More fallout from Michigan’s sinking auto industry hit Oxford this week.
Due to the dire economic circumstances surrounding General Motors and Chrysler, MSP Industries, located at 45 W. Oakwood Road, is planning to lay off 168 union employees and eight non-union employees in phases between May 18 and June 21.
Owned by the Detroit-based American Axle and Manufacturing, Inc., MSP Industries is a manufacturer of iron/steel forgings for the auto industry.
‘We’ve adjusted our work force and our schedules way back because of the General Motors and Chrysler cutbacks,? said American Axle Spokesperson Renee Rogers.
In a May 8 letter to township Supervisor Bill Dunn, Personnel Director David Milefchik characterized the union layoffs as ‘temporary but indefinite? and the non-union layoffs as ‘permanent.?
‘It is intended that this layoff (of union workers) will be temporary, but given the economic uncertainties facing the automotive industry generally and MSP in particular, the duration of the layoff cannot at this time be determined,? Milefchik wrote. ‘Although we hope that business conditions will begin to improve in the third quarter of 2009, it is possible that the layoff of (United Auto Workers) employees could extend beyond six months.?
‘I can’t tell you how sorry I was to receive this news,? Dunn said. ‘These workers have families to feed, mortgages to pay, kids to put through college. Until this economy turns around, which I hope is soon, we’ve got to keep these people in our thoughts and help them out wherever we can.?
It’s anticipated MSP’s mass layoff of UAW employees will occur between May 18 and 31.
The layoff of non-union employees will begin June 8 and run through June 21.
Although the letter indicated it’s anticipated eight non-union employees would be laid off, a list of 49 non-union positions that could be ‘potentially affected? by the layoff was included in the information provided to Dunn.
‘The exact magnitude of the layoff of non-union employees, the positions affected and the identity of the non-union employees selected for permanent layoff have not yet been determined,? Milefchik wrote.
That’s because the company is still working on a ‘Voluntary Salaried Retirement Incentive Program,? due to be completed June 4.
‘It is also due, in part, to uncertainty about the current economic climate in the automotive industry, the viability of our current production plans and the changing needs of our automotive customers,? Milefchik wrote.
Milefchik indicated all the layoffs are ‘the result of unexpected massive reductions in production? at the plant brought about by General Motors? ‘unanticipated announcement that it will be shutting down a large number of its manufacturing facilities for an extended period this summer? and Chrysler’s ‘recent declaration of bankruptcy and its indefinite and unanticipated shutdown of all of its plant operations while bankruptcy is pending.?