ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, July 2, 1996 TAG: 9607020043
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
NOTE: Above
COLT is a town with a stagnant economy. Most people who have jobs work at Rubatex, but more jobs are needed, officials say.
They may be singing the blues in Bedford over expected layoffs at Rubatex Corp., but they're turning cartwheels in Colt, Ark., where Rubatex said it intends to expand.
Colt is a country town of 370 people and is 50 miles west of Memphis. Rubatex is its oldest operating and biggest employer. Colt officials on Monday had not heard about Rubatex's announcement Sunday that it will relocate some of its Bedford operations to Colt, eliminating 287 jobs here. But they said they would welcome such news, assuming Rubatex's plans include adding jobs in Colt.
"That would be nice," said Mayor Phyllis Ellis. "It's really a surprise."
"Sounds terrific," said Bobby Clarkson, treasurer of Colt.
The local economy is stagnant, the mayor said. Most everyone who has a job works at Rubatex already. But more jobs are needed. The state job service receives many applications when openings at Rubatex rise, said Alan Tittle of the Arkansas Employment Security Division's local office.
Tittle said he did not know the wages at Colt's Rubatex factory, though he estimated entry-level jobs pay $6 hourly and increase to $7 after one year and $9 within a few years. Rubatex spokesman Jery Kirschke confirmed Monday that workers at its Colt plant are paid on average $5 an hour less than those in Bedford.
Rubatex officials have declined to give the number of employees the company has in Colt or the number of new jobs that might be created. Rubatex confirmed that there is a union at the Colt plant. Its name could not be determined Monday.
Kirschke said Sunday that the company will relocate rubber extrusion operations from Bedford to Colt. The decision resulted from the company's inability to revise its contract with the Bedford plant's employee union to mandate overtime work and gain other concessions.
Rubatex bought the Colt facility in late 1994 when it purchased the Halstead Corp. subsidiary from Halstead Industries Inc. of Greensboro, N.C.
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