NIPSCO plans to cut 37 workers

The Northern Indiana Public Service Co. will lay off about 37 employees near the end of October because of decreasing customer demand for energy.

In the second quarter of 2009, NIPSCO reported that industrial demand was 25 percent below the same period in 2008, resulting in a $21 million decrease in revenue for that quarter alone. NIPSCO spokesperson Colleen Reilly said that also coincided with a cooler than usual summer, so customers didn't turn on their air conditioners as often as usual.

Reilly said that the company is looking at cuts across most areas, but bargaining unit employees will not be affected. Bargaining unit employees include linemen, gas servicemen and customer service representatives.

"One of the things in our analysis that we were very aware of, was to minimize any direct impact on customers," Reilly said.

Business needs and employees' skill sets will be the driving factors used to determine which employees will be impacted by the layoff, which goes into effect on Oct. 23.

The layoffs, which constitute 2 percent of NIPSCO's workforce, are part of a package of cost-saving measures, including requiring employees to take time off without pay in 2010 and canceling merit increases.

"The impact of the recession has prompted us to implement a number of measures to reduce costs without directly impacting employees," said Eileen O'Neill Odum, chief executive officer of Northern Indiana Energy.

"Those measures include postponing major projects, reducing contractor costs and leaving vacancies unfilled. However, it is apparent that we need to identify additional cost savings as the economic downturn continues and negatively impacts industrial, commercial and residential customer demand for energy."

In addition to the employee reduction, NIPSCO has offered a voluntary furlough program for the remainder of 2009 to employees who choose to take time off without pay. In 2010, a mandatory furlough program will require management employees to take two weeks off without pay. Merit increases for 2008 performance, which had been delayed, have now been cancelled.

"This is a very difficult decision, because we know the impact this will have on employees who will be leaving the company," Odum said. "But after all other options had been exhausted, this was a necessary step to balance our costs with our revenues."