Another 2nd shift unlikely at Whirlpool

Barring a return of production from Mexico, it appears unlikely Whirlpool officials will boost employment at its Fort Smith manufacturing plant.

Sources tell The City Wire that Whirlpool Division Vice President Kenny Thompson has informed Fort Smith plant employees that when the second shift ends the company does not plan to add new shifts.

The Benton Harbor, Mich.-based Whirlpool Corp. will end a second shift of refrigerator production in late November. It’s unclear how many jobs will be cut when production is reduced on the 25-cubic-foot side-by-side refrigerator, but it was initially estimated the shift would employ at least 400.

According to sources, Thompson said Whirlpool will adjust to any future production increases by working 9-hour days and/or working six-day weeks. In its second quarter earnings report, Whirlpool said it expects full-year 2010 U.S. industry unit shipments to increase approximately 5% compared to the previous expectation of a 3%-5% increase.

Whirlpool denied the sources’ claims of not adding shifts to meet any future production increases.

“At this time, no announcement has been made yet,” noted a statement from Whirlpool.

The sources’ continue to say Whirlpool officials are reviewing the possibility of moving some production of the 22- and 24-cubic-foot refrigerators from a plant in Mexico back to Fort Smith.

The future of Whirlpool’s Fort Smith plant has been a cause for concern following the company’s November 2003 announcement of a global reorganization plan. Following the November 2003 news, Whirlpool made numerous production cuts and layoffs causing employment in Fort Smith to drop from about 4,600 in early 2006 to around 2,000 today.

Whirlpool continues to revamp and expand production in the U.S. The company announced Sept. 1 it would build a new $120 million manufacturing and distribution operation in Cleveland, Tenn., to replace a 100-year old plant the company now uses in Cleveland. The plant will manufacture cooking products and is expected to add 130 new jobs to the about 1,500 Whirlpool employed there.

Paul Harvel, president of the Fort Smith Regional Chamber of Commerce, said Arkansas and Fort Smith was not asked to compete for the Cleveland investment, but did stress that Whirlpool officials “know that we are always interested in their projects.”

The company says it will spend up to $85 million to renovate its corporate headquarters in Benton Harbor. Other recent investment announcements include $175 million in a laundry machine production plant in Ohio; $20 million to a refrigeration plant in Amana, Iowa; and $40 million on a new regional distribution center in Wilmer, Texas.