Jay Chicken Processing Plant to Close, Simmons takes care of its own.
It was unwelcome news that the key private employer in Jay would close it processing plant and layoff over 200 staff and employees. However, it looks as thought Simmons has structured the shut down, but taking care of their employees at Jay, America!
According to Gary Murphy, VP at Simmons, arrangements have been made for all the employees in Jay who stay in their jobs till Dec 25, to receive a $1500 severance pay, plus $100 for each year worked at the Jay facility. Many employees have worked at the Jay plant for years, and some will receive thousands of dollars in the transition.
In addition, all employees are eligible for work at Simmons Foods has operations in Jay, Southwest City, Mo.; Decatur, Ark.; Siloam Springs, Ark.; and Van Buren, Ark. Arrangements have been made to provide transportation to these remote facilities thru contracts with Pelivan.
The main reason for the Simmons plant closing in Jay, according to company insiders, is that the Jay Plant was performing a certain function in the poultry industry, killing and dressing old birds, primarily heavy hens and spent layers.
Les Newkirk, Mayor of Jay
In meeting in Jay to discuss this unfortunate event, sources tell the Business Journal, that General Manager of the Wal-Mart store indicated that Jay was excited about the Simmons offer for employees, and said, that for some time, Simmons has had our local staff at the jay plant on short hours, you could tell when the plant only worked 20 hours, by the paychecks cashed at our store. Although employees will now have to commute to replacement plants, the Jay economy may be better of by having all of our Jay workers receive a full weeks pay”
Officials at Simmons have also said that the Jay facility is a quality plant, and every effort will be made to find a buyer for the facility. Simmons purchased the plant years ago from Don O’Brian Poultry.
Jay Mayor Les Newkirk was asked about negative aspects to Jay’s city budget, and Newkirk indicated that it is hoped that with the reduction of needs for water and sewer, etc, the city hopefully could readjust its budget to survive the shortfall. “We will loose more than $1Million dollars in utility revenue which will have
Jay recently sold bonds for an expansion of their sewer/water plant, but sources say that jay will still be able to make the bond payments. Efforts are underway to find another manufacturer that could utilize the plant.
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