WEBSTER CITY, Iowa, Oct. 24 (UPI) -- Electrolux will move production of its products out of the United States, eliminating 850 jobs, company officials confirm.
All North American washer and dryer manufacturing will go to Mexico. Production of its Frigidaire products in Webster City and Jefferson, both in Iowa, will end in early 2011 The Des Moines Register reported Saturday.
Electrolux employs roughly 925 people in those communities. The Swedish company has eliminated more than 1,000 Iowa jobs since 2006. "This was a difficult but necessary decision," said Frank Wagner, vice president of operations for Electrolux Major Appliances North America.
The announcement surprised no one at the Webster City plant, veteran employees said. "We knew it was coming. When they built the plant in Juarez (Mexico), we knew it was going to happen sooner or later. We were just waiting for the date," said longtime employee Dick Goldberg.
U.S. workers cannot compete with wages paid in Mexico, Goldberg said. Electrolux is paying employees $2.50 an hour in Mexico, while the average union wage at the Iowa plant is about $16.50.
