The Siemens corporation announced today that “it will lay off 407 of the 660 workers at the blade manufacturing plant that is one of the five largest employers” in Fort Madison, Iowa (Lee County). Follow me after the jump for more details and reaction from Iowa elected officials and Congressional candidates.

Dan Piller reported for the Des Moines Register,

Siemens said the layoff is in response to uncertainties surrounding the wind industry with the pending expiration of the 2.2 cents per kilowatt hour production tax credit Dec. 31. No action is expected by congress until after the November election. […]

The layoff will be the second in Iowa this year. Clipper Windpower in Cedar Rapids reduced its workforce there by 76 workers of its 300 employees beginning on Aug. 27.

Siemens has been the major supplier of blades for MidAmerican Energy’s 1,000 megawatt expansion of its wind capacity in Iowa in the last two years.

Siemens is also letting workers go at wind energy equipment manufacturers in Kansas and Florida, but the Fort Madison plant will see the largest number of layoffs.

“As a result, following the rapid ramp-up of the wind power industry over the past five years, the industry is facing a significant drop in new orders, and this has an unfortunate consequence on employment in this segment of the power industry,” the company said in a statement. “Now, we have had to make the difficult decision to adjust the manufacturing, projects and administrative support functions of our wind power operations to reflect the current and projected business volume.”

Full-time workers with at least six months on the job will get a severance package which includes continuation of some benefits, career counseling, resume preparation and job-placement assistance.

Statement from Senator Chuck Grassley:

“My heart goes out to the people losing jobs.  When you’re in that situation, it’s a depression, not a recession, for you and your family.  In this case and others, the market conditions described by the company emphasize the need for certainty of policies out of Washington, from the production tax credit for wind to the threat of other taxes going up and heavy-handed regulations that make it harder for businesses to sustain and create jobs.  Leadership is needed to provide the kind of certainty and confidence employers need to keep and hire workers.”

Statement from Senator Tom Harkin:

“I visited the Fort Madison Siemens plant in August and saw firsthand the important work that Iowans are doing there as pioneers in the wind energy industry.  I am disappointed by today’s announcement and am very concerned about the impact on the affected workers and their families.  Had the U.S. House passed the Senate committee – approved extension of production tax credit for wind, many of these layoffs may not have occurred.  My offices in Iowa and Washington will do all that they can to be a resource to these workers who may need assistance during this time of need.”

Statement from Representative Bruce Braley (D, IA-01):

Dubuque, IA – Following the news of Siemens layoffs, Rep. Bruce Braley (IA-01) wrote Speaker Boehner to demand immediate action on the Wind Energy Tax Credit. Braley wrote:

“Iowa workers are suffering, and your political games are directly contributing to job losses in Iowa.  I urge you to immediately release your hold, and allow an extension of the wind energy production tax credit to come up for a vote in the U.S. House, where it would pass with a bipartisan majority.”

Braley’s letter to Speaker Boehner can be downloaded at the following link: http://go.usa.gov/rMfG

Below is the text of Braley’s letter to Speaker Boehner:

—

September 18, 2012

The Honorable Speaker John Boehner

United States House of Representatives

H 232, The Capitol

Washington, D.C. 20515

Dear Speaker Boehner:

Today, over 400 Fort Madison, Iowa workers are receiving pink slips due to Congress’ failure to pass an extension of the Wind Energy Production Tax Credit.  At the end of August, 76 workers in Cedar Rapids, Iowa were laid off, also as a result of the failure to extend this tax credit.  Meanwhile, the Iowa agricultural economy sits in limbo as you refuse to allow a vote on the Farm Bill in the U.S. House.

Once again, I urge you to immediately allow a House vote on an extension of the Wind Energy Production Tax Credit.  H.R. 3307, the American Renewable Energy Production Tax Credit Extension Act, has 116 bipartisan cosponsors, yet has been bottled up in Committee since November 2, 2011.  Iowa workers are suffering, and your political games are directly contributing to job losses in Iowa.  I urge you to immediately release your hold, and allow an extension of the wind energy production tax credit to come up for a vote in the U.S. House, where it would pass with a bipartisan majority.

Thank you for your attention to this matter.

Sincerely,

Bruce Braley

Statement from Representative Dave Loebsack (D, IA-02):

“Today’s announcement is another reminder just how far our economy has to go to fully recover and how much work Congress should be doing. My thoughts go to those and their families who are affected by this news.

