Rep.Kaufert: Hundreds of Wisconsin Jobs Moving Elsewhere after Death of Fair Claims Legislation

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Kaufert says loss of jobs could have been prevented

MADISON… With today’s announcement that the Green Bay area will bear the brunt of 1,100 jobs cut world-wide by paper manufacturer Georgia-Pacific, Representative Dean Kaufert (R-Neenah) expressed his sadness and disappointment at the end of Wisconsin’s era as a major player in the paper industry.

“I am sickened at the news that countless Wisconsin families will be turned upside down with the loss of paper mill jobs some workers have held for decades,” said Kaufert. “What makes this loss unbearable is the fact that some of these job cuts could possibly have been prevented if some legislators hadn’t sent the message that the paper industry is not a valued contributor to Wisconsin’s economy.”

Georgia-Pacific said it will close up to four tissue paper machines and 70 converting lines as it eliminates 850 jobs in North America alone. Although the details of exactly what this will mean to Wisconsin’s mills aren’t clear yet, the company has announced that the majority of the jobs will be from its Green Bay plant.

“The Paper Industry is an incredibly competitive entity in the global marketplace. With the death of the Fair Claims legislation in the Senate Insurance Committee, it is likely that Georgia-Pacific determined that it has become too costly for its company to conduct business in Wisconsin,” said Kaufert. “The Senate Majority Leader worked tremendously hard to kill this bill, and I truly believe that had Fair Claims been given a chance to move forward, Georgia Pacific’s announcement today would have had a very different impact on Wisconsin’s future.”

While Georgia-Pacific finalizes its plans to close down operations in Wisconsin, the company announced just two weeks after Fair Claims was killed in the Senate that it will restart manufacturing at two idled Mississippi plants by the end of this year. The move will create 500 new Georgia-Pacific jobs while padding the Mississippi economy with more than 1,000 indirect jobs created through suppliers, including transportation companies.

“How could the state of Wisconsin expect Georgia-Pacific, or any paper company for that matter to stick more resources into an industry that is being dismissed by this state?” said Kaufert. “Had Senate leadership had the same regard for the paper industry as they do for other Wisconsin businesses, this devastating blow to our state’s economy could have been prevented.”