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

[RockChucker]

This isn't the only plant. Bosch, Steelcase (was the largest furniture manufacture in the world just 2 years ago), Siemens (my old employer), Herman Miller (another one of my former employers), Lear (as in Lear Jet), Butternut bread (Atkins diet victim), Lifesavers candy (used to be made here - moved to Mexico in 2001), not to mention the endless array of small service companies, construction firms, antique stores, etc, etc, etc.

[looscnnn]

And yet people on FR still defend NAFTA, etc.

[freeangel]

Keep it up unions--pretty soon they will have to move their union headquarters to Mexico too.

[rcofdayton]

With these closings, that's less members paying into the union coffers.

[Ophiucus]

Keep it up unions--pretty soon they will have to move their union headquarters to Mexico too.

That's the hope. The unions will head down there and organize....driving the jobs back here.

[11th Earl of Mar]

I would like to know what the negociations were between the city, the union and the company.

Also, Lifesavers moved to Canada, if I am not mistaken.

Steelcase did not close. They still employ thousands.

Herman Miller did not close. They still employ thousands.

Please post some evidence that either Steelcase or Herman Miller has moved any of their West Michigan operations to Mexico.

[looscnnn]

But more people going on unemployment.

[varon]

Lifesavers candy (used to be made here - moved to Mexico in 2001),

I believe Lifesavers moved to Canada..........lower sugar prices.

[Rebelbase]

9 replies and no one has posted it yet.

[jonno]

Does it make sense to pay a guy $15 or $20/hr to turn a screw?

Over-come and adapt - thats what living "free" is all about.

When you live "free" there are no guarantees.

[GoredInMich]

Not sure of the details of the negotiations, but had heard on local talk radio that the city/county had offered large tax abatements and to build a new plant, etc.

LifeSavers did move to Canada, not Mexico. Not 2001, but 2002-2003. HAd to do with cheaper sugar prices. Wanted to buy sugar from Havanna.

Steelcase is NOT moving to Mexico. They do indeed still employ thousands, although some of their production lines are now in Alabama.

Herman Miller, OTOH, is consolidating their mfg operations in Zeeland, which is thier hometown. Still employ LOTS of people, about 5000 or so.

[11th Earl of Mar]

Last year when Kraft Foods moved Lifesavers operations to Mount Royal, Quebec because of sugar prices.

[2banana]

So the big question - why?

1. Taxes too high?
2. Out of control regulations?
3. Unions killing the business?

[1rudeboy]

It was NAFTA, silly. Get with the program.

[The Great RJ]

It isn't the company's fault that these jobs are being sent to lower labor cost countries, it's the fault of consumers. Why consumers have the audacity to demand lower prices, more variety, selection and convenience in the products they buy. If they would just be content with whatever their local Mom & Pop stores could deliver at a fair price we wouldn't have all these businesses close.

Take those confounded cell phones--everyone is manufactured by foreign companies. What was wrong with good old Ma Bell and those reliable dial phones and real live operators to help us. Now all those people that used to work for the telephone company with good paying jobs are out of work, while we use those danged cell phones made by foreign companies. There ought to be a law.

[em2vn]

"Keep it up unions....."
You bet. Just look at what they did to Enron. Wait a minute that was the CEO and CFO at work. Well look at what the unions have done to the mutual funds industry. Wait again. That was the senior managers working their magic. How about the $600 millions stolen at Tyco. Who would guess? The CEO and CFO once again. Look what the unions stole from Perrigan. My bad. The CEO and CFO again into the fraud pot.
Do you really expect Americans to live in cardboard shacks so we can with Mexican wages.
You first Amigo. Personally I want the sewers running under ground, not down the middle of the streets.

[general_re]

I think it was because they suck. ;)

[nmh]

"Does it make sense to pay a guy $15 or $20/hr to turn a screw? "

For our entitlement folks, that makes perfect sense. Ideally the group of over priced labor needs to be head by a union so as to extort as much over priced labor as possible. Oh, and God forbid if they should be asked to do something else for a living!

In answer to your question - heck no! I don't care where it is made. If I like it and it's what I want to spend for an item, then I'll buy it. Nothing personal. Strictly a business decision just as moving products with over priced labor etc. elsewhere to be made.

[CSM]

"That's the hope. The unions will head down there and organize....driving the jobs back here."

Yep, let's hope that the inefficiencies are driven into the use of labor resources so that someday they will reach the same uncompetitive levels that we have here. Then we can move the "jobs" back. That will really help us be prepared for the anticipated labor shortage that we will have in 10-15 years!

[jonno]

So the answer is...send the CFO jobs south of the border?

I don't see your point.