Sub-Zero Cutting 100 Madison Jobs
Company Makes Move To Streamline Production
Updated: 8:09 am CDT September 1, 2010
MADISON, Wis. -- About 100 Madison workers are on the verge of losing their jobs as Sub-Zero Inc. looks for new ways to cut costs.The Madison-based premium appliance company said Tuesday that it's moving its production of its wine storage units and its integrated line of refrigeration that are currently made in Madison to a facility in Phoenix.The company said the transfer of work will result in the elimination of 100 positions in Madison.Sub-Zero Inc. and Wolf Appliance are owned by the same company.The news comes just weeks after a separate union at the company voted against contract concessions and a 20 percent cut in pay at Wolf Appliance. This latest move affects an unrelated bargaining unit, but the sentiment remains similar, WISC-TV reported."One hundred of our members are going to lose their jobs, which are good jobs -- good wages and good benefits," said David Goodspeed, of Sheet Metal Workers Local 565.In a statement, Sub-Zero said moving the jobs is designed to make the company more efficient and cost-effective without compromising quality."From a labor perspective, it's about lower wages. And a work force and a labor force that's willing to work for less," Goodspeed said.Sub-Zero said moving to Arizona is part of its commitment to keeping manufacturing in the United States, pointing out that "many of its competitors are moving to Mexico or offshore to drive costs out of their products."In addition to the jobs moving to Arizona and the Wolf Appliance jobs possibly on the move to Kentucky, union leaders said they wouldn't be surprised if Sub-Zero's third and largest bargaining unit found its jobs in jeopardy in the future."We have yet to talk there, but the company has given notice to the union that eventually we will be talking about that bargaining unit as well," Goodspeed said.But for now even union leaders admit the changes at Sub-Zero are more about the uncontrollable economic climate.
"Folks at even the best companies suffer when the economy tanks, and that's what's happening right now," Goodspeed said.Union leaders said they're making plans to try to save those 100 jobs from the leaving the state before the move goes into effect in the fourth quarter of next year.The company said the affected employees will be reviewed for hiring preference in other available positions within Sub-Zero and its affiliate company, Wolf Appliance Inc.Affected employees will be offered severance packages and outplacement services, the company said in a news release.
Previous Stories:
- August 12, 2010: Wolf Workers Vote Against Concessions
- August 11, 2010: Wolf Workers To Vote On Company Proposal
- July 16, 2010: Fitchburg Mayor Concerned About Wolf Appliance Situation
- July 16, 2010: Wolf Appliance Threatens To Move Fitchburg Plant To Kentucky
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