Thu Sep 02 2010
by Andrew Schunk
Editor
Twinsburg -- A Chrysler spokesperson confirmed there will be job losses at the Twinsburg Stamping Plant, after recent announcements that Chrysler was cutting shifts at minivan assembly plants in Toledo and Windsor, Ont. It was not known if those Twinsburg job losses would be temporary or permanent, according to Chrysler spokesperson Ed Saenz.
The closing of a 1,000-employee Newark, Del., plant will be moved up to Dec. 31, Chrysler officials said, which could also affect jobs in Twinsburg.
The automaker could not confirm a specific number of the Twinsburg plant's 1,200 jobs that might be lost, or when they might occur, due to either the temporary Windsor or permanent Toledo North plant drawbacks. The Windsor cuts are scheduled to begin in the next three weeks, Chrysler officials said, while the Toledo cuts will take place Dec. 31.
Doug Rice, president of the United Auto Workers Local 122, which represents Twinsburg Chrysler employees, said Oct. 23 Chrysler will temporarily lay off between 120 and 150 Twinsburg workers, representing "about 12 percent" of the workforce there, due to the temporary Windsor plant shift elimination.
Rice said Oct. 24 he had not been contacted by Chrysler management officials about any potential layoffs at the Twinsburg plant, but that the Windsor assembly plant "provides 12 percent of the work" for the Twinsburg plant.
Saenz would not confirm that figure as it relates to possible layoffs.
"The most I can say is that where there are [cuts at] feeder plants, there will be a proportional impact on the Twinsburg plant," Saenz said.
The Newark, Del., and Toledo end-of-the-year drawbacks will affect more than 1,800 jobs, Chrysler officials said. There are approximately 825 workers that will be laid off indefinitely in Toledo, and another 1,000 at the Newark plant.
The number of layoffs in Twinsburg could grow higher than between 120 and 150 workers, and from a temporary to permanent status, at the end of the year when layoffs at the Toledo North plant occur and the Newark, Del., plant is closed permanently, according to Rice. A "permanent idle" of the St. Louis South plant was set to begin sometime this fall, Chrysler officials announced in February.
The Twinsburg facility provides minivan parts for these three feeder plants, as well as the Windsor plant, Saenz said.
The layoffs in Twinsburg likely would occur "from the bottom" and include those with the least amount of time at the plant, Rice said.
"Separation packages" have been offered to workers at the Twinsburg plant, Saenz said. There are three types of separation packages: one for those of retirement age that will be a lump some payment and full retirement benefits; a "special early retirement" package for those who are almost at retirement age, allowing them to retire with full benefits; and a lump some payment and extended health care coverage for those not close to retirement age, Saenz explained.
"If we were to get significant take rates [on the separation packages], there may not be a need for a permanent layoff in Twinsburg," Saenz said. "We don't know who will choose to go."
Talks between General Motors and Chrysler continue, Rice said, as the two automakers decide whether a merger might be feasible in a slowing global economy.
"We're doing everything we can to help keep people employed here ... so that we can continue to be a highly competitive plant, no matter who owns us," Rice said.
Twinsburg Mayor Katherine Procop said Oct. 22 she had not been contacted by Chrysler officials about the potential layoffs, but that she was aware of the media reports -- some of which put the initial number of temporary layoffs at the Twinsburg plant at 250 workers.
This summer, Chrysler announced it would reduce its vehicle production due to low car sales and high gas prices. In turn, the company also announced there would be a staggered and unspecified number of company-wide layoffs.
Rice predicted at the time that about 175 jobs would be cut permanently at the stamping plant this fall, due to the work reductions at the other car plants.
Editor's note: This news was first posted Oct. 24 at www.twinsburgbulletin.com.
E-mail: aschunk@recordpub.com
Phone: 330-688-0088 ext. 3170
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