Laid-off Utah workers whose jobs went to Mexico eligible for aid

Mike Gorrell

Oct. 8, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- About 120 employees of a shuttered Spanish Fork printing business have been deemed eligible for federal assistance because their jobs went to Mexico.

Laid-off workers from the RR Donnelley (NASDAQ:RRD) company operation can receive Trade Adjustment Assistance (TAA) after a U.S. Department of Labor official certified in late September that their jobs were "adversely affected by foreign trade."

The employees, including an unspecified number of temporaries from Kelly Services (NASDAQ:KELYA) , may apply individually for benefits through the Utah Department of Workforce Services.

They can receive the customary state aid given to workers laid off through no fault of their own -- employment counseling, tips on resume writing and interviewing skills, training in new occupational skills, help with job searches and job referrals.

In addition, the designation provides other forms of aid:

-- A "Job Search Allowance" that reimburses 90 percent of the costs, up to $1,250, of looking for a job outside of a worker's normal commuting area if none exists inside.

-- A "Relocation Allowance" that provides the same compensation if workers are forced to move to take a job.

-- Income support, in the form of extended state unemployment insurance benefits, of up to 78 weeks for workers in a TAA training program.

-- Eligibility for a health care tax credit, good for 65 percent of monthly health insurance premiums.

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Workers 50 and older who find a new job that pays less than what they earned at RR Donnelley can get 50 percent of the difference between their old and new wages, up to $12,000 over a two-year period.

Founded in 1864, RR Donnelley is a Chicago-based company that produces books, magazines, catalogs, retail inserts, telephone books and directories. In 2008, it had sales of $11.6 billion and nearly 60,000 employees worldwide.

But the recession has hit the company hard. RR Donnelley reported that net sales for the first half of 2009 were down almost 20 percent, while restructuring costs rose to $102.4 million (from $23 million in 2008) as it reduced its workforce by 2,882 people.

On June 30, company vice president of human resources Jan Hoover informed Spanish Fork City officials that its Utah operation was closing permanently on Sept. 1 because of the economic downturn and excess book-manufacturing capacity.

"While we deeply regret having to proceed with this plant closure, we believe this is a necessary business decision," Hoover informed Spanish Fork Mayor Joseph Thomas, noting that employees get severance pay, subsidized group health insurance coverage and professional outplacement services.

"The decision in no way indicated any dissatisfaction with either the business community or the quality of our workforce," he added.

The company filed a petition in mid-July seeking the Trade Adjustment Assistance designation. Labor Department certifying officer Elliott Kushner ruled Sept. 22 that its request met the act's three criteria, notably that "the shift in production of printed books and other printed materials to Mexico by RR Donnelley contributed importantly to the worker separations."

In all, the Labor Department determined 7,200 laid-off workers in 17 states were eligible for TAA aid.

mikeg@sltrib.com

Accessing benefits

RR Donnelley workers may apply for benefits through the Labor Department's One-Stop Career Center, which can be reached at www.servicelocator.org or 1-877-US2-JOBS (877-872-5627).

Newstex ID: KRTB-0192-38635093