This is a huge blow to Augusta but at the same time, shouldn't the increased tax base brought about by T-Mo and ADP help cushion some of this blow for the county, school system, etc?
Debra Jones found out Wednesday how much the owners of Castleberry's think her 30 years at the company are worth.
About $2,000 -- before taxes.
The longtime Augusta-based canned meat manufacturer told production workers they could expect severance packages of two to four weeks' pay based on their length of service, according to Mrs. Jones. The company announced Tuesday that it would close after a 60-day transition period and confirmed the bad news to employees the next morning.
"Most of them, they just looked stunned," said Mrs. Jones, an incubation technician and forklift operator.
According to the Development Authority of Richmond County, Castleberry's is the county's eighth-largest manufacturing employer. But the effects of the closing go beyond the 327 production employees who could be out of jobs just before the holidays. The closing of the county's 20th-largest taxpayer will be a significant blow to Augusta.
"These closings do impact the tax base," interim Tax Commissioner Fred Stallings said. "We're talking about a big impact."
Taking the biggest hit will be the Richmond County school system.
Of the $324,545 the county is billing Castleberry's this year in real estate and personal property taxes, 68 percent ($220,761) is scheduled to go to the school system. It's a relatively small amount of the school system's overall 2008-09 budget of nearly $275 million, but the revenue loss is part of a continuing trend of financial woe for a district already experiencing a dwindling tax base and declining enrollment.
Here are examples of the ripple effect the Castleberry's closing could have:
- Some of the 327 people affected might lose their homes because they can't pay mortgages, which affects property tax collections.
- Some of the out-of-work employees might find jobs elsewhere and move, taking away money they would have spent in Augusta.
- Some of those who leave Augusta will take their school-age children with them, affecting the amount of money the school system gets from the state for enrollment.
Frank Dolan, the finance committee chairman of the Richmond County Board of Education, said layoffs could happen if the trend continues.
"This doesn't just happen overnight, like you run off a cliff and fall straight down and you lose 30 percent or 40 percent of your budget," Mr. Dolan said about the school system's current tough economic times. "You lose 1 percent, one-half percent a year. It's a drip, drip, drip in a bucket until all of a sudden the bucket's full. What it's going to do is drive cutting costs, and you're going to cut costs through layoffs. That's all we have left to cut."
Augusta won't be the only community affected by the closing, because some of the workers likely live in surrounding counties, said Mark Thompson, an economist and the business administration chairman at Augusta State University.
Then, there's the intangible effect of losing a local business icon such as Castleberry's.
"Everybody hears what's going on nationally and you look at Augusta and there's some things that go on in Augusta that says we don't quite follow what goes on nationally. Maybe in some ways we're isolated," Dr. Thompson said. "But now I think a lot of people in the public will look at it as, 'Yeah, the national economy is starting to affect Augusta. It took one of our firms that we never thought would leave.' "
Castleberry's has been in Augusta for 82 years, but the past 14 months have been turbulent for the plant on 15th Street.
Its owner, Toronto-based Connors Bros. lost $38 million when the plant shut down for two months last year after botulism toxin was found in some of its chili sauce. It shut down again for three weeks in March after the Food and Drug Administration and the U.S. Department of Agriculture pulled operating permits, citing operational deviations. That shutdown cost Connors Bros. $700,000.
The botulism contamination made at least eight people sick in Ohio, Illinois and Texas, according to the Centers for Disease Control and Prevention. The family of a New Mexico man filed a wrongful death lawsuit against Castleberry's in July, blaming his death on botulism he contracted after eating chili sauce.
The FDA report blamed management for the contamination, citing poor maintenance on two cookers responsible for the botulism toxin.
In announcing the sale of its product line to Hanover Foods Corp., and the impending closure of the Augusta plant, Connors Bros. said Tuesday it would help displaced workers with severance packages and job searches.
A spokeswoman for Connors Bros. didn't respond to a request Wednesday for specific information about that assistance.
According to Mrs. Jones, Castleberry's employees who have worked there less than five years will get two weeks' pay; those who have been there five to 10 years will get three weeks' pay; and for those with more than 10 years, four weeks' pay. After the meeting on the plant floor Wednesday, human resources gave workers letters with the severance details, she said.
Production workers were told Wednesday that GED classes and other training might soon be available. They were also told they could make COBRA payments to continue their health insurance coverage, Mrs. Jones said.
"That's $300 and something a month," she said. "Who can do that when you don't have any income?"
Mrs. Jones and her husband, who was laid off from Castleberry's in 2006, have two adopted children, a 3-year-old daughter and an 11-year-old son. The company just started offering 401(k) plans to production workers this year, Mrs. Jones said, and she estimates that she has only a few hundred dollars in her account.
