More layoffs coming to Granite City Steel

U.S. Steel Corp. plans to idle its coke operations at Granite City Works in Granite City, Ill., and lay off 390 workers.

This latest round of layoffs is in addition to the 1,600 workers who lost their jobs when U.S. Steel idled its mill in December.

The affected employees are 300 hourly workers and 90 managers, said John Armstrong, a spokesman for the Pittsburgh-based company.

The idling will occur in about three weeks, as demand for both steel and coke, which is used in the production of steel, has dropped, he said.

Granite City Works, the city's biggest employer, had more than 2,200 workers when it was fully operational.

Granite City Mayor Ed Hagnauer said he's still optimistic the idling won't turn into a permanent closure because U.S. Steel is continuing its $600 million upgrades on the mill.

"We're just crossing our fingers and saying our prayers," he said Thursday. "We're still hoping for a turnaround and we're going to wait and see if the economic stimulus will help the steel industry."

On Thursday, U.S. Steel named a new general manager of Granite City Works, but that does not have any bearing on how long the idling will last or if the mill will be closed permanently.

kvolkmann@bizjournals.com

Cat to layoff 814 at Mossville plant

By Blake Long
Thursday, December 18, 2008 at 2:11 p.m.

MOSSVILLE -- More than 800 local Caterpillar employees will be out of work by the end of February.

Caterpillar announced Thursday afternoon it will lay off 814 workers at its Mossville plant indefinitely starting February 23.

Cat says the demand for products made at the plant including on-highway truck engines, engines for Caterpillar machines and commercial engine applications have decreased significantly.

They say all of their business units will have to make adjustments because of the slow economy, and Thursday's layoffs are all about helping Cat in the long run.

“For the individuals impacted by the decision today, we understand it’s difficult for them and their families. Again, not an easy decision to make, we're trying to make decisions that will make us competitive and successful in the long run and ultimately for the overall good of the company and our employees that's what we have to do,” said Caterpillar spokesman Jim Dugan.

We wanted to know how the massive layoffs will impact the area's economy.

We took that question to the CEO of The Heartland Partnership. He told us some bad economic news is inevitable, but it could be worse.

“We've got about 20,000 new jobs over the past 5 years in our economy, and there's going to be some adjustment back, it’s not going to be a big adjustment but it is better than what's going on in the rest of the country. There are places that are just in survival mode. The entire country is in a recession and this is just what happens in a recession, but it’s actually not happening to us as severe as it is in some of those other places,” Jim McConoughey said.

McConoughey also said more layoffs could be coming to our area.

He expects the next two quarters to be down or flat.

Wednesday, HOI-19 News learned that Cat plans temporary layoffs at three buildings in East Peoria in February and March. Cat would not comment on those layoffs.

Illinois unemployment rate hits 7.3%

By James P. Miller | Tribune staff reporter

2:07 PM CST, November 20, 2008

Unemployment in Illinois jumped higher last month -- and continued to track significantly above the nationwide rate -- as the state's construction sector lost jobs at an accelerating pace, according to statewide data released Thursday afternoon.

The state's jobless rate surged to 7.3 percent in October from September's 6.9 percent reading, the Illinois Department of Employment Security said.

Because the state's population is growing, Illinois must typically generate thousands of new jobs monthly just to absorbe the growing labor pool and keep the unemployment fromrising. But October marked the fifth consecutive month in which the number of jobholders fell.

Employment dropped by a substantial 11,700 from September, to 5,958,400, IDES said.

Nationwide, unemployment surged to a 14-year high of 6.5 percent in October, according to Labor Department data released earlier this month. And with the U.S. economy now sinking deeper into what is widely expected to be the worst recession in 25 years, many experts think the national jobless rate will exceed 8 percent during 2009.

With its large manufacturing, commercial and financial bases, Illinois's economy feels the impact of the negative factors that have been battering the national job market: slowing demand for manufactured goods, a punishing drop in residential construction, disruptions linked to the tight credit markets, slowing export activity and weakening retail sales.

