United Technologies Electronic Controls has started the layoffs that employees were told about a year ago.
The first layoffs started two weeks ago on March 10, and the first 53 employees were let go.
“We were expecting around 100 (on) March 31,” Mike Harmon, assistant business manager IBEW local 983, said. “They’ve cut that back to about 85 people. I’m expecting around 50 people in May, and then each month thereafter. We’re going down all the way to December so each month approximately anywhere from 80 to 100 employees until they’re all gone.”
A January report from the Bureau of Labor Statistics and the Indiana Department of Workforce Development stated that Huntington County’s unemployment rate is at 4.6 percent, a bit lower than the Indiana state rate of 4.7 percent.
Mark Wickersham, executive director of Huntington County Economic Development, said the report is titled January 2017, but the reporting period covered is from December 11, 2016, to January 10, 2017.
Wickersham said he was doubtful that those layoffs were reflected in the January statistics, since the layoffs just began two weeks ago. He said those numbers wouldn’t start appearing until the April and May reports.
“There’s not really any modeling, statistical modeling that can particularly shed light on what we think that impact’s going to be,” Wickersham said.
Wickersham said that major employers in Northeast Indiana are searching for employees for existing openings they’re having difficulty filling. He referenced his website at hcued.com, having a Chamber of Commerce Career Builder Network link that goes to a job posting database site.
“At the moment, there are 790 open jobs within about a 20-minute drive of downtown Huntington,” Wickersham said. “They’re coming into a market where their skill sets are in demand. There are jobs available and there should be hope for those individuals that are needing employment to be able to find it.”
Harmon stated he hadn’t heard of the job database and said he gets complaints from employees who feel they’re not cared about.
“I do get a lot of complaints on the floor from the members,” Harmon said. “They feel that the upper part of our city officials aren’t worried about us because there are so many jobs out there.”
Harmon said that UTEC has been meeting with other factories in the area in an effort to help misplaced workers to find new employment.
“We had a job fair here two days ago,” Harmon said. “So, they are trying to help people out here.”
Another concern of UTEC employees is possibly taking a pay cut wherever they find a new job, but with the federally funded Trade Adjustment Act (T.A.A.) employees can find another job and be paid the difference in salary during their transition.
“For the first two years they’re eligible … there’s up to 50 percent of the differential on their hourly wage for the new job,” Wickersham said. “So, the impact isn’t quite as bad the first two years.”
Harmon said that part of the T.A.A. Act was only for people who are 50 years or older and that it’s great that they have that.
“Let’s say you’re making $16 here and you go over to Wal-Mart and you’re making $9,” Harmon said. “They’re going to pay half of the difference of that up to $10,000 or two years.”
There are also resources and options open to those under the age of 50. There is a grant in place from the State of Indiana Office of Community and Rural Affairs (OCRA) for approximately $120,000 to be used as scholarships for adult learners coming out of the workforce environment.
“(Those) that want to learn … industrial maintenance, CNC machining and welding,” Wickersham said. “All three of which the educational program would be taught by Ivy Tech at the Huntington Learning Center.”
Harmon said that the T.A.A. “school” program will be free to help people.
“The younger ones will be able to take advantage of the schooling,” Harmon said. “I’m hoping that they all do.”
Wickersham said that it’s important to remember that UTEC is not a plant closure, but the fact is UTEC has told the public all along they’re transitioning that facility from a manufacturing facility to an engineering research and design facility
“There is reason to believe the company will continue to grow and be a good corporate citizen as they have always been,” Wickersham said. “This was purely a mathematical business investment decision made in Connecticut. The labor force, as it transitions, is an excellent quality skilled labor force that will be highly in demand. These are really talented individuals that will be highly sought after in the marketplace.”