SPRINGFIELD—Thanks to State Sen. Dave Koehler (D-Peoria), Rep. Michael Smith (D-Canton) and Gov. Pat Quinn, more than 1,000 employees at Keystone Steel and Wire in Peoria can sleep a bit sounder at night.

A new law, sponsored by Koehler and Smith, will help the embattled company recover from the current nationwide recession.

“Keystone has employed hundreds of Peorians for generations,” Koehler said.  “It’s a respected company with a demonstrated commitment to this community.”

Before the recession began, Keystone employed more than 1,000 full-time workers who spent their days manufacturing steel and wire—primarily for industrial uses.  As the economic slump dragged on, the company’s orders slowed.  In order to remain profitable, the company was forced to reduce working hours for some of its employees.  Though it has managed to avoid outright layoffs and continued to provide health insurance, Keystone now has less than 1,000 full-time workers.

“Keystone’s efforts to avoid layoffs and maintain health care for its workers are exemplary,” Koehler noted.  “Keeping people at work is good for everyone—the employees, the company and the economy as a whole.”

Unfortunately, losing employees has cost Keystone assistance from the State.  In the past, it benefited from a tax exemption available to businesses in enterprise zones that have more than 1,000 full-time employees.  Because the company now employs less than 1,000 workers on a full-time basis, it has lost its exemption.  This change is costing Keystone as much as $140,000 per month.

“In the midst of a recession, we need to make every effort to save and create jobs,” Koehler said.  “As of November, Peoria County had an 11.4 percent unemployment rate.  We need to put more people to work rather than let the county lose jobs.  The more people working, the sooner the recession will end.”

The new law, Senate Bill 328, will allow Keystone to continue to receive its tax exemption.  However, it has also set tough employment deadlines for the company.  The company must gradually return to employing 1,000 full-time workers by 2013 or it will again lose its exemption.