Newton Independent

Whirlpool files unfair trade complaints against Samsung, LG over clothes washers

Newton Independent

Whirlpool Corporation on Friday filed anti-dumping petitions against residential clothes washers from South Korea and Mexico, along with a countervailing duty petition against the same products coming from South Korea.

The petitions claim that South Korean washing machine manufacturers Samsung Electronics and LG Electronics have dumped their products into the United States and are selling them at prices substantially less than fair value. Their actions, the petitions claim, undermines competition, causes material injury to the appliance manufacturing industry, harms consumers and threatens American jobs.

"When foreign manufacturers are permitted to dump products into the United States, it undermines competition," said Marc Bitzer, president of Whirlpool North America, in announcing the filings with the U.S. Department of Commerce and U.S. International Trade Commission. "It is important for an open global trading system to have a process of enforcement to maintain the integrity of the system and provide all manufacturers a level playing field on which to compete."

Whirlpool produces its clothes washers in Clyde, Ohio, where it employs more than 3,500 workers. The company recently invested $175 million in the Ohio plant to produce energy- and water-efficient washers.

Previously, Whirlpool filed unfair trade practices against Samsung and LG over the production of bottom-mount refrigerators, which are made by Whirlpool at its Amana, Iowa, plant.

And here's an interesting article that says Whirlpool's filings are in essence a request to the government to force consumers to pay more for washing machines.

Former Maytag workers foretell Whirlpool's Fort Smith workers' future

Newton Independent

MSNBC political commentator Ed Schultz traveled to Newton on Saturday to get a glimpse of what Whirlpool employees in Fort Smith, Ark., can look forward to after the world's largest appliance manufacturer announced last week its plans to close the refrigerator plant there and eliminate about 1,000 jobs.

Schultz announced his intention to travel to Newton during his show on Friday where he took aim at Whirlpool's decision to close the Arkansas plant, as well as slash 5,000 jobs across North America and Europe in order to improve profit margins for shareholders.

What he learned from a group of former Maytag workers after his visit with them Saturday afternoon led Schultz to send a camera crew to the UAW Local 997 union hall in Newton for a live remote telecast as a follow-up to his visit that aired as part of his show Monday evening.

"What do workers in Fort Smith have to look forward to?" Schultz asked Steve Wilcox, who spent 22 years at Maytag before the plant closed in 2007.

"There's a lot of emotional heartache," Wilcox said. "There's a lot of questions about what am I going to do, how am I going to support my family."

Wilcox, who now runs the Smokin' Mississippi Queen barbecue catering service, told Schultz that the worry over the future just "escalates."

"You don't know what you're going to do," he said.

Max Tipton, who spent 41 years at Maytag and held union leadership positions, told Schultz that we are "seeing the end of the American dream."

"What went wrong with Newton was Whirlpool," Tipton said. "Maytag was a wealthy company. It knew how to make the best products on the market."

Then, Tipton said, Whirlpool bought Maytag and announced it would close the plant a year later.

"I don't know that they gave any reason," he said.

Schultz asked Wilcox what he would ask the Republican presidential candidates at the National Association of Manufacturers forum in Pella today.

"Can you help America out?" Wilcox said he would ask.

You can watch the segment of Monday's show, including clips from Schultz's visit on Saturday, here.

Whirlpool to cut 5,000 jobs

By PETER HUSSMANN

Whirlpool Corporation plans to eliminate 5,000 jobs from its North American and European operations, including 1,200 salaried positions, in response to a continued weak global economy.

The Benton Harbor, Mich.-based company announced its "cost and capacity reduction" plan in releasing its third quarter results today.

"As we previously indicated, in a period of uncertain economic growth and consumer demand, we would be prepared to take the necessary actions in order to expand our operating margins and improve our earnings," said Whirlpool CEO Jeff Fettig. "Given the weakening global economic environment, we are today announcing aggressive plans that will result in substantial cost and capacity reductions. The plans are the result of a comprehensive global review of our operations, products and manufacturing facilities."

On Thursday, Whirlpool said that it planned to close its Fort Smith, Ark., refrigeration manufacturing facility by the middle of 2012 and consolidate its operations in Mexico, Ohio and Amana, Iowa, where about 160 jobs are expected to be added. The Fort Smith closure will impact approximately 1,000 jobs.

