This closing will affect about 1,200 employees, according to GM spokesperson Chris Lee.
“With high gas prices and the tight economy … the difficult decision was made to cease operations at the plant by the end of this year,” Lee said.
The Janesville GM plant is one of two full-size SUV plants in the United States, the other being located in Arlington, Texas.
Appleton Papers is another company facing problems in this waning economy. Because of a lack of demand for its primary product — carbonless paper — Appleton said it is eliminating 75 full-time and 20 temporary positions at its Fox Valley mill.
“When people buy fewer cars, don’t buy houses, take out fewer loans, the demand for [carbonless paper] declines; it’s a very simple economic funnel,” said Bill Van Den Brandt, senior corporate communications manager for Appleton Papers.
In addition to the layoffs in Appleton, the company will also temporarily idle operations at its Roaring Springs, Penn. mill for about one to two weeks before the end of this year.
“[It] is a temporary layoff … to bring our inventories in line with demand for the product,” Van Den Brandt said. “We don’t have a specific date or dates … but we will need to take a temporary mill shutdown.”
Gov. Jim Doyle has long been crusading to keep GM in Janesville. According to Dick Jones, a spokesperson for Doyle, the state is hoping GM will decide to manufacture more fuel-efficient vehicles at the Janesville plant.
Jones also said the state will help those affected by the closings.
“We have a rapid response team in place, and we will assist those workers at the GM plant and the suppliers,” Jones said. “We do have one of the best dislocated worker programs, and the vast majority of people who complete the program do find good-paying jobs.”
Jones cited global competition as a main cause for the decline of the paper industry and said the state will also aid those affected by the Fox Valley layoffs.
