Plant Closings and Layoffs: Platteville Experience 

Overview: On February 8, 1996, Advance Transformer announced the impending closing of its manufacturing facility in Platteville, Wisconsin at a private meeting for local officials. Immediately following this meeting, the company announced the closing to the employees at each of the three shifts. A total of 568 employees would be affected. Advance had already reduced its workforce by over 150 employees in a layoff during the prior six months.

Platteville (population 10,000) is located in Grant County (population 49,264) in Southwestern Wisconsin. The unemployment rate in the region has been traditionally higher than the state average and the entire region was slow to recover from the recession of the 1980's. The manufacturing jobs at the Platteville plant comprised about 20% of all manufacturing jobs in the county. The impact was also significant for the surrounding counties of Lafayette and Iowa as many workers commuted significant distances for these jobs.

Advance Transformer is a wholly owned subsidiary of Phillips with world headquarters in the Netherlands. All company communication was with the Chicago Advance headquarters office. Advance has two other similar-sized manufacturing facilities in the region, located in Monroe and Boscobel, and was the largest employer in Southwestern Wisconsin. The Platteville facility produced ballasts for overhead fluorescent lights that are common in most commercial and many residential buildings. New technology was reducing the market for these ballasts. Another division of Phillips had exclusive rights within the company to produce the newer products.

Company officials noted the shrinking market for the production in Platteville and decided to close that facility and move the remaining production to a facility in Mexico in order to lower production costs.

The layoff was to occur in phases over a period of six months, giving the local area a chance to respond to the situation. The actual closing took about one year.

The Advance employees were mostly semi-skilled with over 11 years of longevity and were receiving an average hourly wage of $8.80. Manufacturing wages in Grant County had been averaging 60% of the statewide average for a number of years.

Characteristics that were/are important to success, such as decision making process, key activities, etc.

The Basics:
Rule #1 Act quickly - any response is better than no response.

Rule #2 Media Plan - you control them or they'll control you.

Rule #3 Get immediate political and agency commitment.

Rule #4 Real results take time. The bigger the situation the longer it will take to improve it. You'll still be dealing with it long after everyone else has gone on to something else.

An Employment Response Team (ERT) was immediately assembled with representatives of the following agencies or groups:

• Employees
• Advance Transformer
• Southwestern Wisconsin Regional Planning Commission
• Grant County Social Services
• Wisconsin Department of Industry, Labor and Human Relations
• University of Wisconsin-Platteville
• Southwest Wisconsin Technical College
• WPVL Radio
• Southwest Wisconsin Private Industry Council
• Platteville Area Industrial Development Corp. (PAIDC)
• Cuba City Industrial Development
• Grant County Board Chairman
• Lafayette County Board Chairman
• Representative for area legislators
• Wisconsin Power & Light (now Alliant Energy)
• Mentor Group - (Hired by Advance to help employees)
• Platteville Chamber of Commerce
• Southwest Wisconsin Job Service
• City of Platteville
• Temporary employment service
• Grant County Economic Development Corporation (Grant County EDC)

The stated purpose of the ERT was to assist the individuals affected by the closing of Advance Transformer in Platteville, WI.

The ERT was to pursue that objective by:

1. Sharing information on activities, assistance, etc.
2. Identifying areas of need.
3. Keeping updated on progress and pushing events forward.
4. Keeping the community informed and involved.

The first meeting established clear guidelines for how the ERT would function. The group decided to meet on a bi-weekly basis for exactly one hour and 15 minutes each time. Each meeting notice contained a specific set of meeting objectives. Agencies completed a written report sheet providing more detailed updates so meetings could be completed on schedule. Copies of the reports were shared with all participants. An extensive mailing list of 90+ names was maintained and included all area media. ERT meetings were held over a 12-month period commencing in February 1996.

The Grant County EDC and Platteville Area Industrial Development Corporation (PAIDC) coordinated the response of the numerous groups and agencies involved. They kept the communications flowing and provided a single focal point for all public announcements to the media. In addition, they staffed the meetings, prepared and mailed notices, developed agendas and mailed minutes and other agency report forms.

Where was the community then and where is it now
The community has completely made up the jobs lost. Those who lost jobs were re-employed. Many took advantage of training to prepare for better jobs or to change careers completely. Very few left the area. The building was sold in February 1998 to a machining company that expanded operations to Platteville

Outcomes of Project

Identify central keys to success
Coordination of the community's efforts through a strong central committee, the ERT, made sure that things got done and that every avenue available was fully explored.

What funding sources or other resources were used
The Private Industry Council (PIC) took the lead in certification for NAFTA/TAA (North America Free Trade Act/Trade Adjustment Assistance) so funds were available for worker training. The PIC also secured funding for the creation of a transition center in Platteville to specifically work with the Advance Transformer closing. The Wisconsin Department of Commerce established a Development Zone encompassing all of Grant and Lafayette Counties. The Development Zone committed over $1 million in tax credits to companies creating jobs over a two-year period of activity starting in December 1996. Three banks in Platteville pledged up to $1.5 million in low interest loans to encourage business location in Platteville. Two banks in Cuba City (the next closest community) pledged $700,000 for business locations occurring in Cuba City. Various utilities assisted with funding for marketing efforts conducted by Platteville and the GCEDC.

Lessons Learned

What were the largest stumbling blocks
Keeping everyone informed of each others activities was the biggest challenge. Keeping people involved until the end also proved challenging.

What unforeseen problems were encountered - how did you deal with them and did you find solutions
For the most part, we had excellent cooperation from the company. When the company objected to certain activities, the ERT decided to do what it felt was in the best interests of the workers and the community.

What would you do differently
We would put in place more follow-up to determine the actual fate of each worker that was displaced. While several dislocated workers were involved in the process, more could have been done to include them in the effort.

Also, some promises of assistance were made shortly after the closing announcement and then 'forgotten' about later. It is important to get every promise in writing.

Contact for more information
James L. Schneider (former Exec Director of GCEDC)
Blue Chip Training
33067 Fulton St.
Gotham, WI 53540
(608) 583-4403 or james@bluechiptraining.net
Platteville Area Industrial Development Corp. (PAIDC)
PO Box 252
Platteville, WI 53818
(608) 348-3050 paidc@mhtc.net

Closure Response Team Report 9/19/01--James L. Schneider

Advance Transformer/Platteville (Return to Layoffs Help)