The workforce reduction of 5,000 employees in North America and Europe equate to a 10 percent workforce reduction in those regions. In addition to cutting 1,200 salaried employees and the closure of the Fort Smith operation, Whirlpool said it would:

• Relocate dishwasher production from Neunkirchen, Germany to Poland in 2012.
• Take additional organizational efficiency actions in North America and Europe.
• Reduce overall capacity by approximately 6 million units.

The actions are expected to result in $400 million in annual cost savings by the end of 2013, the company said.

"We are taking necessary actions to address a much more challenging global economic environment," Fettig said. "We believe our cost and capacity reduction initiatives, recently announced cost-based price increases and innovative product launches will enable us to expand operating margins and deliver long-term value to shareholders."

In announcing its third quarter results, Whirlpool said net earnings for the period totaled $177 million, or $2.27 per diluted share, compared to net earnings of $79 million, or $1.02 per diluted share, for the same period last year.

Sales in 2011 were $4.6 billion, compared to $4.5 billion reported in the third quarter of 2010. Third quarter operating profit totaled $136 million compared with $234 million in the previous year. Weaker global demand and higher raw material and oil-related costs during the quarter offset the benefits of ongoing productivity, cost reduction initiatives and previously announced price increases, the company said.

"During the quarter, we experienced weaker than expected global industry demand and elevated material costs," Fettig said. "Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs."

Third quarter sales in North America decreased 2 percent from the previous year to $2.4 billion. Operating profit for the region in the quarter was $62 million compared to $114 million the year before.

Based on the current economic outlook, Whirlpool expects full-year 2011 U.S. industry unit shipments to decrease approximately 3 to 5 percent.

Whirlpool to close Arkansas plant; move some jobs to Amana, Iowa

Newton Independent

Whirlpool announced today that it will close its Fort Smith, Ark., manufacturing plant by the middle of next year and move some of the plant's current refrigerator production to its Amana, Iowa plant, an Arkansas TV station is reporting.

The company said the closure will affect approximately 1,000 employees, mainly hourly workers. There are about 800 workers at the plant currently on layoff.

Company officials, the TV station reports, said the closure is "driven by a decrease in demand for side-by-side refrigerator platforms that has resulted from the continued weakness in the global economy, and the aggressive pricing actions of global competitors - some of whose trade practices are currently under investigation by the U.S. government."

Fort Smith production will shift to existing plants in the U.S. and Mexico, the company said, "to leverage the resources and excess capacity at those facilities."

Production of built-in refrigerators will shift to Amana which will add 160 jobs to the plant. Trash compactor manufacturing will move to Ottawa, Ohio, with production of the "reduced, declining volumes" of side-by-side refrigerators being built within "excess capacity" space at a plant in Mexico.

The Arkansas TV station reported that Whirlpool employed approximately 4,600 workers at the Fort Smith factory in 2006.

Whirlpool says court orders LG to pay costs in advertising lawsuit

Newton Independent

Whirlpool announced today that a U.S. district court has ordered its South Korea-based rival LG Electronics to pay costs to Whirlpool in connection with a lawsuit involving Whirlpool steam dryer advertising.

The world's largest manufacturer of home appliances said that a U.S. court in Chicago ordered LG to pay a "substantial portion" of Whirlpool's costs "as the prevailing party in the lawsuit." The court, the company's statement said, found that "Whirlpool has established that its dryers do, in fact, use steam."

LG Electronics filed the suit in 2008 and sought to ban Whirlpool from using the term "steam" in its advertising for its "steam dryers." LG claimed that the Benton Harbor, Mich.-based company's steam dryers do nothing more than re-wet the clothes and mislead consumers about the benefits of the product.

News story says Whirlpool plans for 'more streamlined' company

Newton Independent

The Herald-Palladium, a newspaper covering southwest Michigan, reported today that Whirlpool Corporation will make an announcement about changes the world's largest appliance manufacturer plans to make in response to the anemic economy.

The H-P staff writer quotes Jeff Noel, the head of Whirlpool communications who was quoted widely during the time the Benton Harbor-based company decided to close its Newton operations after taking over Maytag, who said "strategic organizational changes" will be made at Whirlpool facilities across the U.S. that will result in a "more streamlined" company able to "quickly adjust to current and anticipated market conditions."

