ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, January 28, 1996 TAG: 9601310100
SECTION: NEW RIVER ECONOMY PAGE: 2 EDITION: NEW RIVER VALLEY
DATELINE: RADFORD
SOURCE: TRACY GALLIMORE STAFF WRITER
The news this month of AT&T's coming layoff of 40,000 workers nationwide hits home for many former employees living in the New River Valley.
"I really feel for the thousands of families that will be affected by this upcoming layoff. After going through AT&T closing the New River Valley plant, I can't help but sympathize with anyone in that situation," said J.C. Smith.
Smith, a former supervisor who took AT&T's retirement offer in 1990, now drives a bus for Montgomery County Schools.
When AT&T announced it was closing its New River Valley plant in mid-January 1990, the area lost 1,000 more jobs.
The plant had already whittled its work force down from 2,500 employees in layoffs that began in 1987.
What happened to the AT&T workers?
Most stayed in the New River Valley and looked for new jobs, even though it meant competing in a job market flooded with people searching for employment. The valley had suffered other layoffs, too, in 1990, including 300 workers at Volvo-White.
Other AT&T workers relocated, retired or went back to school.
Those laid-off workers searching for employment showed up in the valley's unemployment rate.
Radford's unemployment rate jumped from 6.5 percent in 1989 to 8.4 percent in 1990, and continued to 8.9 percent in 1991, according to the Virginia Employment Commission. Pulaski County's rate increased four points - from 6.9 in 1989 to 10.9 percent in 1990, before dropping back to 9.7 percent in 1991.
By 1995, however, the jobless rates showed most of those laid off in the early '90s had been absorbed into the job market or else moved on. Last year, the November unemployment rate for the New River Valley was 4.5 percent, less than half the 1990 figure of 9.3 percent.
Deanie Casey, an interviewer at the Virginia Employment Commission in 1991, said 99 percent of her clients had the same answer when she asked them what kind of job they were seeking, "They said, 'I'll take anything.'"
Many employees took advantage of money for college and career counseling provided by a cooperative effort between AT&T and its union, Communication Workers of America. AT&T offered $2,500 to each employee for tuition or relocation expenses when the plant closed.
Federal funds from the Trade Readjustment Act helped former employees relocate or paid college tuition and supplies. Unemployment benefits were offered for one year and extended six months if the employee was in school.
Laura Walters, who coordinated the transition program for AT&T workers, found that many people took advantage of the retraining money after they had spent months trying to find a job and realized that they needed to improve their skills. Some workers went into one-year programs in cosmetology or truck driving, but most pursued certificates or degrees in mechanics or industrial maintenance, said Walters.
A 1993 study of 932 former nonmanagement AT&T employees found:
Seventy-four percent, or 692 employees, eventually went back to school to pursue either additional training, a certificate or a degree, said Walters, the project coordinator.
Of the employees who entered a certificate or degree program, 49 percent completed their programs and graduated.
Johnny Meredith had gone to work in production for AT&T in December 1980. His last day with AT&T fell just two weeks before the date of his 10th service anniversary.
"Our primary income, health insurance, benefits - all of it was gone. We really had to struggle to keep our home and the things we had," said Phyllis Meredith, Johnny Meredith's wife.
Johnny Meredith chose to go back to school. He earned his associate's degree in the industrial maintenance program at New River Community College.
"Before the layoff, Johnny Meredith had worked in the warehouse. Now, he's a licensed electrician. We've been able to buy a new home and we're doing fine. But it really was tough for a while," said Phyllis Meredith, a secretary at Shawsville High School.
Robert "Bob" and Darlene Clark decided to stay behind rather than transfer once more with AT&T. The company had relocated the Clarks to the New River Valley in 1983 from Indianapolis, Ind. Bob Clark, a supervisor, had worked for the company for 35 years when he took the retirement package offered just before the plant closed in 1990. Darlene Clark was employed as a buyer's assistant
In 1991, Bob Clark took a job with the Blacksburg Municipal golf course and he became the pro shop's manager last year. Darlene Clark went to New River Community College and completed an associate's degree in accounting. Since then she has worked as an accounting clerk for the Blacksburg Parks and Recreation Department.
"Usually you go where your job is, but when you have a choice there are a lot of things to consider. We could have moved to live close to our children, one is in Dallas and one is in Indianapolis, but we liked the climate and the area and we chose to stay. We've been nothing but happy with our decision," said Darlene Clark.
LENGTH: Medium: 96 lines ILLUSTRATION: PHOTO:by CNBALAN KIM/Staff. 1. Bob Clark, former manager at the old AT&T plant,
manages the pro shop at the Blacksburg Municipal Golf course. 2.
(headshot) Jill Barr.