Shaw Closes Dade County Plant

And the damage is all over.

McMinn county loses 45 textile jobs at Allied Hosiery plant in Englewood.

Sequatchie county loses almost two hundred jobs as an engine plant closes in Dunlap.

Dade county takes a major blow... Losing it's largest employer in Shaw Industries.

And Chattanooga loses about 150 jobs making magazine inserts.None of it is good news.

But as we said.. The worst of it hits the city of Trenton.

Dade county has been working all summer to save Shaw's Number 76 plant.

But now they learn they've failed... Costing 440 local jobs.

AL SCRUGGS, SHAW HUMAN RESOURCES DIR. "we are making right now more than we can sell, so we're in over-capacity...and..this plant ..the decision was made to take this plant down..a very difficult decision."

The move was not a total surprise to the Shaw workers in Trenton. They know that Shaw boarded-up a similar plant in Stevenson, Alabama earlier this year. But the announcement this morning was costly to employees.

CHERYL CLARK, SHAW EMPLOYEE "all the bills, the insurance, the benefits..we had good benefits, Shaw takes care of its employees."

Trenton and Dade county leaders tried to head-off the closing. Four months ago, they offered to lower taxes and make other concessions if Shaw would sign an agreement to stay.

PETER CERVALLI, C OF C INDUSTRIAL DEVELOPMENT AUTHORITY "well, we had an agreement with Shaw...and the odd thing is that our attorneys..the Shaw attorney and our attorney were planning to meet today to formalize some of the language in the formal contract..the memorandum of understanding."

That's how surprised local officials were at the announcement.

ALAN WARD, CHAMBER OF COMMERCE PRESIDENT "the Chamber of commerce, downtown development authority, Industrial development authority are all going to team together with Shaw to to make sure these people get gainful employment ..That's our first goal."

In addition, Shaw says it will try to place some of those employees at other nearby plants...and sponsor job fairs. But, it may not help immediately.

CHERYL CLARK, SHAW EMPLOYEE "it's very hard right now..Christmas is coming up..I've two grandchildren I'm helping raise...it's very hard."

We're told that all of those employees should be eligible for the Governor's Work Ready program in Georgia.

It will many an opportunity to attend Northwest Technical College and train for a new job...with the state paying the tuition.

But, for now...those we spoke with say they will sign up for unemployment compensation.