"Current demand for all major appliances is at recessionary levels and the marketplace remains volatile," Noel is quoted in the story.

One comment on the story makes note of the subcontracting of a Benton Harbor-based Whirlpool department to Ohio.

No further information is available at this time. You can read the H-P story here.

UAW objects to most of Whirlpool's legal costs payment claim in Maytag retiree lawsuit

By PETER HUSSMANN

Attorneys for the UAW and UAW Local 997 are objecting to most of the legal costs Whirlpool is trying recover as the winning party in its case against Maytag retirees over the company's right to change the health care benefits to retired Newton production workers.

On Monday, attorneys for the UAW filed a resistance to Whirlpool's previously filed bill of costs claiming more than half of the $60,000 Whirlpool is seeking is not allowed.

Lawyers for Whirlpool and Maytag filed a bill of costs in federal court seeking payment from the union for the fees it incurred in the production of transcripts, court filings and depositions in the case it brought against the Newton Maytag retirees in 2008.

The request for costs follows a joint filing by the attorneys where it was agreed that neither party would seek attorneys' fees in the case.

Under civil procedure rules, costs "are allowed to the prevailing party."

The total amount Whirlpool is seeking to recover from the UAW is $60,012.67.

Lawyers for the union, however, object to more than 80 of the bills costing a total of $42,494.02 that Whirlpool presented to the court for payment by the UAW. The UAW agrees to pay $17,518.65 of Whirlpool's bill of costs claim.

Specifically, the UAW is objecting to costs Whirlpool included for such things as process servers, unneeded deposition transcripts, stamps, copy costs, messenger services and a portion of the airfare, lodging, transportation and meals for Mark Krivoruchka, Maytag's former head of human resources.

Judge rules against Maytag retirees in medical benefits case

By PETER HUSSMANN

Whirlpool had the right to change the retiree medical benefits to more than 3,000 former Maytag workers in Newton, a federal judge has ruled.

U.S. District Court Judge James Gritzner entered a judgment on Thursday, in a filing posted late today, in favor of the Whirlpool Corporation in the federal class-action lawsuit it brought against UAW Local 997 retirees three years ago. The decision follows a bench trial held late last year and the submission of post-trial briefs, in lieu of closing arguments following the trial in December 2010, in March 2011.

Judge Gritzner's 60-page ruling states that while he is sympathetic to the financial impact the decision will have on Maytag retirees, lawyers representing the UAW Local 997 retirees did not provide enough evidence that the retiree medical benefits were vested.

"In summation, the Union's inconclusive documentary evidence and underwhelming extrinsic evidence do not satisfy the Union's burden of proof because the general duration provisions, continuation language, coordination of benefits clauses, and reservation of rights language in the written documents and extrinsic evidence of changes to retiree medical benefits demonstrated by a preponderance of the evidence that the parties did not agree that the retiree medical benefits would survive the expiration of the retiree medical benefits schedule in the 2004 CBA (Collective Bargaining Agreement)," Judge Gritzner's ruling states.

"The court is not unaware of the expectations of the Newton retirees nor unsympathetic in the result reached herein," the ruling continues. "However, the Union has not carried its burden under the law of showing that the Company agreed to vest retiree medical benefits. Regardless of what either side was thinking about vesting, proper allocation of the burden of the proof shows that the Union had the obligation to include express vesting language or present specific evidence that the Company agreed to provide vested retiree medical benefits.

"This the Union has not done within the structure of the applicable law in this circuit."

At this time it is uncertain what lawyers for Maytag retirees might do following the ruling. The possibility exists for an appeal to the U.S. Circuit Court of Appeals. The Newton Independent is attempting to contact lawyers for the parties to gain reaction.

The full ruling can be read below.

Download Judge Gritzner Ruling on Maytag Retiree Medical Benefits Case

Insurance company sues Whirlpool over defective washer

By PETER HUSSMANN

An Illinois insurance company is attempting to collect more than $200,000 from Whirlpool Corporation for a claim it paid to a Cumming, Iowa couple for damages their home received after a Neptune washing machine malfunctioned and flooded their home.

