Blair Industries closes, will reopen with new owners

Employees of Blair Industries, which has operated plants in Cape Girardeau and Scott City for more than 20 years, were told Thursday evening that the company was shutting its doors immediately. The 165 employees then learned that new owners will reopen the doors Tuesday under a new name -- Blair Packaging -- and were invited to submit applications for employment.

"There were a lot of upset people," said 19-year employee Dennis Kuehn of Cape Girardeau. "There were a lot of concerned people because they really need their jobs."

Blair Industries manufactured notebooks and packaging for videocassettes, the latter a dwindling market with the advent of DVDs. At one time it was the nation's largest producer of videocassette packaging.

The new owners are Ron Unterreiner and Herb Graetz, who originally brought the company to Scott City in 1980 and then sold their interest to East Coast investors in 1987. There also is a group of silent investors.

Jerry Van Oostrom, who was president of Blair Industries and was an investor, will not be part of the new company. He could not be reached for comment.

The company has offices at 116 Missouri Blvd. in Scott City and at 24 S. Sheridan Drive in Cape Girardeau.

Unterreiner will serve as president. Robert Moser, who was the operations manager for Blair Industries, has been rehired as vice president of operations.

Unterreiner said the company hopes to return to the plant's full work force and beyond eventually. The new owners also plan to make changes in the operation. "We want to expand the line back out to some of the things we made originally," such as plastic page protectors, he said. "They had narrowed it to a media package."

The new management has instituted a smoke-free workplace and drug screening for new hires.

Lost vacation time

Kuehn worked in the Blair Industries warehouse at $7.77 per hour. He has been hired by Blair Packaging at the same wage but will lose the four weeks of vacation he had earned.

"They basically said the vacation is gone, the money is just not there anymore," Kuehn said.

Unterreiner said the employees were upset about losing their vacation. "We felt sorry about that, and we are trying to compensate them," he said.

He said employees that had vacation time coming will be given one week paid vacation this year.

Other employees did not apply for jobs, and some employees will not be rehired, Unterreiner said. Some employees will be hired at a different wage.

John Mehner, president of the Cape Girardeau Chamber of Commerce, said he was unaware that any changes were pending in the company, which was not a chamber member.

Kuehn said supervisors had told employees that "things were rough" and that the company might have to close if they don't get better.

sblackwell@semissourian.com

335-6611, extension 182