"Now I got to go out here at 50 and try to sell myself," she said. "I haven't really had a chance to think about it, but looking at the way the economy is, the way Augusta is with a lot of people going through temp services just to get their foot in the door, it's going to be tough."
Reach Mike Wynn at (706) 823-3218 or mike.wynn@augustachronicle.com.
Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com.
WHAT'S NEXT FOR EMPLOYEES?
The Augusta Career Center plans to meet with Castleberry's management Sept. 24 to explain the services available to employees.
For employees, group unemployment sessions will be scheduled in the next few weeks. Employees will meet in groups based on their work shift.
All employees, whether residents of Georgia or South Carolina, can apply for unemployment benefits at the Georgia Department of Labor's Augusta Career Center at 601 Greene St.
Employees must seek job training assistance from the division that serves their county. These agencies include:
Richmond/Burke Job Training: For residents of Richmond or Burke County
East Central Georgia Consortium: For residents of the following 12 counties: Columbia, Glascock, Hancock, Jefferson, Jenkins, Lincoln, McDuffie, Screven, Taliaferro, Warren, Washington and Wilkes
South Carolina Employment Security Commission: To assist South Carolina residents
TRAINING PROGRAMS AVAILABLE
- Education program: State program that sends displaced workers back to school for retraining
- Georgia Works program: Provides people on-the-job training while they continue to receive unemployment benefits.
The Augusta Career Center will also offer job search workshops, rÃsumà prep and interviewing skill sessions.
Employees will receive unemployment benefits one week after being unemployed. They can receive benefits for a maximum of 26 weeks. The benefit is based on their salary, and the maximum payment is $330 per week.
FOR FURTHER INFORMATION
- Augusta Career Center at (706) 721-3131
- Karen Abron at the East Central Georgia Consortium at (706) 595-8941 or (800) 251-3882.
- South Carolina Employment Security Commission in North Augusta at (864) 445-2047 or Aiken at (803) 641-7640. For job opportunities, visit www.sc.gov.
-- LaTina Emerson, staff writer
Source: Michael Armstrong, assistant manager at the Augusta Career Center; East Central Georgia Consortium; and South Carolina Employment Security Commission
Comments
This is a huge blow to Augusta but at the same time, shouldn't the increased tax base brought about by T-Mo and ADP help cushion some of this blow for the county, school system, etc?
Ms. Jones is correct, I had such a hard time finding work, I am really wondering how long my job will last cause it was owned by Merill Lynch and they went belly up and sold to Bank of America.
The city of Augusta should buy it and keep those people employed. This will be a good investment versus water flowing down a canal and a baseball stadium at the river...
All I have to say is hold on to ya'll seats a big change is about to come. Obama just made a change to his vp pick.just keep a eye out
To Castleberry's employees if ya'll knew what was going on there I would've been looking for me a new job long time ago.
I think they should give college grants to the ones who have been there over 10 years to better help them in seeking a job.
Maybe MCG will purchase the property?
$2000! After 30 years! What a disgrace!
Another example of avarice on the part of the few sticking it to the many whose livelihoods are dependent...One day these people will find out the truth in the saying "What comes around goes around"...Pray for all the folks who are without people...Pray unceasingly...God will provide a way...He already has and will continue to do so...
i wonder if all the old heads remember the castleberry family's bs of their care for the employee.
Give the alternative schools a break. Send all those bad little kids to the plant, teach 'em a skill, if it's possible, and voila! Canned meat!!! Taxes for the city, closed alternative schools, and hopefully some skilled, previously mis-guided youth who will contribute to the welfare of Augusta.
Augusta, step up to the platter!
Try to sell it for about 6 months. If that doesn't happen, MCG should scarf up the land immediately. It is only valued at 7.5 million. This is a once in a lifetime buy for MCG. This would give added incentive to expand the medical school here instead of Athens. This could work out beautifully.
This is just one more example of what happens when foreign interests buy American companies; they have no interest in the Americans who work for them beyond draining the work force and then dumping the whole thing when problems arise. There is no way that a company in Canada could keep a good "eye" on what goes on daily in Augusta, Georgia. Now, a British company is about to bail out another failing American financial institution. What happened to good old American ingenuity and the ability to make things work? I believe that greed has taken down our institutions; although I am definitely in favor of less government, it seems that these corporations had no oversight by anyone - their CEOs made millions of dollars and the actual assets and conditions of the corporations were falsified. Each company operates within one of the United States. Shouldn't the STATES where they operate have some oversight instead of handing it off the the federal government? What about their boards? The competition between lenders have led most of them to make loans to people who could not repay them. Castleberry's will be missed and the passing is sad for all who have known their products.
