North Carolina Workers’ Compensation Fallout Forces Closure at Slim Jim Facility
On June 9th, 2009, an explosion at a Slim Jim plant in Garner, North Carolina killed three and injured dozens. A spate of North Carolina workers’ compensation claims were filed in the wake of the disaster, which authorities at the U.S Bureau of Alcohol, Tobacco, Firearms and Explosives now believe was caused by a defect in the natural gas piping system.
The Garner plant rebooted its operations shortly after investigators completed their work there and safety inspections had been performed. That said, the plant was hobbled and could only produce at half its former capacity. Since the Garner plant was the sole manufacturer of Slim Jim products in the U.S., the incident impacted the entire country’s dried meat industry.
The burden of paying 750 full time employees as well as North Carolina workers’ compensation benefits for the injured led management to take defensive action. On Friday September 18th, ConAgra announced that the company will slash 321 jobs at the plant. Layoffs will begin in November and will be based on seniority and experience with the company, according to reports. Workers currently receiving benefits will be forced to look to the state to provide their North Carolina workers’ compensation payments.
In addition to these cost saving measures, ConAgra has committed other resources to shoring up the plant, such as outsourcing some of its manufacturing to third parties and paying factory workers per hour worked (as opposed to per a standard forty hour workweek).
ConAgra to cut 321 at Slim Jim plant, Omaha World Tribune, Sept 18, 2009
Slim Jim plant lays off 300 after blast, UPI.com, Sept 17, 2009
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