Kalona

Walking into work and seeing a notice posted on the door can raise questions for any employee.

But if that notice begins with the words “We regret to inform you,” the message is often clear.

That is what workers at EPC in Kalona reportedly experienced on the morning of Wednesday, Feb. 18.

According to a letter posted at the facility, the company cited a “significant reduction in orders from their main customer Amana Whirlpool” as the reason for closing the plant.

Employees were given little clarity about the timeline for the shutdown, leaving many uncertain about when operations will officially end. 

The letter stated that workers who wished to keep their jobs could transfer to the company’s plant in Grinnell, which is more than an hour away.

Workers were reportedly given written notices stating they could report to the Grinnell facility at their normal shift time if they wished to remain employed. Those who do not relocate would lose their jobs.

On Tuesday, March 10, the Kalona plant halted both its second and third shifts.

According to a source, they heard the plant is expected to close at the end of this month. However, the exact closing date remains uncertain.

Whirlpool Amana

The closure comes as layoffs have recently been reported at the Whirlpool plant in Amana.

More than 300 employees at the Amana facility have reportedly lost their jobs in recent months. According to reports, some positions have been moved to Whirlpool plants in Mexico.

The reduction in production at Whirlpool appears to have had a ripple effect on other businesses connected to the company, including suppliers such as the EPC plant in Kalona.

 History of the plant

The Kalona facility was originally known as Kalona Plastics. Its parent company, Victor Plastics, was founded in 1983 and expanded operations to Kalona in 1993.

In 2006, Maytag — now owned by Whirlpool — chose not to renew its contract with Victor Plastics. The loss of the contract eventually led Victor Plastics to file for bankruptcy.

EPC later purchased the vacant Kalona plant and began operating there in 2007.

At the time, some employees chose to remain with Victor Plastics while others sought employment with EPC. Several employees continued working at the plant for many years following the transition.

Kalona plant

Approximately 200 employees work at the Kalona facility and could be affected by the closure.

The plant manufactures plastic components used in Whirlpool refrigerators as well as parts for BUNN coffee makers.

According to the source, production at the plant has slowed over the past two years, with employees occasionally being sent home due to reduced workloads.

The source said outdated machinery and ownership changes may have contributed to the decline in operations.

Employee benefits have also reportedly changed over time, with workers limited to two weeks of vacation regardless of how long they had worked at the company.  

The source also said staffing challenges had become more common in recent years.

U.S. Sen. Chuck Grassley addressed the layoffs, saying, “It’s a hardship when anyone gets laid off from work, and I know from first-hand experience how hard that is on a family. My office is in ongoing communication with the employees’ union, the impacted communities and Whirlpool.”

Kalona City Administrator Ryan Schlabaugh also commented on the plant’s closure. “The City of Kalona is saddened by the upcoming closure of EPC Kalona, due in large part to the closure of the Amana Whirlpool plant. We respect the plan for assistance EPC has in place for its impacted employees. The City will also serve as a secondary resource for area EPC employees who may need additional access to local and regional support systems as they navigate the loss of EPC Kalona.”

Grinnell plant

The company’s Grinnell facility remains open and operational.

However, equipment and molds used to manufacture plastic parts have reportedly begun to be removed from the Kalona plant and transported to the Grinnell facility as part of the consolidation.

Workers who remain at the Kalona location still have jobs for the time being, but many may soon face unemployment if they choose not to relocate to the Grinnell facility.

Future

If the consolidation moves forward as expected, hundreds of workers could lose their jobs in the coming months, including some employees who have worked at the plant for decades.

The potential closure could have a significant impact on the Kalona community, as the plant has provided jobs for local residents for many years.

The News also attempted to contact EPC for comment but did not receive a response.