Plant Closings: New Roles for Policymakers

Abstract

Industrial plant closings pose significant policy concerns for state and local government officials. In response, policymakers have recently pursued a variety of proactive and interventionist strategies either to prevent a closing or to minimize negative consequences on a community. This article reviews various writings that describe two general strategies: a "hardball" approach in which policymakers use legal tools, such as closing notification laws and lawsuits, to alter a business's closing plans, and a "partnership" approach in which policy-makers work with a business firm, through financial or other forms of assistance, to prevent a closing or minimize negative consequences on the community.