Hillenbrand Industries talks reorganization with union

Hillenbrand Industries Inc. and representatives of the United Steelworkers union on October 13 jointly announced an agreement regarding the company's decisions to relocate certain work to a low-cost region. As a result of these discussions, the company will proceed with moving certain products and subassemblies to low-cost regions while at the same time exploring opportunities to retain jobs in Batesville through cooperative measures with the union and its workforce. This agreement provides enhanced benefits to employees whose jobs may be affected by planned relocation of work, including severance, continued healthcare, outplacement assistance and other benefits.

This follows Hillenbrand's announcement on October 4 that Hill-Rom had begun discussions with the union to explore the possibility of moving a portion of Hill-Rom's manufacturing capacity from Batesville to lower-cost regions, including Mexico. The company believes that the relocation of manufacturing capacity to such regions will better facilitate access to highly price-sensitive customers, lower acuity and post-acute settings, and global markets.

Jim Tipton, USWA staff representative, Sub-District 3, commented that, "While these anticipated job losses at Hill-Rom are hard to swallow, we believe that the parties have negotiated a fair deal that addresses the union's major concerns for its membership."

John Dickey, Hillenbrand Industries’ vice president of human resources, stated, "The planned relocation of work to low-cost regions is a necessary step to remain competitive; however, treating our employees fairly and providing protection against economic harm while assisting them to find new employment opportunities was our highest priority."

Hillenbrand, headquartered in Batesville, Ind., is a publicly traded company with two wholly owned businesses that are leaders in the health care and funeral services industries. Hill-Rom Company was founded in 1929 by William A. Hillenbrand and in 2005 grew to over $1.27 billion in revenues as a leading manufacturer of equipment for the health care industry and a provider of associated services for wound, pulmonary and circulatory care. It is also a provider of medical equipment outsourcing and asset management services. Hill-Rom employs more than 6,200 people and has numerous manufacturing, sales and distribution facilities located throughout the world. Batesville Casket Company was purchased in 1906 under Mr. Hillenbrand's leadership and has grown to be a leading manufacturer and supplier of burial caskets, cremation products and related services to licensed funeral homes. Batesville Casket Company employs more than 3,400 people at numerous manufacturing, sales and distribution facilities throughout North America. In 2005, Batesville Casket's revenues exceeded $659 million.