Fewer take retirement incentive

Packard's hourly work force has been trimmed to less than 4,000.
WARREN -- Fewer workers than expected took an early retirement incentive to leave Delphi Packard Electric Systems.
Ann Cornell Vickers, a Packard spokeswoman, said 306 workers accepted the payment of either $40,000 or $20,000, depending on years of service, and retired this month. The payment was part of a labor contract with International Union of Electrical Workers Local 717.
Officials at Warren-based Packard expected more workers to leave because 1,600 workers were eligible to retire.
The retirements leave Packard with 3,905 hourly and 1,330 salaried workers. Packard had 8,600 hourly workers in 1995.
This month's retirements will reduce the number of people who have been in Packard's jobs bank, Cornell Vickers said. Workers who can't be laid off, according to a labor contract, report to work -- even though they don't have a production job. About 400 people have been in the jobs bank.
Too many
The existence of the jobs bank shows Packard has too many hourly workers for its business level, but it's hard to predict what will happen in the future, she said. Packard could gain more work by winning more business contracts or it could need fewer workers if it doesn't add more contracts, she said.
Cornell Vickers said Packard's local operations remain strong in three areas -- electrical cable for wiring harnesses for vehicles, plastic parts that connect wires and stamped metal parts.
Packard recently has spent $100 million to remodel a plant in Cortland and build a new plant in Vienna. Both plants produce plastic parts using injection molding machines. Packard is also investing $15 million in upgrading its metal stamping operation at its North River Road plant.
Packard employs about 85,000 people worldwide and is a division of Michigan-based Delphi Corp.