FOR IMMEDIATE RELEASE
Washington, D.C., July 26, 2005 – The International Association of Machinists and Aerospace Workers (IAM) is calling on Maytag’s board of directors to withhold approval of any sale that would result in the widespread loss of jobs or the transfer of the company’s manufacturing facilities to low wage locations in the U.S. or overseas.
“The nightmare of ruined families and destroyed communities in the name of boosting shareholder value must end,” said IAM International President Tom Buffenbarger. “We believe Maytag’s board can and should seek a commitment from any potential buyer to keep the company’s jobs and facilities in their present locations.”
Newton, IA-based appliance maker Maytag is the target of multiple offers, including a bid by Whirlpool for $18 per share, even though Maytag's board of directors had already accepted an offer from Ripplewood Holdings for $14 per share in May.
“Investors who are unwilling to commit to the smallest measure of social responsibility should not be allowed to reduce our communities to economic rubble,” said IAM Midwest Territory Vice President Jim Brown. “We need to look no further than Galesburg, IL, for the most painful example of what can happen when a major employer like Maytag abandons a heartland community.”
Thousands of jobs were lost when Maytag closed its Galesburg, IL facility and moved production to Reynosa, Mexico. Analysts say thousands of additional jobs will be destroyed as the ripple effect of the closure continues to spread. The IAM represents nearly 4,000 workers at Maytag facilities in Iowa, Illinois and Ohio.
The IAM is among the largest industrial trade unions in the United States and represents nearly 650,000 active and retired members in dozens of industries across North America. For more information about the IAM, visit the Machinists Union website at www.goiam.org.
