The news comes after 30 union members were laid off from the plant last month after the company eliminated a second shift in several non-production departments.
MORE: Honda celebrates 30 years of production at East Liberty plant
The decision to eliminate a second shift for the plant’s paint department also contributed to additional layoffs, local union officials said.
“Please prepare yourself in the event the company decides to lay off additional members in the next few months. We can hope for the best but need to prepare for the worse,” said a bulletin sent to local UAW union members last month.
All workers impacted by the most recent round of layoffs have been with the company for less than a year and a half, according to a notice sent to union members on Thursday.
Chris Blizard, the president of UAW Local 402, said any worker who is laid off within seven weeks of when the plant enters its annual holiday period —which starts on Monday and ends on Jan. 2— will still be eligible for holiday pay.
Navistar also announced this week that it plans to temporarily stop production on the plant’s line two for several weeks beginning Jan. 2. Line two makes cutaway vans for General Motors.
MORE: Historic downtown Springfield building to be apartments, retail space
Company officials said that decision is due to a retooling at GM’s plant in Wentzville, Mo., that makes cabs for the GM vans assembled in Springfield.
Blizard said Navistar plans on retaining 30 to 40 senior employees on line two to work on the main line during the temporarily shutdown.
Between 180 and 200 people would be temporarily out of work until production resumes line two, he said.
“They will receive lack of work benefits during that time,” Blizard added.
The company also plans in the beginning of January to reduce the number of trucks built on its main line by two per day. That line currently produces 97 trucks per day, Blizard said.
The news comes after Navistar notified local union leaders last month that they were looking to reduce the number of trucks built on the plant’s main line to 70 a day by early next year.
Blizard said the company may still go forward with that reduction. However, he said that reduction would be in violation of the union’s current contract agreement with the company.
MORE: Wittenberg reviewing programs as general enrollment has decreased
Blizard said current contract language states a minimum of 90 trucks a day are to be built on the plant’s main line. He said union officials are currently in talks with the company in order to resolve that issue.
However, he said if the company goes forward that reduction, it could mean more layoffs at the plant.
In September, Navistar laid off 126 workers in Springfield following a decision to reduce main line production. That line makes medium-duty commercial trucks, including those for GM.
The News-Sun reported earlier this year that the number of medium and heavy-duty trucks that are being produced has surpassed sales nationally. Some companies are beginning to adjusted their production rates as a result.
MORE: Navistar sees drop in 4th quarter revenue
Earlier this week, Navistar projected lower revenues and adjusted earnings totals for the upcoming year as it appears that customers are expected to place fewer orders.
The company reported on Tuesday an overall net income of $221 million for this year and revenues of $11.25 billion. For next year, Navistar expects to make between $9.25 billion and $9.75 billion in revenues.
About the Author