Navistar gives layoff notice to Ohio assembly plant workers
(Crain’s) — Truck and engine maker Navistar International Corp. notified workers at its Springfield, Ohio, assembly plant that they would be laid off beginning Monday as the company and the United Auto Workers Union bargain over a new contract.
Orders for medium-duty trucks that would normally be sent to Springfield would be channeled to non-union assembly plants in Texas and Mexico. The Warrenville-based company said the move is intended to protect customers from delays in delivery if the union goes on strike when its contract with Navistar expires Oct. 1.
“We have to assure that customers get the trucks they ordered from us,” a Navistar spokesman said Wednesday.
The layoff would affect 768 workers at Springfield. But some 500 workers in Springfield’s paint and cab assembly shops would not be laid off. Those employees, along with 700 workers at Navistar’s engine plant in west suburban Melrose Park, produce components that are shipped to truck assembly plants in Garland, Texas, and Escobedo, Mexico.
Navistar’s action did not catch union workers completely off guard. Navistar laid off Springfield assembly line workers in 2002 in the midst of contract negotiations. Nevertheless, Charlie Hayden, president of UAW Local 402 in Springfield, said he’s disappointed and considers the layoff notice a sign that the company lacks confidence that negotiators will reach a tentative agreement before the current contract expires.
“It doesn’t show much faith in the bargaining to reach an agreement,” he said. “If they did, they wouldn’t want to shut the plant down.”
The union authorized a strike against the company in July, but has so far given no indication that a walkoff is imminent. Mr. Hayden said he hopes the layoffs will be canceled as part of a new contract deal.
“We’re going to do our best to get that agreement,” Mr. Hayden said. Truck orders to Springfield have slowed significantly in recent months after a surge of orders in 2006 triggered by new emissions rules on diesel engines that drove up the price of 2007 models.
Navistar is looking for UAW members to shoulder more of the cost for health insurance and to agree to revised work rules that would give the company more control over employees’ duties and permit greater use of contract employees in unionized plants. Union members say they want commitments from the company that it will keep unionized plants open in coming years.
Orders for medium-duty trucks that would normally be sent to Springfield would be channeled to non-union assembly plants in Texas and Mexico. The Warrenville-based company said the move is intended to protect customers from delays in delivery if the union goes on strike when its contract with Navistar expires Oct. 1.
“We have to assure that customers get the trucks they ordered from us,” a Navistar spokesman said Wednesday.
The layoff would affect 768 workers at Springfield. But some 500 workers in Springfield’s paint and cab assembly shops would not be laid off. Those employees, along with 700 workers at Navistar’s engine plant in west suburban Melrose Park, produce components that are shipped to truck assembly plants in Garland, Texas, and Escobedo, Mexico.
Navistar’s action did not catch union workers completely off guard. Navistar laid off Springfield assembly line workers in 2002 in the midst of contract negotiations. Nevertheless, Charlie Hayden, president of UAW Local 402 in Springfield, said he’s disappointed and considers the layoff notice a sign that the company lacks confidence that negotiators will reach a tentative agreement before the current contract expires.
“It doesn’t show much faith in the bargaining to reach an agreement,” he said. “If they did, they wouldn’t want to shut the plant down.”
The union authorized a strike against the company in July, but has so far given no indication that a walkoff is imminent. Mr. Hayden said he hopes the layoffs will be canceled as part of a new contract deal.
“We’re going to do our best to get that agreement,” Mr. Hayden said. Truck orders to Springfield have slowed significantly in recent months after a surge of orders in 2006 triggered by new emissions rules on diesel engines that drove up the price of 2007 models.
Navistar is looking for UAW members to shoulder more of the cost for health insurance and to agree to revised work rules that would give the company more control over employees’ duties and permit greater use of contract employees in unionized plants. Union members say they want commitments from the company that it will keep unionized plants open in coming years.
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