Despite a planned move of a production line to other facilities that will cost 31 Peru employees their jobs and has sparked a flurry of rumors, company officials are adamant that Schneider Electric has no plans to shut down its Peru location.
Last week employees were told Schneider Electric would move all production of its stock panelboards out of its Peru facility by September 2013. According to a news release from the company, it plans to utilize factories in El Paso, Texas, and Monterrey, Mexico, to supply customers with these products in the future. The plans are “tentative pending any further discussions the company may have with its unions, per the company’s collective bargaining agreement.”
Peru plant manager Drew Butler declined to comment beyond the company statement, other than to say negotiations were ongoing with the union and to squash rumors that Square D would be shutting down now or next year.
“We are not closing,” he said, adding “At the end of 2013, it is fully planned to be in operation.”
The moves, which will begin in the next few months, would affect about 31 hourly positions at the Peru facility, 252 N. Tippecanoe. Schneider Electric’s Peru facility employs about 430 people. According to the release, Schneider Electric would provide all employees affected by this decision with “full assistance in accordance with the company’s labor agreement, which includes severance pay, benefits and outplacement services.”
According to the release, the company is moving the production because the Peru facility is currently the only Schneider Electric facility to manufacture these panelboards for North American customers. Schneider said the move would create several production facilities able to produce stock panelboards in addition to the capabilities of the Peru facility.
A media spokesman for Schneider Electric could not be reached for comment.