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USA: Torrington Western Sugar to cease operation in November

12 октября 2016 года

TORRINGTON, Wyo. — With a slow shake of his head, eyes down studying the letter in his hands, Torrington Mayor Mike Varney tried to explain his feelings this week for the more than 200 people who will no longer have jobs at the Western Sugar Cooperative plant in Torrington.

“My heart bleeds for those people who lost their jobs,” Varney said, sitting behind his desk at City Hall. “I feel so bad. Their futures are so cloudy. For the most part, the types of jobs we might have in Torrington and Goshen County are not the same as they have at Western Sugar.”

The job losses are the result of improvements and changes Western Sugar Cooperative is making in its operations at Scottsbluff and Fort Morgan, Colorado. Beet processing capacities at both plants have been increased, making it possible to close processing at Torrington on Nov. 14, or soon after.

Varney continued to explain other impacts on the community. When the jobs are gone, so are the dollars employees spend locally. Consequently, local businesses will also feel the loss.

It won’t only be private businesses that take a hit. According to Varney, one-third of the electricity allotted to Torrington’s contract with the Nebraska Municipal Power Pool (NMPP), was consumed by Western Sugar and Wyoming Ethanol, which closed in 2015. This is a major problem for the City of Torrington.

Varney explained that Torrington contracts for a certain amount of electricity, which is reviewed every three years. The city must pay for the allocation whether it can sell the electricity to residents and businesses or not. Varney met with NMPP in August to discuss the situation, but has been unable to reach an agreement. They will meet again in November. Any adjustment for Torrington must be approved by all members of the NMPP.

If the City of Torrington cannot reach an agreement with the distributor, it could mean higher electric rates to Torrington residents, and the farmers and residents outside the city limits who get their electricity from Torrington.

“The bottom line is that the (Torrington) electric department will take a real beating,” Varney said.

In the past, the city had a contract with Holly Sugar that held the sugar processing company liable for future charges, even if it ceased operation and did not need the power. However, Varney said that agreement evidently went away during the four years he was not mayor.

“Now we have no protection,” he said.

Varney added that it isn’t just a matter of raising rates on existing accounts, private and/or business. Because Torrington provides electricity to homes and businesses outside the city limits, it must get approval from the Wyoming Public Service Commission to raise rates. That is not an easy process, he said.

There will be a major loss in tax revenue to the city and the county, Varney said. He believes there will be a decline in sales tax and real estate taxes, and property valuations will undoubtedly fall.

“These will be tough cuts the city will have to adjust to,” he said.

“And maybe worst of all, we’ll lose population if people have to leave to find work,” Varney explained. “That is the last thing we need. Every person is valuable to this community.”

Local government entities are not the only agencies planning for changes.

The Wyoming Work Force office (employment office) in Torrington and Goshen County Economic Development Corporation are searching for opportunities for the unemployed.

“This is devastating for our local employees,” said Gilbert Servantez, director at the Torrington Work Force office.

He said the closure impacts a large seasonal work force in addition to the year round staff.

“It’s a big blow to the local economy and the community,” he added. “It devastates a community our size because there are no other companies and jobs the workers can go to. You don’t rebound very soon from something like this.”

According to Servantez, the local office, in conjunction with others around the state and region, does provide services to help the displaced employees find other jobs and other careers.

A Rapid Response Team consisting of representatives of Work Force, Goshen County Economic Development and other local entities will meet with people to explain unemployment insurance and how to apply for it. They will also help former Western Sugar employees find jobs and arrange for training for new job opportunities.

Servantez said the Work Force team members are specialists in different areas and work well with unemployed individuals.

“It all depends on the individual,” Servantez explained. “Most want to work. They have different skill sets and different interests, and some want to go to a different geographical area. We try to match them with their needs.”

Servantez noted that employees with special training and skills, such as welders and those with electrical experience, will have a better chance of gaining employment fairly quickly.

At this time, Work Force personnel are working on a date to meet with displaced Western Sugar employees regarding benefits and future options.

Also trying to alleviate some of the damage resulting from the Western closure, Goshen County Economic Development Corporation has been working with Western to continue some local operation and retain some jobs.

According to GCEDC Executive Director Ashley Harpstreith, Western plans to establish a powdered sugar packaging operation at the Torrington site, with a potential of 22 jobs.

“The landscape down there is not as grim as it appeared in the beginning,” Harpstreith said Monday. “In addition to the 22 jobs, there are a lot of other things in the works.”

Goshen County has long history of sugar beet industry

The sugar beet industry has been on the minds of Goshen County residents for at least 100 years. When sugar processing plants were sprouting in Nebraska at about one every two years, Goshen County’s progressive minds were calling for a similar infusion into its agricultural future. It took a while, but in 1926, Holly Sugar opened its factory south of the North Platte River, spurring development and boosting the local economy. That is coming to an end next month when Western Sugar Cooperative beet processing operations cease. The large industrial operation will be followed by a powdered sugar packaging operation, with a potential of 22 employees.

The closure is not a total surprise. In May 2015, Western announced its plan to halt Torrington processing in 2016. The company was going to focus on modernizing and expanding operations at its Scottsbluff, Nebraska, and Fort Morgan, Colorado, plants. This would make Torrington obsolete.

Western had a full slate of employees for the 2016 sugar campaign. Local beets were delivered to the plant in South Torrington, as well as some from other growing areas, much as in the past. Traditionally, about 275 employees were necessary for the campaign. Of those, approximately 75 were employed all year, and another 200 were hired for the beet processing campaign.

The official closure notice was announced Sept. 19, via a certified letter to Torrington Mayor Mike Varney.

According to the layoff and closure notification, approximately 86 positions will be permanently lost. They include two first-mid official managers; five technicians; four administrative support workers; 36 craft workers; four operatives; 32 laborers and helpers; and three service workers. The local union is represented by the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. Not all employees are union members, and non-union members will not have the same considerations for company jobs.

http://www.starherald.com/

IKAR: Another plant for processing of sugar beet is closed with the United States in Wyoming. Now they will be 21. And in the early XX century, was 97.

ИКАР: Еще один завод по переработке сахарной свеклы закрывается с США в штате Вайоминг. Теперь их останется 21. А в начале XX века было 97.

Source: starherald.com  |  #sugar   |  Comments: 0   Views: 98


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