Whirlpool layoffs in Fort Smith total 850

Whirlpool Corp. has confirmed that two rounds of recent layoffs have resulted in 850 indefinite job losses at its Fort Smith operation, and leave the employee count at 1,020 hourly and 110 salaried workers.

Confirmation of deep layoffs came Aug. 18 when company officials confirmed that production would be reduced on the 25-cubic-foot side-by-side refrigerator made at Whirlpool’s Fort Smith plant. At the time, a union bulletin indicated that production of counter-depth refrigerators would end Oct. 11 and second-shift production of 25- and 27-cubic-foot models would “tentatively” end Nov. 29.

Company officials said Tuesday (Nov. 23) that 260 employees were laid off in October and 590 in November.

"As confirmed in September, we have implemented layoffs this month due to soft demand for the products made at our Ft. Smith facility, which is typical this time of year,” Whirlpool spokeswoman Jill Saletta said in a note to The City Wire. “We must continue to adjust to changes in market conditions, including seasonality. In fact, we announced layoffs at this time in 2009, and then as needs changed, hired back hundreds of workers in early 2010."

Benton Harbor, Mich.-based Whirlpool has made numerous production cuts and layoffs causing employment in Fort Smith to drop from about 4,600 in early 2006 to less than 2,000 today. The global appliance maker employs about 67,000 around the world.

On Oct. 27, Whirlpool Corp. posted third-quarter net income of $79 million, down 9.1% compared to the same quarter of 2009. However, the company’s net income for the first nine months of 2010 is up 92.2% over the 2009 period.

Unfortunately, Whirlpool is not the only large area manufacturer with decline employment.

The Trane manufacturing plant in Fort Smith is expected to have about 205 job losses by the end of 2010. The company employed about 455 in early 2010.

Southern Steel & Wire, a longtime member of the Fort Smith manufacturing community and a vendor to Whirlpool, has announced it will end production at its Fort Smith plant beginning Dec. 22.

“As a result of this cessation of production operations, 117 employees will be permanently laid off with the majority leaving in the anticipated 14-day period from December 22, 2010 through January 5, 2011,” noted a letter dated Oct. 22 from James Echols, corporate director of human resources for SSW Holding Co., to Fort Smith Mayor Ray Baker.

Rheem Manufacturing announced Oct. 26 that it planned a seasonal layoff of approximately 100 employees beginning Oct. 29. However, Rheem has a history of bringing back many of the employees affected in the seasonal layoffs.

Fort Smith’s manufacturing sector employed an estimated 21,100 in October, down from an upwardly revised 21,300 in September, and down from the 21,500 employed in the sector in October 2009. Employment in the sector is down 31.27% from a decade ago when January 2001 manufacturing employment in the metro area stood at 30,700. The complete October Fort Smith metro jobless report will be released Dec. 7.