Electrolux to close plant in Greenville

WoodTV ^ | 01/16/2004

[RockChucker]

Electrolux employees began arriving at the plant well before the scheduled announcement to learn the fate of 2,700 Greenville jobs. This morning at 7:30 those employees learned that Electrolux will close its Greenville plant.

Last Friday was to be the day, but the deadline was postponed one week to allow talks to continue between the company, the city and the union. This morning at 7:00 a.m. Electrolux was scheduled to make the announcement; however, company officials delayed that announcement until 7:30 a.m. When that announcement finally did come, it wasn't what anyone in Greenville wanted to hear.

That's just the city of Grand Rapids. Ice Mountain water bottleing plant, the largest in North America, will likely be shutting down... and they just built the plant 1 year ago.

Electrolux to close plant in Greenville

In a prepared release, Electrolux announced that some products manufactured in Greenville will be moved to a plant in Anderson, South Carolina, while other lines will be moved to a plant in Mexico. In the meanwhile, operations in Greenville will continue into 2005.

The company says that it carefully considered the city's proposal to keep the plant in Greenville, but that in order to remain competitive it must move operations to Mexico.

Electrolux says it lost 38 percent of its profits in the third quarter and it can save $81 million a year by shuffling off to Mexico.

For Greenville, this means the loss of 2,700 jobs and $437,000. That's about a 20 percent blow to its tax base. For the region, the overall economic impact each year will affect the service industry and Electrolux suppliers, amounting to $243 million. The numbers are daunting especially for Electrolux employees

[CSM]

That's funny. When were the concessions made? Answer: When the companies were already on their death beds. The concessions are made after a company no longer has the capitol necessary to modernize or incorporate new technology. I am familiar with these companies and their contracts. The unions work hard for inefficiency and they drive their own companies to uncompetitiveness. That is why the unions have such a hard time getting into new plants, the average Joe is beginning to wise up to the union scam.

You asked:
"Are you aware of any other industry in America that was so blind to improved manfacturing process as the steel industry?"

Yes, every industry that involves a union. To be more specific, look at the auto industry. The UAW will fight every possible technology to improve efficiency and increase flexibility in order to maintain their member numbers. At the same time they demand abortion coverage and company paid personal cell phones. The transplants are killing the UAW controlled manufacturers and that is killing the industry here in the US.

How about the transportation industry? What major technology advances have they adopted in the last 20 years? Dealing with the teamsters is tougher than dealing with mob thugs!

[looscnnn]

I am not advocating that kind of money, never have. I am very anti-union, I don't think anyone should be forced to join a union to work somewhere. Unions started out as a good thing, but have abused their "power".

I also do not agree that you just ship jobs out of the country. You can just hire people that are willing to work for less, there are plenty of people out of work that are willing to work for a lot less than $15/hr just to get food on the table.

[Free Trapper]

On 1/11/04,the Bake-Line Group shut down.There was no warning at all for the 1300 workers and was blamed on a chapter seven bankruptcy.

IIRC,they had seven different plants making cookies,crackers,etc.

Some of the plants have changed ownership several times in the last several years.

Keebler owned at least part of these plants just long enough to take the brand names of Famous Amos,Murray and "some" Girl Scout Cookies.

This hits close to home,for me and many friends.

A "lot" of the workers were Mexican in at least the one plant I'm halfway familiar with.

If anyone gets any word about the future of these plants,I'd appreciate a Ping.

[looscnnn]

Look what they did to Michigan autoworkers. The unions have chased a majority of the production out of MI. Sure CEOs and CFOs, etc. have done their share, but the unions are supposed to protect workers and their jobs not chase them away. That is not the case with CEOs & CFOs, their jobs are to run the companies. The dishonest ones do deserve to be punished, but to villianize all heads of companies because of a hand full of cases is wrong.

[looscnnn]

I remember a relative in the auto industry telling my folks that a contract with one of the big 3 required 2.5 people be hired per position per shift.

Also, that there were people that would come to the plant and sit in the cafeteria to see if any one called in sick, they did this on the clock. They would sit there and play cards for a few hours until they determined that they were not needed. Some would stay the whole shift.

[CSM]

It is sad that you are not exaggerating. I highly doubt that even 1 UAW member does 8 hours of work for 8 hours of pay. It would be closer to 5 or 6 hours of work.