The state's construction sector showed the most painful drop, shedding 4,100 jobs and reducting construction employment to 254,500. Over the past twelve months, construction has lost a total of 15,200 jobs in the state -- and 7,400 of those jobs disappeared in the past two months.

Government employment also declined, with the sector losing 2,700 jobs to a new total of 850,200. Financial employment dropped 2,200 jobs, to 394,000, as banking, insurance and securities workers felt the impact of the credit market's ongoing woes.

"Although Illinois has a diverse economy, the national economic slowdown has had a negative effect on Illinois unemployent and thus we need federal government assistance with an investment in infrastructure and additional stimulus to help create jobs," said IDES director Maureen O'Donnell.

Ford expects to lay off 792 at Chicago plant

By James P. Miller | Tribune staff reporter

3:54 PM CDT, October 6, 2008

The final tally on jobs to be cut at Ford Motor Co.'s assembly plant on Chicago's South Side will be 792, according to a "mass-layoff" filing the auto maker made with Illinois authorities.

Ford announced in early September that it planned to eliminate one of two shifts it operates at the 2,200-worker plant, which is located at 130th Street and Torrence Ave.

At the time, the company said it expected about 600 part-time workers to lose their jobs in connection with the dropped shift, but couldn't be specific about how many additional jobs might be lost.

In a regularly published state report on companies that plan to reduce staffing which came out this week, however, Ford lists a total of 792 jobs that will be cut when the shift ends Nov. 3.

jpmiller@tribune.com

City's Budget Woes Leading To Layoffs, Fewer Garbage Pickups

Union leaders for city workers have been informed by Daley aides that they should prepare their workers for as many as 1,000 layoffs in the near future due to the city's continuing budget woes. With the city facing a $400 million shortfall, Mayor Daley is slated to unveil the 2009 budget on October 15 and layoffs look to be a major part of saving money. Said Ald. Ed Smith (28th), "Probably everything will have to be done with layoffs." Daley is also eliminating 3,000 vacant positions. The layoffs are projected to save in the neighborhood of $100 million.

The hardest hit union looks to be Laborers Union Local 1001, who will see 300 layoffs in the Streets and Sanitation Department.

That's likely to mean major changes in garbage collection, tree trimming and other housekeeping services. Possibilities range from lengthening the time between pickups -- once-a-week now in most neighborhoods, twice-a-week in congested areas -- to privatizing recycling and shrinking crew sizes.
"They put an average of 350 trucks out-a-day. To cut 300 bodies -- they're probably gonna go to every other week pickup. That's probably the only way they can do it. Either that, or every 10 days," said Lou Phillips, business manager of Laborers Local 1001.

"You're gonna have to look at your garbage an extra three or four days -- and I don't know when they'll be able to get to your bulk. It's gonna create a rodent problem. You might even see a difference in the Loop area, as clean as the Loop is. That's the showcase."

The union proposed alternative plans, including charging a $10 monthly collection fee. An aide for the mayor denies that garbage pickup would be affected but did suggest that it might lead to an increase of crews with just one laborer instead of two.

3M announces layoffs; some jobs to be cut in Decatur

Jul 26, 2008 (The Decatur Daily - McClatchy-Tribune Information Services via COMTEX) -- MMM | Quote | Chart | News | PowerRating -- 3M Co. announced it will eliminate 300 jobs, including an unspecified number at its Decatur plant, because of a drop in sales in its optical films.

The company will make the layoffs at its Decatur plant and a plant in Menomonee, Wis.

The Decatur plant employs 830 workers at an average pay of about $50,000 a year. It paid $120 million for its optical plant, which has struggled with profit margins since it began.

3M's optical film products are used in flat-screen televisions, computer monitors mobile phones and handheld computers.

