Cessna & Union Work to Avoid Layoff

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Monday May 20, 2013

Cessna and the International Association of Machinists come up with a plan to avoid a layoff.

Cessna finds itself with more employees than its current production rates and plane sales can support.

The plane maker has had two voluntary retirement programs in recent months to reduce head count. One was for non-represented salaried employees. The second was for those covered by the Machinist Union contract.

Cessna offered $30,000 for those employees over 55 to retire. The goal was to get 180 represented employees to retire. However, according to Frank Molina, IAM district 70 Directing Business Representative just over 100 took the offer.

So the question became how to avoid laying off about 75 employees?

The union and Cessna came up with an agreement to move workers to different job categories, if their skills matched the new job, temporarily until sales pick up.

District 70's Molina says, "Typically we don't do this. Typically we go into reductions in force. And so for the company to step out like this, we're very pleased."

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