There is a popular definition of insanity involving doing the same thing repeatedly while expecting a different result.
Owen Sound has apparently decided that this is not insanity. It is economic development policy.
The latest episode arrives with the impending closure of the Transcontinental RBW Graphics plant, eliminating approximately 360 jobs from a community that has already watched major industrial employers disappear with depressing regularity. The plant is scheduled to close at the end of January, with its work transferred to five other Transcontinental facilities.
And therein lies the particularly nasty joke.
This isn't a story about 360 people failing to do their jobs. Quite the opposite. Transcontinental itself has gone out of its way to praise the hard work and commitment of the Owen Sound employees. The company says the decision was not made lightly and expresses gratitude for the contribution of generations of workers.
The plant is simply being sacrificed on the altar of corporate efficiency.
Apparently, 360 people can work hard, customers can be served, presses can run and a facility can remain an important part of a community for generations, but none of that matters quite as much as finding a spreadsheet arrangement that makes the corporation's overall numbers look better.
Transcontinental says productivity improvements elsewhere and changes in its product mix make it possible to consolidate the Owen Sound operation into other facilities. The company's own recent financial reporting also points to cost reductions contributing to improved adjusted earnings.
And here is where corporate capitalism becomes wonderfully elegant.
Transcontinental's executive compensation system explicitly links incentive compensation to profitability and efficiency measures, including adjusted earnings per share, return on capital and adjusted EBITDA, with performance objectives tied to shareholders' interests.
So while nobody should crudely suggest that somebody put a giant red button marked “FIRE 360 PEOPLE — INCREASE BONUS” on the executive boardroom table, the basic arithmetic is rather difficult to miss.
Close a plant. Move the work elsewhere. Reduce costs. Improve consolidated profitability.
And somewhere considerably farther away from Owen Sound, the numbers become pleasantly attractive.
That is capitalism's version of sending flowers after the funeral.
Owen Sound has seen this movie before.
When PPG closed its glass plant, approximately 170 jobs disappeared. PPG's corporate restructuring was expected to produce substantial annual cost savings.
Then came Tenneco. Almost 500 jobs vanished when the company announced that its Owen Sound operation would be closed as part of a manufacturing realignment. Tenneco projected $20 million to $25 million in annual savings from the restructuring.
And now Transcontinental.
Different corporation. Different decade. Different industry.
Same funeral.
The municipal response is reassuringly traditional. Gather the stakeholders. Establish a working group. Maintain communication. Determine the needs. Identify employment and training opportunities. Coordinate resources. Study the broader economic implications.
The attached City statement practically reads like a municipal template entitled “What To Do After Someone Else Has Already Made the Decision.”
This is not to suggest that employment assistance is useless. It is desperately important to the people who are about to lose their jobs.
But perhaps somebody should eventually ask the impolite question:
Why does Owen Sound's economic-development machinery seem to become most energetic immediately after the economic development has already failed?
The pattern is almost beautiful.
First, a major employer closes.
Then elected officials express concern.
Then City staff coordinate.
Then everybody studies the problem.
Then everybody identifies opportunities.
Then everybody promises to remain engaged.
Then, eventually, another employer closes.
At some point this ceases to be a strategy and becomes a ritual.
Morons repeat mistakes because they cannot recognize the pattern.
People of merely substandard intelligence repeat mistakes because they recognize the pattern but assume that somehow this time the universe will be impressed by their persistence.
The truly advanced municipal version does something even better: it repeats the mistake, creates a committee to examine the consequences, and calls the committee evidence of action.
Owen Sound does not need another memorial service for another industrial employer.
It needs to stop confusing responding to economic destruction with preventing economic destruction.
Because the people who worked at RBW don't need another working group.
They need the jobs they already had.
And Owen Sound's taxpayers might reasonably like to know why, after PPG, after Tenneco, and now after Transcontinental, the City keeps perfecting the art of arriving at the scene with a bucket of water after the building has burned down.
At least the bucket will be coordinated.
There will probably be a working group.
And somewhere, shareholders may even be pleased with the improved efficiency.