The Decatur plant's production of films for large-screen televisions has been problematic. A single blemish on the film sends it to the trash can, according to 3M Chief Executive George Buckley in an earnings conference last year. Avoiding such blemishes on wide sheets of film is proving difficult.

The majority of the layoffs will be in the United States, comprising about 20 percent of its optical films staff.

The company reported Thursday that its second-quarter earnings received a boost from a 10 percent increase in net sales. Most of that increase came from international sales.

3M's optical business, however, was dismal in the second quarter. Profits fell 54 percent, and sales were down 36 percent. In an earnings conference, officials blamed the drop on the popularity of Vizio LCD televisions, which use a low-end optical film not offered by 3M. The competition forced 3M to cut prices on its optical films twice.

The company said that in addition to the layoffs, it will consolidate some manufacturing facilities. Spokeswoman Jacqueline Berry said Friday that plans are not final, but her understanding is that the consolidation will not affect the Decatur plant.

The measures should save the company $30 million annually, Berry said.

Local 3M officials declined comment.

Jobless rate soars 42% in Fox Valley

• In June, 83,700 unemployed: Local workers sidelined as the economy keeps slipping

July 25, 2008
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By ROWENA VERGARA rvergara@scn1.com

Peggy Shots had it all planned out.

In a few years, the 57-year-old from Aurora would retire, and in just one more year, she'd reach 30 years with Farmers Insurance, an anniversary that would bring her a hefty bonus.

But on June 30, she lost her job. The company decided back in January to outsource Shots' insurance underwriting position and consolidate all duties into three offices across the country.

She could've relocated to Kansas or Texas with many of her colleagues, but that was never part of Shots' original plan.

"I've had 57 years in this town, and I'm not leaving," she said.

So for the last six months, she has tried to find work. On Thursday, she finally brought herself into the Illinois Department of Employment Security's resource center in North Aurora, where she inquired about unemployment benefits.

Shots hopes she can still enjoy her retirement the way she always wanted.

"I'm just trying to supplement myself a little bit with unemployment benefits as I look for a part-time job," she said, sitting alongside many others filing for benefits in the busy office.

According to the latest employment data from the state released Thursday, unemployment has hit hard in every major metropolitan area throughout Illinois.

In the Fox Valley alone, about 83,700 people throughout Kane, Kendall, DuPage and Will counties were unemployed during the month of June. At this time last year, about 58,580 were unemployed, which translates to a 42 percent increase in the number of unemployed.

Among counties in the Fox Valley, Kendall County endured the largest spike. The jobless rate jumped from 5.0 in June 2007 to 7.6 in June 2008, a 52 percent increase.

Unemployment rates for other counties also are on the rise. Comparing June 2007 to June 2008, Kane County's jobless rate jumped 39.2; DuPage County, 39.5 percent; and Will County, 41.2 percent, according to the Illinois Department of Employment Security.

It's a trend hitting every area of the state, said Norman Kelewitz, an employment data analyst with IDES.

"A lot of what's going on in the local area has to be going on with problems nationally. In the overall Chicago metro area, there have been some job losses in construction, manufacturing and financial activities," he said.

IDES Director James P. Sledge said in a press release that with the downturn in the economy and decreased consumer confidence, a comprehensive capital plan for Illinois is imperative now more than ever.

"While some areas have experienced moderate job growth, it has not been enough to absorb the number of jobs being lost," he said.

Brunswick to close four boat plants, layoff 2,700

Seeks to trim $300M in costs

June 27, 2008


NEWS-SUN STAFF REPORT

LAKE FOREST -- Brunswick Corp. said Thursday the slumping marine market is forcing it to reduce costs by $300 million, including the closing of four boat manufacturing plants and laying off 2,700 workers.

The company said it plans to have 17 or fewer boat plants by the end of 2009, compared with the 29 it had in 2007, requiring the closure of four plants in addition to eight plant closures already completed or announced.

