Layoffs At Carrier Could Be Reduced By Early Retirement
By A.M. Uygongco | Mar 27, 2017 05:30 AM EDT
Fewer layoffs might occur at Carrier if early retirement for its employees is approved.
The IndyStar reports that roughly 250 employees gave their retirement notices to Carrier, stating their desire to leave the company under a severance agreement that was reached with the United Steelworkers Local 1999 last year.
The website adds that voluntary exits are beneficial for both the employees that will stay and leave. For the latter, they can find new employment without having to give up the union's negotiated agreement, while the former may not have to go through layoffs, which are expected to number at 550, says Union President Chuck Jones.
Jones adds that some of the workers are already in their retirement age and can leave with severance benefits. This also has the effect of not forcing junior workers to lose their jobs.
A spokesperson for the company confirmed in an email that separations are expected to start in the second half of the year, writes IS. Furthermore, employees are already in the confirmation process.
The United Technologies Corp, which is the parent company of Carrier, stated that it wants for voluntary exits to happen. However, it does not know how many of the 250 notices will be approved and the number of layoffs depends on how many are allowed an early exit.
The layoffs come after Trump and Pence negotiated a deal with United Technologies Corp to keep Carrier operations in Indianapolis, reports the IndyStar. Not all the jobs could be saved, however, and layoffs are expected to happen according to seniority, one in January and another in the late summer, says Jones.
Carrier will receive $7 million in incentives due to a deal headed by Trump. This deal is unusual, writes USA Today, adding that retention deals are smaller than the job creation packages.
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