Community prepares for 900 jobs lost from GE plant closing

On Jan. 17, Bloomington’s General Electric refrigerator plant announced it will close by the fourth quarter in 2009, taking almost 900 jobs with it. The GE plant attributes this decision to a $45 million loss in 2007, and will not be the first major manufacturing plant to leave Bloomington.\n“Bloomington’s seen its share of plants closing and downsizing,” said Barry Lessow, executive director of United Way in Bloomington, recalling the Visteon and Otis closings. \nHowever, GE has only announced its “intent” to close, and this means there could still be a window of hope for those whose jobs are threatened. GE union officials had a 60-day period to present GE with an alternative to closure. \nThe proposal was due Monday and will be under review and evaluation for weeks before a final decision is made.\nThe GE Union hopes to use the proposal as a way to postpone closure or find transitional work for those who will lose their jobs if the Bloomington jobs can’t be saved, said Christy Gillenwater, chief executive officer of the Bloomington Chamber of Commerce. The transitional work could include getting jobs for the employees at other GE plants.\n“In terms of process, we’re doing the best we can,” Lessow said. “It could be a very bright future or one with bumps along the way.” \nGillenwater said he is optimistic that “while it won’t be easy for those involved, Bloomington will be a relatively good cushion.” \nWith the warning by GE and Bloomington’s experience in dealing with major plant closings and job losses, community officials have teamed up to form the Rapid Response Team in an attempt to help ease the transition for many GE employees, Gillenwater said.\nGillenwater said the Response Team is broken up to focus on three main points. \nThe first is to ensure the employees of GE are taken care of and to make “people aware of various resources to further training ability and assess needs” of the employees, said Gillenwater.\nLessow said, for many, it is not likely that they will get a similar job with the same wages and benefits that GE offered. \n“This is tough and part of a transitioning economy,” said Ron Walker, president of the Bloomington Economic Development Corporation and head of the Rapid response team. “But I think the individuals that want to remain in work will.”\nThe second component of the Rapid Response Team is to consider the community and financial impact GE’s closing will have. \nThe closing could have a ripple effect and impact the businesses where these GE employees go for lunch or to get their hair cut, Lessow said. \nWalker added that the Response Team is looking at whether or not the 900 jobs lost could lead to job losses in other businesses.\nAdditionally, a few of the organizations that have benefited from GE’s generosity are likely to feel the loss. Historically, GE has contributed 5 percent of United Way’s overall fund raising campaign, and this financial cut may present a real challenge in the future, Gillenwater said. \nThe third responsibility of the team is to consider what will happen to the real estate the GE plant currently occupies. \nAlready, Cook Inc. has purchased 30 acres from GE to build a new distributing plant within the next three to five years, which may help to alleviate some of the economic stress brought on by the GE plant closure.