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Electrolux to close plant in Greenville
WoodTV ^ | 01/16/2004

Posted on 01/16/2004 5:35:50 AM PST by 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


TOPICS: Business/Economy; US: Michigan
KEYWORDS: electrolux; layoffs; manufacturing
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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.
1 posted on 01/16/2004 5:35:51 AM PST by RockChucker
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To: RockChucker
And yet people on FR still defend NAFTA, etc.
2 posted on 01/16/2004 5:38:47 AM PST by looscnnn ("Live free or die; death is not the worst of evils" Gen. John Stark 1809)
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To: RockChucker
Keep it up unions--pretty soon they will have to move their union headquarters to Mexico too.
3 posted on 01/16/2004 5:39:54 AM PST by freeangel (freeangel)
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To: looscnnn
With these closings, that's less members paying into the union coffers.
4 posted on 01/16/2004 5:42:20 AM PST by rcofdayton
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To: freeangel
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.

5 posted on 01/16/2004 5:43:58 AM PST by Ophiucus
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To: RockChucker
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.
6 posted on 01/16/2004 5:47:19 AM PST by 11th Earl of Mar
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To: rcofdayton
But more people going on unemployment.
7 posted on 01/16/2004 5:49:02 AM PST by looscnnn ("Live free or die; death is not the worst of evils" Gen. John Stark 1809)
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To: RockChucker
Lifesavers candy (used to be made here - moved to Mexico in 2001),

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

8 posted on 01/16/2004 5:49:47 AM PST by varon
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To: RockChucker
9 replies and no one has posted it yet.
9 posted on 01/16/2004 5:50:45 AM PST by Rebelbase
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To: looscnnn
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.
10 posted on 01/16/2004 5:50:59 AM PST by jonno (We are NOT a democracy - though we are democratic. We ARE a constitutional republic.)
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To: 11th Earl of Mar
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.
11 posted on 01/16/2004 5:52:51 AM PST by GoredInMich
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To: varon
Last year when Kraft Foods moved Lifesavers operations to Mount Royal, Quebec because of sugar prices.
12 posted on 01/16/2004 5:55:19 AM PST by 11th Earl of Mar
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To: RockChucker
So the big question - why?

1. Taxes too high?
2. Out of control regulations?
3. Unions killing the business?
13 posted on 01/16/2004 5:57:45 AM PST by 2banana
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To: 2banana
It was NAFTA, silly. Get with the program.
14 posted on 01/16/2004 5:58:42 AM PST by 1rudeboy
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To: RockChucker
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.

15 posted on 01/16/2004 6:01:08 AM PST by The Great RJ
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To: freeangel
"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.
16 posted on 01/16/2004 6:01:59 AM PST by em2vn
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To: 1rudeboy
I think it was because they suck. ;)
17 posted on 01/16/2004 6:02:03 AM PST by general_re ("Consistency requires you to be as ignorant today as you were a year ago." - Bernard Berenson)
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To: jonno
"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.
18 posted on 01/16/2004 6:04:18 AM PST by nmh
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To: Ophiucus
"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!
19 posted on 01/16/2004 6:04:51 AM PST by CSM (Councilmember Carol Schwartz (R.-at large), my new hero! The Anti anti Smoke Gnatzie!)
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To: em2vn
So the answer is...send the CFO jobs south of the border?

I don't see your point.
20 posted on 01/16/2004 6:05:52 AM PST by jonno (We are NOT a democracy - though we are democratic. We ARE a constitutional republic.)
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Comment #21 Removed by Moderator

To: general_re
My mom has an Electrolux, and it sucks well. But you have to order replacement bags (can't find them in a store). What sort of a business-plan is that?
22 posted on 01/16/2004 6:06:40 AM PST by 1rudeboy
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To: RockChucker
Now that's what I call a giant sucking sound!
23 posted on 01/16/2004 6:08:08 AM PST by Fester Chugabrew
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To: 11th Earl of Mar
True.... the Lifesavers is in Canada.

And SCS and HMI are 1/2 their former selves and mostly just fired people, though they have a facilities in Mexico they have yet to really make the move.

SCS has hinted at moving off shore and keeping their HQ in Grand Rapids.

I was more appalled at the manufacturing downturn in West Michigan. I don't have answers.
24 posted on 01/16/2004 6:09:03 AM PST by RockChucker
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To: em2vn
The unions cause much more damage than if you add up all of these extreme cases you list. The auto industry is a great example, if you compare efficiency, the UAW plants take 2 times as long to assemble a car than the non UAW plants. That is killing the American auto companies. At the same time, they demand garunteed jobs and job growth. The ultimate goal of all unions is to be the least efficient labor resource available and to set up a contract that does not allow the company to become more efficient. All that does is make that company uncompetitive and it will eventually be killed by the more efficient company. The end result is the loss of ALL of the union jobs!
25 posted on 01/16/2004 6:09:38 AM PST by CSM (Councilmember Carol Schwartz (R.-at large), my new hero! The Anti anti Smoke Gnatzie!)
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To: rcofdayton
With these closings, that's less members paying into the union coffers.

