It’s official: Trane will cut 212 jobs at Fort Smith plant
by February 19, 2010 3:01 pm 74 views
Trane announced Friday (Feb. 19) it will cut more than 210 jobs at its Fort Smith plant (4811 S. Zero St.) as part of a production shift to a Trane plant in Florida.
The company said the cuts will be made by the end of the year, and include the loss of 197 hourly workers and 15 salaried positions.
“We expect that 77 jobs would be eliminated by the end of the first quarter and that the remaining 120 would be eliminated by the beginning of the fourth quarter. The actual number of employees affected could change depending on fluctuations in production levels, attrition and other factors,” noted a statement from Trane spokesman Paul Dickard.
The statement said the move is part of an economic strategy “that requires considering every opportunity to reduce our cost structure to remain competitive.” Trane said the move will result in better capacity utilization at its Lynn Haven, Fla., plant, and improve service to the company’s East Coast customers.
Ingersoll Rand, the parent company of Trane, reported in its fourth-quarter earnings statement that fourth quarter revenues in its residential solutions segment were $457 million, up 7% over the same period in 2008. The company said “residential markets showed improved fundamentals after four years of declines.”
Trane now employs about 455 in Fort Smith (415 hourly and 40 salaried positions), according to Dickard’s statement.
“All affected hourly production employees will be laid off in accordance with the terms of the labor agreement. Salaried employees will be eligible for a severance package and will have outplacement support available to them,” noted the statement.
The only good news in the statement is that Aire Systems, Trane’s other operation in Fort Smith is not losing production. Aire Systems, which produces customized, commercial air handling equipment employs 250, according to Trane.
Losing the jobs will not help the region lower an unemployment rate that hit 7.9% in December 2009 — the highest rate of the year. The Fort Smith region has lost 1,100 manufacturing jobs between December 2008 and December 2009, and has lost 28% of its manufacturing jobs since January 2000.