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"RR Donnelley regretfully has reached the decision to permanently close our facility located at 520 Second Avenue East," Bigelow said, in the company's letter to Spencer Mayor Reynold Peterson. "After an extensive analysis of all of the options and circumstances, we determined that to remain a leader in the highly competitive commercial printing industry, this was our only option."
Kathy Evert, the president and CEO of the Iowa Lakes Corridor Development Corporation characterized the news as a "very big shock."
"We are deeply sorry for those employees that are being affected by this," Evert said. "We had no indication at all from the company that anything like this was going to happen with this facility."
She said she was not able to reach Donnelley officials Tuesday afternoon.
"We have just gotten a copy of some correspondence that has evidently come out," Evert said.
Management at Spencer's RR Donnelley facility directed interview requests to the company's corporate headquarters in the Chicago area. A receptionist there patched through a late-afternoon voice-mail. Doug Fitzgerald, senior vice president of marketing with RR Donnelley, has not yet returned that call.
The company plans to have the plant closed by March 13 and says the closure will be permanent.
"The decision in no way indicates any dissatisfaction with either the business community or the quality of our workforce here," Bigelow's letter to the city said. "Rather, the outcome is based on the overall economic downturn, which has created excess capacity that cannot be supported."
The company gave the city a breakdown of positions that will be lost because of the plant closure. The backgrounds range from material handlers to the vice president of operations. Press operators, payroll clerks and administrative specialists also will be looking for work.
"We appreciate any support or assistance you or your office can provide to help employees affected by the plant closing in finding new positions," Bigelow's letter said.
The move comes just over two years after R.R. Donnelley purchased the Spencer operations from Perry Judd's Holdings Incorporated, a privately-owned printer of magazines and catalogs. At the time, the 127,000 square-foot printing plant in the 500 block of Second Avenue East was one of Wisconsin-centered Perry Judd's more isolated facilities.
"Perry Judd's is an exceptional fit with RR Donnelley," said Mark A. Angelson, RR Donnelley chief executive officer in a December 2006 press release announcing the acquisition. "Increasing our flexibility with the addition of Perry Judd's respected capabilities will allow us to better serve both organizations' customers and will create immediate cross selling synergies as we leverage our leading pre-media, logistics, direct mail and other production and service resources."
Evert expected an Iowa Workforce Development rapid response team to arrive at RR Donnelley Wednesday for a meeting with employees. Peterson, who was attending a progress and development meeting a few steps away from his office Tuesday night, stepped out of the meeting to express hope that the company's decision can be reversed.
"We are optimistic that the Corridor will go to bat for the area with the Iowa Department of Economic Development, come up with an extended package and see if, somehow, we can convince them not to close the doors in the middle of March like they announced today," the mayor said. "Certainly it's a shock to the community. The community will be affected by that, but we'll assist these people in every way we can and hopefully we can turn the tide."
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I guess their neighbors can shut up about the alleged "noise & pollution" now!
So sad to see YET another employer leave town especially through no fault of the employer or employees.
This is the result of the failed GOP economic policies supported by the bull headed voters that continue to support the GOP and refuse to do critical analysis of the candidates. You're getting what you asked for. The suffering of those losing jobs lands squarely in GOP voter laps.
With the good and common sense of a record number of voting Americans, there will be hope and change that ALL (not just the wealthy) can benefit from.
To the bull headed: You're Welcome.
Yeah you bet! We voted for change! There will be more corruption as the Clintons squeeze their way in along with their morally bankrupt cronies!! Change?? Wait and see I guess.
I worked at Heartland Press for about four years when it was sold to Perry Judds. I believe things went down hill from there. When a small company sells to a giant company, and then the largest,(R.R.DONNELY) its no suprise to me they would do this. Our community doesnt matter, only the bottom line. Profit! Greed! Alot of people devoted their lives to the printing trade at Heartland Press. We need to come together as a community and figure out a way to save these jobs.
Familys are depending on it.
I worked at Heartland Press when I was 15 in the '70s. It was the first 'paycheck' job I had. I made $1.86/hour which included the night shift differential.
