Whirlpool job boost may be short-term (Corrected)

Whirlpool officials may soon formally announce — possibly as early as Thursday (Dec. 16) — the call back of more than 400 employees to work a second shift to begin production Jan. 25.

The City Wire first broke this news Dec. 8, with Whirlpool spokesperson Jill Saletta noting that a second shift was under consideration and that at least 400 employees would be needed for the shift. Paul Harvel, president of the Fort Smith Regional Chamber of Commerce, said Dec. 8 that the announcement from Whirlpool would be “very, very significant.”

The future of Whirlpool’s Fort Smith plant has been a cause for concern following the November 2003 announcement by Whirlpool of a global reorganization plan. The news since November 2003 has been troubling, with Whirlpool announcing numerous production cuts and layoffs that has seen employment in Fort Smith drop from about 4,600 in early 2006 to around 1,200 today. The last hit came in August, when the company cut about 40 salaried and about 250 hourly jobs.

Several sources familiar with the situation say Benton Harbor, Mich.-based Whirlpool Corp. was initially considering boosting work schedules to 12-hour days, with 6-day work weeks. Many employees are now working 10-hour days. Whirlpool employees were told Tuesday (Dec. 15) that instead the company will add a second shift beginning as early as Jan. 25, and will try to staff the 400-450 positions from a call back of laid off employees.

Attempts to contact Saletta for this story were unsuccessful.

The sources say finding the workers for the shift from the laid off pool will be difficult because those former full-time employees have either retired, moved on to other jobs, moved out of the area, or are seeking an advanced educational degree. Former Whirlpool workers who received federal Trade Adjustment Act funds to pursue a college degree can’t quit school or they will lose their right to future TAA funding, according to one source.

As a result, the company will likely seek new hires. And it’s possible the initial callback could exceed 450.

“They (union leaders) said they were going to call everyone back plus hire some more,” noted a source.

However, there is a potential downside to the production boost, according to an inside source. While Whirlpool is likely to publicly say it is committed to Fort Smith, praise the quality of products made in Fort Smith and praise the workforce, the expected boost in production may not secure the long-term future of the plant. In fact, the insider said Fort Smith managers are being told that corporate officers have said the called back employees may only work for six months.

The fear among plant management and hourly workers, according to the insider, is that Whirlpool’s corporate strategy may be to use the Fort Smith plant while the company retools and improves quality at its Mexico plants.

The insider said the top-mount refrigerator production in Evansville, Ind., — a plant Whirlpool recently announced it will close — will move to a plant in Monterrey, Mexico, and not Fort Smith.

Whirlpool’s plant in Ramos Arizpe, Mexico, is retooling to handle a new product, according to the insider, who added that part of Whirlpool’s Fort Smith production boost is to build up inventory while the Ramos plant is down. Also, production of the counter-depth refrigerators now in Fort Smith is expected to move to the Ramos plant beginning in the third quarter of 2010.

“Yes, I’m excited right now that people will get to work. I think it’s safe to say everyone is happy that we’ll have more people working and making money. But for the long term … I don’t see that (Whirlpool remaining open in Fort Smith). I am very cautious and very concerned about the long term future,” the insider told The City Wire.

One source discounted such fears, saying the Fort Smith plant is the best in the Whirlpool system with respect to production quality.