As Maytag makes good on its pledge to cut manufacturing costs in an effort to improve earnings, many workers at the appliance maker are growing uneasy about their jobs, union leaders say.
The company has said it is planning to move a production line from a Hoover factory in North Canton, Ohio, to lower cost locations after a court appointed arbitrator last week ruled the work could be transferred.
And early next year, the maker of Hoover vacuums and Jenn-Air and Amana appliances will shutter a South Carolina washing machine plant to cut its laundry equipment production.
Maytag, which has agreed to be acquired by larger rival Whirlpool Corp. (WHR.N: Quote, Profile, Research) for nearly $1.7 billion, has lost profitability and market share in part due to competition from rivals with lower fixed costs.
“People are under a lot of stress,” said Jim Repace, president of Local 1985 of the International Brotherhood of Electrical Workers in North Canton, which represents Hoover workers. “They don’t know what’s going to happen next.”
From Reuters