If anyone questions the conservative war on the middle class started by Reagan, just go back and look at facts over the years.
From "The Big Squeeze: Tough Times for the American Worker":
"Since 1979, hourly earnings for 80% of American workers (those in private-sector, non-supervisory jobs) have risen by just 1%, after inflation. For male workers, the average hourly wage actually slid by 5% since 1979."
Look at the Spencer Pack, pay in the '70s was $17/hour. What do they pay at Storm Lake these days, 35 years later? And how much more is expected of the worker? And how much more does everything cost? Given that a lot of the workforce isn't local anymore says what they think about the jobs. In fact, I've heard there's talk of even CUTTING those wages because they know with so many out of work, they can hire people cheaper and take advantage of those in dire straits. Is that why we give big business tax cuts?
Meanwhile, many of the top 5% saw their wealth increase up to 400% the last 8 years. Just 400 people, 400, earned nearly $650 BILLION the last 8 yrs, enough to bail out 51 banks.
This all goes back to union busting Reagan and the drive to push wages of the middle class lower and lower. They're doing it right now with the auto workers. Remember, police, firemen and nurses are also unionized.
When you sell your soul and put your trust in the wealthiest 5% to do what's right for the country as opposed to their pocketbooks you're putting a nail in the coffin of this country, as no society can survive with the wealth concentrated in the hands of a few.
There's no way 5% can buy enough homes, cars, furniture, appliances, electronics, etc. to make up for the lack of spending by 95%. Just not possible. And US consumer spending IS the global economy. So to make up for stagnant wages and rising expenses the last 3 decades, the cash flow had to come from somewhere. And it did, home equity and credit cards. And even then, those with all the money still had to create immoral ways to make even more millions off of that. And there you have how we got to where we are today.
Bottom Line:
Conservatives work for Big Business and the Wealthy only. When you vote GOP and you're not in the top 5% you're voting against your own best self interests.
What tax bracket do you think the "messiah" is in? All this class envy is what tears a country apart! And as far as unions go, they have pretty much destroyed the auto industry. Another union company that left Spencer was Safeway grocery store. I want LESS govt. in my life. I don't want anyone telling me how much ammunition I can own for my gun, or the huge tax burden that will pay the way for the deadbeats of society! Get real! Obama is not going to be the answer. Every politician we have in office needs to be relieved of their duty and sent packing, including Obama!
We are in uncertain times and ANYONE that spends millions and millions and millions of dollars for a 400,000 dollar a year job is LOONY! Corruption is running rampant and somebody needs to be and honest upstanding person and FIX IT! Obama is going to tax you and me into poverty and not lose a minutes sleep over it! Look at his programs they don't make sense!
Hey helped_myself, I see you ranting about former administrations, what solution does our new President offer? I would expect a quick turnarond since all branches of government are held by one party.
If you don't want to be part of this country, this society, this community...if you prefer to 'go it alone' then leave, no one's stopping you. But first reimburse us for your public education, police/fire protection, public hospitals, testing for safe food/water/drugs/consumer products, military security, etc. Obama earned everything he has as conservatives are always demanding of people, unlike W.
On unions; airline pilots, airline mechanics and attendants, police, firemen, nurses, school teachers, auto workers, hotel workers, factory workers, etc. are all people that dare to unionize to insure fair/livable wages, benefits and safe working conditions. To the conservatives though, they are lazy, overpaid, unskilled, unnecessary, the reason for the state of the economy and a roadblock to giving the top 5% the last 10% of the wealth that they don't already control and are believed to know better than 95% of us on how to spend money produced from our labor. Think about it.
As far as cleaning up after W, every economist worth his salt, even conservative ones, believe the gov't has to inject billions of cash into the economy. This is a lesson learned from the Great Depression and more recently the Japanese economic problems of the '90s. Read up on it. Fixing the messes W left us will take time. Thank god W couldn't run for a 3rd term.
