- A FIRST LOOK TONIGHT AT RESPONSE TO THE ANNOUNCEMENT
THAT KIMBERLY-CLARK WILL CLOSE TWO WISCONSIN MILLS IN THE
NEENAH AREA, MILLS THAT EMPLOY MORE THAN 60 PEOPLE.
KIMBERLY-CLARK MAKES MANY FAMILIAR ITEMS INCLUDING
DISPOSABLE DIAPERS AND PAPER TOWELING AND IS CURRENTLY BASED
IN TEXAS, BUT WAS FOUNDED IN WISCONSIN IN 1872.
LAST MONTH THE COMPANY ANNOUNCED IT WOULD LAY OFF MORE THAN 5,000
WORKERS GLOBALLY, CORPORATE OFFICIALS SAYING
THEY WOULD USE PROCEEDS FROM THE FEDERAL TAX CUTS
TO HELP PAY FOR PLANT CLOSINGS.
GOVERNOR SCOTT WALKER RELEASED A STATEMENT THAT READS IN PART,
QUOTE, RETAINING OUTSTANDING WISCONSIN COMPANIES LIKE
KIMBERLY-CLARK IS JUST AS IMPORTANT AS ATTRACTING NEW
COMPANIES TO OUR STATE, WHICH IS WHY I'M PROPOSING WE OFFER
LARGER TAX CREDITS TO ENSURE THE COMPANY KEEPS THOSE 600 JOBS
WHERE THEY BELONG, IN WISCONSIN.
THE GOVERNOR SAYS HE WANTS TO GIVE KIMBERLY-CLARK THE SAME
LEVEL OF JOB RETENTION TAX CREDITS AS WERE OFFERED FOXCONN,
17% OF COMPANY PAYROLL.
U.S. SENATOR TAMMY BALDWIN RESPONDED SAYING, IN PART,
QUOTE, THIS WEEK GOVERNOR SCOTT WALKER HAS PROPOSED ASKING
WISCONSIN FAMILIES TO PAY FOR TAXPAYER SUBSIDIES TO
KIMBERLY-CLARK AT A TIME WHEN PERMANENT CORPORATE TAX BREAKS
ARE BEING USED FOR A JOB LAYOFF PLAN.
THE PEOPLE I WORK FOR ARE ASKING HOW MANY TAX BREAKS DO YOU NEED?
THE NEWS OF THE KIMBERLY-CLARK LAYOFFS COMES AS A BLOW TO THE
MAYOR OF NEENAH, DEAN KAUFE.
I KNOW YOU'VE BEEN IN CONVERSATIONS WITH THE
GOVERNOR'S OFFICE ON THIS.
WHAT CAN YOU TELL US TONIGHT ABOUT KIMBERLY-CLARK COULD
IN FACT DECIDE TO KEEP THOSE WISCONSIN PLANTS OPEN?
- YEAH.
NEWS LIKE THIS IS NEVER GOOD FOR ANY COMMUNITY.
THIS IS REALLY KIND OF A PUNCH IN THE GUT FOR ME PERSONALLY AS
THE MAYOR OF THE COMMUNITY, WITH SO MANY FRIENDS AND FAMILY.
THIS IS A TOUGH ONE BECAUSE THIS IS THE BIRTHPLACE
OF KIMBERLY-CLARK.
I HAVE -- A FEW HOURS AFTER THE ANNOUNCEMENT I SPOKE WITH THE
GOVERNOR PERSONALLY, FIRST THE GOVERNOR'S STAFF
AND THEN THE GOVERNOR CALLED ME.
AND WE TALKED ABOUT, YOU KNOW, FINDING A WAY, DEVELOPING A
PLAN, LOOKING AT A WAY THAT WE CAN, YOU KNOW, --
WE GOT TO STOP THE BLEEDING.
WE GOT TO LOOK AT JOB RETENTION IN THIS STATE AND WE GOT TO SAY,
YOU KNOW WHAT, RETAINING JOBS ARE JUST AS IMPORTANT AS
BRINGING JOBS IN FROM OTHER STATES AND PARTS OF THE COUNTRY.
BECAUSE THESE ARE THE BACKBONE OF YOUR COMMUNITY.
- WHAT DO YOU KNOW ABOUT THE RESPONSE FROM KIMBERLY-CLARK
ITSELF AS TO WHETHER OR NOT THOSE KINDS OF INCENTIVES WOULD
IN FACT KEEP THOSE PLANTS OPEN?
- YEAH, I BELIEVE THAT THERE'S A CRACK IN THE DOOR.
AFTER TALKING TO KIMBERLY-CLARK EXECUTIVES, AFTER TALKING TO THE
GOVERNOR, WE BELIEVE THAT -- FOR SURE -- IF YOU READ
KIMBERLY-CLARK'S STATEMENT, IT SAYS IN IT -- IT SAYS IN IT THAT
ONE OF THE PLANTS, THE DECISION -- THE FINAL DECISION HAS NOT
BEEN MADE UNTIL CONSIDERATIONS AND NEGOTIATIONS WITH THE UNION
LABOR.
WE BELIEVE THIS WILL HELP THEM IN THEIR DECISION.
THEY'RE STILL GOING TO HAVE THOSE DISCUSSIONS WITH THE LABOR
PEOPLE, BUT WE THINK ADDING THESE TAX INCENTIVES FOR JOB
RETENTION, TYING THE DOLLARS TO JOBS IS REALLY IMPORTANT.
