FARMINGTON, Conn. — Carrier Corp. recently announced plans to relocate its Indianapolis manufacturing operations to a location near existing Carrier manufacturing facilities in Monterrey, Mexico. The move will occur over the course of an estimated three-year period.
The plan will have no immediate impact on jobs as the relocation would occur in phases, with work movement expected to begin in 2017 and is estimated to reach completion in 2019. According to an Associated Press report, the move will cost 1,400 American workers their jobs.
“This move is intended to address the challenges we continue to face in a rapidly changing HVAC industry. The continued migration of the HVAC industry to Mexico, including our suppliers and competitors and ongoing cost and pricing pressures, driven in part by new regulatory requirements,” said Chris Nelson, president, HVAC systems and services, North America. “Relocating our operations to a region where we have existing infrastructure and a strong supplier base will allow us to operate more cost-effectively, so we can continue to produce high-quality HVAC products that are competitively positioned while continuing to meet customer needs.”
Eligible employees will have access to certain separation benefits, including continued access to the company’s Employee Scholar Program for a period of time. Under that program, employees may receive tuition, books, and fees at accredited institutions for up to four years.
“The decision is difficult and we recognize the impact on employees, their families, and the community,” said Nelson. “We’re committed to ensuring our employees are treated respectfully and will work closely with their representation throughout the transition.”
Publication date: 2/29/2016