So how has IBP affected the Waterloo community since it located there in 1990? A U.S. General Accounting Office study found the county’s per capita income has risen and Medicaid costs have remained low since 1990. The GAO, the research agency of Congress, recently completed a study focusing on economic changes and school enrollment in meatpacking towns. The study found that Black Hawk County went from being ranked 55th in the state in per capita income in 1985 to 24th in 1995. GAO Assistant Director Charles Adams said, "In the case of Black Hawk County IBP brought jobs and they have a substantial payroll," and he went on to add, "One could conclude they have brought positive economic development and changes to the county." The GAO report came under attack by some people, including Professor Mark Grey. Grey cited many factors that cast doubt on how accurate the report was. He pointed out that manufacturing wages went down during the time period in which the GAO conducted its study. The GAO statistics also failed to take into consideration the fact that Rath Packing closed down in 1985 and John Deere laid off more that 9,000 workers in the early 1980s. INS District Director Jerry Heinauer in Omaha was disappointed in the GAO report, saying, "I thought they could have been more substantive and more specific, I thought some of the data they used was inconsistent." Grey criticized the use of 1990 census figures for the report. Although it was accurate, he claimed that since most minorities moved to Waterloo after 1990, the census figures were of little significance. While the GAO report was not without controversy, Adams believes that it can be useful because it provided a prospective that would dispel stereotypes.
The true impact of IBP probably will not be felt until the next decade, when minority children grow up and get jobs of their own. The UFCW also will play a key role in how the plant effects the community. IBP has recently been trying to change its image and this will also have an effect on what type of employer they are going to be in the future for Waterloo. No matter what one’s opinions of IBP are, this much is certain; IBP is a central part of the Waterloo community and has the ability to either help or hurt a countless number of people in it.
Edited by Andrea Curl
Fall 1998
