Shaw Closing Alabama Yarn Plant

Scottsboro, AL, October 26, 2006--The Grace Plant, which is part of Shaw Industry’s operations at Stevenson, will close, according to Julius Shaw, executive vice president of the company, based in Dalton, Ga, according to the Daily Sentinel. The newspaper quoted Shaw as saying that he Grace plant spins fiber for carpet and the closing will mean a layoff of 236 people out of 640 employees at Shaw facilities in Stevenson. The company is basically divided into two plants — Grace and Hi-Jackson. Shaw purchased the facilities from Avondale Mills some 20 years ago. The executive vice president said, “This is a very difficult decision for us and we will do our best to help our employees find work elsewhere.” He said Shaw has three other plants within a 30-mile radius of Stevenson where some jobs might be filled from the Stevenson layoff, but he thinks most of the jobs will come through job fairs and other programs. Those plants are at Valley Head, Ala., Trenton, Ga., and South Pittsburg, Tenn. Frederick L. Hooper III, chief counsel for Shaw Industries Group, Inc., Dalton, Ga., said in a letter to Stevenson Mayor Rickey Steele: “The mass layoff at this (Stevenson) facility will result in approximately 236 employees being permanently laid off. However, they will retain their employment for the 60-day period that commenced on approximately October 24, 2006.” Hooper stated in the letter: “Bumping rights will exist for remaining positions at Plant 16 (Stevenson). No bumping rights exist with respect to potential continued employment elsewhere in the company. The employees have been told, however, not to count on their employment extending beyond the 60-day period.” Hooper also told Steele in the letter: “Pursuant to the Worker Adjustment and Retraining Notification Act, this letter serves official notice that on or about October 24, 2006 Shaw Industries Group, Inc.’s Plant 16 facility located at 715 East Second Street, Stevenson, Alabama will commence preparations for a mass layoff.” Shaw said unfortunately he does not foresee any immediate hope of business in that department growing back enough to bring those employees affected by the layoff back to work. Shaw said, “We will be holding job fairs to help laid off workers find other employment and working with state employment services seeking their help.” Mayor Steele gave Gov. Bob Riley a letter Tuesday night and Steele called the governor’s office Wednesday and received quick response from the governor’s Rapid Responders. Steele said he thinks the state will do all it can to help and expects to know more soon.

Related Topics:Shaw Industries Group, Inc.

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