Rexford to close Indianapolis plant, move work to Mexico
INDIANAPOLIS (AP) — Rexnord Corp. has confirmed that it will close its Indianapolis bearings plant and move work from the facility to a plant in Mexico.
The Milwaukee-based company said in a statement Monday that Rexnord and United Steelworkers Local 1999 union reached a “mutual agreement” on the issue. Rexnord said “we recognize the impact on our associates, their families and the Indianapolis community.”
The company last month announced tentative plans for the shutdown. The west side plant employs about 290 members of Local 1999, plus salaried workers.
Indianapolis Mayor Joe Hogsett said he’s “incredibly disappointed in Rexnord’s decision to disregard the experience, the investment, the sacrifice and the good faith efforts of their long-time employees with the decision to uproot this plant and move 300 good-paying Indianapolis jobs to Mexico.”
The move is expected to save the company $15.5 million during its first full year, said Chuck Jones, president of United Steelworkers Local 1999, citing figures shared with the union by Rexnord. He also said the savings is anticipated to increase by $200,000 a year. In order to keep compete the company’s current employees would have to cut their pay from $25 an hour to about $5 an hour, said Jones.
“The law don’t allow that,” Jones said. “Our people wouldn’t work for that wage, either.”
The union is scheduled to meet Tuesday to discuss severance packages, benefits and resources available to help workers affected by the move.
“Currently, if a person loses their job, their insurance expires the same day,” Jones said. “Consequently, we’ve got to go in and get some extra benefits.”