TIPTON —
For the third time in seven years the Steel Parts Manufacturing facility in Tipton is on the verge of closing.
Company officials notified the Indiana Department of Workforce Development Dec. 27 it expects to close the Tipton facility permanently on March 14.
“Steel Parts expects the entire facility will be closed and all employees will be laid off,” Mike Smith, Human Relations Director for Steel Parts, wrote state officials.
The notice to the state indicates the company has offered to negotiate with United Steelworkers International Union Local 3875 in an effort to prevent the closing or all or part of the facility.
Union members reached an agreement with company owners in 2006 to prevent the closing of the plant and again in 2009.
Monomoy Capital Partners purchased Steel Parts in 2011 from Resilience Capital Partners. The Tipton plant is a 185,000 square foot manufacturing facility and employs approximately 200 people.
Smith did not return a telephone call Thursday seeking comment.
Scott Sigler, president of Local 3785, said the union was notified of the company’s intention to close the plant the week before Christmas.
The current contract doesn’t expire until 2014 and the company is looking to negotiate a new agreement with the union.
“We have started the process,” Sigler said of negotiations with the company. “We met tentatively and another meeting is set for Jan. 21.”
Sigler said the company presented a proposal to the union and a counter offer will be presented at the Jan. 21 meeting.
“The company wants a lot for us to keep our jobs,” he said. “There are pay and benefit cuts, stripping on union and seniority rights.”
Of the 174 people who work in manufacturing, 146 are represented by the union.
“This is well beyond what we went through in the past,” Sigler said. “They were serious pay cuts.”
Sigler said Steel Parts has a ton of work at the Tipton plant indicating Ford is the number one customer, followed by General Motors. He said the plant manufactures clutch plates.
“We knew something was going on,” Sigler said. “They recently bought a Raybestos plant in Sullivan. They are looking at moving manufacturing to Sullivan.”
Sigler said the company had summer help set to expire Labor Day and instead 12 of the 28 people were hired full time. He said the company was looking at adding more full-time employees in the first quarter of the year.
There is currently a two-tier wage system in place with new hires receiving 75 percent of the pay for the first five years.
“We’re trying to do our best,” Sigler said of the negotiations. “We met with our members and in my opinion if the company wanted a lot of money in concessions to keep the plant operating it would not happen.”
Sigler said it’s hard to be optimistic about keeping the plant open.
“It won’t be saved unless the owners want to keep a facility here,” he said.
Local News
Steel Parts could close in Tipton
Union, company in negotiations
- Local News
-
-
Powell looking for Little 500 win
During the course of his 72 years, Jerry Powell has done a little bit of everything.
Powell has owned a trucking business, raced sprint cars, has his pilot’s license and is now owner of a racing team. He is also a tool and die maker and produces many parts on the race cars. -
Layoffs at St. Joseph Hospital possible
St. Vincent Health announced Thursday it would be laying off employees across its 22-hospital system, which includes St. Joseph Hospital in Kokomo.
-
NHS principal takes job in Lafayette
Northwestern High School Principal Al Remaly announced he is leaving the district this summer to start a new job at Harrison High School in Lafayette.
-
Helping homeless vets
As residents reflect on the tireless work of the nation’s military veterans on Memorial Day, a group of Howard County vets is concentrating on veterans without a home.
-
Police arrest 4 dancers on sex charges
Kokomo police arrest women, employed at Little Daddy's and Big Daddy's strip clubs, on warrants Wednesday accusing them of prostitiution and indecent exposure.
-
Picturing success
An unfinished mural in the halls of Kokomo High School gave senior Trevor Douglas a reason to come to school every day and a reason to aim higher in life.
-
Local districts still struggling
While there may be more money alloted for K-12 education in the budget passed through the General Assembly last month, many school districts in the area won’t see high cash bumps due to changes in the funding formulas.
-
School dollars unevenly allotted
In the budget bill passed by the General Assembly last month, there is more money allocated for K-12 education over the next two years, but that doesn’t mean every school will get more dollars.
-
Tipton County cuts part-time hours
Part-time employees with Tipton County will be taking home smaller paychecks starting July 1 after the county council voted to lower the maximum number of hours worked to 28 per week.
-
Company invests $1.1 million in Miami Co.
A Logansport-based company is investing $1.1 million to expand its operations into a facility north of Peru. The company said it will bring over 30 jobs to the county.
- More Local News Headlines
-
Powell looking for Little 500 win
Sheriff: No Sign Killing of 2 Kids Was Planned
Obama Defends Drone Strikes, With Limits
Raw: Jurors Deadlock on Jodi Arias Penalty
Boy Scouts Decision "First Step" Say Activists
Raw: Utah Teen Arrested in Death of His Brothers
Closer Look at Okla. School Where Children Died
Two Suspects in Murder Known to London Police
Boy Scouts Mom Supports Gay Inclusiveness
"Be Ready": NOAA Warns of Busy Hurricane Season
SeaWorld: Penguins Are Coolest Thing in Florida
Obama Renews Call to Close Gitmo
Obama Offers Drone Strike Defense
Raw: Heckler Interrupts Obama on Guantanamo
A Slice of Apple History Up for Grabs
