State pushes Monaco to save some local jobs

by Nora Gathings (hsgathings@wsbt.com)

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State officials met with executives at Monaco Coach on Monday, July 21, 2008 to develop a plan to help the 1,400 employees who will be laid off in September. (WSBT photo)

By Jim Pinkerton

Story Created: Aug 1, 2008 at 7:42 PM EST

Story Updated: Aug 4, 2008 at 8:57 PM EST

WAKARUSA — After talk of widespread RV layoffs, there could be some good news. Monaco Coach says it will close its Wakarusa, Nappanee and Elkhart plants and lay off 1,400 people.

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But Friday, the state met with the company to discuss the possibility of keeping jobs in Wakarusa. The talks are not just about jobs, they are also about money.

The state gave Monaco Coach a tax credit to stay in Wakarusa and create jobs until 2016. Indiana's Secretary of Commerce Nathan Feltman says closing the plant, even for economic reasons, violates that agreement. He says the company must keep the plant and some jobs or pay the state $2.7 million, plus interest and penalties.

"We are all unemployed with nine kids between the two of us. It's kinda hard not having a job," said Sharron Harris, who's searching for a job.

It's a concern for 1,400 other people in Elkhart County who work at the Monaco Coach plants that are closing.

"Seems that's where all the money making is. It's real tough on the economy, especially this town, because that's all there is — RV companies," said Harris.

"Kind of a doom and gloom feeling, but any news right now is good news," said Kipp Barhydt, who lives in Wakarusa.

There is some news.

"There was the discussion this morning with Monaco that some of the workers may have opportunities at other locations in Goshen, Warsaw, and Milford," said Feltman.

The state is meeting with Monaco Coach to explore that option and another, which would involve a deal with International Truck in Elkhart.

"We would rather see the jobs stay here in Elkhart County," said Feltman.

But if Monaco closes its Wakarusa plant, it will break the terms of a 20-year contract and will have to repay the $2.7 million tax credit.

"We are hopeful there may be another opportunity," said Feltman.

Any opportunity is good news to Harris.

"If they could find better jobs for us to work, that would be awesome with the way the economy is going," she said.

The state says Monaco Coach does have the money to reimburse the credit, but the state says it is really fighting for more jobs.

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