Rexnord’s Indianapolis Plant Closure Delayed Until September

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In a follow-up to a story we have been following closely, a union rep at Rexnord Corp (NYSE:RXN) has confirmed that the closing of its Indianapolis industrial ball-bearing plant has been delayed until September after previously announcing plans to shutter the facility in June.

Don Zering, plant union president, said around 110 employees remain at the factory, down from the 350 workers in October, when the closing was first announced. Zering said he expects production to continue in Indianapolis because the factories where the work is being shifted to are not ready for the transfer yet.

Back in October, the Milwaukee-based industrial supplier announced plans to move its bearings plants operations to Mexico in April 2017. The company said labor costs were the main reason for the closure and sending 300 jobs to Mexico.

The closure is somewhat reminiscent of Carrier Corporation’s announced plans to send all 1,400 jobs from its Indianapolis plant to Mexico. In the end, the company agreed to keep the majority of those jobs in Indiana in exchange for a $7.0-million incentive package.

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President Donald Trump has twice made Twitter posts condemning plans to close the Rexnord plant and outsource jobs to Mexico.

Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers,” he wrote. “This is happening all over our country. No more!”

However, there has been no additional action from the Trump administration to stop some of the jobs from going to Mexico.

The first round of layoffs took place in March, and dozens more were laid off in May. Employees are being offered a severance of $2,000, plus one week of salary for every year employed by the company.

Initially, 125 workers were to remain until the end of June. That has now been pushed back to September. The company is offering an additional $1,500 to those employees who stay until closing.

In fiscal 2017, Rexnord reported net sales of $1.91 billion, net income of $67 million, and adjusted earnings per share of $1.32.

Sources:

Rexnord’s Indianapolis Plant Closing Delayed Until September,” U.S. News, June 22, 2017.

Manufacturer Rexnord plans to move 300 high-paying jobs to Mexico,” USA Today, October 14, 2016.

Carrier layoffs impacting more than 600 workers to begin this summer,” FOX59, May 22, 2017.

Twitter post, Donald Trump Twitter account, December 2, 2016, 11:06 p.m.

Rexnord workers agree to severance deal while hoping for Donald Trump’s intervention,” USA Today, December 16, 2016.

Rexnord Reports Q4 FY17 Financial Results and Initiates FY18 Operating Outlook,” Rexnord Corp, May 18, 2017.

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