ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, April 19, 1996 TAG: 9604190027
SECTION: BUSINESS PAGE: A9 EDITION: METRO
SOURCE: ELLIOTT SMITH STAFF WRITER
Workers who were laid off from Sara Lee Knit Products' Martinsville garment factory in March received good news Thursday, as the Labor Department announced a $500,000 grant for re-employment services.
About $2,500 has been allocated for each of about 200 of the 420 workers who lost their jobs in the March 5 closing. It will be used for job search assistance, education, training, day-care assistance, transportation assistance and emergency health care.
The government initiated the grants as a means to provide money for those whose former employers were affected by trade issues, such as foreign competition or technological advances. Sara Lee closed its Martinsville plant because of reduced production demands.
"The government decides if imports have impacts on businesses," said Nancy Young, Sara Lee's spokeswoman. "The Martinsville plant was making sweatshirts that, in 1989, were selling for $9. Now they sell for $4.50 or $5, and that had a definite impact on our business. But every time we close a plant, we file [for funds] as a means to help our employees."
Young added that Sara Lee offers a severance package and retraining money for its laid off workers, but "we're always happy when they get extra benefits."
Another grant, for $668,812, was announced Thursday for workers who were laid off by Westinghouse Electric Corp. in Abingdon, their second such grant.
"It's a usual thing that not everyone who got laid off will need the service," Edwards said. "We have a formula to figure out how many people it affects. If the figure is higher, the state can re-petition for more money; if lower, they can reappropriate the funds."
He said those who fall under the grant should go to their local employment office and speak to a counselor about receiving the assistance.
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