Caterpillar makes 2,500 layoffs permanent, but won't reveal impact for Decatur workers

DECATUR, Oct 27, 2009 (Herald and Review - McClatchy-Tribune Information Services via COMTEX) -- CAT | Quote | Chart | News | PowerRating -- Caterpillar Inc., announced Monday plans to permanently let go of 2,500 previously laid-off employees, and to bring 550 others back to work.

The announcement came after last week's third-quarter profits registered higher than analysts expected at 64 cents per share, or $404 million.

"We do believe that the third quarter marked the low point in Caterpillar sales and revenues," said spokesperson Bridget Young. "We're seeing the signs that a recovery may be under way, and based on our current demand schedules, we have the opportunity to return a selected group of employees to work."

Caterpillar is not disclosing how the numbers are split between its U.S. facilities, but Young said it is safe to expect employees from the Decatur area will be permanently cut, as well as asked to return to work.

"Given our footprint in the Decatur area, it's fair to say there will be people impacted in the area," she said.

Since late 2008, the company has laid off 18,700 employees worldwide, Young said, or 16 percent of its work force.

The 2,500 workers getting the ax will be notified with a telephone call from individual supervisors. Young said she was uncertain how long it would take to contact those that will be affected.

"Starting today, the impacted employees are being notified directly so that they understand the impact to them," she said.

Those being let go are jobs "dictated by demand," she said. "The world economy is still facing significant challenges, and there's still a great deal of uncertainly in the timing and strength of recovery. And in addition, we're not close to the record breaking demand we experienced from 2004 to 2008."

The employees are being offered a separation package, although, the company would not specify its details.

"We appreciate the work these employees have done for Caterpillar, and we wish them well," Young said.

The 550 employees returning to work includes those who have already returned in the past few months, and those anticipated to return by the end of 2010.

Young said those returning to their jobs belong to management, support and production units within the company.

Craig Coil, Economic Development Corporation of Decatur and Macon County president, said it is difficult to interpret how the news will affect the Decatur area because the 3,000 jobs in question are spread throughout the United States.

"We're going to have to wait and see what the impact is going to be locally," Coil said. "We can only hope that in the near-to-medium term, things will look up for our facility, and people will want the product that we make."

While 550 is a small percentage of its work force, Coil said bringing those people back to work bodes well for Decatur's economy.

"We're just going to continue to see this not only with Caterpillar, but with others in the community as things shake out from the recession that we're in."

Leondis Coleman worked as a welder at Caterpillar for 18 months before getting laid off in April, and hadn't been contacted by the company as of Monday afternoon. He is currently on unemployment, and said he's anxious to hear one way or the other what his future will be with the company.

"I need to find out either way so I can move on," he said. "I've got nothing bad to say about them. I just want my job back."

arueff@herald-review.com 421-6986

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