Story Created:
Mar 26, 2009 at 11:39 AM EDT
Story Updated:
Mar 26, 2009 at 5:20 PM EDT
COLUMBUS, Ind. (AP) — Nearly 2,800 workers at large Indiana employers have been notified this month that they face losing their jobs by early summer.
Factories, warehouses and stores across the state continue shedding jobs at a time when the Indiana unemployment rate — 9.2 percent in January — is at its highest in 25 years. State officials planned to release updated jobless figures for February on Friday.
The most recent losses reported to the state Department of Workforce Development include Columbus Components Group, which told employees this week that it plans to cut about 135 jobs and could close its Columbus plant because customers have withdrawn their orders.
The plant's union, however, charges that the company has raised its prices and bargained in bad faith when workers voted last month to accept wage cuts and benefit changes.
The job losses also include 52 layoffs at a Fort Wayne Foundry Corp. plant that has seen a drop in business with General Motors Corp. and 75 positions being eliminated as Amazon.com Inc. closes a distribution center it opened in Lake County less than 18 months ago.
The largest of the Indiana layoff warnings made in March were for 515 workers at Monaco Coach plants in Elkhart and Kosciusko counties and 439 jobs at a Caterpillar plant in Lafayette.
Columbus Components President Richard Holmes wrote in a letter to employees and Mayor Fred Armstrong that the company has had a loss of orders, which would result in a "significant decrease in anticipated sales volumes due to factors beyond the company's control."
Holmes wrote that the company was still analyzing the turn of events but layoffs would occur during the two-week period beginning April 9.
Jerry Wagner, business manager for International Brotherhood of Electrical Workers Local 1424, said he believed the company was losing business partially because of the bad economy — but also because of bad management.
The company in recent weeks has abandoned profitable light-duty automotive work to focus almost exclusively on heavy-duty automotive work, Wagner said.
A year ago, the plant employed more than 400 people, he said, and after the cuts, about 60 union members will be left.
Wagner also said that despite concessions to which workers agreed in February, which have saved the company more than $1 million, the company is not doing its best to keep the plant in operation.
"We're not giving up," Wagner said. "We're doing everything we can to keep it open."
Employees at the Amazon.com distribution center in Munster will be paid through May 25 even if it closes earlier and will be offered transfers to other distribution sites, company spokeswoman Patty Smith said.
Seattle-based Amazon.com also will close distribution centers in Nevada and Pennsylvania as it streamlines its North American distribution network, Smith said.
In announcing its Munster facility, Amazon.com had said 75 to 100 people would work there full time, with up to 100 temporary employees working during the holiday season.