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June 21, 2008
The Russell Corp. will close its Coosa River dyeing and finishing plant as well as partially closing its knitting operation and immediately began laying off approximately 450 workers in the process, corporate partner Fruit of the Loom said.
According to a news release issued by the company, the decision was the result of "a realignment of capacity in order to streamline processes and be competitive in the global marketplace and was not in any way a reflection on the quality of the employees."
"This decision is in no way a reflection on the productive and dedicated workforce at Coosa River. Our industry is continuing to face competitive global pressures and we must look for every way to streamline our operations," said Jeff Thurman, senior vice president of manufacturing.
Jim Walker, who has operated the Canal Chevron on Alabama Highway 14 near the Russell plant for the last 19 years, is worried that the move will have a negative impact on his business since quite a few of his regular customers are being laid off.
"It's really going to hurt us, because we've built a relationship with some of those who will be laid off. I hate it, but I guess the company has to do what it feels necessary," he said. "I know of one woman who was literally in tears, because she has a family and knows that these aren't the best of economic times. Those are who this hurts the most."
In a previous interview with the Montgomery Advertiser, Wetumpka Mayor Jo Glenn said that any time an area loses jobs, it will hurt, but expressed hope that those affected by the layoffs would be able to find jobs due to the Wetumpka area being in a state of growth.
Glenn said she would have liked a little more notice on the matter, but that she found out last Tuesday and had not been contacted since by Russell officials.
According to the the U.S. Department of Labor's Bureau of Labor Statistics, the unemployment rate rose from 5.0 to 5.5 percent in May, continuing a trend, with manufacturing being one of the hardest hit sectors. Thus far in 2008, monthly job losses in manufacturing have averaged 41,000 compared with 22,000 a month in 2007 and 14,000 a month in 2006.
Although the state's unemployment rate fell in April to 4 percent, with Elmore County being at 3 percent, the state has lost approximately 5,700 jobs in manufacturing over the last year -- making it the hardest hit segment of the state's labor force, according to statistics from the Alabama Department of Industrial Relations.
According to statistics compiled by the Economic Policy Institute, the North American Free Trade Agreement (NAFTA) is responsible for eliminating over a million U.S. jobs between 1994 and 2004, with a net job loss of 16,598 in Alabama during the same time frame. NAFTA has also contributed to rising income inequality, suppressed real wages for production workers, weakened collective bargaining powers and ability to organize unions, and reduced fringe benefits, according to an EPI economist.
The institute's statistics also state that the textile and apparel industry, which is concentrated in New York, Los Angles and across the South, experienced a loss of approximately 83,258 jobs between 1993 and 2000, with 5,126 jobs lost in Alabama alone.
Fruit of the Loom said it plans to convert the dyeing and finishing facility into a distribution center later this year, and will hire approximately 150 workers. It also stated that the company would work with state and local officials to assist laid-off workers, but did not give specific details.
Officials and employees at the facility have been instructed not to discuss the matter publicly. Attempts were made to discuss the matter further with Fruit of the Loom corporate headquarters, but they declined further comment, instead referring to the company's news release.
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