Hobbs headed to Mexico

SPRING VALLEY — Negotiations were underway Wednesday for the second day between United Auto Worker representatives and Spring Valley’s Honeywell Sensing and Controls Business, better known to local residents as Hobbs.

The negotiations have followed in the wake of Monday’s announcement of the plant’s intention to move operations out of the country. Honeywell spokesman Mark Hamel said the company shared what he called the “difficult news” when employees reported for work Monday.

“We announced a proposal to transition and eventually close the plant,” Hamel said. “It’s a tough move.”

The plant, which makes system controls, pressure switches and halogen lights that are used in heavy duty equipment and recreational vehicles, has been struggling for a while. Hamel said orders from the plant have been down 60 percent during the past 18 months. The number of employees at the plant has already dropped from 140 a few years ago to the 61.

Hamel said the plant was no longer “sustainable.”

“This is a very competitive marketplace,” he said. “You have to do something about that.”

The “something” proposed is to transition the product line to a plant in Juarez, Mexico. Hamel said the plant already makes products similar to what is made in Spring Valley and can easily absorb the product lines.

To begin the transition, Hamel said the collective bargaining agreement required them to negotiate terms with the union. That process will help determine the impact of the closing on the plant’s employees and the specifications of severance packages.

After the transition is completed, the Spring Valley plant will close and probably be sold.

“This is strictly a business decision,” Hamel said. “It’s not a reflection on the work done in Spring Valley. We must become more competitive, so we can grow.”

As of press time, the negotiations were still ongoing.

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