Responses to Plant Closures and Major Reductions in Force: Private Sector and Community-based Models

Major structural changes are sweeping the national and world economies. The United States is shifting away from the basic industries and toward an economy based on more specialized production, services, and information exchange. The effects of this shift—unemployment, plant closures, and major reductions in force—disrupt the work force and the communities that support it. The public and private sectors have a stake in developing nondisruptive approaches to plant closures and layoffs and the transition of affected workers to other occupations. The private sector has developed some positive responses, from employment security and profit sharing, to buffering the job transition for workers when no alternatives to termination can be found. Models currently being used are state of the art. Communities have also taken a proactive stance as closures and layoffs threaten their economic survival. The community-based model is very similar to the private sector worker-transition model, except that it features the community in a leadership role. Communities are encouraged to develop an economic crisis plan for use when a major facility closure or layoff occurs.