Whirlpool Jobs Could Drop By January
by September 14, 2011 7:00 pm 53 views
The news continues to be less than optimistic about the future of Whirlpool’s massive production and warehousing facility in Fort Smith, with a source saying total employment could dip to 650 by January.
Employees at Whirlpool’s Fort Smith plant were told at least four things during companywide meetings held Sept. 7:
1. A new model line (Barracuda) considered for production in Fort Smith will not happen because of a downturn in appliance sales and a shift in consumer tastes related to refrigerator configuration.
2. Russ Fitts, a Whirlpool manager, was asked how long it would take to close the plant following such a decision. He replied that it would take several months to “build up a bank of inventory,” according to a source speaking with The City Wire. The point, the source noted, is Fitts did not reject the “plant closing” portion of the question.
“Don’t think that didn’t catch anyone’s attention. … A lot of employees simply think he confirmed what they (Whirlpool management) won’t talk to nobody about,” the source noted.
3. Whirlpool division chief Al Holaday is expected to make a decision no later than November about the future of the Fort Smith plant. Execs with Benton Harbor, Mich.-based Whirlpool would have to concur with any decision Holaday issues.
4. By early January, Fort Smith production will be scaled back to about 50% of the current rate, with total employment — to include salaried — to fall to about 650.
Whirlpool officials confirmed on Aug. 23 that “a study of options for the Fort Smith location” was underway. However, Whirlpool Spokeswoman Kristine Vernier would not comment on speculation resulting from the companywide meetings or the January employment figure.
“Update meetings were held recently to continue open communication with employees of our Fort Smith plant. These meetings are an important venue for employees to ask any questions they may have, and to receive open and honest answers during this very challenging economic time,” Vernier said in a statement. “We have made no new announcements regarding the plant. About six weeks ago we did announce that a feature upgrade project, which had been under consideration, would not move forward at the Fort Smith plant. In relation to employment numbers, there is no new information since we communicated with employees (and with you) in late August.”
Paul Harvel, president and CEO of the Fort Smith Regional Chamber of Commerce, said he has talked to Whirlpool officials and hopes to soon be able to meet with top Whirlpool officials in Benton Harbor or Fort Smith.
“We’ve been promised a face-to-face meeting with them (Whirlpool officials) before a decision is made,” Harvel said.
Whirlpool made production cuts and layoffs causing employment in Fort Smith to drop from about 4,600 in early 2006 to less than around 1,000 today. In 2010, the company cut about 850 jobs at its Fort Smith operation, which left the employee count at 1,020 hourly and 110 salaried workers at the end of November. Whirlpool employees in mid-August reported that another 300 job cuts are planned for January 2012. Whirlpool officials would only confirm 250 hourly and 20 salaried job cuts are being planned.
In the late August comment, Whirlpool also said appliance demand in North America has returned to “recessionary levels.” The company said in its second quarter earnings report that industry shipments in North America would likely decline in the 1%-2% range, a shift from the previous expectation of an increase between 2% and 3%.
Michael Tilley with our content partner, The City Wire, is the author of this report. He can be reached by e-mail at [email protected].