Brunswick said officials notified employees that 1,000 hourly and salaried workers at certain marine plants would be laid off. Further layoffs approximately 1,000 hourly and 700 salaried employees across the company's marine business units and staff functions also are being contemplated as additional plant closures and consolidations, and other cost-cutting measures are completed.

"Retail unit sales of power boats in the United States have been in decline since late 2005; however, the rate of decline has been accelerating," Dustan McCoy, Brunswick chairman and chief operating officer, said. "Industry retail unit sales were down 13 percent in the fourth quarter of 2007 and down 21 percent in the first quarter of 2008 compared with the respective year-ago quarters."

Total unit sales of power boats in the U.S. in 2007 were at their lowest in more than 40 years, he added.

The company said it also will continue its efforts to reduce the complexity of its operations, including reducing the number of models and option packages, and assessing the continued participation in certain market segments.

McCoy said Lake Forest-based Brunswick has implemented cost savings initiatives over the years to reduce its manufacturing footprint and leverage purchases of components and materials.

"While these efforts have resulted in significant savings, the realities of the current U.S. marine market have caused us to step up the pace and magnitude of these efforts," he said, noting an uncertain economy is eroding consumer confidence and reducing purchases of discretionary items such as boats, billiard tables and fitness equipment.

Fermilab lowers layoff estimates

Durbin working to restore some funding to retain staff

By Russell Working | Tribune reporter

Fermilab expects to lay off about 140 employees in the coming weeks—about 10 percent of the Batavia physics laboratory's staff, once retirements and resignations are factored in, an official said Friday.

The figure is lower than the 200 layoffs of scientists, engineers and other employees the lab had projected after it was surprised in December by budget cuts.

"We've had a number of people who have retired and resigned in recent weeks, and that brings the total number that we need to lay off closer to 140," lab spokeswoman Judy Jackson said.

Fermi National Accelerator Laboratory still is working out layoff numbers with the Department of Energy and will have a better idea the week of May 19, it told employees this week.

The prospect of cutbacks began when officials learned this year's budget would be cut by $52 million from an expected $372 million. That left the lab scrambling. Fermilab Director Pier Oddone described the cuts as "a bolt out of the blue."

Now the lab is hoping Sen. Dick Durbin (D-Ill.) will help restore some funding to head off the cuts. Durbin and a bipartisan group of senators are requesting an additional $350 million for the energy department's Office of Science and the National Science Foundation, saying this would help both Fermilab and the southwest suburban Argonne National Laboratory continue research and retain staff.

In a statement, Durbin said he may seek the money as an amendment to an emergency supplemental Iraq war funding bill pending in Congress. If any funding solution passes, laid-off employees would be considered first for jobs that reopen, Jackson said.

rworking@tribune.com

Sears cuts 100 more headquarters jobs

Illinois unemployment down slightly in February

CHICAGO — New data shows that the unemployment rate in Illinois was down slightly in February compared with January.
The seasonally adjusted rate for last month was 5.5 percent. It was 5.6 in January.
The U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security released the statistics on Thursday.
Despite the slight improvement, the Illinois jobless rate was worse than February's national average of 4.8 percent. It was also worse than that Illinois rate for February last year, which was also 4.8 percent.
The Department of Employment Security is also reporting that Illinois continues to lead all Midwestern states in job growth since January 2004.
That means 198,100 new jobs. More than 34,000 of those have been added in the past year.

Illinois unemployment down slightly in February

CHICAGO — New data shows that the unemployment rate in Illinois was down slightly in February compared with January.
The seasonally adjusted rate for last month was 5.5 percent. It was 5.6 in January.
The U.S. Bureau of Labor Statistics and the Illinois Department of Employment Security released the statistics on Thursday.
Despite the slight improvement, the Illinois jobless rate was worse than February's national average of 4.8 percent. It was also worse than that Illinois rate for February last year, which was also 4.8 percent.
The Department of Employment Security is also reporting that Illinois continues to lead all Midwestern states in job growth since January 2004.
That means 198,100 new jobs. More than 34,000 of those have been added in the past year.

