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Albert Lea's economy in a big slump
By Laurel Druley
Minnesota Public Radio
January 14, 2002

Hundreds of people in Albert Lea are picking up their last unemployment checks. It's been six months since the town's Farmland Foods plant was destroyed by fire, and put almost 500 people out of work. The town has waited for months to hear from company officials who are deciding whether or not to rebuild. There's been talk that Farmland would relocate in Iowa, or not rebuild at all. Albert Lea is a city struggling to move on.

Farmland Foods
When the Farmland Foods plant in Albert Lea burned down in July, 2001, it put tremendous stress on the local economy. Farmland has yet to announce whether it will rebuild in the community, but many residents are losing hope.
(MPR file photo)
 

The smoke cleared months ago. The blackened, vacant building serves as a reminder of the $25 million payroll and the 500 jobs the meat packing company left behind.

City administrators want Farmland to clean up the plant site to preserve property values and the environment. The city will kick in $5 million of the clean-up bill, if the company rebuilds. They'll also give Farmland 30 acres for a new plant.

Albert Lea's economy is hurting without the Farmland plant. In November voters refused to dish out more money for the district's schools. The unemployment rate rose significantly. However, the most recent number, 4.4 percent, is still below the national average.

The Albert Lea Workforce Center has been extra busy lately. Manager Joe Kurtzman also oversees centers in Austin and Fairmont. He says a soft economy has forced the workforce centers to expand. They now offer a range of first-time programs. Classes in Spanish have been popular. More than half of Farmland's workers were Spanish speaking.

"A number of people have gone back to work. Unfortunately, some of those businesses are laying off, too. We expect more to be coming in the next week because unemployment is running out," Kurtzman says.

That means there are more applicants than jobs in Albert Lea.

Clair Thostenson
Clair Thostenson worked for Farmland for more than 25 years. His unemployment benefits run out shortly. He says he's frustrated Farmland hasn't made any announcement yet. If he taps into his retirement benefits, he'll be ineligible for a job at Farmland if it is rebuilt.
(MPR Photo/Laurel Druley)
 

About 25 displaced Farmland workers are taking a course in heavy construction. After the fire, the Albert Lea Workforce Center got state money for retraining courses.

Now, some who've made a career in the meat packing industry realize they need to move on. Lonnie Thostenson was an electrician at Farmland for 15 years.

"I grew up here, born and raised here, own a home here. Unemployment's about run out and it's time to find a job," says Thostenson.

Duane Anderson worked for Farmland for 39 years, most recently in the machine shop.

"I'm just waiting to see if they make a decision. I'm 58 years old so I don't feel like relocating," Anderson says.

For the last six months, Clair Thostenson says he's been doing odd jobs. Thostenson, Lonnie's father, worked at Farmland Foods for 25 years, operating various machinery. Now he's learning a new trade because he doesn't want to retire early. If he accepts retirement benefits, he'll never again be able to work at Farmland.

Migrant labor counselor Steve Bauer says many of the Latino workers who made up more than half of Farmland's workforce have applied to work at Hormel and Quality Pork Producers in Austin. But Austin doesn't have enough jobs to go around. Every Tuesday Bauer helps coordinate interviews with the Austin factories.

"It was packed," he says. "We had a lot of applicants this morning. And a few that showed up without appointments. A lot of people scheduled for next week already, and they're filling up the schedule for the week after. But they don't have a lot of jobs right now," says Bauer.

Brian Vairma
Brian Vairma, a former Farmland employee, is peer counselor for the Workforce Center. He recruited displaced workers to take heavy construction classes so they have a fallback if Farmland decides to build elsewhere.
(MPR Photo/Laurel Druley)
 

Jose Ambres gave up on Quality Pork and Hormel. Now he's in the heavy construction class, learning a new field. Ambres moved to Albert Lea from Mexico two years ago. He and about 200 former Farmland employees were recruited by Farmland from Mexico and Texas. Some of them have already moved in search of other work. Some, like Ambres, are sticking around.

"When Farmland get fire I lost my job. I will stay now looking for some work," Ambres says.

Former Farmland worker Brian Vairma organized the class when he saw so many co-workers still without jobs. The workforce center hired Vairma after the fire as a peer counselor.

He's watched as many of his friends retrain for new careers. But they're still hopeful Farmland will rebuild. Some have tried to get by on unemployment benefits and temporary work until a new plant opened.

Farmland originally planned to make an announcement in October. A company spokeswoman says delayed insurance claims have prevented that.

"I don't believe they'll rebuild," says Vairma. "If they're going to do it I feel they should've announced by now...It just doesn't make sense to let the unemployment run out, when you know the rest of your most experienced people will move on."

Albert Lea is trying to move on. Unemployment benefits are running out. The factory will be leveled, and the fire will become part of the city's history. The 100-year-old factory has had different owners and employed up to 1,000 people at one time. It will be difficult for Albert Lea to move on without the plant. But residents say, if they have to, they will.

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