Manitowoc Ice to layoff 160 by March
- Official stated the first layoff of 50 workers occurred in August
- Anticipated another 50 workers will be displaced in March 2015.
MANITOWOC – A second round of layoffs at Manitowoc Ice affecting some 60 employees will take place in early December, according to a notice filed Monday by the 26th Street manufacturing facility with the state Department of Workforce Development.
A DWD official stated the first layoff of 50 workers occurred in August and it is anticipated another 50 workers will be displaced in March, 2015.
In March, Manitowoc Company officials announced its popular Indigo line of ice machines wound be made at a new plant in Monterrey, Mexico, and that the majority of some 235 International Association of Machinists Local 516 members would be losing their jobs.
At that time, Tom Musial, Manitowoc's senior vice president of Human Resources and Administration, said an advantage to Monterrey is that it is closer to some of the company's largest U.S. customers including those in California, Texas and Florida.
In addition, he said Mexico has free trade agreements including reduced tariffs with many South American countries that will help enable sales into an emerging market.
"Our employees are not to blame for global competitive factors that have caused us to develop this plan, no, unfortunately, can our employees do anything to change competitive factors we as a company must address," Musial stated.
In March, IAM District 10 business representative Russell Krings said, "We're never going to be able to compete for $3-an-hour jobs and we shouldn't have to ... it's a shame we have had to compete for jobs being run out of the country when we need the jobs here."
IAM members in Manitowoc make between about $15 and $25 per hour, with journeyman machinists at the top end, union officials said.
Manitowoc Company President & CEO Glen Tellock said after May's annual meeting of shareholders that Manitowoc plant employees would continue to produce ice machine evaporators and other products including its larger-capacity ice machines, taking advantage of a $3.2 million investment in the plant.
In addition, product development, engineering, marketing, finance and service functions for Manitowoc Ice products would remain.
The Manitowoc Company (NYSE:MTW) had approximately $4 billion in sales in 2013, with about 60 percent of the revenue from its Crane group and 40 percent from Foodservice, which includes Manitowoc Ice.
According to Yahoo Finance, it has 13,400 employees worldwide. The company's website indicates it has operations in 26 countries.
'Rapid Response'
Jim Golembeski, director of the Bay Area Workforce Development Board, said Tuesday his agency, under contract from the state, sent a "Dislocated Worker Program Rapid Response Team" to Manitowoc Ice in June involving 240 workers.
Richard Jones, DWD communications officer, said the sessions were held for the 240 "with the understanding that 150 of them would be displaced due to a change in production sites."
Golembeski said the uncertainty of which union members might "bump" others in various job categories as the layoffs progressed could explain the need to provide assistance to additional workers.
He said with the work moving to a foreign country employees would be eligible for an expanded variety of federal and state programs for dislocated workers compared to if the manufacturing was going to another state.
The DWD stated Rapid Response staff coordinate services among employment and training agencies as affected workers have access to numerous services to help them become re-employed, including:
• Job search and career planning assistance, resume assistance, job training and access to job search databases.
• Eligibility determination for programs, skills assessment, job search and placement assistance, career planning assistance, short-term prevocational training and occupational training.
Company and union officials did not respond to requests for comment about this latest layoff announcement.
Charlie Mathews: (920) 686-2969 or cmathews@htrnews.com