WASHINGTON – Senator Chuck Grassley today urged the U.S. Department of Labor to act quickly to help Iowans who last week learned that they would lose their jobs upon the closing of two Electrolux production facilities. Approximately 850 employees will be affected.
“These employees will need a helping hand up as the plants shut down. The communities are already ahead of the curve by applying for a Regional Innovation Grant to help attract new business to the area and help these workers find new jobs,” Grassley said. “The Department of Labor can play an important role by ensuring that the workers have access to the federal programs already in place, like a National Emergency Grant or the Trade Adjustment Assistance program.”
Grassley asked the Secretary of the Department of Labor, Hilda Solis, to support the regional economic development organization’s request for a Regional Innovation Grant offered by the Department of Labor. The grant would help economic development leaders attract new businesses and create jobs. Grassley also asked for any additional help the department can provide to these workers through established programs.
Here is a copy of the text of Grassley’s letter to Solis.
November 4, 2009
The Honorable Hilda Solis
Secretary
U.S. Department of Labor
200 Constitution Avenue, NW
Washington, D.C. 20210
Dear Secretary Solis:
Last week, Electrolux executives announced the closure of two production facilities in Iowa, resulting in the loss of about 850 jobs. Electrolux currently produces laundry equipment at production facilities in Webster City and Jefferson, Iowa. The announcement to close these two facilities will result in the loss of approximately 800 employees in Webster City and about 50 workers in Jefferson. The plants are expected to close in late 2010 and early 2011.
The closures will hit these two communities particularly hard. Webster City’s population is less than 8,000, so the loss of 800 jobs equals approximately 10 percent of the community. The unemployment rate for the county already exceeds 8 percent.
It is my hope that the Department of Labor can take quick action to assist the displaced workers and aid the efforts of economic development leaders and local officials in response to these closures. The Mid Iowa Growth Partnership, a nine-county regional economic development organization, is seeking a Regional Innovation Grant (RIG). This grant would enable the region to plan and implement economic development strategies to assist displaced workers and attract new business to maintain these workers and create new jobs in this region. The RIG application was submitted to the Department of Labor in February. The loss of 850 jobs in this region further highlights the necessity for federal support through the Regional Innovation Grant. I would request that the Department of Labor take action and support the Mid Iowa Growth Partnership Regional Innovation Grant.
I would also request that the Department of Labor quickly consider all additional requests for assistance, including a National Emergency Grant or a request for Trade Adjustment Assistance to help workers and provide assistance to those affected by the Electrolux closures. The services and employment training provided by the Department of Labor will be critical in helping the affected workers get back on their feet and find suitable employment as quickly as possible.
Thank you for your time and consideration of this matter, and I look forward to hearing from you.
Sincerely,
Charles E. Grassley
United States Senator