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Honored Advisor

Re: Gotta love the knee jerk reaction

I have to go back to my famous or some would say "infamous" story of Cummins Filtration leaving Lake Mills, Iowa and going to Mexico.  Well, 500 good living wage jobs left the community, that`s less people buying houses and cars, less people going to movies, getting a new carpet and eating at the restaurants. They had to move and or settle for a lesser wage.  

 

It`s devastating to families in a small town and the schools.  So, the oil filter company moves to Mexico to reduce labor costs...Did anyone notice a big drop in the price of oil filters????  No, i didn`t think so, I didn`t either, I`ll bet Cummins pocketed the savings.

 

In case you think I made the story up, here is the documentation.

 

http://globegazette.com/news/local/cummins-layoffs-stun-lake-mills/article_953cb972-42c3-5e1f-83cb-a...   

 

LAKE MILLS — The layoff announcement by Cummins Filtration “was such a shock,” said an employee who was at the plant-wide meeting Tuesday when workers were told 400 of them will soon lose their jobs.

“All of the employees were there,” said Sandy Harang, who has worked at the Lake Mills company for 16 years. About 510 people are employed at the company’s two plants in Lake Mills.

Her husband, Rod, works at the plant, too. He’s been there 23 years.

 

“They started off saying ‘It’s hard times’ and everyone just looked at everyone else and put their heads down. It was more than what we were thinking”

“Some started crying right away,” she said. “We all walked out quietly.”

The company, headquartered in Columbus, Ind., will lay off 400 people at the Lake Mills facility between November 2009 and March 2010. Harang said employees should find out today who will be laid off when.

The layoffs are part of Cummins’ plans to move most of its North American filter assembly operations to its facility in San Luis Potosi, Mexico.

Cummins Inc. said it will save the company money.

Other operations, which employ approximately 110 people, will remain at the Lake Mills plant.

Cummins has two plants in Lake Mills. The South Plant produces pin-on filters for larger diesel engines and the North Plant manufactures cartridge-style filters for the mining industry.

“It feels like you’ve been stabbed in the back, moving it to Mexico,” Harang said.

The announcement came as a surprise to most of the community.

Teresa Nicholson, executive director of Winn-Worth Betco, the county’s economic development arm, said her agency “received no advance notification of the plans for the Lake Mills facility.”

“At this point we are doing everything we can to gather all the facts and formulate a plan for action once the information is gathered. Our offices will be working with Cummins Filtration, the Iowa Department of Economic Development, Iowa Workforce Development, and our legislators to do everything we can for the employees that are affected and the community of Lake Mills,” she said.

“We will also be pursuing opportunities to bring new companies and jobs to this community as soon as possible,” sh....

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