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a small town in a rural area nebraska It is losing its largest employer, Tyson Foods’ beef plant, which will lay off 3,200 workers next month in the town of about 11,000 people.
lexingtonNebraska is expected to lose hundreds of families who will be forced to move away in search of other work. The exodus is likely to lead to layoffs in the city’s shops, restaurants and schools.
The impact on the city and workers will be “close to the poster child for tough times,” said Michael Hicks, director of the Center for Business and Economic Research at Ball State University in Indiana.
All told, job losses are expected to reach 7,000, primarily in Lexington and surrounding counties, according to an estimate by the University of Nebraska, Lincoln, and shared with The Associated Press. Tyson employees alone would lose an estimated $241 million in annual wages and benefits.
This threatens to destroy the city where American Dream was still obtainable, where immigrants who did not speak English And never graduated from high school, bought a house, raised kids in a safe community, and sent them to college.
Tyson says it is closing the plant to “right-size” its beef business following historically low cattle herds in the US and a projected $600 million loss on the company’s beef production in the next fiscal year.
Tyson workers, business owners and city leaders spoke to The Associated Press for a report on the plant’s closing.
Here are some solutions.
Tyson’s plant is the center of the city’s economy and community
Lexington is located near the dead center of the United States, surrounded by corn fields, grain silos, and cattle fields.
The plant opened in 1990 and was bought by Tyson a decade later, attracting thousands of workers who staff and clean forklifts, at the slaughter site and cut meat into pieces.
The city’s population nearly doubled and prospered with lush neighborhoods, entertainment centers, a one-screen movie theater, and a good school system. School officials estimate that about half of the students in Lexington have parents who work at the Tyson plant.
Many Tyson employees have lived in Lexington for decades, building community at the plant and serving at several churches in the city, including Francisco Antonio.
The 52-year-old father of four said he would stay in Lexington for a few months and look for work, although “there is no future right now.” He took off his glasses, paused, apologized and tried to explain his feelings.
“It’s mostly home, not a job,” she said, shifting her glasses with an embarrassed smile.
Tyson workers devastated by shutdown have no clear plan
Thousands of Tyson employees have mortgages, car and insurance payments, property taxes or tuition costs that they will have no income to pay.
For many people, finding another job is not easy, especially older workers who do not speak English, have not graduated from high school and are not computer savvy. Some people had last filled the application decades ago.
Arab Adan said, “We only know how to work in the meat field for Tyson, we have no other experience.” The Kenyan immigrant was sitting in his car with his two energetic sons, who asked him a question to which he had no answer: “Which state are we going to, Dad?”
“They only want young people now,” said Juventino Castro, who has worked at Tyson for a quarter century. “I don’t know what’s going to happen with the time I have left.”
Lupe Ceja has saved a little money, but it won’t last long. Luz Alvidrez has a cleaning job that will keep her going for a while. Others may return to Mexico for a period of time. No one has any clear plan.
“It’s not going to be easy,” said Fernando Sanchez, who has worked at Tyson for 35 years, who was sitting next to his wife. “We started from zero here and now it’s time to start from zero again.”
Tears streamed down his wife’s cheeks and she squeezed his hand.
Plant closure will impact local businesses
The domino effect could go something like this: If 1,000 families leave town, said economist Hicks — who wouldn’t be surprised if that doubles — school seats will be left vacant, leading to layoffs of teachers; Restaurants, shops and other businesses will have very few customers.
Most of the customers at Los Jalapenos, a Mexican restaurant down the street from the plant, are Tyson employees. They fill the booth after work and enjoy owner Armando Martínez’s mustachioed smile and “Hola, amigo!” They are welcomed with slogans.
If he couldn’t pay the bills, the restaurant would close, said Martinez, who undergoes dialysis for diabetes and has had a leg amputated.
“There’s no place we can go,” he said.
Many, including City Manager Joe Peplitz, are hoping Tyson will put the plant up for sale and a new company will bring new jobs. This is not a quick fix, it requires time, negotiation, renewal and there is no guarantee of comparable jobs.
Peplitz, who said Tyson does not have to pay city taxes because of an agreement reached years ago, said “Tyson owes a debt to this community. I think it’s their responsibility to help mitigate the impact to some extent.”
Asked by the AP for comment about plans for the site, Tyson said in a statement that it is “currently assessing how we can reuse the facility within our own production network.” It did not provide details or say whether it planned to provide assistance to the community through the plant closure.