In a move announced over the weekend Columbus based Cummins Inc. (NYSE: CMI) says beginning this week it is temporarily closing all southern Indiana manufacturing operations because of deteriorating business conditions related to COVID-19. The affected facilities are the Columbus Engine Plant, Fuel Systems Plant, Seymour Engine Plant and the Columbus MidRange Engine Plant. The company plans to resume production May 4.
Cummins says laid off employees will receive medical, dental, and life insurance benefits for up to 90 days.
A Cummins spokesman tells Inside INdiana Business the impact of the pandemic has been sudden and swift and has forced a number of actions to minimize the impact on employees, customers and communities, including temporary pay and hour reductions.
For the second quarter and perhaps into the third, the company has instituted pay cuts that include a 50% salary reduction for Chief Executive Officer Tom Linebarger, a 25% cut in director compensation and a 10% to 25% cut in salaries for all other U.S. employees.
Cummins has more than 10,000 employees in Indiana and 60,000 globally. Its greater Columbus workforce totals more than 8,000.