Methode to lay off 125 area plant workers

Methode Electronics Inc. said Thursday it will stop making one of its oldest products -- the simple plug-in connector with tiny prongs that mates with another connector on many of today's computers.

It's now mass produced in Asia and costs a lot less to make. Such competition has forced the Harwood Heights manufacturer to layoff about 700 workers, including 125 at its Rolling Meadows plant who make the connectors.

Cuts also will be at its Carthage and Golden plants, also due to outsourcing operations to Asia.

Besides stiff overseas competition, advancing technology has hurt sales for Methode's smaller connectors.

Wall Street reacted favorably as Methode shares bumped up 84 cents, or about 7 percent, to close at $12.24.

So many manufacturers have moved operations to Asia that the connector industry, including Methode, was forced to follow their customers, said Ronald Bishop, principal of St. Charles-based Bishop & Associates, a research firm for the connector industry.

"It's difficult to be a small and global company and still compete with those products that went to China years ago," said Bishop.

Methode products have been made for computers, telecommunications equipment, locomotives and autos, such as for Ford Motor Co. It also has contracts for devices used on fighter jets.

The company, which has about 3,600 workers, will start eliminating the 700 positions over the next six months, said Joey Iske, Methode's director of investor relations.

"This is going to be an evolutionary process," she said.

Methode plans to focus on sophisticated connectors and devices that require more engineering.

"We're doing some specialty connectors for the automotive industry that could easily cross other industries," she said.

Later this year, the Rolling Meadows plant, at 1700 Hicks Road, will likely house other business units and development. Its Palatine operations will remain untouched, Iske said.
The restructuring is expected to be completed later this year. Affected workers will received severance packages and outplacement services.

The actions will result in a pre-tax charge in 2008 and 2009 between $19 million and $25 million, or about 30 cents to 40 cents per share.

Macy's Cuts 100 Chicagoland Jobs

Further evidence that Macy’s strategies are not headed in the successful direction executives hoped, Macy’s North, the division that operates Macy’s in the Midwest, announced Friday the layoff of 271 employees, citing lagging sales. Combined sales for November and December were down 1.1%, while December’s sales were down 7.9%, significantly worse than the anticipated 4 to 7 percent drop over last year.

January’s same day sales are expected to dip 4 to 6 percent.

100 positions in the Chicagoland area will be impacted, with 70 in Detroit, and the remaining in Minneapolis, where Macy’s North is headquartered. Most of the positions eliminated coincide with Macy’s shuttering their Marketplace food operations and wine sales beginning in March at every store other than the flagship State Street location.

Local stores impacted include Oak Brook, Aurora, Vernon Hills, and the new store in Bolingbrook. A Macy’s spokesperson said the effort is to align expenses with revenue. The layoff comes on the heals of Macy’s announcement just two weeks ago they will be closing nine underperforming stores, which impacts 900 employees. Although no stores are in Illinois.

Field’s Fans Chicago’s blog encourages fans to pen letters to the editor. One fan suggested, via the blog, an effort to organize a Field’s delegation at the next Macy’s annual meeting of shareholders. He added, “If Chicago can rise from the ashes of the Great Fire of 1871 which was the greatest disaster to hit any city since Pompeii, then Chicago can bring back Marshall Field’s!”

Washington Mutual to close stores, lay off 150

By Michael Sean Comerford | Daily Herald Staff

Washington Mutual told employees today it intends to close 25 local branches and cut about 150 jobs.

The cutbacks are scheduled to be made by mid-April and will leave Washington Mutual with 121 locations and 2,000 area employees.

Most of the closings and layoffs will occur in the Chicago suburbs, the company said.

The Seattle-based institution downplayed the importance of the closings, noting it remains committed to opening new locations this year and has hired former Chase executive vice president Carl McWherter to lead local operations.

