The Union of Needletrades, Industrial and Textile Employees (UNITE) and Tri-Con Industries negotiated a severance package last weekend.
The plant, which employs 172 workers, is scheduled to shut down Jan. 3 and move to Nuevo Laredo, Mexico, just across the border from Laredo, Texas. None of the Missouri workers will be transferred.
The union negotiated a severance package worth more than $265,000 to the employees scheduled for layoff, noted UNITE Vice President Joan Suarez in a prepared statement.
The negotiated package includes severance play, holiday pay, vacation pay, retirement pay and insurance for two months after the shutdown, Suarez said.
Local Tri-Con plant manager Rick Roach acknowledged an agreement was reach but did not elaborate on details.
"We met with union representatives last week," he said.
The company has also pledged to work with all governmental agencies and nongovernmental organizations who may be of assistance to the effected employees.
Tri-Con Industries Ltd. announced earlier this month it was leaving Cape Girardeau and moving its operations to Mexico. Company officials said only that it was "an economic move." The company is a U.S. subsidiary of Tokyo Seat Co.
"This is a tremendously hard time for the employees," said Suarez of St. Louis. "This shutdown will have a devastating impact on families and their communities."
Suarez said UNITE had some concerns that Tri-Con's decision to close the local plant was related to the recent unionization of the facility, but the court system is notoriously slow for processing these kinds of cases.
"After considering all of our options, we aggressively pursued a negotiated settlement which will allow UNITE members to get on with their lives," she said.
Workers at the local plant voted 157-77 for union representation in June 1994, and the first union contract was ratified last April. It called for wage increases, free health insurance, bonuses and improved work conditions. The average wage at the local plant is $7.63 an hour.
The union will continue to provide workers with information and guidance concerning the various organizations that can help them in the aftermath of the shutdown.
One group working with the employees is the Missouri Rapid Response Team. The Southeast Missouri Private Industry Council, working in conjunction with the Rapid Response Team members, held "Career Options" workshops at the plant last week, describing the services available, including job retraining and placement services.
The Missouri Department of Economic Development requested the Rapid Response Team's assistance with career counseling, resume writing, interviewing and job-search skills workshops for the displaced workers.
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