A dark cloud has been looming over the southeast Minnesota town of Spring Grove, a town of 1,238, since Northern Engraving announced a “mass layoff.” Currently, 80 employees work at the plant in Spring Grove and approximately 50% of them reside in the Spring Grove and Caledonia area.
Spring Grove Mayor Saundra Solum shared, “I can only speak to the production plant in Spring Grove. They are laying off employees but have not said they are closing. When I asked, they said they plan to use the building in Spring Grove as a warehouse and shipping consolidation point for ongoing operations. As far as production in Spring Grove, Chrysler no longer needs the part they were making. It was a decorative trim piece that has been discontinued.”
In the mid-20th century, Northern Engraving took over the facilities from Control Data. Over the years the company produced decorative trims for appliances and automotives. This is not the first time that the company has talked about shutting down the plant. In 2009, talk of shutting down the plant made the news. At that time there were 200 employees working at the Spring Grove plant.
According to an employee at the plant, “There might be one or two parts made after December because it will take time to move the equipment, but they will get weeded out.” The employee also said that the Holman, Wis., plant is shutting down at the same time as Spring Grove.
Northern Engraving, a subsidiary of NBHX based in China, went through the proper channels and notified the state of the “mass layoff” as required by the Worker Adjustment and Retraining Notification Act (WARN).
Todd Rodebery, Human Resources Director, NBHX North America, said in the letter notifying the Department of Economic Development, “It is anticipated that approximately 80 hourly and salaried employees will be affected by the “mass layoff” which will occur in phases with layoffs expected to begin December 6, 2023, with the complete reductions of the business by December 29, 2023. This mass layoff is considered permanent.”
The number of employees may be less than 80 due to voluntary quits, transfers, or retirements. It was noted in the announcement, “No bumping rights exist, and the order of separations will be determined by business needs as stated in the Union Agreement.”
On the company website there is a page dedicated to those company employees who have continuously worked for the company for 25 years or more. There is a list of 30 manufacturing plant employees at the Spring Grove meeting the criteria, with five employees working over 40 years, 16 working 30-39 years, and nine working 25-29 years.
The good news is that there are businesses hiring in the area.
Mitch Primus, Caledonia Career Planner, Workforce Development, Inc said, “Thanks to the Houston County EDA, Workforce Development, Inc. is receiving job postings directly from local employers, which we’re including in our biweekly newsletter and posting in our office. Workforce Development, Inc. was onsite at Northern Engraving last month along with representatives from Unemployment and Rapid Response to introduce available programs and services available to those impacted by the layoffs. I’m a resident of Spring Grove myself – these layoffs are impacting my neighbors and fellow community members. My mission is to help them find their next opportunity; whether someone just needs help getting a resume together or they enroll in the Dislocated Worker Program to get training for in-demand employment. All our services are free to everyone, and we’re ready to help.”
Mayor Solum shared, “It will definitely have an economic impact on our area. However, it is too soon to know how much. It will depend on if these employees can find new work in the area and if they continue to stay in the area. We also do not know how closing down production will decrease Northern Engraving’s electrical, and utilities paid to the city of Spring Grove.”
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