Wednesday, November 10, 2010

Yet another NAFTA success story: More Iowa jobs move to Mexican border

I'm not the only Iowan moving to the U.S.-Mexico border.

from Radio Iowa:

Electrolux Home Products is announcing the first phase of layoffs related to the closure of its laundry products plant in Webster City. Manufacturing at the Laundry Center products will cease by the end of December resulting in the termination of approximately 295 positions.

The El Paso Times says that those jobs are moving to Juarez. "An unspecified number of jobs will be shifted to Mexico by the end of this year and in early 2010."

Layoffs have started in Webster City and all the jobs in Iowa will be terminated by March 2011, says the El Paso Times. Production in the Jefferson, Iowa, plant will end in January 2011.

So...corporate profits: UP! Stock options: UP! Yet another NAFTA "success story!" ...Not!

Meanwhile, I'll be looking for more fellow Iowans to relocate to the U.S.-Mexico border. Maybe we can form an Iowa Hawkeye/Cyclone fan club and watch upcoming bowl games together!?! You never know.

Photo credit: El Paso Times, file photo of Electrolux plant in Juarez


Beach Bum said...

Yeah, I had a buddy in the National Guard who worked at a plant that made all sorts of graduation stuff from rings to caps and gowns. He was sent down to Mexico to "help" get the plant down there up and running and the company assured his team their jobs were in no danger.

After a few months they returned, got plenty of backslaps with the suits saying they did a great job, and another month later they got the notice the American plant was closing. The messed up thing is that just a few years later the Mexico plant was moved to China.

Border Explorer said...

Ouch!! That is a story full of pain. This whole system is a plutocracy with the rich running the show. The rest of us are their pawns. wow.

Dada said...

Well, it's just a part of what seems a vicious circle, but if the folks of Webster City, IA and the surrounding 8 county area were to step back and take another look at the *Big Picture* they'd realize they will be among the beneficiaries of this "move just down the road."

*Profits* for Electrolux this last reporting quarter were woefully sagging, so in a desperate attempt to bolster those *profits* they are moving the rest of its IA operations out of the US and its economic recession (*depression* to increasingly more and more) to Juarez where unemployment is at 20% and people are eager and grateful to work subsistence wages. (Think of it simply as leveling the labor field by corporate hqs.)

But out-of-work-to-be Iowans and all Americans will soon reap the benefits of Electrolux's move by buying cheaper washers and clothes dryers they couldn't afford when they themselves were building 'em.

*WIN-WIN!* Everybody wins. *Free* trade is bolstered while flagging profits and *free labor* thrives and displaced Iowan workers can show off their new refrigerators bought with their unemployment and welfare checks to their envious neighbors!

(Dada note: Unmentioned in above is the benefit that will be reaped by unsuspecting El Pasoans -- the increased diversity from an influx mid-western corn huskers! I'm already exploring the possibility of a winter league team at Bowl El Paso!)

Border Explorer said...

I'm feeling much better about this big move now, so thanks a lot, Dada. (Or muchas gracias, as we Iowans at Electrolux say these days.) BTW, maybe Electrolux will be hiring some marketing positions on the border. You would be well qualified to consideration such a job offer! Heck, you might even get a trip to China out of the deal! AND some shiny new appliances. Think about it!! You'd be so good!

Dava Castillo said...

My heart goes out to the Iowans who will be suffering from the bad decisions by Electrolux. Actions like this fuel the discord between Mexico and the U.S., and American companies don't appear to accept any of the blame for a portion of the discontent with immigration policies. Instead of closing factories, they should be chosing methods to share manufacturing. At least some of the auto industry while going to Mexico have maintained a portion, like parts manufacturing, here. There are ways for both countries to thrive, and industry could be responsible partners.

And if they won't do it themselves, then let government regulations do it for them. This administration for example directed federally funded domestic steel contracts to have at least one half the steel come from American companies.