By Lori Ehde
Gold’n Plump executives announced Monday that 140 of the 270 employees at the Luverne poultry processing plant will be out of work as early as this spring.
The announcement follows a corporate decision to relocate the deboning process from Luverne to the Cold Spring plant by April in order to gain some efficiencies.
Gold’n Plump CEO Mike Helgeson said the Cold Spring Plant now has the technology to handle deboning and it makes sense to handle that step there, rather than to transport the product to Luverne.
He said it was a difficult decision to make, considering the impact on jobs in Luverne, but he said the poultry processing market is highly competitive, especially since Russia and other foreign markets have stopped importing American chicken.
"In the end we felt it was necessary to improve our production efficiency and remain strong in a very competitive industry," Helgeson said. "It’s hard to make these decisions when it affects the lives of our people."
While the move will result in the elimination of about 140 positions in Luverne, it will create about 30 new positions in the company’s other facilities.
The first of the layoffs will occur April 17, based on seniority among shifts and departments, and the remaining positions will be eliminated in late May.
"We’re making every effort to minimize the impact to employees affected by this move," said Luverne Plant Manager Greg Aubert. "We realize this will be difficult for many people."
Aubert will remain with the plant, which will continue to operate two shifts. Some salaried workers will be affected, but specific layoffs haven’t yet been decided.
According to Helgeson, of the 140 laid off, the majority of employees commuted to the Luverne plant from Worthington, but at least 10 are Luverne residents and others live in nearby rural communities.
This doesn’t necessarily lessen the blow for a Luverne economy still reeling from the recent loss of Jubilee Foods and its 70 employees.
"Like IBP’s closing, it’s going to have a devastating impact," said City Administrator Matt Hylen. "We had hoped these [technology improvements] would take place in Luverne, rather than Cold Spring."
When Gold’n Plump came to Luverne in 1998, it paid nothing for the use of the plant, which had been donated to the city by IBP when it left town earlier that year, laying off 340 people.
In return for the free building, Gold’n Plump guaranteed it would maintain 120 jobs in Luverne.
Tuesday’s announcement doesn’t breach that contract, Hylen said. "The good news is the plant isn’t closing."
Helgeson said the Luverne plant remains an important part of the company’s future plans, and will continue to produce value-added, ready-to-cook chicken products.
"We have an excellent employee base in Luverne, the community has been a great supporter of our company," Helgeson said.
While there are no firm plans at this time, he added that as the company expands into fully cooked lines, the Luverne plant could see additional lines from that and other ventures.
"We’re not planning to close the plant," he said.
Displaced workers will be encouraged to apply for new positions in Cold Spring, Arcadia or St. Cloud and will be offered relocation packages.
Affected employees will be given at least 60 days notice, and the Displaced Worker Program will be available to eligible employees. The Workforce Center will be invited to conduct meetings on site, and resume assistance will be available.
