(The Center Square) – Illinois state Sen. Chris Balkema says Tyson Foods’ decision to close its Joslin beef processing plant is another warning sign that Illinois needs to improve its business climate.
Tyson announced the closure as part of a restructuring of its beef operations, affecting more than 2,500 Illinois workers and shifting production to facilities in Nebraska, Kansas and Texas. Tyson has pointed to historically low cattle supplies and losses in its beef business.
Balkema said companies ultimately have to make decisions based on where it is most financially beneficial to operate.
“When they make those restructuring decisions based on market indicators, business environment, they look at where it costs the least to produce their goods and services,” Balkema said. “In this case, Illinois clearly did not make that list.”
“Illinois is lagging all of its Midwestern counterparts,” he added.
Balkema said he does not fault Tyson for the decision.
“I’m not faulting Tyson whatsoever. They have to make those business decisions,” he said.
Instead, he placed responsibility on state policymakers to make Illinois more attractive to employers.
“We, the Illinois State General Assembly and the governor’s office, have to create the climate that is good for large and small businesses to be in Illinois, not continue to put together brick walls under a climate that pushes businesses away,” Balkema said.
Asked what policy he would change, Balkema pointed to Illinois’ Climate and Equitable Jobs Act, or CEJA.
“A very simple solution would be to walk back part of the Climate and Equitable Jobs Act,” he said.
Balkema argued that Illinois’ energy policies could discourage investment and drive up costs for businesses.
“And we’re going to see that continue to be the case where natural gas and coal is going to go away because the law says it has to,” he said. “Then we in Illinois are going to be faced with higher and higher energy prices.”
Balkema also rejected the argument that Tyson’s decision is primarily the result of a national cattle shortage.
“Tyson’s not closing their doors,” he said. “They are simply redistributing their production to other states that are more business friendly than we are.”
“We are faced with the fact that too many rules and regulations, too much red tape in Illinois, too high of energy costs are what’s driving businesses away,” he added.
Balkema expressed sympathy for the workers losing their jobs and urged them to vote for lawmakers they believe will improve the state’s economic environment.
“My sincere sympathies go out to those folks that are losing their jobs,” he said. “It is a terrible position to be in.”
“We need to incentivize Illinois so that companies can make good financial decisions and keep production and increase production here in Illinois,” Balkema said.
Despite his criticism, Balkema said he believes Illinois can turn its economy around.
“We’ve got so many things going for us,” he said. “We can grow our economy and we can shine.”
