World Bearing News
Rexnord signs severance deal with Indy workers
Resource from: JOURNAL SENTINEL 19 Dec,2016

Indianapolis — Although recent attention has been on the Carrier deal that will keep some Indianapolis jobs from going to Mexico, employees at the Rexnord Corp. plant here are hoping for a Carrier-type intervention from President-elect Donald Trump.

Milwaukee-based Rexnord Corp.'s 300 Indianapolis workers reached a severance agreement with the company Thursday.

Rexnord will pay its soon-to-be displaced Indianapolis manufacturing workers $2,000, plus one week of salary for every year they spent at the company, according to United Steelworkers Local 1999. Rexnord also will provide free health insurance for six months. Each worker will receive $500 this month and an additional $1,500 if they remain on the job until the company ends their employment.

The agreement is similar to the one United Technologies Corp. negotiated with the 2,100 employees that it planned to lay off in Indiana. That number has been reduced by up to 800 employees since the company reached a deal with Trump and Vice President-elect Mike Pence to continue making furnaces at its Carrier plant.

The biggest difference between the two severance packages is that United Technologies workers will receive $2,500 payments instead of $2,000.

United Steelworkers Local 1999 represents union workers at both companies.

Chuck Jones, president of the union, said Rexnord employees aren't giving up hope that their jobs can be saved. Jones has publicly challenged Trump to intervene in Rexnord's plan like he did with Carrier. Jones' criticism of Trump provoked the president-elect to insult Jones on Twitter, saying Jones has done "a terrible job representing workers."

But Trump also has targeted Rexnord on Twitter, saying earlier this month that the company is "rather viciously firing all of its 300 workers." Trump added, "No more!" That gave workers some hope that Trump might contact Rexnord.

"I've reached out to him numerous times through the media and said if he's sincere about keeping the jobs here in this country, we'd be grateful to sit down and see if we could get it worked out," Jones said. "We haven't heard nothing. As far as we know, Rexnord and him haven't talked about anything."

Rexnord in a statement confirmed it reached a severance deal with workers, but did not provide details. The company "appreciated the open dialogue with the union," it said in the statement, adding, "We understand the human impact it will have on our associates, their families and the Indianapolis community. It is our intent to provide support and transition services for our impacted associates during this difficult time."

Rexnord is planning to close its Indianapolis factory by June and move its bearings-making operation to Monterrey, Mexico. The company has said layoffs will begin in April.

But in a Worker Adjustment and Retraining Notification Act notice filed with the state Friday, Rexnord said layoffs could begin as early as Feb. 13. The cuts include 50 nonunion workers for a total of 350 employees, according to the company.

The Rexnord and Carrier stories have become intertwined, especially in recent weeks. Both companies this year announced plans to close factories that are about one mile apart on Indianapolis' west side.

As Trump and Pence reached a deal to save some of the Indianapolis jobs at Carrier, Rexnord employees have demanded to know what the incoming Trump administration can do for them. Some Rexnord employees protested during Trump's Dec. 1 visit to celebrate the Carrier deal.

"It's a pretty uphill fight, but we haven't gave up," Jones said. "We're still in the fight."
(JOURNAL SENTINEL)
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