“This announcement also demonstrates the need for Congress to act and renew the Production Tax Credit for wind energy.  While this is not fully the cause, renewing the tax credit, which has broad, bipartisan support, will give the wind energy industry the stability it needs.  Congress should not be going home to campaign at a time when so much critical work remains unfinished.  The livelihood of thousands of Iowans depends on the renewal of the credit.”

Statement from Representative Leonard Boswell (D, IA-03):

“The nearly 500 layoffs in Iowa’s wind energy sector are the direct result of Congress failing to renew the production tax credit. This is caused by the same inaction from House Republican leadership that we’ve seen with the Farm Bill. House Speaker Boehner is taking his cues from Mitt Romney who has said he wants the tax credit to end along with over 7,000 jobs in Iowa. The credit has been key in growing the wind energy industry in Iowa, but in order to build on that progress, the tax credit needs to be extended to provide manufacturers some certainty to continue investments and future job creation.”

Statement from Tom Latham (R, IA-04, candidate in IA-03):

“Washington’s inaction on extending the wind energy tax credit has frozen wind energy investment and employers in place over the past several months. Now we are unfortunately seeing the disastrous and real-life effects of this inaction on a hardworking and dedicated workforce in Iowa. I will continue to fight for the immediate continuation of these important tax credits and am ready to work with any of my colleagues – regardless of party label – who are willing to stand with me to make it happen.”

Statement from Christie Vilsack, Democratic candidate in IA-04:

“My thoughts today are first and foremost with those who have been laid off in Fort Madison and their families. Today’s announcement shows that gridlock in Congress has a real and serious impact on families in our state. It’s disappointing to see that inaction on the production tax credit for wind has resulted in more than 400 Iowans losing their job. Iowa is poised to be a national leader in renewable energy, but companies like Siemens and Clipper, which also announced layoffs earlier this year, deserve consistent advocates in Washington for wind energy and the jobs this industry supports across the state.

“I’m running for Congress to build layers of economic opportunity and rebuild the middle class. I’m especially committed to being a consistent supporter of renewable energy and will work to continue bringing 21st century jobs to our state.”

Radio Iowa posted comments from Barack Obama’s and Mitt Romney’s presidential campaigns in Iowa.

DES MOINES – Today, Obama for America Iowa State Director Brad Anderson released the following statement in response to the layoffs at the Siemens plant in Fort Madison, IA:

“When President Obama visited the Siemens Plant in 2010, he met with many of the workers and saw the hard work and pride they put into their jobs every day. Our hearts are with them today as they learn about these layoffs and we’re going to do everything we can to keep moving forward and fighting to help American workers develop home-grown energy. Today’s announcement is another reminder of the clear choice we face in this election, between moving forward toward an economy that creates middle-class jobs and increases our energy independence or falling back to policies of the past that send jobs overseas and increase our dependence on foreign oil. In particular, it illustrates the importance of extending the wind production tax credit, which is vital to supporting thousands of wind energy jobs here in Iowa.”

Statement from Shawn McCoy, a spokesman for Romney’s Iowa campaign:

“Today’s layoffs at Siemens are yet another unfortunate reminder of the Obama Economy where American families have suffered from chronic unemployment, increased poverty and falling incomes.  There is a fundamental disconnect between President Obama’s philosophy of the need for redistribution of wealth and the free market economy which our country was founded on. President Obama has focused on attacking the success of others rather than applauding their accomplishments and urging others to strive for similar success. Mitt Romney’s plan for a stronger middle class will foster the dignity of work, champion innovation, generate new wealth, and create 12 million new jobs in his first term alone in a variety of sectors, including wind.”

UPDATE: Boswell’s office released this statement on September 19.

WASHINGTON, D.C. – Congressman Leonard Boswell (IA-3) today submitted an amendment that would restore confidence to the wind energy industry by extending the tax credit for renewable energy production through 2016.

“Much like we’re seeing with the inaction of House Leadership on passing a Farm Bill, they too are failing to renew the production tax credit to help our burgeoning wind energy industry and other domestic renewable energy sectors. Just yesterday the effects of that do-nothing attitude were felt by hundreds of American workers who were laid off at wind-turbine manufacturing facilities in Iowa and elsewhere throughout the country. Just as I did with the Senate-passed Farm Bill, I am submitting legislation to renew the alternative energy production tax credit to bring certainty to industries that are already beginning to struggle due to the gridlock of Washington.”

Rep. Boswell submitted the measure to the House Rules Committee as an amendment to H.R. 3409, the Coal Miner Employment and Domestic Energy Infrastructure Protection Act. If made in order by the Rules Committee, the House will have the opportunity to pass the tax credit extension by the end of the week.