Union leadership’s proposal to buy Hoover operations from Maytag will be discussed in meetings planned for Thursday.
“There’s been a lot of misunderstanding on what exactly we’re trying to do,” said Jim Repace, president of International Brotherhood of Electrical Workers Local 1985.
Repace hopes the misunderstandings will be cleared up during the meetings, which are planned for 12:30 p.m. and 3:30 p.m. at the Knights of Columbus hall.
Last week, the union announced it hired Duff & Phelps Securities of Chicago and Ownership Associates of Cambridge, Mass., to do a feasibility study and determine action plans to keep the Hoover operations going.
The study comes as Whirlpool Corp. is close to finishing a buyout of Maytag Corp., which is Hoover’s parent company.
Many Hoover workers have pinned their hopes on Whirlpool keeping local operations going.
But in early February, Ralph Hake “” Maytag’s chief executive officer “” announced that he wants to sell the Hoover operation before the sale to Whirlpool closes. Whirlpool officials said they have the right to approve a possible sale of Hoover.
Hake’s statement that he wants to sell Hoover prompted union officials to look into the possibility of buying the operation.
Repace said the union is looking at what might work. The list of possibilities includes an employee stock ownership plan (ESOP) or a joint venture with other investors.
“We’re just exploring all options,” Repace said, adding that it’s a proactive approach by the union.
“There’s so many options to be looked at and discussed. We can’t just sit back and wait to see what happens,” Repace said. “I wouldn’t be doing my job if I did that.”
Representatives from Duff & Phelps and Ownership Associates will be at Thursday’s meetings, along with representatives from the Ohio Employee Ownership Center at Kent State University. North Canton Economic Director Eric Bowles, who has helped Local 1985 officials with the proposal, also will attend the meeting.
Local 1985 has about 800 members working at local operations, and there are about 200 salaried jobs. Maytag still maintains a factory, bag plant and distribution center in Stark County, along with some product development and office operations.
Most of the company’s upright vacuum cleaners are made at factories in El Paso, Texas, and Juarez, Mexico.
Some salaried workers have asked questions about the union’s plans. “They think we’re taking a good, proactive approach,” Repace said.
Non-union Hoover employees won’t be allowed to attend the meetings. Repace said he wants to discuss the plan with union members and make certain they favor the idea.
From Cantonrep