Explain how tax cuts are tax increases, I dare you. Does that mean the failed Bush tax cuts were really tax increases? You act like you're in the top 5% or expect to be someday. Get real. All the wealth in Clay county together wouldn't put one person in the top 5%. Why do you defend those that take from you and your country and send the $ overseas or hoarde it for themselves?
As far as class warfare and redistribution of wealth, the GOP perfected it to the destruction of the economy. They set the middle and lower class to war with each other while having all of the wealth redistributed to the top. Do some research on just how out of whack it's gotten the last few decades. They convince you to hate the wrong people, the people with no money, no power and no connections. Do you really think for a minute that those with no money, power or connections have the ability to override the wishes of the top 5% that have all the money, all the power and all the connections?
Unworthy people capable of working should NOT receive gov't benefits. Unless they are the top 5%, then conservative want to give them any tax break, regulation they ask for. Conservatives are so freaking afraid someone might get something unfairly and undeserved, that they are willing to deny benefits to millions of truly deserving Americans. I prefer to fix the problem, stop the fraud. There's fraud in the military, religion, big business and I don't hear any cries to shut them down.
I want to live in an educated, healthy, stable society that can earn a living wage. If you want to live in the poorest, sickest, stupidist society, just keep voting GOP.
Thank you Helped Myself for having the time and patience to write out a well thought-out and well put together piece of commentary. Anyone who believes we are better since the 1980's implementation of deregulation needs to get real. Yeah, mortgages has 18 and 20% interest rates but you could afford to live on much less then also. People didn't have to borrow themselves to death to live day to day. It is a proven fact that the GOP's Neo-Con policy is to help business (and in turn the wealthy that run these companies) continue to make more money under the failed assumption that if the exxon's of the world make 50 billion a year in profit they will then share it with us. Unfortunately greed corrupts completely and once you have 50 bil you want 55 billion and will try to make that. Their idea for the common worker is "well thats the free market economy.. quit buying" but we cant.. if electricity goes to 55cents a KWH you and I cant simply turn off the electricity in the middle of winter. If they had their way we would go back to a fiefdom and we would be serfs working to the bone for a meager living courtesy of the corporations who would tell us what we needed wanted and what we got.
I wont say the democrats are always right because they are not perfect either. I think we need a good standard dose of one parts National Self Esteem and 1 part Common Sense and start demanding the things that will make us great again like excellent education, fair wages, science and technology development and attaining natural balance with our environment.
God Bless us all and lets hope that our country wakes up from its apathetic acceptance of hte current "trickle down" system and asks for something a little more direct and starts to take some pride in itself.
I AM a firefighter and not union you better get your facts straight BEFORE your flourish of facts and I love this country nore than I do myself!
How dare you question my commitment to this country and its citizens. I put my life on the line every day as you sit safely in your nice warm house and critisize! I have most likely pulled someone you love out of a smashed up wreck and not because any union or govt. tells me I have to!! I do it because I am a Christian who cares about people, and its my job and I'm good at it. I know the economic system needs help, but where did all the first bailout monies go? No one seems to know! "helpedmyself" is the one who needs to "get real". I'm real every single day, I was real when I got called out of my nice warm bed to put out a families house that caught fire the other night!! Saved their family pet at no extra charge!! Wait and see, govt. is about to get so big that NO ONE will be able to afford to even attempt to better themselves!! GOD Bless America and even you "helpedmyelf"
Thank you for your service, fireslayerdad.
You may not be union, but many firefighters are.
The largest gov't agency was created under a GOP President and GOP Congress: Homeland Security.
The largest deficits and debt happened under this GOP president.
The bailouts were requested by and distributed by a GOP administration.
The Brady gun bill was passed by a GOP congress.
The top 5% have kept this country divided while robbing the national treasure of this and future generations for the last 4 decades. Bush has at least united most of the 95% of the country that have born the burden of his policies and those policies that started with Reagan.
BTW, I'm offended that you assume to know me or what I've contributed in time and resources to bettering the communities I've lived in. You admitted you want less gov't which I commented on. I want BETTER gov't for ALL the people, not just the 5%.