Public, Private Sector Rift Keeps Escalating
Around 230 workers lost their jobs last week at eSolutions, formerly Bush Industries, near Jamestown. P-J file photo
Chautauqua County is well known for its north-south divide that has been evident for more than a century. It is a tiresome and defeatist attitude that residents in Dunkirk-Fredonia and Jamestown cannot work as one more often.
In recent decades, efforts by the CHQ Chamber, the Chautauqua Sports Hall of Fame and — two years ago — the United Way have worked to solidify a consistent, harmonizing message that resonates in all directions. Ultimately, for a population of 124,000, we’re stronger when we are together, not separated.
Within the last month, however, another divide has been in the headlines. It spotlights the differences between the private and public sectors.
Last week, more than 230 employees lost jobs at eSolutions outside the city limits of Jamestown. Formerly known as Bush Industries, rumblings had started days earlier that the plant was on shaky ground.
“We are very disheartened regarding the recent announcement by eSolutions Furniture, formerly Bush Industries, that communicated they are dissolving the company resulting in the closing of their Jamestown furniture plant in the Town of Ellicott,” said County Executive PJ Wendel and Mark Geise, chief executive officer of the IDA. “The County of Chautauqua Industrial Development Agency has been aware of the major challenges facing the business, and has been working proactively with them for nearly a year trying to identify a path forward that would prevent a full closure from taking place.”
This was a case of having high local property taxes or a hostile state environment that has led to so many businesses closing in the region through the years. Instead, eSolutions financial position has worsened since 2021. It faced additional pressure starting in 2024 due to the imposition of tariffs by the U.S. government, postpandemic reductions in consumer demand, increased competition from offshore competitors and ongoing cash constraints. Bankruptcy became an option after eSolutions was unable to make any interest payments to its lenders for over a year.
On the same day workers were losing jobs, a letter was sent by state Sen. George Borrello and Assemblyman Andrew Molitor to Dunkirk Common Council members to establish an updated Fiscal Recovery Act. Dunkirk’s fiscal follies from 2020 to 2024 were downright disgusting — occurring with a dominant and careless Republican council and Democratic mayor — making it fully bipartisan.
Elected officials for five years were ignorant to the fact the municipality was bleeding cash. Council members also were guilty of being greedy with American Rescue Plan Act funds by giving themselves and the employees an unforgivable bonus that totaled $300,000 in 2021.
On the advice of its elected treasurer, who was charged with corruption in January with the theft of $120,000 in city funds — and maybe hundreds of thousands of dollars more, the municipality borrowed $5.5 million due to cash-flow issues in 2023 so it could make payroll and pay the bills. Yet those who backed that funding never looked or asked for a financial spread sheet.
Its penalty for all these major missteps? New York state bailed them out with a $13.7 million loan last summer with an interest rate of 7.5%. Even after all the borrowing, it’s nowhere near better.
Dunkirk is almost broke. But unlike private business and eSolutions near Jamestown that close, poorly run municipalities — like the battery bunny — just keep going by riding on the backs of already overtaxed residents.
So while 230 individuals are no longer showing up for work in the south county, unions in Dunkirk were complaining about contract issues in an already impoverished municipality.
In the private sector, a job can be here yesterday, gone today. In the public sector, the job — no matter how great the population or revenue decline — is here at present and tomorrow.
No one is disputing the dedication of any workforce, but Chautauqua County is highly reliant on taxpayer dollars for its economy. In 2020, according to a report, the government and schools sector was at the top of all jobs with 9,834 — or 19% of all workers.
For a region to flourish, the private sector is supposed to be the engine. That is not the case often in Western New York. It also is the reason Dunkirk is in so much trouble.
For its $30 million budget, where are new revenues coming from? There is no recent private investment. That has been stagnant.
But over the last five years, city payroll — according to seethroughny.net — went from $9 million to $10.2 million. That’s an increase of 13.3%.
For the record, that is nowhere near the skyrocketing rise over the same time period for Chautauqua County’s workforce — from $56.2 million to $75 million, a 33.4% hike. No wonder Dunkirk’s staff believes it is being shortchanged.
But a reality check is definitely warranted. If public-sector union officials — especially those who visited the Dunkirk council from out of town more than two weeks ago — think they have it tough, maybe they should commiserate with those who were at eSolutions.
Those individuals are facing real pain. Yet no one stood up for them.
John D’Agostino is the editor of The Post-Journal, OBSERVER and Times Observer in Warren, Pa. Send comments to jdagostino@observertoday.com or call 716-487-1111, ext. 253.