And more in unemployment lines taking more of my tax money.
Sorry, I would rather the $$ go to the unions than out of my pocket.
26 posted on 01/16/2004 6:12:26 AM PST by newcats
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To: Willie Green
Flashing lights, Willie! Time to update your 'sky is falling' alert!
27 posted on 01/16/2004 6:15:11 AM PST by harpu
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To: em2vn
You do have a point that in recent years greedy ceo's and money managers have been able to bilk investors out of a whole lot of pesos. And I rather liken them to the unions and their greedy managers who have been doing that to companies(and their investors) for a whole lot longer. I saw them destroy the steel city and I have seen them destroy the education system in this country so that many of our children are about as educated as the ILLEGALS who are being invited to stay. I have as much respect for unionsm as I do a rat turd.
28 posted on 01/16/2004 6:15:33 AM PST by freeangel (freeangel)
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To: RockChucker
I guess they could stay put and go out of business. It seems like a no win situation.
29 posted on 01/16/2004 6:15:54 AM PST by leadpencil1
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To: 1rudeboy
I think it's the cachet of their "deluxe" brand - you have to mail-order bags because it's a "premium" cleaner. LOL. Maybe they have the bags at Saks or Lord & Taylor or something ;)
30 posted on 01/16/2004 6:16:59 AM PST by general_re ("Consistency requires you to be as ignorant today as you were a year ago." - Bernard Berenson)
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To: RockChucker
Electrolux to close plant in Greenville

That sucks.

(Was I the first to say it?)
31 posted on 01/16/2004 6:17:53 AM PST by Xenalyte (I may not agree with your bumper sticker, but I'll defend to the death your right to stick it)
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To: Xenalyte
Remind me to ping you when I find a story on lay offs at The Bunny Ranch
32 posted on 01/16/2004 6:19:43 AM PST by Hegewisch Dupa
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To: jonno
The point is clear. Hourly employees have a vested interest in the success of a company. Where as, the current crop of senior executives, in a general sense, clearly show concern only for their immediate financial gain without regard for the long term effect on the nation, the company or the employees.
The same sentiment is expressed by those fools who says they only purchase according to price without considering the source of the item. Those who purchase from communist China when an American product of equal or greater quality is available, only provide the commnists with further encouragement to continue in their murderous, communist ways. Every dollar spent on a communist chinese product is another dollar used to provide the communist military with ammunition in the drive for would domination.
33 posted on 01/16/2004 6:21:01 AM PST by em2vn
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To: RockChucker
It is the office furniture industry.

Office furniture is the most descretionary expense some companies have. On a remodel job, a company can wait a long time before getting rid of "outdated" furniture.

34 posted on 01/16/2004 6:22:05 AM PST by 11th Earl of Mar
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To: leadpencil1
Actually, they were profitable. It's just that they are MUCH more profitable in Mexico.

Eventually, they would become less profitable as their competitors (who already are in Mexico) lowered the prices.

That's the prob.
35 posted on 01/16/2004 6:22:53 AM PST by RockChucker
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To: em2vn
Every dollar spent on a communist chinese product is another dollar used to provide the communist military with ammunition in the drive for would domination.

How are you going to remove the "communist" component from your car,TV, camera, coffee maker etc..?

36 posted on 01/16/2004 6:24:23 AM PST by leadpencil1
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To: looscnnn
And yet people on FR still defend NAFTA, etc.

While there may be problems with globalism, they should not be discussed on a thread about an Electrolux plant closing.

Electrolux isn't an American company. The plant only existed in the first place because of globalism.

I wonder if people in Sweeden were complaining about "that giant sucking sound" when the Greenville plant was opened?

Shalom.

37 posted on 01/16/2004 6:24:33 AM PST by ArGee (Scientific reasoning makes it easier to support gross immorality.)
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To: RockChucker
Also, the ICE MOUNTAIN water bottling plant?

Are you referring to the Big Rapid's water plant what was shut down because of environmental pressure regarding "stealing of ground water"?
38 posted on 01/16/2004 6:26:57 AM PST by 11th Earl of Mar
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To: The Great RJ
What was wrong with good old Ma Bell and those reliable dial phones and real live operators to help us.

Not only that, but those phones had cords. You didn't have to worry about losing anything because the handset was connected to the base and the base was connected to the wall. If the phone rang you always knew where to find it. Now, when my phone rings I have to look all over for it.

It's those furreners ruining everything, that's what it is. Close the borders, buy American, and put cords on your phones!

Shalom.

39 posted on 01/16/2004 6:28:11 AM PST by ArGee (Scientific reasoning makes it easier to support gross immorality.)
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To: Hegewisch Dupa
Please do - I have four great jokes just waiting for that thread!
40 posted on 01/16/2004 6:28:13 AM PST by Xenalyte (I may not agree with your bumper sticker, but I'll defend to the death your right to stick it)
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To: 11th Earl of Mar
Yes...

