Town says goodbye to good jobs
PETROLIA — A sleepy little town woke up after the Indspec Chemical Corp., a cornerstone of the borough of Petrolia, announced in March that it would be closing its chemical production plant.
With a population just over 200 people, the town relies heavily on industry to stimulate the economy, and Indspec is among three chemical companies that economically sustain the borough.
Dave Kelly of Bruin worked at Indspec for 37½ years. His brother worked there for more than 30, his father for more than 40 and even his mother worked in the cafeteria for a handful of years.
Kelly said he worked his way up to handling byproduct material, a job he held for 24 years.
Kelly enjoys eating lunch at the Centurion, a restaurant less than 100 yards from Indspec's front gate. He said the diner is a popular gathering place around town, and he hears that people are upset over the closing and the way it was handled.
“I've been seeing (former employees) here and there,” he said. “They were told to finish up their day, and then, they were done.”
Kelly said the void will be tangible. When production ceases, the plant will remain, silently sitting in clear view from the town's main road.
A reminder, like a gravestone.
Kelly said he fears the lack of jobs will be another reason for local youth to leave.
“It's hard enough to get on with these plants up here,” he said. “It's bad enough that there's not enough jobs for young (local) kids, and they have to move away.”
According to district officials, the Karns City School District expects to lose $40,000 in tax revenue from the 93 Indspec employees who live in the district, and it will add medical insurance to its budget for six district employees whose spouses worked for the plant.
While tax revenue seems like numbers in the air, more tangible evidence may be seen in enrollment numbers. The district graduated 127 students this year, but only 77 students signed up for the kindergarten program for next year.
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<h3>A shocking decision</h3>The plant began with layoffs shortly after the announcement, but kept part of the production open, planning to scale back again by the end of July, according to Ron Bowser, president of United Steelworkers Local USW 13300.Before the announcement, Indspec employed 220 people. After the first round of layoffs, 63 remained and will continue their work until July 31.There will be more layoffs at the end of July, and those who remain should have work until the plant officially closes at the end of September.“People believed there would be a reduction, but I don't think anyone anticipated this type of a conclusion.” Bowser said. “It's more abrupt than anyone expected.”Bowser said rumors about Indspec had circulated for years, but employees may have brushed them off thinking they were unique enough to persevere.“Based on the fact that we're the only plant in the U.S. that makes Resorcinol, we didn't think that they would totally shut the facility down,” Bowser said.<h3>Resorcinol not enough</h3>One of the products considered a linchpin for Indspec is its production of a chemical compound called Resorcinol.The compound is used heavily in medicine with a niche in treating a range of skin problems from psoriasis to acne. Manufacturers of sun block also use the compound as one of their UV blocking agents, and it is also the main ingredient in some adhesives and glues, specifically ones that bind rubber.Andre Salameh, Indspec's Petrolia plant manager, said the company has always had a great respect for the people of Petrolia, and during the first half of the 1900s the demand for Resorcinol was high, especially during wartime.“We do not discuss the financial details of our business decisions, but due to the oversupply of the plant's main product, Resorcinol, there was no viable business case to make the substantial capital investments that would have been necessary to make it more competitive in the global market,” he said.Salameh said attempts were made to make the plant more efficient in hopes of better competing globally, but the company could not avoid closing. He said the company tried to prepare its employees by keeping them aware of the worsening market conditions.“We have communicated the market conditions to our employees and the union for a number of years,” Salameh said. “As you can imagine, the decision to close the plant was incredibly difficult for everyone involved.”Salameh said he was equally shocked at the closing and has seen the company attempt to reach out and aid the workers with their futures. He said he also believes in the community's ability to rebound.“I have worked at the plant for 10 years, and I believe Petrolia is resilient and our residents and businesses will find a way to thrive,” Salameh said.The union submitted an application two months ago for the Trade Adjustment Act, according to Bowser.If after investigation, the loss of jobs are determined to be caused by global competition, then the workers are entitled to unemployment for two years while receiving assistance in the form of additional training and education in a similar or different field.The process could take as long as six months.“I would have to think that that would be a fairly easy case,” Bowser said.While it appears the company has made up its mind, the employees' futures are uncertain. Bowser said the law will help if their case becomes certified.“There's maintenance people that are going to advance their skills through this schooling if we get certified, and there will be others that will maybe go in a complete different direction, something they never did before that they'd like to try,” he said.<h3>A future for employees</h3>Bowser said the act will help with finding new work, but the hardest part of the closing for the employees will be the destruction of the family bonds the coworkers shared. Working alongside the same people for 10, 20 and even 30 years can have that effect.“It's a family scenario that's just imploded on you,” Bowser said. “You're going to lose part of your family, that's how we look at it; you work alongside each other, you know each other and everybody has to move on.”Bowser said the employees will be fine with the right help, but he's not sure how the closing will affect others dependent on the plant, like the suppliers, the railroad and even the other companies that are located in Petrolia. He said he knows this will have an impact on the entire community.“I'm sure the impact is going to be harder on the community than it is on my membership,” Bowser said. “The membership will go find jobs somewhere else, but the community is never going to get those jobs back.”Bowser said this is a sad situation, but it's happening across the country.“These corporations, it's about a bottom line. This community is going to be virtually destroyed by this, and the corporation is going to continue to profit and go elsewhere,” he said.<h3>Hurting local businesses</h3>With only a handful of businesses located in Petrolia, the economic burden of losing the foot traffic of more than 200 Indspec workers also could be difficult.Across the street from the plant, Harry Boltz, and his wife, Cinda, who is the borough council president, own a gas station and convenience store, Boltz's.Boltz worked at Indspec for 37 years, 32 of which he also was on the union committee. He retired six years ago. Cinda worked at the plant for 33 years. They have lived in Petrolia on and off for 45 years.“Petrolia's not a go-to destination,” Boltz said. “(The closing is) really gonna devastate the community.”Boltz said he expects a hit to his business when Indspec finally closes. He said he has seen the omens in the numbers in the months since the first round of layoffs. Now he watches with vigilance as he braces for the inevitable final results.“They didn't buy everything here, but they stopped here and were repeat customers,” Boltz said. “We haven't felt the full impact yet.”Boltz said good paying jobs are already hard to come by, and they also serve a greater purpose in the communities in which they are located.“They say one good paying union job keeps six to eight other jobs in business,” he said.Boltz said he is worried Indspec's closing will cripple the community and the area. He said he isn't sure anyone can stop this from happening, and with the factory building scheduled for demolition rather than sale, the future seems equally bleak.“They're still in shock,” he said. “I don't know if the community will stay on its feet.”Boltz said Indspec may leave quietly, but its impact will be felt like a shock wave. First it will be felt locally, then at the county level and possibly beyond.“Butler County is going to feel the effect of this place closing down.”
