Honeywell's Genius Outsourcing Move - Sends aviation jobs to Malaysia and Indonesia

Honeywell

[mrjtsnyder]

Sent today to Honeywell employees

Dear Aerospace Colleague,

The ability to deliver high quality products, on-time, and at a competitive cost is vital to meet customer expectations and position Honeywell Aerospace for growth. As announced in employee meetings earlier today, Honeywell has approved a plan to transition most of the Avionics Integrated Supply Chain activities, including computers, platforms, E/M, displays and RF, to a new Honeywell facility in Penang Malaysia. Remaining in Deer Valley will be sensors, Air Data, and the MD 10/11 Computer Line. Select products will also be transitioned from Olathe, KS to Bintan, Indonesia and Penang, Malaysia.

This decision was based on a thorough analysis of data which indicated that Honeywell Aerospace can produce high-quality parts at significantly lower operating costs as a result of this transition. The decision was made for business reasons and is not a reflection on performance--it is a proactive step to keep our business competitive and strong.

The transition will occur over the next 24 months, beginning immediately with a planning phase followed by the first product moves in Deer Valley during the first quarter 2009. We will continuously evaluate and adjust staffing levels based on the needs of the business throughout the transition.

We currently expect headcount requirements will decline from 2009 through early 2010. Ultimately, this transition will eliminate approximately 420 regular Avionics ISC and PASC AMS positions and HR and Finance that support the Deer Valley ISC organization.

More information about these impacts will be available as the project progresses. We will provide support for our employees during this time including, as appropriate, applying for other suitable open positions within Honeywell, outplacement services, and severance in accordance with Honeywell policy.

Site leadership is committed to communicating regularly and openly with employees about the status of the transition, so you can expect regular updates. In the meantime, I encourage you to discuss questions and concerns with your manager, HR, or a member of the leadership team. Since we are early in the process we will not have answers to all of your questions, but we are committed to providing candid answers as decisions are made and more information is available.

Meeting the needs of our customers must remain a top priority for the Deer Valley site. As we work through this transition, let’s continue to focus on maintaining strong quality, delivery, and safety performance.

Name and Title Redacted

[mrjtsnyder]

In an election year defined by the economy and the war on terror, Honeywell outsources 400+ jobs building computers, sensors, and displays for aircraft to to 2 islamic countries. Genius move.