Sheboygan County business to shutter plant after promising jobs, raises
Sheboygan County business to shutter plant after promising jobs, raises
Sheridan has announced it is closing its Random Lake printing facility, which will soon leave 104 employees without a job.
RANDOM LAKE, Wis - It's news that took everyone in the small village of Random Lake by surprise. One of the village's largest employers, Sheridan, announced it is closing its printing facility in town. As a result, all 104 employees will lose their jobs by February.
A surprise closing
What we know:
In a news release, the company said the "decision comes as the result of evolving conditions in the print industry" and "despite significant efforts to attract new work suitable for the facility, the overall decrease in demand has necessitated this difficult decision."
Sheridan, Random Lake
What Sheridan did not say in its release, is the company recently won a lucrative state grant after making promises to hire unemployed workers and give current employees significant raises. The state has already sent thousands of dollars of tax money to the company.
News spreads fast
What they're saying:
In a small town, news travels fast.
"I heard about it yesterday. Very sad," said Pat Davis.
FOX6 News found Davis behind the counter at Kathy's Trackside Cafe. She said the closure of the plant will have a huge impact on Random Lake.
Random Lake
"Well, it’s over 100 employees. A good share of them are from Random Lake. And many of them have worked there most of their adult life, and now they’re out of a job," said Davis. "Yeah, quite a few people. And a number them are husband and wives. So you’re talking both a husband and wife out of work."
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Davis was unaware the company had recently won a state grant that was supposed to increase jobs at the facility, not take them away.
Wisconsin Fast Forward grant
Dig deeper:
In April, Wisconsin's Department of Workforce Development announced Sheridan had been awarded what's known as a Fast Forward Grant. The grants are awarded to companies that commit to hire unemployed workers or train current employees and pay them more. Sheridan promised to do both.
According to a news release from the Department of Workforce Development, Sheridan agreed to hire 13 unemployed workers and train 27 current employees, who would get raises of an additional $6 an hour or more at plants in Stevens Point and Random Lake.
On the company's website, Sheridan said employees would be fast-tracked, learning skilled press and binder roles in just 12 months that usually takes four to six years to complete.
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As a result, the state awarded Sheridan a $297,000 grant. It was more than any other company in Wisconsin who received a Wisconsin Fast Forward grant in the latest round of approvals.
Sheridan, Random Lake
Just months later, instead of hiring, Sheridan will be adding to the unemployment line.
This has never happened before
State responds:
When FOX6 News reached out to the Department of Workforce Development, officials said this has never happened before with a Wisconsin Fast Forward reciepient. They point out, money is only dished out after proof of hiring or training.
To date, Sheridan has received a little more than $61,000, or 21% of the $297,000 grant. Since the company's grant also includes its Stevens Point facility, it is not known how much of the money is eligible to be clawed back or even if the state will suspend the remaining funds.
Sheridan, Random Lake
A spokesperson said officials are discussing with legal counsel on how to proceed, and points out there is a clause in the contract that provides the opportunity for the state to suspend, cancel, or terminate in certain situations.
Village will lift those in need
Local perspective:
Back at Kathy's Trackside Cafe, they're not worried fewer customers will mean less money in their wallets, since everyone here works for free. They're all volunteers, where every dollar earned is donated to the local historical society. It's a sign that despite the news in this town, they'll lift up those who need it.
"They’ll all survive. We’ll all survive here, but it may be tough for a while here," Davis said.
Full statement from Sheridan
What they're saying:
"CJK Group and Sheridan have made the difficult decision to cease print operations at its Random Lake, WI facility, which primarily manufactures high quality magazines and catalogs. This decision comes as a result of evolving conditions in the print industry, with catalog production declining as retailers increasingly move toward digital marketing, and magazine publishing adjusting to smaller print runs, reduced advertising revenue, and the growing shift to digital editions. Despite significant efforts to attract new work suitable for that facility, the overall decrease in demand has necessitated this difficult decision. Work performed in Random Lake will move to existing Sheridan locations prior to the end of November, ensuring a continued high standard of service and product for our valued clients. We appreciate the dedication and hard work of every employee and encourage those who have been impacted to pursue open positions at other Sheridan locations. Those who are unable to do so will be offered job search assistance and are encouraged to attend an on-site job fair to be held in October."
Village President responds
Local perspective:
Random Lake Village President Duane Urbanski released the following statement:
"One of our community’s major employers, has announced it will be closing its doors. This decision will impact not only the employees and their families, but also many local businesses and the Village of Random Lake as a whole. Our thoughts are with the workers and their families who are now facing uncertainty. Please know that the Village is committed to working closely with Sheboygan County Economic workforce development agency to provide support, resources, and opportunities to those affected. Sheridan/Times Printing has been a valued part of our community, contributing to our local economy and supporting countless families over the years. We are grateful for their years of service and investment in our village. Moving forward, we will work diligently to support our residents, attract new businesses, and explore opportunities for redevelopment of the site. Our priority is ensuring that those impacted receive the help they need and that our community continues to thrive. Sincerely, Duane Urbanski Village President
The Source: Information for this story was provided by the Wisconsin Department of Workforce Development, Sheridan and CJK Group, and researched and produced by FOX6 News journalists