That’s the day Greenville’s largest employer reveals whether it will keep its refrigerator plant in West Michigan or move the work to Mexico.
The largest stakeholder is the firm’s 2,700 workers, 65 percent of whom live in Montcalm County.
In a Thursday morning meeting with two Electrolux North America executives, members of a hurriedly organized task force learned they have 24 days to sell a package deal.
The bottom line? Greenville must somehow match the projected $81 million Electrolux would save annually if it moved operations to Mexico. That comes to nearly $3.4 million for each day between now and Jan. 9.
One of Greenville’s favorite sons stepped forward Thursday to pitch in.
Frederik Meijer, chairman emeritus of Meijer Inc., gave the city task force $25,000 to help offset consultant expenses for a plan to build Electrolux a plant. The money will go into the Greenville Area Community Foundation.
“We wanted to put a little bit of money where our mouth is,” said Meijer, whose father, Hendrik, founded the retail giant in Greenville nearly 70 years ago. “Greenville and all of Michigan must be competitive with worldwide manufacturing, or we’ll lose Electrolux.”
Meijer donated the money on behalf of his employees.
The city of Greenville is going to take a financial hit no matter how the decision goes. Taxes from the plant are likely to evaporate in the deal to keep Electrolux here. If Electrolux closes, Greenville loses tax revenue from the plant and from people out of work.
Thursday’s meeting also was attended by state officials contemplating a tax-free plan for Electrolux. They declined to discuss the value of that piece of the puzzle.
One of the biggest challenges is labor cost.
Hans Straberg, Electrolux chief executive officer, told analysts in October that Mexican labor costs one-tenth the hourly wage in Michigan.
Labor representatives at the mid-day ceremony Thursday said they could not divulge details of potential concessions — yet. Electrolux and the United Auto Workers are in separate negotiations relating to the potential closing.
Those details will need to be polished up soon. With weekends and two holidays excluded, the work days number 19 under normal situations.
City Manager George Bosanic and other task force members predict they’ll work through the holiday season, some foregoing vacations.
“This situation is very daunting,” Bosanic said. “It’s a very small community and a very large employer.”
He praised the cooperation and collaboration of union members and officials of the state and federal government.
“We really believe we can be successful here,” Bosanic said.
Meijer agrees. “I’m very encouraged by the meeting this morning,” Meijer said. “The union is being very cooperative. Without jobs, there are no union members and no Meijers.”
Electrolux spokesman Tony Evans said the economic pressure on the Stockholm-based corporation’s appliance sector is tremendous.
“All of our major competitors have production facilities in Mexico and we do not,” Evans said. “We have to look at the competitive situation and the differential that faces us not only right now, but for the future.”
That differential is the $81 million projected savings between Mexico and Greenville.
“We are looking for whatever combination of things that can realistically be helpful long term to bridge that gap,” Evans said.
The task force meets again on Dec. 17, followed by a session with U.S. Sen. Debbie Stabenow.
From mlive.com