UTEC Statement Regarding Agreement with International Brotherhood of Electrical Workers

Feb 20, 2016

We are pleased that we were able to reach an agreement with the International Brotherhood of Electrical Workers (IBEW) that provides certainty and security for our employees during the transition.

As previously announced, there will be no impact on jobs this year, allowing employees time to plan for this transition. Beginning in 2017, represented employees who are separated as a result of the relocation will receive a one-time payment, severance pay, medical insurance continuation, and access to our Employee Scholar Program that will pay employees’ college tuition, fees, and books for up to four years. Also, we will reimburse technical training costs for those employees who prefer to pursue a vocational technical certification program. Represented employees will also be eligible for a monthly performance bonus for continuing to work together to meet our customers’ needs during this transition.

In addition, we agreed to an extension of the labor contract through the closure. Significant elements of this agreement include an immediate lump sum payment, annual wage increases, and pension improvements. The contract was originally scheduled to expire in March 2017.

UTEC is taking this difficult action to remain competitive in a challenging marketplace. We recognize the impact on employees, their families and the community. We are committed to treating our employees with respect. Through the recently concluded discussions, we have delivered a comprehensive benefits package that will help ease the transition for our employees.

UTEC to Relocate Huntington Manufacturing Activities

Feb 10, 2016

United Technologies Electronic Controls (UTEC), a global manufacturer of microprocessor-based controls for the heating, ventilating, air conditioning and refrigeration industry, announced plans on February 10, 2016 to relocate its Huntington, Indiana, manufacturing activities, over the course of an estimated two-year period. The plan anticipates no immediate impact on jobs as the relocation would occur in phases, with work movement expected to begin in 2017 and estimated project completion in 2018. The move is subject to discussions with local union representatives.

UTEC's headquarters, engineering and product marketing organizations will remain in the Huntington area.

UTEC plans to transfer manufacturing activities to a new facility in Monterrey, Mexico, where they will be in close proximity to key customers. "This plan is intended to address the challenges we continue to face in a rapidly changing industry, with a continued and steady migration of our OEM customers and competitors to Northern Mexico," said Alex Housten, managing director, UTEC. "The proximity of our operations to our customers is key to remaining competitive. It enables better responsiveness and flexibility to meet their changing needs."

"We are aware of the effect on our employees and the community, making this a difficult decision. But after a thorough evaluation of our manufacturing operations, we determined the relocation is the best way for us to remain competitive, meet the needs of our customers and protect the business for the long-term," he added.

UTEC will work with employees, their representatives, and the local community to ensure as smooth a transition as possible. Certain separation benefits, including continued access to the company's Employee Scholar Program for a period of time, will be available to eligible employees. Under that program, employees may receive tuition, books and fees at accredited institutions of higher education for up to four years.

The organization will continue to focus on meeting its customer commitments throughout the transition.

About UTEC
Based in Huntington, Indiana, UTEC designs and manufactures microprocessor-based controls for heating, ventilation, air-conditioning and refrigeration original equipment manufacturers worldwide. The company is also a major supplier of standard, programmable and smart thermostats and zoning systems. For more information, visit www.uteccontrols.com.

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Greg Brostowicz
(561) 365-1322
[email protected]