Ohio to review if Wal-Mart reneged on tax deal

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March 28, 2009

Anonymous The Daily Independent Sat Mar 28, 2009, 03:05 PM EDT

COLUMBUS, Ohio — State economic development officials will check whether Wal-Mart Stores Inc. violated terms of a tax agreement by closing an optical lab and laying off 650 workers, a state spokeswoman said Saturday.

Ohio gave the world's largest retailer a $1.8 million job-creation tax credit in 2001 on the condition that the company create and maintain jobs at the facility in Lockbourne, which makes eyewear for vision centers in Wal-Mart stores.

Wal-Mart announced Friday that it will shutter the optical lab near Columbus to cut costs.

Kelly Schlissberg, a spokeswoman for the Ohio Department of Development, said the agency is reviewing its agreement with Wal-Mart to determine if the state can recoup money.

"We've spoken to the company and expressed our disappointment," Schlissberg said.

Wal-Mart won't comment on terms of the agreement but is willing to work with the state to resolve the situation, said company spokeswoman Daphne Moore.

The company's decision is the latest to prompt state officials to review tax incentives given to firms. Ohio also is reviewing the $1.15 million in incentives given to Skybus, a Columbus-based discount airline that abruptly filed for bankruptcy protection last year, Schlissberg said.

Bentonville, Ark.-based Wal-Mart says eyewear orders previously sent to Ohio will be dispersed to labs in Crawfordsville, Ind., Fayetteville, Ark., and Dallas.

"It's a shock," said George Wheeler, a seven-year employee at the Ohio facility. Wal-Mart had addressed rumors about the optical lab's future a couple of months ago, saying the facility wasn't going to close and jobs weren't going to be cut, he said.

"They just hired people six weeks ago, and we got raises last month," Wheeler said.

Karen Paulin, who had worked at the optical lab since it opened, said she's worried that she won't be able to find another job, especially one that pays the $16.50 an hour she was making at the Wal-Mart lab.

"I'm very angry because they dogged us out," she said. "They shut us down with no warning, no nothing. They didn't have to do this."

Wal-Mart said the employees who are being laid off will receive regular paychecks and benefits for the next 60 days and will be eligible for positions at area Wal-Mart and Sam's Club locations. Eligible associates will receive a severance benefit.

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Ohio to review if Wal-Mart reneged on tax deal

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