Kohler Co.'s sale of energy division is complete. What does it mean for workers?
KOHLER – More than 600 local workers part of Kohler Energy could see little immediate change as the division separates from Kohler Co.
Kohler Co.’s sale of the energy division to investment firm Platinum Equity closed after an initial announcement in the fall.
Kohler Energy is now a separate, independent company. Platinum Equity has majority ownership, and Kohler Co. remains an investment partner.
Financial details about the sale aren’t being disclosed, a news release said.
How will this impact Kohler Energy workers?
Local Kohler Energy workers will not lose wages or other benefits from this development, according to United Auto Workers Local 833 President Tim Tayloe. No mass layoffs will result, either.
Kohler Energy echoed this sentiment.
“The large power generation business based in Mosel is growing as the world’s demand for reliable energy increases,” a Kohler Energy spokesperson said. “As a result, we don’t anticipate any staffing reductions as we work to serve customer needs.”
How will the plant be impacted?
The Mosel plant needs some changes, with some people not being able to work, Tayloe said, adding new ownership may introduce plans for more efficiency.
"I keep saying, 'Let's get them back to work,'" Tayloe said. "There was uncertainty, so we weren't getting the orders, and (there was) confusion on the floor from not only the union members, the management.
"But hopefully we can get on the straight line now," Tayloe added. "Get everybody working, put out the most product as we can and go from there."
About 9,000 people are part of the division worldwide. The Kohler Energy spokesperson said in the “overwhelming majority of cases,” leadership and position responsibilities for Kohler Energy workers will be “unchanged” from what they were before the sale closed.
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Why was the decision made to move the energy division out of Kohler Co.?
Kohler Energy CEO Brian Melka said in a news release the decision to move the energy division out of Kohler Co. after more than 100 years will better position the business to provide a growing demand for “resilient energy.”
“We are excited for this next phase of Kohler Energy with Platinum Equity as a partner,” Melka said. “Platinum Equity firmly supports our growth path ahead and can help further accelerate our progress in the global energy resilience industry.”
Melka has 10 years of experience at Kohler and was the former group president for Kohler Energy.
How will the sale impact Kohler Co.?
Kohler Co. Chairman and CEO David Kohler will serve on the Kohler Energy board of directors. The sale will allow the company to invest in other sectors of the business, like hospitality, wellness and kitchen & bath, he said. The change will position Kohler Energy to “reach its full potential” under new ownership, Kohler added.
“I want to thank the entire Energy team; the performance of this business over the last three years has been remarkable,” Kohler said. “Exciting times are ahead, and Energy will forever have a special place in our company’s heritage.”
Will Local 833 members maintain transfer rights between companies?
76% of Local 833 members who voted were in favor of keeping transfer rights between divisions in Kohler Co. and Kohler Energy. If staff reductions occur in a sector of either company, “bumping rights” would allow workers with 10 or more years of experience on that team to transfer across companies rather than face layoffs.
If no jobs would be open for workers with fewer than 10 years of experience, they’d be laid off until positions opened up, Tayloe said. Then, they'd be brought back based on seniority.
“I feel good that this many members came here to vote, and they wanted to hear what was going on,” Tayloe said. “I see the membership as being strong together.”
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Will workers at Kohler Co. and Kohler Energy negotiate together?
UAW Local 833 will continue to represent workers in both companies. Workers will keep identical collective bargaining agreements for the next several years, too.
When the current contract between Kohler Co. and UAW Local 833 ends in 2028, Tayloe said Kohler Co. workers and Kohler Energy workers will probably negotiate two separate contracts.
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This article originally appeared on Sheboygan Press: Kohler Co. sells energy division. How it will impact Sheboygan workers