Country Mutual Insurance Company of Bloomington, Ill., filed suit in Warren County District Court last month seeking to be subrogated for the payment it made to policy holders Christine and Denis Marchand after the first floor of their residence was flooded by the defective appliance purchased from the Home Depot in 2005.

According to the suit, Ms. Marchand placed a load of wash in the Neptune at approximately 9 p.m. on July 8, 2008. Three and a half hours later an automatic alarm system at the residence was activated and the Marchands discovered the main floor of their home flooded with water. The couple investigated its source and found water flowing from the washing machine.

The insurance company is seeking to recoup the payments it made for the compensation of the couple's losses, an amount in excess of $200,000, the suit states.

On Tuesday, lawyers for Whirlpool moved the case to the jurisdiction of the federal court system.

Whirlpool wins first round in its unfair trade petition against LG, Samsung

Newton Independent

Whirlpool today won the first round in its complaint to federal trade regulators that two Korean-based appliance manufacturers are selling bottom-mount refrigerators in the United States at less than fair value thus jeopardizing similar refrigeration products Whirlpool produces at its Amana, Iowa plant where approximately 2,000 people are employed.

The U.S. International Trade Commission voted in favor of Whirlpool's petition to get anti-dumping and countervailing duties imposed on refrigerators made by LG Electronics and Samsung at its plants in Mexico and South Korea.

"This unanimous decision by the ITC validates the action we've taken to protect our 23,000 U.S. employees and the communities in which they work," Whirlpool spokeswoman Jill Saletta said in a statement.

Today's decision is the first of several Whirlpool must win before tariffs as high as 183 percent could be imposed.

LG said today that it disagrees with the decision and will aggressively contest the injury-related issues in the final determination phase.

"LG looks forward to the opportunity to more fully set forth the reasons why imports from LG, the innovation leader in the refrigerator industry, has in no manner injured Whirlpool," said Sam Kim, President, Home Appliances, LG Electronics USA. "We are confident that LG will prevail in the final ITC determination."

Whirlpool, LG Electronics' legal fight over 'steam' dryers expected to continue

By PETER HUSSMANN

The false advertising fight between appliance giants Whirlpool and LG Electronics does not appear to be over even with a federal judge's ruling on Monday that sided with Whirlpool's use of the word "steam" on dryer products in manufactures in Ohio.

The United States District Court in Chicago refused to award any relief to LG in its 2008 lawsuit against Whirlpool claiming that the Benton Harbor, Mich.-based company's steam dryers do nothing more than re-wet the clothes and mislead consumers about the benefits of the product.

In a news release issued by Whirlpool today, company officials said the court found that "Whirlpool has established that its dryers do, in fact, use steam" and that "LG did not introduce expert testimony or credible evidence of even a single Whirlpool customer, retailer, or trade representative who expressed confusion."

Whirlpool said Monday's ruling follows a jury verdict in October 2010 where LG sought to ban Whirlpool from using the word "steam" to describe its steam dryers. Whirlpool's technology combines existing heat sources with an automatic water mist creating "steam" inside the drum where the clothes are.

"This decision by the court," said Marc Bitzer, president, Whirlpool North American Region, "confirms the jury's verdict that consumers want choice and the kind of innovative laundry solutions Whirlpool has provided for 100 years. This victory means consumers will continue to have a choice in purchasing their steam laundry appliances."

LG, however, vowed today to appeal the decision by the federal district court judge in declining to issue an injunction against Whirlpool for its violation of an Illinois false advertising statute.

The Korean appliance manufacturer said the October 2010 jury verdict found that Whirlpool had violated the Illinois Uniform Deceptive Trade Practices Act for advertising its cold-water spray dryers that Whirlpool calls "steam" dryers. LG contends Whirlpool's Duet, Cabrio and Maytag Bravo "steam" dryers do not produce or use steam.

Unlike Whirlpool's technology, LG says its dryers use a steam generator outside the drum to boil water and inject hot steam into the dryer during its steam cycles.

"LG Electronics believes that Whirlpool should not be allowed to continue practices that the federal jury determined to be a violation of law," the company said in its statement today. "Consumers are being misled by Whirlpool's deceptive marketing of cold water spray as steam. On behalf of consumers, LG will continue to challenge Whirlpool's deceptive activities and review all options including an appeal."

