Freightliner laying off second shift

By Mark Wineka and Jessie Burchette

mwineka@salisburypost.com

The Freightliner truck manufacturing plant in Cleveland will reduce its workforce by 1,290 workers effective March 13.

The second shift will be discontinued.

In total, 2,327 production line and shop positions are being wiped out at Freightliner's four manufacturing plants, including three in North Carolina.

The Mount Holly plant will become idle, with the exception of limited component assembly activities.

The company said in a press release the continuing economic and industry downturn and a related sharp decline in truck orders forced the decisions.

Daimler Trucks North America, parent of Freightliner, said vehicle and parts manufacturing plants in North Carolina are impacted by this decision, as well as related pre-delivery inspection facilities.

The company's truck manufacturing facility in Portland, Ore., also is affected.

Freightliner planned to file notice with the state today of the workforce adjustments, as required by the Worker Adjustment and Retraining Notification Act.

The reduction in force at the Portland Truck Manufacturing Plant will be effective Jan. 30.

"Although these actions are unavoidable and necessary, we deeply regret the impact on our employees and their families," stated Chris Patterson, Daimler Trucks North America president and chief executive officer. "These are extremely difficult and challenging times for our industry. We look forward to returning to normal production operations when business conditions stabilize."

The announcement from Freightliner continued bleak economic news for Rowan County, where the unemployment rate for November reached 8.6 percent.

"People are taking it hard," said George Drexel, president of united Auto Workers Local 3520, which represents employees at the Cleveland plant. "They're trying to be optimistic, but, in fact, we can't control the economy."

The jobs situation at Freightliner has been a roller coaster of layoffs, down time and call backs.

Freightliner recalled roughly 650 workers in August and reinstated a "partial second shift." Those called back had been among the 1,500 employees laid off in June when the second shift was eliminated.

In April 2007, the company laid off 1,180 workers and eliminated the third shift.

The August call-backs were possible because some increases in customer orders of the new Class 8 Cascadia truck manufactured in Cleveland had occurred.

The company has not furnished what its revised workforce number will be after the March 13 reduction, but Drexel estimated it would still be more than 1,000.

Drexel said those being laid off will receive six months of paid benefits in addition to unemployment. The benefits include health, dental and life insurance.

Asked if he thought whether the Cleveland plant will remain viable and part of Freightliner's long-range plans, Drexel said, "absolutely."

"We have a good workforce there, we really do," he said.

Drexel also predicted that the people laid off will be called back some day — that the reductions are temporary.

Carl Ford, newly elected chairman of the board of commissioners, was scheduled to meet with the Freightliner plant manager at the end of the month. Ford and Robert Van Geons, executive director of the Salisbury-Rowan Economic Development Commission, planned to talk with Freightliner officials about whatever the county could to to maintain current jobs and find ways to bring more jobs.

"There doesn't look like there is anything we can do," Ford said. "NAFTA and CAFTA are killing us."

He was referring to the North American Free Trade Act and the Central American Free Trade Act.

"It's bad," Ford said, learning of the layoffs, but he wasn't surprised. He has relatives who work at Freightliner.

"They've been sensing this for sometime É fearing the jobs are going to Mexico," he said. When he talks with the plant manager, Ford said he will ask that the company do whatever it can to keep operations in Cleveland.

Ford said the latest round of job losses will bring stress on families and agencies that provide assistance. Although the county has a hiring freeze on, Ford said it may have to look at adding more Social Service workers to help deal with people losing jobs and needing assistance.

Debbie Davis, head of the Salisbury Employment Security Commission office, spent Thursday afternoon speaking with Carter Furniture employees. The long-established Salisbury firm announced this week it would close operations, putting more than 70 people out of work. "We're swamped," Davis said of the calls and constant office traffic she and her staff are handling daily with the unemployed.

She advised those seeking information about unemployment benefits to keep trying if the local ESC telephone lines are busy. Visiting the state Web site at www.ncesc.com could help answer some preliminary questions, she also advised.

Companies who lay off workers usually get the unemployment claims process going, but it soon becomes the responsibility of the former employee.

Davis says the unemployment numbers have yet to rival those seen when Pillowtex closed in 2003 and a special processing center was set up. Hundreds of people waited in line at that center every morning, Davis recalled. But she acknowledged the continued layoffs and closings are troubling.

"Job security is not who your employer is but what your skills are," she said.

Freightliner's manufacturing and related facilities affected include:

- The Cleveland truck manufacturing plant, which makes Freightliner brand heavy-duty trucks. Reduction in force: 1,290 production line and pre-delivery inspection positions. Effective date: March 13.

- The Mt. Holly truck manufacturing plant, which makes Freightliner medium-duty trucks. Reduction in force: 572 production line and pre-delivery inspection positions. Effective date: March 13 (all shifts will be idled; limited component assembly work continues).

- The Gastonia parts manufacturing plant, which makes truck parts and components. Reduction in force: 275 shop positions. Effective date: March 13 (first and second shifts reduced).

- The Portland truck manufacturing plant, which makes U.S. military and Western Star brand commercial vehicles. Reduction in force: 190 production line positions. Effective date: Jan 30 (no change to current single shift operation).