Otis to consider mass layoffs

Otis Elevator Co. is considering laying off 460 employees from its Bloomington plant. Company officials met with workers and union representatives Monday to explain that an increasingly competitive marketplace might necessitate mass layoffs.\nTo cut production costs, Otis plans to transfer the production of low-rise elevators and elevator parts to a factory in Nogales, Mexico and outside suppliers. Otis Vice President of Communications Mark Granato said the Bloomington plant will focus on manufacturing high-rise elevators and contracted maintenance, which is where the company makes most of its money. \nWith about 780 employees at the S. Curry Pike plant, Otis is one of Monroe County's largest employers. Because of market pressures, the Connecticut-based company has laid off about 200 people in the area in the past few years. \nOtis -- which outsources almost all of its manufacturing abroad -- laid off 43 employees in January. With a souring economy, it had planned to cut more than 200 hourly workers.\n"I regret the necessity of these actions," Otis Vice President and Senior North America Area Executive Ray Moncini said in an office memo distributed Monday. "But they are required to insure the viability and competitiveness of Otis' North American operations. \n"I am fully aware of the personal impact these actions will have on employees affected by the transfer of production from Bloomington. At the same time, it is critically important that we meet our commitments to our customers and maintain a safe and productive work environment."\nThe company has immediately entered into bargaining with Local 826 of the International Union of Electric Workers, which represents more than 500 Otis employees. Union local president Claude Wood could not be reached for comment by press time Monday. \nBarring a 11th-hour deal, Otis plans to phase out the employees over a 15-month period.\n"I am disappointed by the potential loss of well-paying jobs from our community," said Bloomington Mayor John Fernandez. "As Bloomington continues to deal with profound changes in the economy it is important to continue exploring other economic opportunities for the community."\nFernandez said that the city is working on a transition plan to ensure that laid-off employees will receive the training they need to re-enter the job market. But he cited the need to embrace a changing economy. \n"We must also continue efforts to expand and diversify our economic base," he said. "We've been able to balance upheaval in our manufacturing sector with other new business development."\nThe city will maintain a distance from the collective bargaining, Fernandez said. \n"It's essentially a labor-management process," he said. "We have limited economic development tools at our disposal. But if we're approached, the city will do everything it can to play a constructive role.\n"We could try to coordinate state and federal support."\nLocal 826 reached a three-year deal with Otis in May that included a 60-cent raise and better pension benefits. On average, the workers make $16 an hour. \nGranato said Otis hopes to come up with an acceptable severance package for the laid-off workers in the next few weeks. The bargaining period is expected to take about 15 days.\nWith more than 63,000 employees in more than 1,700 locations worldwide, Otis is the world's largest elevator company. It was founded in Yonkers, N.Y., and is now a subsidiary of United Technologies.\nThe Bloomington plant has been open since 1965.