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March 7, 2006Georgia-Pacific closes, 210 people out of work2 months severance pay for employees
Jim Nowak worked at Georgia-Pacific for 33 years. He was one of many who arrived for their 8 a.m. shift on Monday only to find himself locked out. He arrived Monday for the 8 a.m. shift as an equipment repairman at Georgia-Pacific's plant in Gaylord, but found himself locked out, along with his co-workers. The company announced an immediate and permanent closure that affects 210 full-time employees. "Some people were a bit teary-eyed. I was kind of shocked," Nowak said. "I'm 51. That's kind of an oddball age to be looking for a job." Nowak intends to cancel a planned vacation to Las Vegas and said he will look for other work in the lumber business, perhaps on the retail side. He said many of his former co-workers likely will follow suit. The Dickerson Road plant was built in 1965 and bought by Georgia-Pacific in 1987. The operation produced particle board products in a factory that sits on 750 acres in Otsego County's Bagley Township. "Over the next month or month-and-a-half, we'll have 50 or 60 people on site who will shift product to our customers and also prepare the plant to be shut down," said Orville Shockey, plant manager. He said equipment will be removed and the property sold. Most of the employees earned between $15 and $20 per hour plus benefits, and 167 belong to the woodworking division of the International Association of Machinists and Aerospace Workers. Georgia-Pacific provided some of the best-paying jobs in the area, said Terry Jans, union president of Gaylord's Local 166. "It's going to affect Gaylord as a town. Most people will not find work in this area. If they do, it will be for half or even a third of what they made before," Jans said. Employees will receive two months of severance pay and medical benefits. They also have the option to transfer to other Georgia-Pacific facilities in Wisconsin, Minnesota and throughout the South. "It's very disappointing news for the community," said Paul Beachnau, chairman of the Otsego County Board and director of the local convention and tourism bureau. "It's definitely difficult. I really feel for the families who have relied on that employment." Nowak said some of the mechanical and electrical workers may transfer to other Georgia-Pacific locations, but he won't leave the area because of family connections. See related story:
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