Potato plant in Glenns Ferry will be permanently closed; 114 out of work

North American Foods (NAD) officially announced the closing of its Idahoan Fresh Pak facility in Glenns Ferry last week, leaving 114 people out of work.

The announcement on Tuesday, Feb. 13, put to end an extended seasonal shutdown and speculations about the plant's future.

The closing is anticipated to have a major impact on the economy of Glenns Ferry and the surrounding area.

The company began a seasonal shutdown in August, an annual practice that allowed for maintenance to be performed on the plant's equipment. Typically, employees would be called back to the line by mid-September.

But after months of being told the company was extending the seasonal shutdown, rumors began to circulate that the plant would close permanently. That rumor was confirmed last Tuesday morning when representatives met with employees to inform them of the company's decision.

The plant closure means the loss of 114 jobs, and is expected to make a significant impact on the local economy.

NAF did not notify the Gazette about last Tuesday's meeting, but a press release issued later in the day by the company's public relations firm, Hunter PR, stated: "The decision was made to help the company balance production of finished products with overall demand. Operations at the plant have been suspended since a seasonal shutdown began in August 2007.

"Following careful and comprehensive analysis, North American Foods determined that closing the Glenns Ferry plant--in addition to last month's closing of the Grand Forks, North Dakota plant--will help the company eliminate excess production capacity and related costs in an effort to continue to provide the value its customers have come to expect.

"A majority of the plant's 114 employees have been out of work since last August due to the extended seasonal shutdown, therefore they will be paid the equivalent of 60 days wages, and several may be offered the opportunity to relocate to another of the company's plants. Others will have the opportunity to continue to work for an additional 60 days.

"In addition, North American Foods is arranging on-site job fairs to assist with placement. The company has no plans to close additional plants at this time."

Although employees will be given 60 day severance pay, some of that money will be withheld to reimburse the company for health insurance premiums it paid on behalf of its employees during the extended layoff period.

NAF acquired the Glenns Ferry facility, as well as it sister plant in Rupert, last summer. It is the fourth owner of the Glenns Ferry plant since Redi Spud restarted the facility in the 1980s.

Company spokesman Sam Routson said in a telephone interview with the Gazette that several variables were considered as company officials struggled with the decision to shut down the plant, including supply and demand, changing dynamics of the potato industry and meeting consumer needs.

Before meeting with employees, a company representative met with Mayor JoAnne Lanham at city hall to advise her of the decision to close the facility.

Also visiting the mayor that day, were representatives from the Idaho Department of Labor (DOL), including Director Roger Madsen, and Albert Clement, Manager of DOL's Mountain Home Office, as well as Routson (the company spokesman), Sam Huffman, Vice-President of NAF Operations and Technology, and Richard Nelson, director of Human Resources.

"We did not know the company's intentions beforehand" said Clement, indicating that company officials did not make public its decision to close the plant until just last Tuesday. Clement said Nelson called the DOL on Monday to invite representatives to Tuesday's meeting with employees.

"We are aware of about 10 to 15 people who have found work elsewhere," Clement said. "We are very concerned about these folks" because many have been with this plant up to 20 years, he said, adding that DOL will do its best to find employment for the displaced workers.

NAF has sanctioned a job fair at the Glenns Ferry plant, scheduled to take place within the next four weeks, Clement said. The DOL will host the fair and hopes to attract potential employers such as US Ecology, Marathon Cheese, Glandbia, Cache Valley Cheese, Jayco and others.

"We'll approach any that we can in this area up to Twin Falls and Boise (although) transportation will be an issue coming from Glenns Ferry and the price of gas," Clement noted.

Although the ideal situation would to find jobs in Glenns Ferry for the displaced employees, it is unlikely to happen, Clement indicated. "This is all they know and there's just not a lot of work in the Glenns Ferry area."

More likely, the displaced workers will have to go further afield in their search for employment.

Clement said approximately two-thirds of the plant's employees live in or around Glenns Ferry.

"We are grateful to North American Foods, "Clement said. "They provided a long history of employment, and a long history of benefits, and requested this job fair."

The plant's "temporary" shut down had already effected the local economy.

Larry Rose, owner of Hometown Hardware, said he had already experienced a decline in customer sales during the prolonged seasonal layoff.

"I've always seen somewhat of a slowdown (in spending) but this situation is longer than we've experienced in the past."

Rose sees a further decline in local spending as people are forced to move out of the area, or seek employment in other communities.

"When employment goes down, or people are forced to work in Mountain Home, they shop there," Rose said. "It's not quite as bad as when the railroad pulled out, but it's going to impact this town severely."

Although Glenns Ferry School District Superintendent Wayne Rush has urged the Board of Trustees not to "panic," he is concerned about how the plant closure will impact Glenns Ferry schools.

"I can't really predict what will happen," Rush said, but noted that he anticipates a decline in enrollment.

The district has been experiencing a drop in student enrollment for the past 20 years, Rush noted. Over the past five years, the school has lost 100 students.

A decline in student enrollment typically prompts a reduction of staff as state ADA (Average Daily Attendance) funding, which is based on student enrollment, is reduced.

"This type of impact is hard. Last year we did not fill three teaching positions for this school year. I think we're in good shape, currently, but we'll have to watch what this does for enrollment and see where we go from here."

"I don't anticipate any cutback of staff for the coming year because of the reduced staff this year," said Rush, "it gives us time to do some real logical planning."

Cindy Wilde, owner of Corner Market, said her business also has seen a reduction in customer spending. "You feel a pinch when you have a town this size and you have a major employer like that go down,. It effects everyone."

Wilde was here in the 1970s when the railroad pulled out and remembers the fear it generated in the community. She sees that same fear now in the faces of her customers who were once employees of NAF. And she worries about the future of Glenns Ferry.

But Lanham and Clement remain hopeful that another company will be interested in locating to Glenns Ferry.

"I'm an optimist," said Clement, "I think we'll see something happen in the near future. By that I mean within the next six months or so."

Mayor Lanham is forming a committee tasked with seeking out companies that might be interested in locating in Glenns Ferry. The city will be working closely with representatives of DOL in that effort, Lanham indicated, and she is hopeful that the Department of Labor's efforts to find a suitable employer will come to fruition.

Routson said the company would consider selling the Glenns Ferry building once all equipment had been removed and the plant shutdown activities were completed.

The closure of the Idaho Fresh Pac plant has ultimately led to the shutting down of the co-generation facility situated just to its west. Steam from the co-generation plant was used by Idaho Fresh Pac during production of its potato products, but until another buyer for the steam can be found the co-generation plant will remain temporarily shut down, said Jo Nelson, of Black Hills Idaho Management.

However, he said the plant will continue to be manned and maintained and there are no immediate plans to layoff any its employees