AS I READ SENATOR ROTH'S BILL,
THERE'S A FLOOR, I THINK IT'S $18.
SO THESE ARE REALLY GOOD JOBS.
AND SO, YOU KNOW, WE UNDERSTAND AND I UNDERSTAND
THAT THIS IS A SLIPPERY SLOPE.
BUT YOU KNOW WHAT?
WE'RE GOING TO HAVE TO LOOK AT THE ENTIRE PAPER INDUSTRY MAYBE
WHEN THE LEGISLATURE COMES BACK.
FOR RIGHT NOW IT'S IMPORTANT TO STOP THE BLEEDING.
YOU GOT 600 SKILLED WORKERS, TRAINED PEOPLE WHO ARE MAKING A
PRODUCT THAT IS USED WORLDWIDE AND WE NEED TO DO WHAT WE CAN TO
HELP THIS PARTICULAR INDUSTRY.
AND YOU KNOW WHAT?
IF WE TIE THEM TO JOB RETENTION, THE OFFSET, THE MONEY THAT
THEY'RE GOING TO BE SPENDING IN THE COMMUNITY, THE CAPITAL THAT
THEY'RE GOING TO PUT INTO HOMES AND BUYING POWER IS HOPEFULLY
GOING TO COME BACK TO THE STATE MORE THAN TWOFOLD.
AND THE ONE THING THAT I'M WORRIED ABOUT AND I TOLD THE
GOVERNOR, IT'S NOT JUST THE 600 JOBS.
IT'S THE SUPPLY CHAIN.
THINK ABOUT ALL THE COMPANIES THAT SUPPLY KIMBERLY-CLARK AND
OTHER COMPANIES THAT HAVE SHUT DOWN.
THEY'RE IMPACTED JUST AS MUCH.
- BUT IF THE CLOSINGS WERE A BUSINESS DECISION BASED ON
SALES, WHICH THE COMPANY SAYS ARE CHALLENGING, IN PART BECAUSE
FEWER BABIES ARE BEING BORN TO WEAR THEIR HUGGIES, WOULD
WISCONSIN TAX INCENTIVES MAKE UP FOR THAT?
- WELL, I THINK IT WILL.
AND IT'S JUST COMPETITION AND GLOBAL COMPETITION,
FOREIGN COMPETITION.
YOU CAN GO ON amazon.com NOW AND BUY DIAPERS CHEAPER.
KIMBERLY-CLARK, MAYBE THIS LITTLE BIT OF HELP WILL HELP
THEM DIVERSIFY THEIR COMPANY ALSO AND LOOK INTO OTHER AREAS
THAT AREN'T REFLECTIVE OF THE MARKET RIGHT NOW AS A DOWNSIZING
OF THE MARKET.
SO I THINK IT'S IMPORTANT.
CLEARLY KIMBERLY-CLARK IS STABLE.
IT'S A GOOD COMPANY.
THEY NEED TO MAKE A PROFIT FOR THEIR SHAREHOLDERS.
THEY NEED TO SHOW A PROFIT.
AND I THINK THEY NEED TO RETOOL THEMSELVES A LITTLE BIT AND
BECOME A MORE DIVERSIFIED COMPANY AND HAVING THESE SKILLED
WORKERS WILL ALLOW THEM TO DO THAT.
- DID THIS ANNOUNCEMENT FROM KIMBERLY-CLARK COME AS A
SURPRISE TO YOU OR THE STATE?
- THAT'S A GOOD QUESTION.
I THINK IT REALLY CAME AS A SURPRISE TO ME.
WHEN THE INITIAL ANNOUNCEMENT OF 5,000 JOBS, I DIDN'T THINK THAT
THERE WAS ANY WAY THAT THE -- WHAT'S REFERRED TO AS THE COLD
SPRING FACILITY, IT'S JUST OUTSIDE OF THE BOUNDARIES OF
NEENAH, BUT MOST OF THE PEOPLE LIVE IN NEENAH.
THAT FACILITY WAS BUILT IN I BELIEVE 1998.
IT'S HAD UPGRADES OF $19 MILLION.
IT'S A MODERN, STATE-OF-THE-ART TECHNOLOGY.
THE OTHER PLANT IS IN THE CITY LIMITS.
THAT FACILITY IS HOME TO ABOUT 110 EMPLOYEES, WHO THEY'VE KNOWN
FOR SOME TIME UNFORTUNATELY THAT THEIR PRODUCT
THAT THEY MADE WAS STRUGGLING
AND THAT THEY WERE LOOKING AT A POSSIBLE DOWNSIZING.
BUT THE COLDSPRING ROAD, THERE IS JUST -- IT BEFUDDLES ME A
LITTLE BIT ON WHY A FACILITY THAT'S SUCH STATE-OF-THE-ART
TECHNOLOGY, HAS A WORKFORCE THAT CAN -- YOU KNOW, IS SECOND TO
NONE IS BEING CONSIDERED FOR A SHUTDOWN.
- ALL RIGHT. WE NEED TO LEAVE IT THERE,
BUT OBVIOUSLY WE WILL BE FOLLOWING THIS.
MAYOR DEAN KAUFERT, THANKS VERY MUCH.
THE PAPER INDUSTRY AND INDUSTRY SYNONYMOUS WITH THE FOX VALLEY
HAS BEEN IN DECLINE FOR DECADES, LOSING 20,000 JOBS SINCE 2001.