Local economy to feel pinch from ALCOA cuts
Local economy to feel pinch from ALCOA cuts Save Email Print
Posted: 6:34 PM Jan 7, 2009
Last Updated: 6:47 PM Jan 7, 2009

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ALCOA, Tenn. (WVLT) -- ALCOA's smelting operation is up and running now, but come March, all pot lines will shut down, putting 450 workers out of a job.

Blount County Chamber Partnership President and CEO Fred Forster says, "These are high paid positions and it will be hard to replace that income."

Forster says one manufacturing job equals about three regular paying jobs.

Some workers have 18 years seniority according to the Blount County mayor.

The silver lining is that it may not be forever.

Forester says, "Their initial transmission to the community is this will be temporary so this tells me it's not permanent."

The drop in demand for appliances, autos and other products made with the lightweight metals is one reason for layoffs, but the Blount County Mayor Jerry Cunningham says the high price for TVA electric rates are a close second.

Cunningham says, "Our rates are going up, up, up, and all I see are people over there declaring bonuses, so yes I'm angry. I'm fed up with them."

Mayor Cunningham knew potential layoffs were a concern, but says he was shocked by the closure of the entire smelting operation. Now, he says he's worried for his community.

"It's a terrible ripple effect. We're going to feel families suffering, kids' college careers on hold or ended before they start, a loss of sales tax revenue."

The mayor says a pool of highly skilled, highly trained workers could help attract potential businesses to Blount County.

Mayor Cunningham also hopes for spin-off companies from Volkswagen in Chattanooga will move to Blount County, but a turn-a-round in the economy is the only thing that will get the pot lines at ALCOA up and running again.

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