"We're still actively engaged in finding new stores in the Chicago area," said Shane Winn, Washington Mutual spokesman.

Winn added the institution is upping its area marketing budget this year by 29 percent.

Its last layoff was September 2006, when it closed 28 of its 172 stores. Most of those closings happened in Lake and McHenry counties.

The layoffs come on the heals of Bank of America's buyout of LaSalle Bank last year and the subsequent announcement in September that 2,500 banking jobs in Illinois will be eliminated.

Across the country, Washington Mutual intends to close about 40 stores, Winn said. But Chicago is where the main concentration of closings are scheduled. Winn said no company estimate on savings from the cuts was available.

Washington Mutual entered the Chicago market like a storm front in 2003, aggressively hiring employees and opening stores.


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Chrysler to Lay Off Nearly 1,100 Workers

US automaker Chrysler says it plans to layoff more than one thousand workers at its factory in Belvidere, Illinois. The company is cutting the plant's third shift to help cope with falling sales.

Chrysler added the second and third shifts only a year and a half ago after a $419-million investment in the plant. At the end of this month, nearly 1,100 workers will be laid off. Belvidere Mayor Fred Brereton says the cuts aren't the kind of news you want to hear about, but he's still grateful the plant is there.

BRERETON: Hopefully, the actions being taken by the Chrysler group now are steps that will continue to make them competitive in the marketplace and still sell vehicles.

Brereton says some local suppliers for the plant also are eliminating their third shifts because of Chrysler's cuts. A spokesperson for the Michigan-based automaker says it's talking with the local union about buyout and retirement incentives. Chrysler announced in November it would lay off up to 12,000 workers at five of its North American plants.


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Mass layoffs up in Q3 for Mo., Ill.

Missouri reported 18 mass layoffs and 1,625 initial claims for unemployment insurance during the third quarter of 2007, according to numbers released Friday by the U.S. Department of Labor (DOL).

That compares to 10 mass layoffs and 3,462 initial claims in the third quarter of 2006. The DOL's third quarter is defined as July 1 through Sept. 30.

A mass layoff is described as an unexpected layoff of at least 50 people at one company.

Illinois had 70 mass layoffs and 8,899 initial claims in this year's third quarter. That's up from 60 mass layoffs but down from 11,304 claims during last year's third quarter.

There were 931 mass layoffs in the U.S. in the third quarter, with 136,234 initial claims for unemployment insurance.

The national unemployment rate averaged 4.7 percent, not seasonally adjusted, in the third quarter of 2007, unchanged from a year earlier. Private non-farm payroll employment, not seasonally adjusted, increased by 1.4 percent, or about 1.6 million, over the year.

The Mass Layoff Statistics program is a federal-state program that identifies, describes and tracks the effects of major job cutbacks using data from each state's unemployment insurance database. The data represents the private, nonfarm sector.


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U of I Study Finds IL Lost Jobs for Second Consecutive Month

URBANA – The state of Illinois lost jobs for the second consecutive month in August, according to the September Monthly Illinois Economic Review. However, the 900 jobs lost were far fewer than the 12,600 jobs that were lost in the previous month. The July figure has been revised from an earlier reported loss of 11,500 jobs.

The Monthly Economic Review is a compilation of state employment and economic data, produced by economist Geoffrey Hewings of the University of Illinois’ Institute of Government and Public Affairs. The nation as a whole lost about 4,000 jobs in August, but the other states in the Midwest (Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin) added 27,700 jobs, a growth rate of .14 percent.
Despite the two consecutive months of losses, the state has added 46,900 jobs since August 2006, a growth rate of .79 percent. This compares with an increase of 47,300 jobs in the other six Midwest states combined, a rate of .24 percent. Nationally, nearly 1.6 million jobs have been created in the past 12 months.

