No Amana job cuts planned for Whirlpool reorganization

A reorganization in Whirlpool Corp.'s refrigerator engineering operations is not expected to bring job cuts at the company's Middle Amana product development center.

Whirlpool announced plans Monday to close its product development center in Evansville, Ind., which employs 217, by the end of 2014. The closing there will mark the end of a Whirlpool refrigerator manufacturing presence in Evansville that once numbered nearly 10,000 and goes back more than 40 years.

Whirlpool said it would move the refrigeration-product development work to Benton Harbor-St. Joseph, Mich., where it is headquartered.

Whirlpool manufactures bottom-freezer refrigerators, 50-pound ice makers and built-in refrigerator products in Middle Amana.

Spokeswoman Kristine Vernier issued a statement that said, "No job additions or reductions are planned; however, the job responsibilities of some employees may change over the next several months."

Vernier said the maintenance engineering to support existing bottom-freezer models, 50-pound makers and built-in refrigerators constitutes the bulk of the work done in Middle Amana. That work will continue as usual in Amana, she said.

The Middle Amana plant is Whirlpool's last domestic refrigerator plant. It produces mainly higher-priced refrigerator models such as French-door refrigerators and bottom-freezer models.

The company has filed trade complaints against South Korea-based Samsung and LG claiming the market for those type of refrigerator models has been eroded by their dumping of imported refrigerators at prices below cost.

About 1,900 production and maintenance employees were employed at the Middle Amana plant in late 2011 when a new union contract was approved.

The Iowa City Area Development Group and Cedar Rapids Metro Economic Alliance, along with Iowa County officials, have worked with Whirlpool to provide a suitable climate for manufacturing employment, ICAD Group Interim President Mark Nolte said. He expressed confidence that they will continue to provide a competitive manufacturing location.

Local economic development groups did not indicate they were part of discussions with Whirlpool on the relocation of the Evansville product development center.

“This is a move Whirlpool Corp. determined was best for its overall health,” said Dee Baird, president and CEO of the Cedar Rapids Metro Economic Alliance. “As one of the largest employers in Iowa's Creative Corridor, our focus is to continue to maintain the strong working relationship we have with Whirlpool.”