High workers’ compensation costs cited in closing of Quincy factory

The closing of a factory in Quincy, Ill., will leave more than 150 employees with uncertain futures. According to a recent report from The Quincy Herald-Whig, representatives of Quincy Compressor have announced that the factory will close in July 2015. Layoffs are expected to begin this fall. Despite efforts from union leaders and government officials...

The closing of a factory in Quincy, Ill., will leave more than 150 employees with uncertain futures.

According to a recent report from The Quincy Herald-Whig, representatives of Quincy Compressor have announced that the factory will close in July 2015. Layoffs are expected to begin this fall.

Despite efforts from union leaders and government officials to keep the factory open, Quincy Compressor President John Thompson said the factory is no longer viable.

“Unfortunately, the combined union and civic incentives fell short of the annual savings required to retain operations in Quincy,” Thompson said.

Thompson said the move to consolidate to one factory would lower operating costs for the company. He also cited the high price of workers’ compensation in Illinois as one factor in the company’s decision to close the factory.

The factory’s closure is the latest blow to Illinois’ manufacturing industry. Between 2003 and 2013, more than 130,000 manufacturing jobs in the state were lost.

Quincy Compressor plans to create more jobs at their factory in Bay Minette, Ala., but it remains unclear whether any of the Quincy factory employees will have the option to transfer to this facility.

Workers’ compensation costs have played a part in driving businesses away from Illinois in the past.

In 2012, Caterpillar Inc. decided against opening a new factory in Illinois. In an op-ed, Caterpillar CEO Doug Oberhelman pointed to costly workers’ compensation and other anti-business policies that influenced his choice.

With stories such as the Quincy layoffs coming all too often, it’s no wonder Illinois ranks dead last in the country for private-sector job growth in 2014.