I wish I could edit my posts.

That line was mine, but I was cut'n'paste'n and it got dropped in the wrong spot.

That plant provides employment in one of the more impovershed areas of Michigan. It is super-huge.

It only pulls as much water as a town the size of 15,000. No more than most other towns in the area.
41 posted on 01/16/2004 6:31:11 AM PST by RockChucker
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To: freeangel
"Keep it up unions--pretty soon they will have to move their union headquarters to Mexico too."

Not a bad idea - wish we could drop that in their suggestion box.

42 posted on 01/16/2004 6:32:03 AM PST by azhenfud ("He who is always looking up seldom finds others' lost change...")
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To: RockChucker
I don't see how the water plant is a NAFTA issue.

Enviro-extremist issue, yes. NAFTA, no.
43 posted on 01/16/2004 6:34:54 AM PST by 11th Earl of Mar
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To: 11th Earl of Mar
"Enviro-extremist issue, yes. NAFTA, no."

There ain't no environmental issues in Mehico, Padre. NAFTA say you come to Mehico, you have no worry, you have no regulations.

44 posted on 01/16/2004 6:38:13 AM PST by azhenfud ("He who is always looking up seldom finds others' lost change...")
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To: ArGee
I Happen to live in Greenville and know a bit about what I am saying versus the BS on this thread.

First the Local, State and Feds put together a package that would have created a renissance zone that the company could have built a new state of the art factory across town on a city bypass, in an industrial park.
Along with many other tax breaks that amounted to about 4 million in savings per year.

The Company said it needed to save 81 Million PER YEAR to stay. They lost their competitiveness becuase it major competitors are already in Mexico. The showed a profit last year, this all came about this year. There was nothing I repeat NOTHING the employees could do short of working for 4 dollars an hour that would have changed Electrolux's mind. Because that is what they pay their Mexican workers in Juarez.

Further, the Employees that some of you rail against took it up the hinnie a couple of years ago with a two tear pay scale that limited the top of what the younger employees could make. Seems to me it was like about 2-4 dollars an hour difference along with increased insurance costs. These folks didn't get rich working there.

And finally AB Electorlux didn't build a freaking thing in Greenville. They bought the Business from White Consolidated (Frigidaire) who purchased it from the Gibsons who started the factory back in the 20-30s.
This was an American company that was purchase by a Foreign company. The Owners and Employees of Greenville, MI built that business Not some swiss vacumn company.

Also, the Fighting Falcon an Aircraft that carried many US service men During the Invation of Normandy was built in Greenville IN THAT PLANT.
45 posted on 01/16/2004 6:39:59 AM PST by Area51 (I was captured by the thought police, they don't like Aliens....So I am baaaaaaaaaaaaack!)
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To: RockChucker
Eventually, they would become less profitable as their competitors (who already are in Mexico) lowered the prices.

Something I've noticed though,is that prices aren't lowered when a company moves out of the U.S.The company makes more profit,but we,the consumer,don't see a reduction in price.I'm willing to bet that Electrolux will not reduce the price on their products either.

46 posted on 01/16/2004 6:40:24 AM PST by quack
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To: azhenfud
We are talking about Big Rapids, Michigan.

The only Mexicans up there are apple pickers.
47 posted on 01/16/2004 6:41:40 AM PST by 11th Earl of Mar
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To: RockChucker
Agreed. And if there was a CEO saying that, despite losing market share and declining revenue, the company has decided to stay put untill the bitter end, it would be bye bye CEO and hello chain saw Al.
48 posted on 01/16/2004 6:43:24 AM PST by leadpencil1
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To: freeangel
You seem to know a good deal more about rat turds than I do. However, I think your take on unions makes as much sense as playing with anything a rat has dropped on the floor.
The steel city didn't die off because of the unions. That death was caused by management failing to spend the money on modernization. Foreign plants were able to produce steel products at a greatly lower cost because of the development of more efficent equipment and process.
If you remember the steel workers made great wage and benefit concessions. Nothing they could have done would have made up for the out dated equipment used in most U.S. steel plants.
Your take on the teachers union clearly shows what can happen when a union fails to realize that its purpose is only to work for the members welfare. In the case of the teachers union, it has given itself over to every left wing and feminist scheme that has ever surfaced. Add that to the fact that school administrators are over populated with a Phd plague, foisted onto us by the education industry at our colleges and universities and you find a basis for the decline of public education in America.
49 posted on 01/16/2004 6:45:26 AM PST by em2vn
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To: 11th Earl of Mar
Wrong, we have a growing population of both Legal and Criminal Invaders-soon to be amnestied!

Grand Rapids is an area were the Mexican population is rapidly increasing. The past few years the Mexican Gang problem has risen its ugly head.
50 posted on 01/16/2004 6:45:28 AM PST by Area51 (I was captured by the thought police, they don't like Aliens....So I am baaaaaaaaaaaaack!)
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