We are taking these actions to rapidly restore the competitiveness of the Maytag brands,
Jeff M. Fettig, Whirlpool chairman and CEO

Whirlpool will eliminate 4,500 jobs relating to the integration of Maytag operations. Locations affected by the changes include three manufacturing sites, the former Maytag corporate headquarters and a research and development center in Newton, Iowa, and administrative offices in Illinois, Canada and Mexico.

Whirlpool says it will produce about 1,500 new jobs, resulting in a net total elimination of 3,000 positions. Details on the number and location of the new positions were not released.

"We are taking these actions to rapidly restore the competitiveness of the Maytag brands," said Jeff M. Fettig, Whirlpool chairman and chief executive officer. "This is an important step in our integration process that will allow us to drive continuing performance improvements and will better align our brands, products and operations with the markets we serve domestically and globally."

The International Association of Machinists and Aerospace Workers (IAM) blames the Bush administration for allowing a merger that will result in such a large job loss. The IAM represents about 800 production workers at the Herrin, IL facility. The Herrin plant will close and all production will shift to Whirlpool facilities in Clyde and Marion, OH. "This closure is the direct result of the Bush Administration's abdication of its oversight responsibility when it allowed the merger of two companies that would end up with almost 80 percent of the U.S. market share for washer and dryer manufacturing. It also underscores this Administration's opposition to a meaningful industrial policy to protect America's manufacturing sector," said IAM President R. Thomas Buffenbarger.

"Our manufacturing sites in Clyde and Marion are two of the most efficient facilities in the world, with capacity to grow," said David L. Swift, president, Whirlpool North America. "This was a difficult, but necessary decision that will further improve the cost efficiency of our laundry operations, providing consumers with industry-leading innovation and competitively produced washers and dryers from U.S.-based manufacturing locations."

The IAM objected to the merger of Whirlpool and Maytag on grounds the new company's market share would cost jobs. Whirlpool and Maytag produce over 75% of all washers and dryers made in the U.S..

The timetables for the affected manufacturing operations include an orderly closure process, with complete closure targeted on the dates included below:

* The factory in Herrin, Illinois, which manufactures washers and dryers and employs about 1,000, will continue production until the end of 2006.

* The factory in Searcy, Arkansas, which manufactures dryers and employs about 700, will continue production until the end of 2006.

* The factory in Newton, Iowa, which manufactures washers and dryers and employs about 1,000, will continue production into 2007.

Whirlpool currently plans no further manufacturing facility closures related to the Maytag integration process. Whirlpool officials said they are considering the sale of the Hoover floor-care, Dixie-Narco, Amana commercial microwave and Jade commercial appliance businesses.

Maytag administrative offices will be consolidated in the United States -- from Newton, Iowa to Benton Harbor, Michigan and other Whirlpool locations; in Canada -- from Burlington to Mississauga; and in Monterrey, Mexico where both companies have offices. The Newton-based research and development center, and the administrative office of Maytag International, based in Schaumburg, Illinois, also will be closed.

Approximately 1,800 salaried positions, included in the 4,500 affected positions, will be eliminated as a result of these changes. Several hundred salaried employees from the affected administrative offices are expected to be offered jobs in other Whirlpool locations.

Whirlpool will support employees affected by the changes with a comprehensive assistance package during the transition period, including severance pay, health benefits continuation, job search assistance, and other benefits. Whirlpool plans to open negotiations with labor unions in Newton and Herrin for close-out agreements in the future. Employees in Searcy, a non-union facility, also will receive severance, benefits continuation and job search assistance.

Whirlpool said it would work with local and state officials to ensure that all available training resources are made available to affected employees, and to reposition affected locations for future job development opportunities within the community.

"Lousy trade policies and a complete lack of enforcement of anti-trust and other measures to protect jobs and consumers are leaving American communities devastated as family-wage manufacturing jobs are sent overseas or consolidated by multinational companies," said IAM Midwest Territory General Vice President James Brown. "Congress must act to stop the stampede of jobs to Mexico and other nations and enact an industrial policy that encourages manufacturers to keep good jobs in the United States. Manufacturing jobs are the key to a strong middle class, stable families and vibrant communities. We cannot afford to lose them.

"We will immediately begin meetings with our federal, state and local leaders to pressure Whirlpool to reverse its misguided decision," said Brown. "We will also demand meaningful steps to protect U.S. manufacturing jobs, including an end to millions of dollars in bonuses to top executives for flushing good American jobs down the toilet."

The IAM is one of the largest industrial trade unions in North America, representing nearly 720,000 active and retired members in the U.S. and Canada.