Grassley Seeks Support for Displaced Workers in New Hampton, Prompt Repayment


Following the announcement this morning that Sara Lee would leave itsbaking plant in New Hampton and displace more than 600 local workers, Sen. Chuck Grassleysaid that he would put his full support behind any appeal by the State of Iowa for federalfunds available through the Job Training and Partnership Act.

The senator also called on the corporation to honor its contract with the State of Iowa and"promptly repay the attractive, forgivable loan Sara Lee accepted two and a half years ago."

Grassley said today's announcement is "especially demoralizing," since the State of Iowaand New Hampton put forward a million dollars in November 1996 to help Sara Lee renovate itsbakery so it could stay for at least five more years. In addition, the community has been in theprocess of making improvements to the local power plant and waste disposal system that would havebenefitted the bakery.

"Now our focus needs to be on helping the workers and their families," Grassley said. TheJTPA programs include assessment of unemployed individuals' needs and abilities; classroomtraining; on-the-job training; job search assistance; work experience; counseling; basic skillstraining; and support services.

Grassley said he has encouraged the Iowa Department of Economic Development to makethe necessary application for JTPA funds. He would strongly support the request to the Departmentof Labor. Funds for JTPA activities are provided through block grants to states.

In June, Grassley intervened on behalf of the New Hampton Bakery, Confectionery, TobaccoWorkers & Grain Millers International Union, asking the corporation to allow an additional 30 daysfor the union to develop a business plan that would keep the bakery open.