Navistar to lay off as many as 500 at Chatham plant

A “soft truck market’’ is being blamed for an impending layoff at a major truck assembly plant in Chatham.

Officials of International Truck and Engine Corp. confirmed today the layoff, scheduled to begin in January, could idle as many as 500 workers.

Layoff notices are being posted in the Richmond Street plant today.

“It’s too soon to know the exact number of workers that will be laid off,’’ said company spokesman Roy Wiley of Chicago. “It will all depend on market conditions over the next several weeks.’’

Wiley said the layoffs shouldn’t come as a surprise, considering the current tough economic conditions in North America.

“People simply aren’t buying trucks,’’ he said. “The order board is very soft.’’

Wiley said the fact the company’s lineup of highway trucks are the most fuel efficient in the industry isn’t helping sales.

“We’re not saying that 500 workers will be laid off,’’ stressed Wiley. “But under Ontario law we have to give notice that up to a certain number may be affected.’’

The current output at the Richmond Street plant is 100 trucks a day.

Wiley said there have been times in past years when layoff notices were posted and only a portion of the number listed were affected.

“Hopefully there is an economic upturn between now and January that could change the picture,’’ Wiley said.

He declined comment when asked how many people are currently employed at the Chatham plant.

Joe McCabe, CAW national representative, said both the union and the plant workers are aware that the order board numbers are down.

“But we are hoping to see a market improvement by the end of the next 12 weeks that will greatly reduce the layoff numbers,’’ he said. “We have to wait and see.’’

McCabe said he understood the 500 figure had been lowered to 470.