Memphis Mayor Jim Strickland Says He Was Told A Month Ago Electrolux Was Not Closing

Scathing words from the mayor of Memphis after learning that Electrolux is closing its Memphis plant. Mayor Jim Strickland said Electrolux basically lied to him a month ago saying it wasn’t closing. He says he learned about it in a news release.

Now hundreds of workers are left looking for work, and taxpayers are left wondering what they got for their sizeable investment.

Electrolux is closing its Memphis facility, forcing 530 employees out of a job. 

According to a union rep, Electrolux hasn’t been making the money it thought it would. The rep says Sears was its largest retailer and when Sears closed last year, Electrolux suffered financially. 

The closing affects more than 500 employees based here in Memphis. At one point more than 1,000 people worked at the plant.

Memphis Mayor Jim Strickland is not happy about it. 

The following statement was released by Strickland:

“Electrolux may be leaving Memphis, but they aren’t leaving because of Memphis. To hear about this announcement in a press release after being told a month ago that the plant wasn’t closing is disappointing to say the very least,” Mayor Jim Strickland said. “There is some consolation that Electrolux has committed to work with employees by allowing them to have time to find other opportunities, and from a community perspective, we will do all we can to help them find other employment. In 2010, the State, County and City acted in good faith and made an unprecedented investment in this company and in Memphis. Just like they are exercising their option to leave, we will exercise our option to vigorously defend our investment. With a tough global economy, rising tariffs and losing a major product retailer, they are making business decisions. This in no way will affect our determination to continue to recruit new companies and jobs to our city. We are meeting with Electrolux officials tomorrow.”

Mayor Strickland along with Electrolux officials said in their statements that they will work to help employees find other jobs. 

“Well, we take the welfare of our members and the people we represent to heart and we’ve always tried to represent their best interest and it really is disappointing that they’re gonna be struggling to find new jobs,” said Paul Shaffer, IBEW Union Business Manager.

The Memphis facility will close in 2020. In a news release, the company said it will focus on its Springfield, Tennessee plant, north of Nashville, and invest $250-million into that facility.