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Tyson Foods Inc. announced Friday that some production from its Council Bluff’s plant will move to newer facilities in Tennessee and Texas, a decision that will result in 480 job cuts.
The announcement prompted Gov. Chet Culver to mobilize Iowa Workforce Development assistance for the soon-to-be displaced workers, and to contact Council Bluffs officials in hopes of creating new economic opportunities within the community.
“First, my heart goes out to the workers who will be affected by Tyson’s decision to limit production in its Council Bluffs facility,” Culver said in prepared statement. “Finally, I want to say to all who are affected by Tyson’s announcement: My administration stands with you, and we will do all we can to help you through this difficult time. I make this promise to those affected by this decision: I will fight just as I’ve fought every day to bring good-paying jobs to Iowa and create economic opportunities for this state.”
The company’s decision is designed to bring production of case-ready meats closer to the largest segment of consumers. Case-ready meats are those that are delivered to supermarkets already pre-packaged and ready for sale. According to Tyson, the company is seeing continued growth of case-ready beef and pork in the southern states, and is shifting workloads so that its supply will be as close as possible to the demand.
“Our overall case-ready business is operating successfully and we must continue to control costs and improve efficiencies,” said Gary Sherman, senior vice president of case-ready beef and pork for Tyson. “We believe shifting some production from Council Bluffs to our other plants is the right thing to do for our overall business, which continues to grow and diversify its customer base. The unfortunate downside is the impact on some of our employees.”
A portion of the second shift case-ready production at the Council Bluffs plant will be suspended in mid-March, and subsequently handled by the company’s two other facilities. The suspension will displace approximately 480 of the 1,300 people employed at the Iowa plant, or roughly 37 percent of the workforce. Impacted workers, according to the company, will be encouraged to apply for openings within the company and also will be invited to a job fair Tyson officials have planned. Tyson also intends to work with state officials to ensure the employees are informed about unemployment benefits and any potential re-training opportunities.
Sherman said Tyson has no immediate plans to fully close the Council Bluffs facility.
“In fact, if enough additional case-ready business develops in the Midwest, we’ll consider reinstating the production we’re suspending in Council Bluffs,” he said.
According to information on the Tyson Web site, the company employs more than 9,000 people in Iowa at seven sites — Council Bluffs, Cherokee, Denison, Columbus Junction, Perry, Storm Lake and Waterloo.
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