Whirlpool files unfair trade practices petitions against Samsung, LG

Newton Independent

Whirlpool Corporation today filed a complaint with federal regulators claiming two Korean-based appliance manufacturers are selling bottom-mount refrigerators in the United States at less than fair value thus jeopardizing similar refrigeration products Whirlpool produces at its Amana, Iowa plant where approximately 2,000 people are employed.

The anti-dumping and countervailing duty petitions were filed against Samsung Electronics and LG Electronics with the U.S. Department of Commerce and the International Trade Commission. The petitions request an investigation into the production of bottom-mount refrigerators produced by the companies in Mexico and South Korea. The petitions claim the companies have been given subsidies by the South Korean government that make their products less expensive to sell.

"Whirlpool Corporation is the world leader in appliances because we have invested in our people and in the technologies to give consumers the high-quality products they want for the past 100 years," said Marc Bitzer, president, Whirlpool North America. "When foreign producers compete in the U.S. market using unfair trade practices, we have no choice but to take action to defend the integrity of the global trading system, our approximately 23,500 U.S. employees, the U.S. refrigerator industry, and American consumers. Dumping is an unfair trade practice used to drive out competitors, which means consumers end up with fewer choices."

Whirlpool made the decision to take legal action after an investigation showed that Samsung and LG violated U.S. trade laws and, as a result, caused material injury to the U.S. appliance manufacturing industry.

You can view the full petitions by going here.

Lawyer for Maytag retirees gets second extension of time to file post-trial brief

By PETER HUSSMANN

A federal judge on Friday granted the lawyer for the UAW and Newton Local 997 a second extension of time to file a post-trial brief following the trial over Whirlpool's right to slash health care benefits for more than 3,000 retired Maytag production workers.

Attorney Robert Seltzer was granted the additional week of time to file the brief after he filed a motion stating that he has been unable to complete the legal document because he "has a back injury that has seriously interfered with his ability to work."

In February, the lawyer representing the union and Local 997 retirees asked the court for an extension from the previous Feb. 18 deadline until tomorrow due to the complexity of the legal issues, an illness and the renovation of the law firm's Chicago offices.

Attorneys for Whirlpool, though not objecting to the second request for an extension, said the extensions are becoming "excessive," noting the UAW's and Local 997's law firm has a number of other capable attorneys to assist.

"The number of reasons advanced for extensions is becoming excessive," attorneys for Whirlpool stated in its response to the UAW's motion. "Plaintiffs do not object to the most recent second extension requested by Defendants, so long as it is the last extension which will be granted to Defendants."

Trial in the matter concluded on Dec. 14, 2010. The post-trial briefs are now due March 15.

UAW Local 997 lawyer asks for extension to file his post-trial brief

By PETER HUSSMANN

Former Maytag production workers who are fighting Whirlpool's action that changed their health insurance plans will have to wait a little longer for any decision in the matter to be handed down after their lawyer asked for an extension of time to file his post-trial brief.

UAW and UAW Local 997 lawyer Robert Seltzer filed a motion in federal court on Friday asking the court to give the parties until March 8 to file post-trial briefs in the matter. The court had previously given the parties until Feb. 18 to file their closing arguments after the trial in Des Moines ended on Dec. 14, 2010.

In asking for the extension, Seltzer noted complexity of the legal issues involved in the case and the mass of evidence presented at trial. More than 170 exhibits were admitted at trial with the manuscript of the case totalling more than 1,000 pages, the motion states.

Seltzer also makes note that he was ill for several weeks which has limited his time for preparation. In addition, "other pressing legal work" and his firm's renovation of their law office in Chicago has "interfered with his time for preparation of the post-trial brief."

The court has yet to rule on the matter but attorneys for Whirlpool have indicated to Seltzer they would not resist the motion, the filing states.

More than 3,000 retired Maytag workers had their insurance benefits abruptly changed by Whirlpool at the beginning of last year, a move the retirees claim violates terms of their contract.

Trial ends in class-action lawsuit over Newton Maytag retiree benefits

By PETER HUSSMANN

Trial came to an end on Tuesday in the class-action lawsuit brought by Whirlpool over its right to change the health benefits provided to more than 3,000 Newton Maytag retirees.

