Yesterday I wrote about NEBR’s research stating the recession ended in June 2009. In that article, I mentioned Cessna machinist union voted on a new contract. Many of those machinists voted in favor of the new contract because they were in fear of loosing jobs.
Today, it has been announced Wichita, Kansas, Cessna will be laying off 700 employees. The fears and concerns of local Cessna employees has become known just four days after accepting a contract.
While it hasn’t been determined how many Cessna employees, including the Wichita Machinists, working at this airplane manufacturer will be affected by today’s announcement. Cessna did state in a company wide email, “The gains made in the first half of the year in the global economy have stalled, and Cessna’s performance continues to mirror the lackluster economy.”
When large companies like Cessna are failing to see a continual growth in sales, the recession is far from over. Their employees can attest to this after this morning’s announcement.
Even though Cessna is seeing a decline in sales and now laying off more employees, such companies as Kansas Castings Incorporated in Belle Plaine, Kansas, has added part of their work force back on in late April 2010. Kansas Castings had laid off both of their second shifts last year when they found themselves struggling with everyone else.
After adding back on a skeleton crew to their second shift, some areas of Kansas Castings has seen an increase of orders for parts. Even though companies have increased orders, the small parts they make for the aircraft industry is still hanging by a thread.
While Kansas Castings may not be a large company like Cessna, even their small increase in employment has had an impact on the local economy for this small town in south central Kansas. Not every manufacturing company in the Wichita area is going to see the upside like Kansas Castings is, the recession is still hitting this small family owned foundry like Cessna.
John Boyd and Megan Strader, KWCH News Reporters; Cessna to cut 700 jobs; KWCH.com