More layoffs planned as plant closing looms Modine workers training employees from Mexico

Workers at Modine Manufacturing in Washington, Iowa, are training employees of a plant in Mexico as the company prepares to lay off 60 hourly workers between July 15 and July 29.

Racine, Wis.-based Modine announced in April 2015 that it will close the Eastern Iowa plant and transfer production to other facilities in North America. Roughly 85 percent of the work will go to a Modine plant in Nuevo Laredo, Mexico, and the remaining 15 percent will be divided between facilities in Joplin and Jefferson City, Mo.

The plant closing is expected to happen later this year. About 140 employees remain on the job, down from 245 when Modine announced plans to shutter the plant.

The Washington, Iowa, plant makes liquid charge air coolers, plate oil coolers, and fuel coolers for the automotive, commercial vehicle, and off-highway markets. Modine attributed the plant closing to wage and benefit costs that are too high for the company to compete in the global marketplace.

The cost of wages and benefits at the Nuevo Laredo plant is $3.51 per hour, compared with $26.81 per hour in Washington, Iowa.

'Our analysis of Modine's global product lines and North American manufacturing strategy led us to conclude that the best long-term solution for Modine and its shareholders is to consolidate all the Washington products into other North American facilities,” said Scott Wollenberg, Modine regional vice president - Americas, in a news release.

'Closing the Washington plant will help us rationalize production, maintain the scale we need in our manufacturing operations and improve our overall competitiveness and profitability.”

Modine employees who stay until they are terminated by the plant shutdown will receive federal Trade Adjustment Act assistance, but they will not receive a severance package. Talks on severance between the company and Local 359 of the Glass, Molders, Pottery, Plastics & Allied Workers International Union broke down last fall.

Modine had offered half a week's pay per year of service, capped at 26 years. The employees' committee held out for 30 hours of pay per year of service, capped at 30 years.

l Comments: (319) 398-8366; george.ford@thegazette.com