Des Moines Register
10-25-07
Harkin remarks on Maytag closing
Tom Harkin, D-Ia., plans to address the closing of the former Maytag plant in
Newton on the floor of the Senate Thursday. Here are a copy of his remarks:
"Mr. President, tomorrow, with the closing of the Maytag manufacturing plant in
Newton, Iowa, a beloved Iowa institution – and an icon in the history of industrial
America – will be gone forever. The Maytag brand, synonymous with product
quality and reliability, will still be attached to rebranded Whirlpool Corporation
appliances. But don’t be fooled. Those products will no longer be made by loyal,
skilled, experienced American workers. They will be made elsewhere, mostly in
Mexico. This is a heartbreaking loss to the Newton community – a loss felt by
people across my state of Iowa. And it is one more devastating blow to
manufacturing here in the United States.
"Mr. President, Maytag was founded in Newton by Frederick Lewis Maytag in
1893 as a manufacturer of farm equipment. Fourteen years later, the company
introduced its first washing machine, which it produced during seasonal
downturns in farm implement sales. Newton soon became known as the
“washing-machine capital of the world.” By the time it was acquired by Whirlpool
in 2006, Maytag Corporation was a $4.7 billion company with 18,000 employees
worldwide.
"Now, all of this is gone. And also gone are thousands of good-paying jobs and
the economic foundation of an entire community. For generations, Iowans
eagerly went to work at Maytag, and Maytag was an integral part of the Newton
community.
"Maytag workers helped to build a thriving local economy. The children of Maytag
assembly-line workers and the children of Maytag executives all went to the
same high-quality public schools. When children graduated from high school or
college, they came home to Newton to work at Maytag. Together, workers and
management at Maytag built a wonderful community and a wonderful business.
"Now, in what seems like the blink of an eye, Maytag is gone. And why? Because
it is cheaper to make washing-machines in foreign countries that pay workers a
pittance, and that lack labor standards and environmental protections.
"This is a personal tragedy for workers at Maytag and elsewhere who have lost
good-paying jobs. But it is something else. It is a threat to the middle-class
standard of living in this country, as displaced workers are obliged to accept
lower-paying jobs, often without health insurance or pension benefits. According
to a study by economists at Iowa State University, the average income in
Jasper County in 2005 was $34,400 with Maytag jobs in the mix. Without the
Maytag jobs, the average income will drop by nearly $5,000.
"Mr. President, let’s be clear, washing-machines made in Mexico may carry the
Maytag brand. But that logo will be an empty emblem, because the heart and
soul of Maytag was the Newton community.
"Richard Doak, a Des Moines Register columnist, recalled interviewing a Maytag
worker years ago when the company was hinting it might close the Newton plant.
“’If that ever happens,’ said the worker, ‘it will be the end of Maytag, because the
people of Newton are the essence of the company.’ ‘We pump blue blood,’ said
the worker, referring to the color of the Maytag logo.”
"Daniel Krumm, the chief executive officer who transformed Maytag into a global
company, said that what he called the “Newton ethic” was the key to the
company’s success. By the “Newton ethic,” he meant an entire community that
was loyal to the company and that took great pride in making products of the
highest quality.
"Unfortunately, Daniel Krumm’s successors chose to betray that “Newton ethic.”
They chose to cash it in for cheaper products and higher profits outside the
United States. And this story is all too familiar to skilled workers in the
manufacturing sector in this country.
"Mr. President, Maytag will shutter Plant No. 2 and cease operations on Friday. I
worked as hard as I could to prevent the Whirlpool takeover of Maytag, and I
worked with state and local officials to prevent the closing of the plant in Newton.
In the end, regrettably, our efforts were unsuccessful.
"In particular, I want to salute the tremendous efforts of the officers, the plant
committee, and the department stewards of United Auto Workers Local 997.
Under the outstanding leadership of Ted Johnson, the local president, they have
been on the front line throughout the crisis at Maytag, fighting to prevent the plant
closure, and, when that failed, doing everything possible to help the displaced
workers.
"Mr. President, Friday will be a sad day in Newton, Iowa. But not all the news
from Newton is bad. The “Newton ethic” survives, and the Newton community is
resilient. Two companies – Iowa Telecom and Caleris – plan to add more than
200 jobs in Newton by the end of the year. Other businesses are expanding.
Community leaders are coming together to develop a strategy to rebound from
the loss of Maytag.
"I wish them every success, and I stand ready to continue to assist in any way I
can."