Caterpillar cuts employees’ hours

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Nearly 1,000 employees at Caterpillar's Lafayette, Ind., plant will have their hours cut by at least 50 percent beginning in August, according to a notice filed with Indiana's Department of Workforce Development.

The Lafayette plant makes diesel engines for marine, petroleum, electric power, locomotive and industrial uses.

"No employees are being placed on layoff as a result of this decision," the company said in its notice. "It is anticipated that the new work schedule will begin on Aug. 24, 2009 and may last for more than six months."

The reductions will impact 985 employees.

The company said there are no plans to close the plant and it expects the reduced hour schedule to be temporary.

The Lafayette plant had notified the state earlier this month it planned to layoff 141 employees, beginning July 31. At the time, it said these layoffs were expected to be temporary, and last more than six months.

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