Exporting America’s Middle Class Out of Iowa

Can a community that has no manufacturing base sustain a middle class?

Electrolux is closing its Iowa operations and with those closings taking 850 jobs to a place called Juarez, Mexico. On the news tonight they showed workers upset over the introduction of a security company checking lunch pails for probably weapons. That’s a good thing really. Because if I worked there for 20 years and just had the rug pulled out from under me I might consider going to work with a loaded revolver. So the rest of you workers calm down about the security and focus on the real problem, Congressmen and Congresswomen taking campaign contributions from companies that afterwards ship jobs overseas or out of this country. What the workers need to do is demand an answer, the real answer, as to why these jobs are being shipped out of this country. It seems our Congress is either powerless, mindless or bought and paid for when it comes to shipping jobs outside of this country.

“Politics is a pendulum whose swings between anarchy and tyranny are fueled by perpetually rejuvenated illusions.” Albert Einstein

The Schedule: Electrolux in Jefferson, Iowa is moving 850 jobs to Mexico by 2011. The Electrolux Major Appliances North America operations are consolidating its North American laundry manufacturing into one facility in Juarez, Mexico. The Webster City operation will close in the first quarter of 2011 and the Jefferson, Iowa satellite facility in the fourth quarter of 2010.

Here is a quote from the MSNBC story Electrolux To Move 850 Jobs to Mexico:

“This was a difficult but necessary decision,” said Frank Wagner, Vice President, Operations, Electrolux Major Appliances North America. “Electrolux is aware of the impact this decision will have on our employees and their communities. The company will be taking steps to assist employees with this difficult transition and will work with local and state officials to ensure that all training resources are made available to our employees.”

That’s an understatement and no Frank I don’t think it was a difficult and necessary decision. Electrolux just announced its 3rd quarter profit showed a 93% rise even though in general there is weak demand for appliances. Electrolux 3Q profit rises 93 percent, October 26, 2009 The most difficult part of this decision is how all of you get out of town with your skin intact. You just took 450 jobs in Spain last week and sent them where? And that’s the reason for the security at the plant. Your brain tells you this isn’t the right thing to do but for whatever financial reason 850 Iowans get shafted and lose their jobs. They give you years of their sweat, blood and tears and what are you giving them in return. Nada.

I see Kelly Ripma is your spokesperson. How about if we not just boycott what you make but also what she sells. As she says in the ad for winning a double wall oven, that sounds like the way to “plan the perfect party.” Like I said, no wonder you have beefed up the plant security.

Do you think we don’t know this game? Did you forget that Newton, Iowa most recently lost over 2,000 jobs when Maytag closed in Newton? (Whirlpool Corp.) Electrolux cities told to market plant sites, Des Moines Register, October 25, 2009. The company says it’s doing very well financially so why the move? What gives Mr. Wagner? Maybe you’re not the guy to ask. Perhaps it’s the CEO Hans Straberg sitting comfortably in some corporate office planning his next bonus.

Electrolux is a world leading international appliance company. We are a part in the daily life of hundreds of millions of families around the world.

"Each year, some 40 million consumers in more than 150 countries choose our products, such as cookers and cooktops, ovens, fridges and freezers, dishwashers, washing machines, tumble dryers, room air conditioners and vacuum cleaners. That translates to two products bought from us every second, every day of the year." Electrolux Corporate Website quote.

From your most recent press release this is all about margins and martini's with you CEOs. That and your next bonus check. How much are the board’s big fat bonuses for 2009 going to be? It’s not longer about the people in the community, the workers that build the products or their families. It’s all about you.

And corporate America wonders why this next generation shows no loyalty or work ethic?

Third quarter results clearly demonstrate our potential

26 Oct, 2009 07:51

Today I am presenting very strong results for the third quarter. We have succeeded in reaching an operating margin of more than 8%. I am very pleased that all Electrolux operations have been successful in this challenging market. Market demand continues to be weak, although the rate of decline has slowed down.

The results show that we are capable of increasing our margins. At the same time, we have to be realistic and understand that a lot of work remains before these levels are sustainable.

Almost everything went our way this quarter. Cyclical trough in commodity prices and maintained prices have been decisive for our earnings improvement. Other contributing factors are a better product mix and significant cost reductions.

Electrolux Financial Statement

If you leave off the return on equity for 2008, 2008 was a bad year for everyone; Electrolux’s ROE is over 20% on average for the period 2004 through 2007. Greed is the only thing we Iowans can see driving this decision; plain and simple it’s about greed of a few that leaves the middle class behind.

I’ve seen it since 1981 from a front row seat in Waterloo and the John Deere employees, the American middle class is being dismantled. It’s being shipped overseas and down south. If a country doesn’t have manufacturing jobs they soon don’t have a middle class and class warfare can’t be far behind. If you and the other plant closing CEO’s are wondering why there are so many people running around this country wanting to wage war over the right to carry firearms, just stop and consider the bigger picture from the viewpoint of a family of five just trying to put food on the table. All they can think of is where Sam Colt is when you need him?

U.S. Chamber of Communist Commerce and the Un-American Tort Reform Association Sit on the Sidelines Saying Nothing - Perhaps they speak only in Spanish and Chinese

My advice to Iowans is to buy American-made goods. Don't buy cars, appliances or any other products that aren't made in America by the American worker. Why don’t we have our own website for American made goods?

And once again I ask, why is the American Tort Reform Association and the U.S. Chamber of Commerce so quiet? Why don't they have anything to say about the loss of American jobs? Isn't it the United States Chamber of Commerce? Or is this really a communist-like organization interested only in the wealth of a few who own and run companies out of America? Your two organizations are truly the great illusionists. The comment section is below...