Prescott, AR Employer Announces Layoffs
By: Mario Boone
Updated: August 18, 2009
Pink slips will go to 90 workers at Prescott's Firestone plant starting September 1st. It's the second round of layoffs at the plant which employs 437 workers since April of this year. Spokeswoman Tina Gaines says the lagging economy has created more inventory than demand. As a result the company is cutting the equivalent to an entire shift.
Mayor Howard Taylor says anytime his city loses workers from one of its major employers the entire city feels a loss. Los Agaves Mexican Restaurant caters to a Firestone lunch crowd. Owner Carlos Zacharias says he gets 40% of his business from Firestone employees. Layoffs at Firestone translates to a major hit to Zacharias' bottom line. He says he might have to raise prices to cope with the loss in revenue.
Firestone officials say they hope this latest round of layoffs will be the last. Gaines says the company will closely watch the market for any signs of recovery, and will consider recalling dismissed workers. City and state labor representatives plan to hold a job fair for affected workers. Firestone says it will provide severance benefits for workers based on years of service.
Mayor Howard Taylor says anytime his city loses workers from one of its major employers the entire city feels a loss. Los Agaves Mexican Restaurant caters to a Firestone lunch crowd. Owner Carlos Zacharias says he gets 40% of his business from Firestone employees. Layoffs at Firestone translates to a major hit to Zacharias' bottom line. He says he might have to raise prices to cope with the loss in revenue.
Firestone officials say they hope this latest round of layoffs will be the last. Gaines says the company will closely watch the market for any signs of recovery, and will consider recalling dismissed workers. City and state labor representatives plan to hold a job fair for affected workers. Firestone says it will provide severance benefits for workers based on years of service.