Whirlpool continued its case by calling Mark Krivoruchka, Maytag's former senior vice president of human resources. He testified about the health insurance benefits received by the Newton plants hourly employees and retirees, as well as the events surrounding the 2004 collective bargaining negotiations and the changes made to the Newton plants hourly retirees' health insurance benefits as part of those negotiations and the reasons they were sought.

Former Newton Maytag human resources department employee Jon Strickland, who is now Whirlpool Operations Manager for the Newton Parts Operation, followed by testifying about the modifications to Maytag active employee and retiree health insurance benefits, the union's involvement in reviewing and negotiating Maytag Plan documents and the policies surrounding the drafting and distribution of those documents.

Whirlpool's final witness was William Townsend, a former Maytag human resources department employee and currently director of human resources for Whirlpool's Clyde Division. He testified about modifications to hourly retiree health insurance benefits.

Upon Whirlpool resting its case, lawyers for the UAW and UAW Local 997 filed a motion seeking judgement in the union's favor.

The motion states that Whirlpool did not have cause to bring suit against the Maytag Newton retirees because "there was no case or controversy."

"The evidence establishes that there was no dispute whatsoever between Plaintiffs and individual retirees because there is no evidence that the communications between Whirlpool and UAW negotiators were communicated to retirees," the motion states. "Thus, the retirees were entirely unaware of the Plaintiffs' position with respect to what the retiree insurance benefits would be after the 2004-2008 Insurance Agreement expired."

The motion also states that there was no "case or controversy" at the time the suit was filed because Whirlpool had not yet made a specific proposal concerning retiree health insurance benefits.

"When Whirlpool negotiators raised the issue of retiree insurance, UAW negotiators responded that because retiree insurance is a permissive subject of bargaining, the UAW was declining to negotiate the subject," the motion states. "At the time, the only identifiable difference of opinion between Whirlpool and the UAW over retiree insurance was whether the parties should bargain over that subject. Whether bargaining is required is a subject that falls within the exclusive jurisdiction of the National Labor Relations Board and is not a case or controversy sufficient to invoke this court's jurisdiction."

The motion also states that the evidence shows that retiree health insurance benefits were vested.

"... [E]vidence presented in (Whirlpool's) case establishes that Maytag and the UAW agreed that pre-January 2008 retirees have lifetime health insurance benefits that vested at the time of their retirement," the motion states. "Successive collectively bargained Supplemental Insurance Agreements since the 1960s have provided that upon retirement, an employee's insurance is extended 'during his life.' Maytag's attempt in 1983 to restrict retiree insurance to the term of a particular collective bargaining agreement was rejected by the UAW. Thereafter, Maytag's attempts to change retiree insurance benefits were limited to attempts to change the insurance benefits of future retirees before those benefits vested at the time of retirement."

The motion also makes note that in 2004, when the Supplemental Insurance Agreement expired and the UAW went on strike, "Maytag continued to provide health insurance benefits to retirees because those benefits were vested and therefore survived the expiration of the Supplemental Insurance Agreement."

Presiding Judge James Gritzner reserved ruling on the motion for judgement in the union's favor and will take the motion under advisement.

Lawyers for the UAW called just two witnesses to the stand.

Ron McInroy, director of UAW Region 4, was the union's chief spokesperson in the 2008 contract negotiations between Whirlpool and the UAW. He testified about the July 1, 2008 bargaining session that precipitated Whirlpool's filing of the suit, communications between the company and the union regarding retiree medical and prescription drug benefits and the company's changes to the retiree benefits commencing Jan. 1, 2009.

Robert Alpert, a former UAW health care consultant, testified about his assistance and involvement in various collective bargaining negotiations and discussions of benefits between the union and the company.

The UAW rested its case at approximately 4 p.m. Tuesday. The union did not call Bill Ward, the former Director of Maytag's Benefits Department. Judge Gritzner denied Whirlpool's emergency motion for exclusion of Ward's testimony ruling it moot.

Lawyers for Whirlpool and Maytag are to provide their closing arguments in writing.

The UAW's motion for judgement can be read below.

