Move Part Of A "Cost Management Approach"

A large percentage of Honeywell's U.S. workforce will be on furlough January 4th to the 11th, and international workers will be taking "extended holiday breaks" and other measures to conform with local labor laws. Honeywell employs about 40,000 workers worldwide.

The move comes in response to the fall in aviation-related business through 2009. "Honeywell Aerospace has been aggressively managing its business to align it with the current economic climate," the company said in a statement. The furlough is part of its "cost management approach." The company said key staff will remain at work to respond to customer requests, and it expects full operations to resume January 11th.

The Arizona Republic reports that Honeywell is forecasting a slight increase in sales for it's Phoenix-based aerospace division next year, but the furloughs are in response to a 14 percent decline in sales through the first 9 months of 2009. The company has also been outsourcing more work, and last year announced plans to move some work done in Phoenix to divisions in the Czech Republic and Mexico. But it says the change should result in fewer than 100 involuntary layoffs due to retirements and attrition. 46 have been let go so far.

Overall, Honeywell says it is anticipating a 2 percent increase in sales next year over 2009.

FMI: www.honeywell.com