Lexington is located almost in the center of the United States, surrounded by corn fields, grain silos and herds of cattle. The meat processing plant was opened in 1990, and ten years later it was taken over by Tyson Foods. This attracted thousands of workers carrying out various tasks, from cleaning to operating forklifts to working in the slaughterhouse.
The number of inhabitants almost doubled and the city flourished. New residential districts, recreation centers and a single-screen cinema were built. The education system has also developed. School officials estimate that nearly half of Lexington’s students have parents who work at the plant. Many Tyson Foods employees have lived in the city for decades. The AP describes Lexington as a place where the American dream was still attainable, where immigrants with no English and no high school education bought homes and sent their children to college.
Tyson Foods explains that it is closing the plant to right-size its beef operations. The reason is the historically low cattle herd in the US and an expected loss of $600 million in beef production in the next fiscal year.
The total number of job losses is likely to be 7,000, mostly in Lexington but also in surrounding counties, according to a report from the University of Nebraska at Lincoln. Annual losses for Tyson employees alone were estimated to be approximately $241 million, including wages and benefits.
The city will lose hundreds of families as many people will move out in search of new jobs. The exodus will likely lead to more layoffs in stores, restaurants and schools. Economists predict a domino effect: if a thousand or more families leave the city, school seats will be left empty, leading to teacher layoffs and local businesses losing customers.
Thousands of Tyson employees have mortgages, car payments, property taxes and college tuition. Many will not be able to meet these obligations without income. The situation is particularly difficult for older workers who do not speak English, have not completed high school and are not computer literate. Some people last looked for a job decades ago.
Many people, including the city’s mayor, hope that Tyson will put the plant up for sale and that the new company will provide jobs. However, this requires time and negotiations, and there is no guarantee that a comparable number of positions will be created. Mayor Joe Pepplitsch noted that Tyson did not have to pay city taxes thanks to a deal negotiated years ago. The company stated that it was examining the possibilities of changing the purpose of the facility within its own production network, but did not provide details or information about possible support for the local community.