Whirlpool to Slash Thousands of American Jobs
American appliance manufacturing giant Whirlpool plans to slash thousands of jobs and close at least one U.S. factory, according to reports.
The company announced that it will cut 5,000 jobs in the U.S. and Europe. In addition, it will close a facility in Arkansas where refrigerators are made.
The company cited a lack of demand for the factory closing and job cuts.
“Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs,” Jeff Fettig, Whirlpool chairman and chief executive, said, according to AFP.
“We believe our cost and capacity reduction initiatives, recently announced cost-based price increases, and innovative product launches will enable us to expand operating margins and deliver long-term value to shareholders.”
The company is no stranger to cutting American jobs in the name of profit. Just last year, the company closed an Indiana factory, costing over 1,00 0Americans their jobs.
Whirlpool moved the factory to Mexico where, due to the North American Free Trade Agreement and almost nonexistent labor and environmental laws, it was able to produce for a fraction of the cost.
While taking advantage of America’s failed trade policies, the company has also struggled because of them. Earlier this year, it filed an antidumping and countervailing duties petition against competitors in South Korea and Mexico.
The company claimed that some competitors, specifically Samsung and LG are violating U.S. trade rules by dumping their products in the U.S. at below fair market prices while at the same time receiving illegal subsidies from the South Korean government.
At the same time that the company was filing petitions for trade relief from the federal government, it was also pushing officials to pass a trio of stalled trade pacts with South Korea, Panama and Colombia.
Whirlpool is today’s typical multinational corporation. When times are tough, it seeks all the government help it can possibly get in the name of economic patriotism. When times are good, however, it shows no such loyalty.