Editor’s note: this story has been updated to include comments from City of Jefferson Mayor Dale Oppermann.
By Kim McDarison
Tyson Foods, based in Arizona, has announced that it will be closing its facility in Jefferson, 1015 Industrial Ave.
According to a letter posted by the Wisconsin Department of Workforce Development Dislocated Worker Unit, Madison, Tyson Foods, which operates LD Foods, Inc., “will be permanently ceasing all operations at its Jefferson, Wisconsin facility located at 1015 Industrial Avenue, effective September 16, 2021. The closure has been prompted by the company’s decision to discontinue the product line produced at that location.
“This action is expected to result in the permanent elimination of 62 employees – 9 salary and 53 hourly positions.”
The company noted that while it plans to cease operations at the site in September, those working at the site will remain employed “until or within 14 days of October 10, 2021.”
Additionally, the letter continued, “a small contingent may remain through a later date to maintain the integrity of the leased facility and address any final customer concerns.”
According to the letter, hourly employees do not have union representation and “interplant bumping rights do not exist.”
In a statement made to Fort Atkinson Online, Tyson representative Gary Mickelson wrote in an email: “As part of ongoing efforts to focus on the strategic plans of our business, we plan to discontinue operations at our Jefferson, Wisconsin, plant in mid-September. The closure is due to a combination of factors including the changing product needs of our customers.
“This was a very tough decision, but because business needs have changed, we’ve decided to take these steps in order to continue focusing on and investing in strategic growth priorities where we have a competitive advantage.”
Responding by phone to questions about the closing of the Tyson facility, City of Jefferson Mayor Dale Oppermann said: “We are disappointed to learn about the closing. LD Foods has been a great employer in the community and beyond for a long time.”
He described the company as a ”good corporate citizen for many years.
“They are also a customer of the City of Jefferson Utility, so that’s a blow to our rate payers. It makes it difficult to draft next year’s budget for our utility,” he said.
Noting a silver lining, Oppermann said that a member of the LD Foods human resource team was reaching out to area professionals, working to create what he described as a “job fair kind of resource for displaced workers.”
At approximately 100,000 square feet, by Oppermann’s estimation, he said the building leased by Tyson was of medium size within the city’s industrial inventory. He cited buildings occupied by Generac and Americold as among larger buildings within the city.
The news of Tyson’s plans to close the facility is “barely 24 hours old,” he said Friday afternoon. The city will need to determine how best to help a building owner or potential developer market and make use of the property.
“Based on the robust nature of business as we’ve been experiencing it, I don’t expect that building to be vacant for very long,” Oppermann said, adding that, in the interim, he believes the community has the ability to absorb the displaced workers.
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