Union, Rexnord Reach Severance Agreement

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(photo courtesy of our partners at WTHR-TV) (photo courtesy of our partners at WTHR-TV)

United Steelworkers Local 1999 in Indianapolis has reached an agreement with Wisconsin-based Rexnord Corp. (NYSE: RXN) regarding severance packages following the company's decision to move 300 jobs to Mexico. Rexnord announced its plans in mid-October and made the move official a month later.

Per the terms of the agreement, affected employees will receive a severance payment of $1,500 when they are laid off, $500 paid by the end of 2016, retention of one week's pay for each year of service and six months of continued medical, dental and vision insurance at no cost to the employees. The severance package also includes monthly bonuses of $50 for achieving on-time delivery, $50 for productivity and $50 for quality. 

The union says Rexnord will also continue to offer its tuition reimbursement plan through the end of 2017 and offer financial planning to employees. This comes in addition to the financial assistance offered by Indianapolis Mayor Joe Hogsett's Carrier Task Force, which the mayor announced in October would be realigned to assist Rexnord employees.

"We are highly disappointed that Rexnord has made the heartless decision to close this highly profitable plant and take away the livelihood of over 300 dedicated, hard-working employees," said Chuck Jones, president of USW Local 1999. "This severance package is only a band aid for the employees who are losing their jobs. Most will not be fortunate enough to find employment paying the wages and benefits at Rexnord. Once again I would ask Rexnord to reconsider their decision." 

Last month, Hogsett said Rexnord officials were "unwilling to reconsider" the move. The mayor told chief executive officer Todd Adams of his plans to claw back more than $380,000 in tax incentives offered to the company. 

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