Mayflower Vehicle Systems plans to lay off about 375 workers at its South Charleston, West Virginia, vehicle stamping plant starting in late October because a major contract is expiring, plant officials told the Associated Press (AP).
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The layoffs of 350 hourly workers and 25 salaried employees will begin on October 28 and will run to the end of January. A contract with Mercedes-Benz will expire at the end of the year, plant manager Richard Fix told the news agency.
The plant will be left with 50 salaried employees and about 350 hourly workers working on a single primary shift after the layoffs are completed, Fix reportedly said. Layoffs among the unionised hourly workers will be based on seniority. Hourly workers at the plant earn an average of $US31,000 to $34,000 a year, plus about $10,000 in benefits each, Fix added.
The Associated Press noted that Mayflower Vehicle Systems’ British parent, The Mayflower Corporation PLC, was declared bankrupt in March and handed over to an external administrator with debts of nearly $356 million.
The uncertainty about a potential buyer for the company’s US operations has caused clients to be wary about signing new contracts with Mayflower, Mike Fell, human resources director at the South Charleston plant, told the news agency. The layoffs will be staggered as the contract with the customer winds down, Fell added.
Operations at the South Charleston plant include stamping sheets of steel and aluminium into auto and truck body parts and building subassemblies for vehicle manufacturers, AP said.
