Howard County officials say they hope that Giant Food Inc. workers at two Jessup facilities targeted for shutdown or sale may be able to find jobs elsewhere in the company or with other food industry employers in the county.
The supermarket chain - a major retail and wholesale presence in Howard County - announced plans this week to close or sell some of its facilities, including two in Jessup: its frozen-food distribution center and an ice cream manufacturing plant.
Barry F. Scher, a spokesman for Giant, said that about 100 employees will lose their jobs at the closing of the frozen-food distribution center. Giant officials have said that nearly 500 workers companywide could lose their jobs after the changes.
In making its announcement, Giant Food LLC said savings from closure of antiquated facilities will be used to spruce up Giant retail stores and build new ones, adding 250 new retail jobs throughout the company. Giant has several supermarkets in Howard County, including stores in five of the nine Columbia village centers.
Giant said it would continue to operate its dry grocery and perishable distribution centers, which include the 720,000- square-foot facility that opened in 2003 in Jessup.
"It's good news-bad news," said Richard W. Story, chief executive officer of the Howard County Economic Development Authority. "The ice cream plant has been a fixture at Jessup, but the closing comes as [Dreyer's Grand Ice Cream] is expanding just 10 miles down the road. I think [Giant workers] will be assimilated fairly quickly."
The Dreyer's expansion is one sign of an overall surge of redevelopment along Howard County's U.S. 1 commercial corridor. Today, Saval Foods, a food service business in Elkridge, is celebrating a groundbreaking for an expansion.
Columbia Council Chairman Joshua Feldmark had a cautious reaction to Giant's announcement.
"If it means more focus on doing the better with what they have, it is a good thing. But loss of jobs is never a good thing," he said.
An official with the union representing some workers and drivers at the ice cream facility described morale as low.
"They have told us that it would be sold and not closed," said Philip Giles, spokesman for Teamsters Local 639.
Giles added that some of the employees at the ice cream operation probably would be laid off with a new owner, but he hopes some would be absorbed.
"I'm personally saddened that the company feels these people who have this behind-the-scene work and the key to their success are no longer necessary to this operation," Giles said.
Other facilities scheduled to be closed are a health and beauty care distribution center and Giant's nonfood-products distribution center, in Landover.
Company officials said they would work with laid-off employees, offering retraining and helping them find jobs. "We have developed excellent severance packages," said Scher.
The nearly 70-year-old Landover-based company employs more than 25,000 and operates 203 stores in Maryland, Virginia, Washington, New Jersey and Delaware. It was bought in 1998 by Royal Ahold NV, a Dutch food company.
