Plant Closings and Layoffs: Eau Claire Experience 

Overview: On January 8, 1991, the Uniroyal Goodrich Tire Company in Eau Claire, Wisconsin announced that they would be ceasing production and shutting down. The actual closing of the facility was scheduled for mid-year 1992. The loss of 1,350 jobs was difficult, but there was an 18-month time frame within which to respond to the needs of the employees and the community-at-large.

In addition to the lost jobs, an annual payroll estimate at $43 million, sales and income tax of $3.3 million, water and sewer revenues of $350,000, annual vendor sales of $4.4 million and other monetary losses added up to over $61 million in lost revenues.

A general meeting was held with representatives of local, regional, state and federal agencies. Ultimately, a Plant Steering Committee of 10 members was formed including representatives of the cities of Eau Claire, Altoona, Chippewa Falls and Menomonie, the Chamber of Commerce, the Industrial Development Corporation, Uniroyal Goodrich management, the United Rubber Workers and Eau Claire County. The Steering Committee established five task forces: Employment/Training, Community Services, Building/Facilities (disposition of plant), Short-term Economic Development and Long-term Economic Development.

A plant closing coordinator was identified and everything went through the coordinator. An existing contingency plan, a fully developed network of area professionals, and key state and federal contacts were especially helpful in the success of the project.

Funding was received from the following sources: the Eau Claire community, Eau Claire County, Forward Wisconsin, the State of Wisconsin, the Federal Trade Adjustment Assistance Act, the U.S. Department of Commerce Economic Development Administration and the Job Training Partnership Act.

The Company was cooperative throughout the ordeal.

As of this writing (4/02), the Uniroyal Goodrich Tire facility in Eau Claire is home to 115 businesses that employ approximately 1,000 people. This is due to the vision and energies of the owner of what is now called Banbury Place.

Identifying other comparable employment opportunities and lack of balanced reporting by the local newspaper were the biggest stumbling blocks.

Because of a well-organized response team, all issues that came up were dealt with in an orderly and professional manner.

The only thing we might have done differently would be to not have taken the crisis so personally.

Contacts: Craig W. Carlson, Exec. Dir. - Eau Claire Area IDC, 3625 Gateway Dr., Eau Claire, WI 54701 - 715-834-0070 or 1-800-944-2449 - Fax: 715-834-1956 - E-mail: idccraig@ecol.net

Mike Schatz, Economic Dev. Administrator - City of Eau Claire, P.O. Box 5148, Eau Claire, WI 54702 - 715-839-4914 - Fax: 839-4939 - E-mail: mrschatz@ci.eau-claire.wi.us - Web: www.ci.eau-claire.wi.us (Return to Layoffs Help)