Download UAW's Motion for Judgement on Partial Findings

Whirlpool files emergency motion to exclude testimony of Bill Ward

By PETER HUSSMANN

Attorneys for Whirlpool on Saturday filed an emergency motion to exclude the testimony of Bill Ward when trial in the class-action lawsuit over Newton Maytag retiree health care benefits resumes on Tuesday.

The motion was filed after attorneys for the UAW notified Whirlpool's counsel late Friday of plans to call Ward to the stand as a witness on the UAW's and UAW Local 997's behalf. Three other individuals - Robert Alpert, Diana Compton and Ron McInroy -  were also identified by the UAW as planned witnesses at the trial.

Whirlpool is objecting to Ward's testimony on a variety of grounds. First, the motion notes that lawyers for the UAW made no mention of Ward during conversation's at the end of the court session on Thursday regarding planned witnesses. Further, the UAW never listed Ward as a witness they would or might call to the stand as required by federal trial rules.

"On Friday, Dec. 10, 2010, well after the close of business, at approximately 8:45 p.m., Defendants' trial counsel sent Plaintiffs' trial counsel an email stating that he planned to call the following witnesses on Dec. 14, 2010 (time allowing): Robert Alpert, Diana Compton, Rob McInroy and Bill Ward," the emergency motion states. "Notably, in his email, Defendants' trial counsel did not provide any justification as to why he failed to disclose Mr. Ward as a witness previously nor did he identify the information he intended to solicit from Mr. Ward."

Whirlpool argues that the UAW's failure to timely disclose Ward as witness precludes his ability to testify at the trial. Further, if he is allowed to testify Whirlpool would be "prejudiced" because counsel was "not provided with an adequate opportunity to meet with Mr. Ward and review the documents that would form the basis of his testimony."

In addition, the motion notes that Whirlpool decided to strike Ward from its potential list of witnesses and that any testimony he could provide would be duplicative of other evidence already entered and that "it does not appear that his testimony is important."

In pretrial court documents, Ward was listed by Whirlpool as a potential witness. His proposed testimony was to include his role as a Maytag Benefits Consultant and Director of Maytag's Benefits Department.

The motion indicates trial in the retiree health benefits case impacting more than 3,000 retired Newton Maytag plant employees is expected to conclude on Tuesday.

Former UAW Local 997 President Teed testifies for 5 hours at retiree health benefits trial

By PETER HUSSMANN

Former UAW Local 997 President Pat Teed testified for nearly five hours on Thursday in the fourth day of the federal trial in the class-action lawsuit brought by Whirlpool over its right to change the health care benefits provided to Newton Maytag plant retirees.

Teed, who was identified in pretrial court documents as a witness for both Whirlpool and the UAW, was a member of union negotiating committees that negotiated collective bargaining agreements with Maytag over a 24-year period, 1980 to 2004.

Teed testified about the union's representation of Maytag Newton plant employees and retirees, the various collective bargaining negotiations in which he was involved, retiree medical and prescription drug benefits, communications between the company and the union regarding benefits and the changes to retiree medical and prescription drug benefits commencing Jan. 1, 2009.

Larry Shaver, a Maytag retiree, former UAW chief plant representative, a member of the union negotiating team that negotiated the 2001 collective bargaining agreement and current chair of the UAW Local 997 Retiree Committee, testified briefly on Thursday. He was slated to testify about the UAW's representation of retirees.

Whirlpool's final witness of the day was Kevin Bradley, the current director of human resources for the Whirlpool Amana Division. He previously held positions in Maytag's and Whirlpool's human resources department in Newton.

Bradley, court documents state, was to testify about the health insurance benefits received by the Newton plants hourly employees, its hourly retirees and the various collective bargaining agreements negotiated between the company and the union.

He was also slated to testify about modifications to Maytag active employee and retiree health insurance benefits, the union's involvement in reviewing and negotiating Maytag Plan documents, Maytag's and Whirlpool's policies regarding the distribution of Plan documents, the Maytag/Whirlpool - UAW Joint Pension Board and the process followed in transitioning hourly employees to retiree status.

Bradley was also slated to testify about the 2008 collective bargaining negotiations between Whirlpool and the union, the current benefits provided under the Whirlpool retiree benefit plan and "the effect of the economy on Whirlpool and Whirlpool benefit plans for its hourly and salaried active and retired employees."

