WBIR.com
Sponsored by:
Text Alerts  |  Email Alerts  |  WBIR Facebook Page  |  WBIR Twitter Page
Live Online
Saints' victory parade

Tough Tuesday for East Tennessee economy; nearly 2000 jobs cut

Anthony Welsch     Updated: 1/7/2009 9:12:29 AM    Posted: 1/6/2009 10:34:02 PM
  • Print
  • Larger
  • Smaller

Advertisement

Outside the United Steel Workers Union shop in Alcoa, the rain falling from the sky was perfect symbolism: when it rains, it pours.

Tuesday, a tough national and global economy dealt East Tennessee a trio of blows, which are expected to leave about 2,000 more people looking for work in coming months.

The massive hits have Knoxville's Chamber of Commerce rethinking previous notions that East Tennessee's industry may be diverse enough to be classified as recession proof.

Early Tuesday, a leaked internal memo confirmed Goody's Family Clothing planned to liquidate, likely shutting down their retail stores and Knoxville corporate headquarters. In all, it will mean 9,800 jobs lost across the Southeast and 1,100 jobs in Knox County.

Brunswick, the parent company of Sea Ray, also announced Tuesday the Knoxville Riverside plant will be moth-balled and shut down for some period of time. The move will put at least 300 workers out of jobs locally.

The final body blow came late Tuesday afternoon.

Blount County's ALCOA plant announced they'd be laying off one-third of their local workforce-- 450 employees as part of a national reduction of more than 13,000 jobs.

Employees now know the cuts are coming, but they don't know who exactly will be laid off.

"I really don't know anything," Terry Burrell, an ALCOA employee said. "I got a few phone calls, and they said they were going to close primary metals, start shutting it down at the end of the month. That's all I've heard, I've been searching for answers."

Burrell's already been laid off twice during his 32 year career with the aluminum manufacturer. An Alabama transplant now, his family still lives in Mobile, and he considers himself a commuter. He tries to get back at least twice a month to see them.

ALCOA hopes the Blount County layoffs will be temporary, and they want to keep their plants ready to be opened back up, when and if feasible.

The cuts will primarily be at the south plant, home to ALCOA's smelting operation.

Smelting at ALCOA in Blount County will be shut down. Both the company and union say aluminum prices are to blame.

According to the union, it costs about $2,200 to make a metric ton of aluminum at ALCOA. Tuesday, the global markets showed aluminum selling for about $1,500 per metric ton.

Until then, many of the 450 employees about to be laid off will be relying on the union for a portion of their salary.

"It's a big number. It's something we weren't expecting," Brickey Beasley, the President of the local United Steel Workers Union said. "You can't replace these kinds of jobs. These are great union jobs with good money and good benefits. My heart goes out to those who will be affected."

Even for the employees who have been through this before, they say it's not easy. But for employees like Burrell, he says he just wants to focus short-term and weather the economic storm.

"It's just accepting life for what it is, you've got to take it one day at a time," Burrell said. "I don't know what the future holds, I can only deal with the here and now."



In your voice

Read reactions to this story - in descending order