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January 6, 2007
DUBUQUE Flexsteel Industries Inc., once one of Dubuque's largest private-sector employers, is continuing to hand out pink slips at its flagship factory as workers wonder whether a total shutdown is pending.
The plant's upholstery division, maker of Flexsteel's residential furniture, has seen its once-buzzing production dwindle to one line, bleeding jobs with the production shift. Another 10 workers were laid off this month the latest in a slow but constant downsizing that has seen Flexsteel cut its Dubuque payroll by two-thirds about 400 positions since 2001, according to union officials.
Merle Duehr Jr., spokesman for the United Steel Workers of America Local 1861-U, said the layoffs indicate the upholstery division will be shipped elsewhere a move that could cost 50 or more jobs.
``I'm in the process of going to upper management and asking what is going on,'' said Duehr, whose union represents the approximately 225 hourly employees at the Flexsteel plant. ``The attitude of the workers in the upholstery division is it's just a matter of time.''
Flexsteel, which has been based in Dubuque since 1936, operates nine plants in the United States. The company's profits plummeted in its last quarter, on the heels of a down earnings year.
While company officials said the latest round of layoffs are due to market conditions, Duehr said the jobs are being sent to Flexsteel's nonunion plants in California and Georgia.
Workers also wonder how many production jobs will remain in Iowa as the company brings more foreign-made furniture into the Dubuque plant.
``I think it will be there, but it will be a warehouse,'' said Doug Garner, who was laid off this month after spending 23 years cutting material on the upholstery line.
Garner said his union wages have bottomed out in recent years, from $23 an hour to $13 the result of union concessions to keep jobs in Dubuque.
Flexsteel spokesman Justin Mills acknowledged the company is ``blending'' imported and domestic furniture production but said Flexsteel remains devoted to its Dubuque plant.
``Our corporate office will continue to be in Dubuque,'' he said. ``Our roots are firmly planted in this community.''
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