Bradley testified for just 15 minutes before the trial was recessed for the day on Thursday. No trial dates are scheduled for today and Monday with Bradley's testimony expected to resume on Tuesday.

Former UAW Local 997 leaders take the stand at Maytag retiree health benefits trial

By PETER HUSSMANN

A number of individuals with former UAW Local 997 leadership positions testified at the third day of the trial brought by Whirlpool claiming its legal right to change the health care benefits provided to more than 3,000 Newton Maytag retirees.

Past presidents Lonnie White and Pat Teed, as well as former Local 997 vice president Rick Avery took the stand on Wednesday where they testified about their responsibilities as Local 997 representatives and the contract negotiations that took place under their tenure.

More specifically, court documents state, the former union leaders were asked about various modifications made to Maytag active employee and retiree health insurance benefits negotiated during bargaining sessions over the years.

Also called to the stand on Wednesday was former UAW Region 4 Representative Dennis Walker. He was slated to testify about his duties and responsibilities as a region representative, the 2004 and 2008 contract negotiations between the union and the company, as well as UAW's representation of the Newton retirees.

Testimony continues today at the federal courthouse in Des Moines.

More UAW Local 997 representatives testify at Maytag retiree health benefits trial

By PETER HUSSMANN

Testimony from past and current UAW Local 997 union representatives continued on Tuesday in the federal class-action lawsuit brought by Whirlpool claiming its right to change the health care benefits provided to more than 3,000 retired Newton Maytag plant employees.

Former Local 997 President Max Tipton testified for two more hours on Tuesday about past contract negotiations between the company and the union before giving way to Ted Johnson, the local president in Newton during the 2008 contract negotiations.

Johnson testified for more than two hours about the events leading up to the 2008 negotiations, his preparation and collection of documents in advance of those contract negotiations and the collective bargaining relationships between the company and the union.

James Reid, a current Whirlpool employee and Local 997 Skilled Trades representative, followed Johnson to the stand. Reid, court documents state, was called to testify about his duties and responsibilities as a union representative, the benefits he received as a Maytag Newton plant employee and those he now receives as an hourly employee of Whirlpool and about the contract negotiations in 2008. He was on the stand for approximately 30 minutes.

Another UAW Local 997 Skilled Trades representative and current Whirlpool employee, Mark Hoffert, was the final witness of the day. Like Reid, he was to testify about his duties as a representative, the comparative benefits he received as a Newton Maytag and Whirlpool hourly employee and the 2008 contract negotiations. He testified for approximately 20 minutes.

The bench trial before U.S. District Court Judge James Gritzner recessed for the day at 3:35 p.m. Testimony was to continue today at the federal courthouse in Des Moines.

Two UAW union officials testify at opening day of Whirlpool class-action lawsuit against Newton Maytag retirees

By PETER HUSSMANN

Two long-time UAW representatives took the stand on Monday on the opening day of the trial in the class-action lawsuit brought by Whirlpool against Newton Maytag retirees over its rights to change health care benefits.

Dennis Williams, UAW Secretary Treasurer and former Director of Region 4 was sworn late Monday morning following opening statements by the attorneys for the UAW and Whirlpool before U.S. District Court Judge James Gritzner.

Williams, who was listed in pretrial documents as a witness for both Whirlpool and the UAW, was on the stand for three and a half hours. In documents provided by Whirlpool, Williams was to testify about his duties and responsibilities as the UAW Regional Director, as well as the UAW's representation of the Newton retirees. He was also slated to testify about the events predating and occurring during the 2004 and 2008 contract negotions between the company and the union.

Late Monday afternoon, Max Tipton, a Newton Maytag plant retiree and former UAW Local 997 president, took the stand. Court documents state that Tipton, who was also called as a witness by both parties, was to testify about his duties and responsibilities as Local 997 president, the collective bargaining relationship between Maytag and the union, the union's representation of Maytag employees and retirees, the collective bargaining agreements negotiated between the parties and modifications to the Maytag active and hourly retiree health insurance benefits. He was also slated to testify about the health insurance benefits he received as a plant employee and now receives as a retiree.

Tipton testified for more than an hour and a half before the court recessed for the day at 5:04 p.m.

Testimony in the case resumed today.