Losing it All

“If we were losing money, I would understand them closing. But we were making money. It just doesn’t seem fair. It makes me angry.”
-Diane Scheel



Read the Stories:


Interest Rates Spike 1,700 Portland Jobs

Cheap Wheels from China Destroy 600 Jobs in Los Angeles


Stanley Works Moves 1,200 New Britain Jobs to China

Greed Costs Mt. Gilead 600 Jobs

Hostile Takeover Ends 350 Jobs at Waycross Plywood Mill

Mexico Nets 100 Toronto Jobs

German Firm Moves 4,000 Kelowna Jobs to U.S.

Auto Industry Squeeze Hits Hard



North America is the world’s richest industrial economy, with the most productive workforce on earth. But for how much longer? What will be left if we continue selling off our best jobs?
Revitalizing North
America's Might


Return to
Contents Page

Dutch Vacuum 200 Jobs From Bloomington Normal

Like any good union rep, Diane Scheel saves everything. Her kitchen table overflows with newspaper articles, union newsletters and company publications –– a 45-year record of Eureka ramping up production in Mexico and cutting back, laying off and, finally closing its production plants in Illinois.

When Scheel went to work at Eureka in 1965, she never dreamed laws like NAFTA would condemn someone to work at her job, for pennies an-hour, in an environmental cesspool down in Mexico.

For Scheel, working at Eureka was a family tradition. “My grandfather started with the company in 1932. My father and my uncle worked for Eureka. It was that way for a lot of families in town.”

The late 1960s and early 1970s were a boom time for the Eureka Co. More than 2,000 people worked at the Bloomington plant. While Eureka battled arch-rival Hoover for the number one spot in vacuum sales, the Vietnam War was raging and the plant was busy producing aircraft and missiles parts, as well as vacuum cleaners.

“We made a decent living,” Scheel recalls. “We were part of the middle class.”

In 1974 the Dutch conglomerate Electrolux purchased Eureka. The company became one of 500 businesses operated by the global giant in 50 different countries.

In 1981, Electrolux opened a 66,000 square-foot plant in Juarez, Mexico to manufacture vacuum cleaner bags and motors. They also opened a nonunion warehouse and distribution center directly across the border in El Paso, Texas. Company officials insisted the new facilities would have “very little effect” on employment in Illinois.

When Electrolux moved 200 jobs to El Paso in August 1990, the IAM responded with a public relations barrage. The union held rallies, lobbied local and state politicians, wrote letters to the newspaper, and helped initiate trade hearings. They even set up a cardboard “house” in front of the company’s main entrance, like those the Juarez employees lived in.

The campaign worked, said Scheel. “Management admitted later we’d kicked their butts good!”

In the summer of 1999, the company announced it was closing its Illinois facilities. While the layoffs were clearly NAFTA-related, Scheel and other IAM leaders spent months lobbying the White House, Congress and the Labor Department for extended unemployment benefits, job re-training and  benefits under the Trade Readjustment Act.

Looking at the papers covering the kitchen table, Scheel says “If we were losing money, I would understand them closing. But we were making money. It just doesn’t seem fair. It makes me angry.”