United Technologies Corporation (UTC) is a Fortune 50 conglomerate with headquarters in

Hartford, Connecticut. In 2009, it had a worldwide workforce of over 216,000 employees. Some
of its major subsidiaries include Pratt & Whitney (jet engines), Carrier (air-conditioning
systems), Otis (elevators), Hamilton Sundstrand (aerospace and industrial equipment), and
Sikorsky (helicopters). Since 1990, it has undergone several major reductions of its U.S.
workforce, with a substantial increase in its workforce outside the United States. In 2009, 60
percent of its revenue came from outside of the United States. George David, former CEO of
UTC, stated: "We and others create jobs overseas fundamentally for market access, to extend our
global market leadership and thereby to make our company stronger and to assure employment at
home." Later, he stated that "we cannot guarantee anyone a job, but we are nonetheless obliged
to provide employees reasonable opportunities to reestablish themselves, ideally on more
favorable conditions, in the event of job loss." One of the commitments made by UTC was to
provide tuition reimbursement for undergraduate or graduate courses taken by their employees.
The Pratt & Whitney subsidiary has been heavily impacted by the ups and downs in the world
aero- space markets. In the past, a large number of their U.S.-based employees worked in
Connecticut, and many layoffs have occurred over the years across these facilities. An obvious
challenge in the midst of such changes is the maintenance of employee skills and morale.

Questions: What do you think is likely to happen to employee training and development efforts
in the midst of major downsizing efforts?

Answer: During major downsizing efforts, employee training and development efforts are likely to be
impacted in several ways. First, there may be a reduction in training budgets, leading to fewer resources
available for employee development programs. Second, with a smaller workforce, there may be a greater focus
on preserving core operations rather than investing in new training initiatives. Third, the morale and motivation
of remaining employees could be negatively affected, making it challenging to maintain a strong focus on
training and development. Overall, downsizing can result in a shift away from long-term development efforts
to a more immediate focus on maintaining essential business functions.

Do you think employees will take advantage of a tuition reimbursement program during
restructuring?

Answer: During a restructuring, employees may indeed be more inclined to take advantage of a tuition
reimbursement program. This could be due to the uncertainty that comes with restructuring, prompting
employees to seek additional skills or education to make themselves more marketable within the company or
in the job market as a whole. Additionally, offering educational support during a time of change can boost
morale and demonstrate the company's commitment to employee development, potentially improving retention
and motivation during the restructuring process.

What happens to employees who are laid off at the time they are taking college classes?

Answer: Employees who are laid off while taking college classes may be eligible for unemployment
benefits, depending on the specific regulations in their location. It's important for them to check the
unemployment laws in their area to determine their eligibility. Additionally, they may want to explore options
for deferring their student loans or seeking financial aid to support their continued education. It's advisable for
them to reach out to their college's financial aid office for guidance on available resources and support.
Can Pratt & Whitney (and UTC) maintain their commitment to tuition reimbursement in such an
environment?

Answer: Pratt & Whitney has historically been committed to supporting employee development through
tuition reimbursement programs. However, in the current environment, it's essential to check with the company
directly to confirm their current policies and commitments regarding tuition reimbursement. It's possible that
they may have made adjustments or updates in response to the changing circumstances.