It would be nice to see another company come in and buy the facility. The city of Augusta should not use tax dollars and go into the food industry. However it is worth while to spend money in sending out information to potential companies that would be interested in a facility like the former Castleberry plant. It is important to remember that any buying company may not necessarily offer jobs to everyone who lost their's when Castleberry closed. For those who lost jobs, good luck and God Bless.
It would be great if Mayor Deke could bring local business leaders and investors together to purchase the plant and re-formulate it into a meat packing company.
please, these people will find other jobs processing horse meat
I feel sorry for these displaced workers, BUT...
Poor performance by some of the employees is the reason the plant is being shut down, don't blame it on "The National Economy"
Its owner, Toronto-based Connors Bros. lost $38 million when the plant shut down for two months last year after botulism toxin was found in some of its chili sauce. It shut down again for three weeks in March after the Food and Drug Administration and the U.S. Department of Agriculture pulled operating permits, citing operational deviations. That shutdown cost Connors Bros. $700,000.
The FDA report blamed management for the contamination, citing poor maintenance on two cookers responsible for the botulism toxin.
CoastalDawg hit the mark on this one.....
Our country is like a person without a job living on credit cards and we are selling off our possession to make ends meet. These foreign countries are taking our paper money that we have been sending them and buying up our country, as we are not manufacturing enough goods to export in exchange. We have more money going out of this country buying oil and products from China and others countries than we are exporting products bringing money back into the country to balance the scales.
This is just my opinion: The Democrats want to blame Bush for the economy – he does have some responsibility – he is for Free Trade – we should have Fair Trade. I think the Democrats have a great deal of responsibility in this too. They don’t want to drill for more oil in this country. They constantly want to raise taxes and put restrictions on American businesses, which increase the cost of their products while allowing foreign products, to come into this country at cheep prices that American businesses cannot compete with because of all the restrictions placed on them by our government. This is why American businesses are closing up shop here and moving overseas.
bt, the reason the democrats wont approve offshore drilling is because big oil already holds the leases to 68 million acres of federal land that has already had the surveys done, they simply refuse to drill on these lands even though they already know the oil is there.there is no sense in approving offshore drilling until big oil starts using what they already have ,all they want to do is buy up all the new offshore leases to keep smaller or foreign companies from drilling
Being an older person who has been laid off before,I can tell these people that finding a job in Augusta is almost impossible if you are over forty.The state employment people are almost worthless. My heart goes out to them.
We should close the public schools here and start ussing vouchers ,so a good education may be had for the ones that want it.It would be so much cheaper and cut out the bad elements that really don't want an education.
Augusta government really doesn't deserve any more tax payer money.
hemi, you make a good point however do you think the so called "at risk" student in the alternative school will want to work, heck, they don't even want to go to school which is a lot easier. also the minute someone tells them they have to start at the bottom and do menial work and get paid 7-8 dollars an hour instead of 1 million dollars( even though most if not all in the alternative school can't read their name on a neon sign in times square) do you actually think after the 1st paycheck, if they make it that long the will return. closing the alternative school is a great idea but instead of wasting the time to try and train them to work just send them back to thier parents so they can raise them instead explecting the schools to do it
http://www.youtube.com/watch?v=3ueEfRXZCVA .....please view Americans Freedoms being destroyed.
What are you all talking about? We are suppose to be discussing the closing of a major employer in Augusta and what the people who have devoted their lives working in this plant are going to do to support themselves and their families and all most of this bull is just that bull. The mayor of our fair city and the city fathers and mothers down at the court house should be looking at way to bring in businesses to hire some of these dislocated workers.
bumble bee came to augusta and never knew how to operate this plant and never cared about any of the employees. They were supposed to be smarter than the hillbillies in augusta, or so they thought. I feel for all of the employees. Good riddance to the bumblebees Good luck to everyone affected, especially those that gave so many years to Castleberry's and were treated so badly, even seeing that the plant was closing on the news before being told face to face.
I thought that you still have to pay taxes on the property running or not?
It probably will hurt augusta. However, put the blame where blame belongs---the workers. They screwed up. Didn't cook the food at temps it should have been cooked at. Ever found a rat in Castleberrys hash??? I have!!!
The workers and shoddy [filtered word] work closed Castleberry's and nothing else!!!!
SMH...there are several government funded grants out there....one of which is a PELL Grant, and my understanding is that it is not difficult to qualify. One stip is that the student has to enroll as a full time (12 credit hours per semester) student. I am a father and husband working a full time job and I earned my degree in just over 5 years. It took a lot of hard work and sacrifice, but I finished with Cum Laude honors. Hard work and perserverence pay off.
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