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Flexsteel Industries, Inc. Announcement of Planned ActionCity of Dubuque ITEM TITLE: SUMMARY: SUGGESTED DISPOSITION: ATTACHMENTS: Description Flexsteel Announcment of Planned Action Copyrighted May 18, 2020 Consent Items # 15. Flexsteel I ndustries, Inc. Announcement of Planned Action Correspondence from Flexsteel Industries, Inc. announcing planned action for exiting its Recreational Vehicle and Hospitality business affecting its global headquarters and Dubuque Operations sites. Suggested Disposition: Receive and File Type Supporting Documentation Flexsteel Industries, Inc. 385 Bell Street Dubuque, IA 52001 FLEXSTEELW May 4, 2020 VIA U.S. FIRST CLASS MAIL, FACSIMILE (515-281-9641) AND EMAIL (RDBUOL@CITYOFDUBUQUE.ORG) `I" 563.556.7730 F 563.556.8345 ww ,1lexsteel.com RECEi1/ED 2QMAY -7 PM 2:59 City Clerk's Office Dubuque, IA Mayor Roy D. Buol 50 W. 13th St. Dubuque, IA 52001 Re: Announcement of Planned Action at Flexsteel's Global Headquarters and Dubuque Operations Sites. Dear Mayor Buol: As a follow up to our communication to you on March 27, 2020, please be advised that Flexsteel Industries, Inc. has decided to exit its Recreational Vehicle and Hospitality businesses due to rapidly declining customer demand and changing market conditions resulting from the on -going COVID-19 pandemic. The markets the Company serves in these businesses has entered an unexpected decline that has been greatly accelerated in this new environment. As a result, the Company has determined that it must permanently shut down certain operations at the facility known as Global Headquarters, located at 385 Bell Street, Dubuque, Iowa 52001 and permanently shut down all manufacturing at the facility known as Dubuque Operations, located at 501 Seippel Road, Dubuque, Iowa 52002. We were unable to provide more notice of this action because these circumstances were not reasonably foreseeable until recently when the full impact of COVID-19 became clear. We are providing as much notice as is practicable under the circumstances and given the rapid pace at which this situation has developed This layoff is permanent for the affected employees. All affected employees or their union representatives have been notified of their anticipated separation dates and that their separation from employment will be permanent. Those employees are expected to be separated from employment, with the first separations occurring on April 28, 2020, and all separations accomplished by June 19, 2020, or within the thirteen (13) day period thereafter. The attached Exhibit A is a list of the job positions will be affected along with the anticipated schedule of job losses. All employees will be paid all earned and unpaid wages and all accrued, unused vacation at the time that their temporary layoff commenced. Certain affected employees are represented by the following Unions: • Operating Engineers Union — Local 234 Union. Jason Coppel, Business Manager/Financial Security 4880 Hubbell Avenue, Des Moines, Iowa 50317 • United Steelworkers Union. Cris Bakey, Local 1861 President, 1610 Garfield Ave, Dubuque, IA 52001 Certain bargaining unit employees have bumping rights although those bumping rights may be inapplicable in this situation. The remaining employees do not have any bumping rights. If you need any further information or have questions concerning this notice, please contact Brandie Wheeler, Human Resources Manager, at 563-585-8330. Sincerely, Stacy Kammes VP - Human Resources Number of poo_nanne Positions Arm & Panel Fab/Fab Frame 4 Back & Seat Sewer 16 Bed|ineAssemb|y 4 Bucket Seat Assembly /&Pack 1 Bundle /&Dispatch Z CAD Designer 2 Class 1A: Prototype UPH & Pattern Layout 4 Class Die Setter 3 C|ansB: Welder G CNCProgram mer/MarhineOperator 7 CN[Setup /& Laser Operator 3 Comb Head Meint&Sewing Machine Repair 1 Customer Service Expeditor 2 Customer Service Technician 2 Design & Spec Engineer 1 Design Engineer 1 Development Engineering Supervisor 1 Double Reach Shipping Warehouse Trucker 1 Finish|inePoxvdercoat 5 Fixture Builder 1 Flat Sewer 3 General Maintenance SPS 3 General Office Assistant 2 Gerber /& Robotic Engineer 1 Gerber Machine Operator 1 Industrial Engineer/CostTeohnician 1 ]anitopRVToi|mring 1 Make Panels & Cut Cardboard 1 Material Handier 1 Pattern Layout Technician 1 Pref|||&Button Q'Fab Frame 2 PreO||8'Button and Pack 1 Prod Supx-Cutting J&Sewing 1 Prod Supv-RVBucket Seat Assembly 1 Product Development & Engineering Manager 1 Product Development Technician 2 PnoductionSupervisor-Stee| l Production Team Leader 1 ProduutionTeenmLeoder-Stee|GuudsProducts 1 Project Engineer 1 QC Inspector 3 Quality Manager 1 Quality Supervisor 1 R&D Class A Prototypa-Stoe| 1 R&D Class A: Prototype Steel SP5 1 R&D Class BProtoUph&Pattern Layout SP3 5 R&D Prototype Sevver/AsstPrototype 2 Raw Material Stock Clerk & Material Handier 1 Repair Sewer &Janitor 1 Res-Boi|erTender/Genera|Building Maintenance 1 Res -Comb Deaign&PottKHakerAssistant&D&EsevverSP3 1 Res -RV Receive Fabric 0'Hang Leather 1 Res-UphCustomer Repair Floater & Forklift Operator 1 Res-UphCustomer Repair -Flex Unit Repair 1 Riveter 2 RVBucket Seat Assembly 7 RVDispatch & Inspect Cover 1 RVMaterial Handier 4 RVStager &Loader 2 RVUtility Cutting 3 RV -Cutting Room Floater 1 RV -Utility Auto Assembly 4 Sales Expeditor 1 Salvage 8\Repair 1 Setup 2 Setup @Operator 2 Sewing Machine Repair 8,General Maintenance 1 Shipping Room Common Labor QiFork Truck Operator 1 Shipping Supervisor 1 Single Ply Cutter 2 Specialty Sewer 4 Team Lead 1 Tool Q'Die Maker 3 Utility Steel Fabrication 18 Accountant 1 Accounting Clerk 1 Administrative Assistant 1 Business Analyst J Buyer - General Materials 1 Category Manager 2 Content Manager 1 Contract Sales Specialist 1 Corporate Recruiter 1 Credit Specialist 2 Customer Care Representative 4 Data Management Specialist 1 Director ofGlobal Logistics 1 Financial Analyst 1 Graphic Designer 1 Logistics Assistant 1 Merchandising Manager 1 Network and Systems Administrator 1 Receptionist 1 Senior Financial Reporting Analyst 1 Service Desk Technician 2 Transportation Supervisor 1 Human Resource Manager 1 Total 205