Maytag Newton Laundry Production Halted Jun 11, 2004

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Negotiations between Maytag Corporation and U.A.W. Local 997 on a new labor contract for employees at Maytag's Newton Laundry Products plant in Newton, IA, U.S. have broken off, as both sides have been unsuccessful in reaching an agreement.

The union's labor agreement officially expired at 10:00 p.m. on June 9, after two extensions. Appliance production was halted in Newton as of 4 p.m. on June 10.

"We are disappointed to be unable to reach an agreement with the U.A.W.," Mark Krivoruchka, Maytag's senior vice president of Human Resources said in a statement. "Both parties worked late into the evening on Wednesday in an attempt to reach an accord. It is unfortunate that Newton Laundry employees have not been given an opportunity to vote and determine their future with Maytag.

"Newton Laundry Products continues to maintain a significantly higher cost structure than other Maytag plants because of its high benefits costs, which needs to be addressed in order for the plant to be competitive in today's marketplace," Mr. Krivoruchka continued.

The appliance maker said it has developed a contingency plan to fulfill customer orders, and production continues at the Maytag's other U.S. laundry plants in Searcy, AR; Florence, SC; and Herrin, IL.

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