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The Southwest Times
http://www.southwesttimes.com/news.php?id=1097
Volvo plans to
layoff up to 650
Thursday,
November 29, 2007
By Melinda Williams
DUBLIN — Come late January, nearly a quarter of employees at
Volvo’s New River
Valley plant will find
themselves without a job.
Volvo spokesman Jim McNamara
said Tuesday the company is planning to lay off up to 650 employees sometime in
late January in order to bring production into line with market demand. He said
the layoffs are expected to be permanent.
“We’re obviously sympathetic
with those who will be affected,” McNamara said, “but we would appreciate the
understanding of all involved as we work through this situation.”
According to McNamara, Volvo
cut about 970 employees during a series of layoffs in early 2007. As a result
of that interruption in production, he said the company had to call back about
250 employees later in the year in order to increase its truck production to
catch up with some orders that hadn’t been filled. Once all the orders are
caught up, production will have to once again be reduced to fall back in line
with current market demand.
Asked whether he anticipates
any of the laid off employees to be brought back later in the year, McNamara
said the company never speculates on future production levels because it is
dictated by market demand.
The decision on who to let go
will be made based on requirements of the employees’ current labor contract.
The contract calls for it to be based on seniority. McNamara said the contract
also will determine whether any severance packages or assistance will be
offered to those laid off.
Volvo’s current workforce
consists of 2,900 employees. Prior to the 2007 layoffs, the company had 3,170
employees.
The plant, located off Cougar
Trail in Dublin,
assembles heavy trucks for both Volvo Trucks North America and Mack Trucks,
Inc.
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