The president of Atlas Foundry said his business has cut about 25 positions in the past few weeks and will need concessions from its union if it is to survive.
"I'm not feeling very optimistic about the state of the economy," company President Jim Gartland said.
Gartland has asked the 70 members of United Steelworkers Local 466 that comprise the work force at the 115-year-old foundry to accept concessions or risk the foundry's permanent closure.
Union and foundry officials met Wednesday to discuss various proposals that will be discussed and put to a vote by union members.
That vote is scheduled for Tuesday, according to union head Terry Beaty, who refused any further comment.
"There are several different things they can do," Gartland said of the upcoming union meeting.
Keith Olmstead, a regional representative for United Steelworkers District 7, said union members have met already and are aware of the situation the foundry faces.
Though Atlas is not tied to the auto industry, Olmstead said a general downturn in manufacturing has hurt the business.
"The company is losing money," he said.
Atlas in recent weeks has trimmed its unionized work force from 90 people to less than 70, Gartland said. He also said four members of Atlas' frontline management team were laid off and that the rest of management has been forced to take pay cuts.
Gartland said he can recite the names of several foundries in Indiana that have closed during the past few months. With a number of foundries in the country sinking, Gartland said the new name of the game has become outlasting the competition and consolidating what work remains in the industry.
Since the economic downturn also has reached China, Gartland said he also expects renewed competition from overseas challengers.
The number of metal-casting facilities in the United States has dropped by more than 35 percent since 1990, according to a spokesman for the American Foundry Society.
The key to Atlas' survival may lie in the hands of its workers, Gartland said.
"I hope they vote on some sort of wage concessions," he said. "Hopefully, we can live through this thing."
Copyright © 2024 Chronicle-Tribune