The new owner of Fleetwood Enterprises Inc.’s RV manufacturing business in Decatur, Indiana., will maintain around 650 existing jobs, but former employees who are kept on will have to take a pay cut.

Fleetwood laid off about 700 employees when the company completed a $33.2 million sale to American Industrial Partners Capital Fund IV LP.  Fleetwood said in a statement. New York-based AIP will operate the business as Fleetwood RV Inc.

Decatur-based Fleetwood RV is expected to re-employ 650 of the existing workers.  President John Draheim said  "Between 250 and 350 former Fleetwood employees have already started working back working for the company again but with a new employment package but enhanced job security."

Anyone can apply or re-apply to work at Fleetwood RV, but Draheim said "former Fleetwood workers’ experience will give them an advantage in the hiring process. More than 1,000 applied for jobs recently"  Draheim said. "The company is accepting applications at its plant in Decatur."

However the new Fleetwood company  RV will pay employees less than its predecessor.  Draheim said he "was not sure what the average wage would be, but former Fleetwood workers who accept positions at the new company could earn up to 10% less."

Fleetwood RV has made some minor adjustments in the health insurance and 401(k) plans, but former workers will have to start over again earning benefits such as vacation entitlement.

"Employees will work more consistent schedules at Fleetwood RV", Draheim said. He "estimated that so far this year, production employees had worked the equivalent of only five to six full weeks because of poor RV sales orders. Employees will now, however, be able to earn more by working full weeks for reduced pay."

Although some Decatur residents are concerned about the ownership transition, Mayor John Schultz, (pictured below right with Fleetwood executives)  said most are relieved many local jobs will be preserved.   “It’s very important to us they bring the production back,” he said.

Fleetwood’s Decatur operations employed more than 1,000 in early 2008. The company cut 550 jobs in Decatur last year.  Fleetwood RV’s decision to establish a local headquarters is a positive sign, Schultz said. The previous owner was based in Riverside, California.

AIP purchased two RV manufacturing plants, two RV service plants and Fleetwood’s Gold Shield fiberglass subsidiary in Decatur. The company also acquired some Fleetwood equipment in Riverside.  However local investors plan to buy Fleetwood’s manufactured-housing plant in Garrett, Indiana, for around $1.75 million in a separate deal.

RV shipments during the first four months of 2009 plunged almost 62% from the same period in 2008, according to the Recreation Vehicle Industry Association’s (RVIA) most recent data. RV manufacturers shipped 43,700 vehicles through to April 30.

Almost 450 Fleetwood workers in Decatur worked fewer than half their normal hours during that four-month period, the company said in April.

Industry projections are brighter for next year. Manufacturers are expected to ship 169,500 units in 2010, according to the association. That would be a 24%increase from this year’s projected sales.  "The RV industry is close to hitting its low point", Draheim said. If the industry grows, Fleetwood RV will expand with it.  “We’re looking at improvement going forward,” he added.