The Chicago Business Activity Index, which is based on leading national indicators, was negative in August for the tenths consecutive month. The CBAI, the data for which lags behind the employment data in the Economic Review, traces the path of growth or contraction through to the current period and then forecasts up to 24 months into the future. The CBAI continues to suggest that economic growth in the region will be below its historical trend, in large part because of continued slowing of economic growth nationally.

The Monthly Illinois Economic Review also ranks the non-farm employment growth rates for the state’s 10 Metropolitan Statistical Areas. Data for this ranking lags the overall state ranking by one month and indicate that Peoria showed the largest growth rate for July at .27 percent. Champaign-Urbana-Rantoul was second with a job-growth rate of .18 percent.

The Monthly Illinois Economic Review is produced by the Institute of Government and Public Affairs as part of its mission to follow and report on the Illinois Economy. IGPA also produces the University of Illinois Flash Index, the first monthly barometer of the state’s economic condition, usually available on the first business day of each month. Details from the Illinois Economic Review, as well as the September Flash Index, are available at http://www.igpa.uillinois.edu/.



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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.

Bank of America To Layoff 4,000 In LaSalle Bank Merger

LaSalle Bank customers won't just see a name change at their local bank branches, Bank of America has announced plans to layoff 2,500 workers in Illinois and 1,500 in Michigan as part of the merger, according to Portfolio.

Buying LaSalle will make BofA (NYSE:BAC) a dominant player in Chicago for the first time. At present, BofA has less than 2 percent of that market's deposits, according to the Federal Deposit Insurance Corp.

BofA has added 56 branches in Chicago in the past four years. With the LaSalle purchase, it will get 411 branches, 17,000 commercial-banking clients, 1.4 million retail customers and 1,500 ATMs in the Chicago area, Michigan and Indiana.

The deal also will mark BofA's retail-branch entry in Michigan. BofA will have 264 offices there and be the state's largest bank, with a 23 percent share of the market's deposits. LaSalle also has six branches in Indiana
.
The decision to lay off the workers got BofA immediate rebuke from U.S. Sens. Dick Durbin and Barack Obama, both Illinois Democrats. The pair on Monday sent a letter to Kenneth Lewis, chair of Bank of America's board, in which they urged Lewis "to reconsider the scope and timing of these layoffs."From a consumer's perspective, does this bother you? Or is one bank/banker just as good as another?


UPDATE: A little bird tells us:
"...a high percentage of the layoffs will be in contacted positions, such as security. LaSalle has it's own security team to handle all of their banks, while BoA contracts out. That contract will then need to be applied, but many of those security guards will be sought after to retain their same roles during the transition, though rehired by various contractors. While they have been "laid off" they will be retaining similar roles and responsibilities." Said little bird also provides an internal B of A memo about the transition:

LaSalle Bank transition team identifies layoff target projections24 Sep 2007

Bank of America is on track to close on the LaSalle Bank transaction in the first week of October, when it recognizes "Legal Day One." On that day, Bank of America and LaSalle Bank will operate as a single legal entity.

Even after Legal Day One, the transition team will continue its assessment of ongoing operations to determine how best to integrate the two companies and provide maximum value to associates, clients and customers, and shareholders.

When the purchase was first announced, Bank of America said that it expected $800 million in after-tax cost savings in this transaction. The company has noted since then that the cost savings will involve layoffs. The transition team's current projection is that there will be approximately 1,500 layoffs in Michigan and 2,500 layoffs in Illinois. These reductions will occur over the next two years.

The company will strive to find new opportunities within the bank for associates who are affected by these changes. Affected associates will be provided career support resources, extended benefits and severance pay.

"Layoffs and consolidations are never easy but we felt it was important to communicate with associates immediately when this information was available," noted Jim Eckerle, Transition executive for Bank of America. "As is always the case, we will work closely with affected associates and communities to minimize the impact of these changes."

Specific affected positions have not been identified; nor have individual affected locations. Additional details to this preliminary assessment will be provided later in the assessment.