[looscnnn]

Did people loose jobs in Sweden to have them moved here? Doubtful. They probably opened the plant to expand production and to have a "local" plant for units sold in the US.

[gulfcoast6]

Also don't forget the democrats, WHO gave us the excessive regulations on industry, the did. Who gave the high taxes on industries, they did.

[leadpencil1]

I know first-hand how a new procurement process for a very large state government agency was not implemented because the union had the final say. They could have streamlined the process with projected savings of over $40 million dollars per year (of taxpayer $'s I might add) but it was not done and instead, a room full of clerks continue to sit around pulling staples and moving piles of paper around, like they have been doing since 1960.

[ArGee]

I Happen to live in Greenville and know a bit about what I am saying versus the BS on this thread.

Nobody is challenging you facts, just any suggestion of what should be done about it.

I don't know why the company was sold to Electrolux, but I'm sure that the decision to sell wasn't easy. I'm also sure that receiving an offer from a foreign country to buy the factory was a far better choice than shutting it down. But that would not have been possible without the U.S. having a stance toward open trade borders.

As to the residents unwillingness to work for $4/hour, when the choice is between moving you company to Mexico or shutting down completely, it doesn't matter which you choose, the U.S. employees are screwed. There just isn't money in manufacturing commodities here in the U.S. There isn't money manufacturing wagon wheels either, but nobody complains about that because the covered wagon industry is history.

I don't mean to sound uncaring or unfeeling. The answer isn't to hold jobs hostage in the U.S., the answer is to retrain the workers. Smart workers saw the truth coming and found something else they could do a long time ago. Check out the movie "October Sky" when you get a chance.

It's tough when things change and change creates hardship. But the alternative is stagnation and death. Hardship isn't the ultimate evil anyway.

Shalom.

[ArGee]

Foreign plants were able to produce steel products at a greatly lower cost because of the development of more efficent equipment and process.

If you mean the Japanese, I think they were able to modernize because the U.S. rebuilt the country after WWII.

Shalom.

[Gritty]

We ship out good manufacturing jobs from here while millions of illegal alien laborers continue pouring across our borders to take what jobs we have left and soak up our taxes and benefits.

I have an idea. How about we sneak some of these 2,700 unemployed Americans across the Mexican border to work their old jobs down there? Vincente Fox couldn't complain about that, could he?

[CSM]

Your post is the least thought provoking post I have read on FR. Do you really believe what you typed, or did you forget the sarcasm tag?

[rintense]

Herman Miller has consolidated the majority of their operations to West Michigan.

[rintense]

Exactly true. In an economic downturn, companies begin to ax the things they don't need and can 'live with'. Usually the first thing to go is any downturn is office furniture expenditures. The office furniture industry began to see a downturn in 1998-99. And 9-11 just put the nail in the coffin.

[rintense]

Didn't they say they would save $80 Million a year if they moved to Mexico?

[rintense]

Ice Mountain water makes me pee too much. ;) And it tastes metallic. I still miss good old GR tap.

[Jerrybob]

Time to start making LAST ONE OUT OF MICHIGAN TURN OUT THE LIGHTS bumper stickers again.

Actually this is far from being a problem just in Michigan. How many million more jobs will be lost before the brilliant people in Washington DC decide that we're on the road to perdition here.

It all started at least 30 years ago when companies got sick of paying high wages to union members and started building factories in Mexico. Since then the jobs leaving this country have been like water over Niagra. We are headed for, I fear, a time that will make the Great Depression look like a Sunday afternoon in the park. I hope I am wrong.

[em2vn]

What you say is accurate. Germany would fit in there also. Even Brazil began to ship quality steel. It did it without the rebuilding dollars that Japan and Germany received. I think the management process that Doctor W.Edward Deamings taught the Japanese was instrumental in their success.
Our steel companies didn't take advantage of the modern equipment and process that was available, thought not funded by U.S. dollars.

[azhenfud]

"When were the concessions made? Answer: When the companies were already on their death beds. The concessions are made after a company no longer has the capitol necessary to modernize or incorporate new technology."

Right on! Let JUST ONE unionized corporation even hint of a profitable year, and the first demand comes from unions for more, more, more. Never once do they consider the BOSS is in BUSINESS to make a PROFIT, not just to furnish JOBS to open MOUTHS.