News Summary

Georgia-Pacific has announced the closure of its Memphis Cellulose Mill and Technology Center, affecting 152 employees. The company aims to assist affected workers with job placement and transition support while addressing the market challenges that led to this decision. Employee compensation will be maintained during the transition, with a focus on compliance and employee well-being.

Memphis

Georgia-Pacific has announced the impending closure of its Memphis Cellulose Mill and the Memphis Technology and Innovation Center, which will impact 152 employees. The closure will affect 130 employees at the Cellulose Mill and 22 employees at the Technology and Innovation Center, with most job positions expected to be terminated by early December.

Transition Support for Employees

In light of the closures, Georgia-Pacific is committed to ensuring a smooth transition for affected employees. The company plans to assist those interested in seeking employment opportunities within Georgia-Pacific, other Koch companies, or external employers. Support initiatives will include job fairs, placement services, and a variety of resources tailored to facilitate job searches and career transitions. Additional efforts will be made to assist employees in understanding their unemployment benefits in collaboration with Tennessee officials.

Collaboration and Negotiations

Georgia-Pacific will also work closely with local union leadership to negotiate contracts related to the closures. This approach aims to address the needs of the workforce and ensure that all legal and contractual obligations are met during this challenging process.

Reason for Closure

The decision to close the facilities comes in response to increasingly difficult market conditions affecting the products manufactured at the facility. Georgia-Pacific has considered various options to address these challenges, including the potential sale of the mill. The company intends to leave the facilities in a condition that is suitable for sale should the situation allow for it.

Employee Compensation

In terms of employee compensation, Georgia-Pacific has assured that all affected employees will receive their full pay and benefits at the time of discharge. This commitment underscores the company’s dedication to supporting its employees during this transition despite the challenging circumstances surrounding the closure.

Company’s Commitment

Georgia-Pacific emphasized that the decision for closure does not reflect the quality of work carried out by the Memphis team. The company recognizes the value and efforts of its employees and aims to provide the necessary support as they navigate this transition.

Background on Georgia-Pacific

Georgia-Pacific, a leading manufacturer in the paper and packaging sector, has a history of adapting to market conditions and industry demands. The Memphis facilities have contributed significantly to the company, and the decision to close them reflects broader market trends that impact production capabilities and sustainability in the business environment.

As Georgia-Pacific moves forward with the closure plans, both the company and the employees will face the challenges associated with workforce reductions amid a changing market landscape. The focus remains on ensuring the safety and well-being of employees while balancing business interests in these difficult times.

Deeper Dive: News & Info About This Topic

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