Industry Reports

GM Lordstown Service Provider to Cut 73 Employees

LORDSTOWN, Ohio – A service provider for General Motors Co.’s Lordstown plant will place 73 of its employees on permanent layoff when the factory shuts down March 8.

According to a Worker Adjustment and Retraining Notification, or WARN, filing dated Feb. 13, Leadec Corp. said it would terminate 63 members of United Auto Workers Local 1112 and 10 non-union employees who work at the plant.

Leadec, based in Stuttgart, Germany with U.S. headquarters in Cincinnati, is a technical services provider for the automotive industry. According to the WARN notification, 38 of the union employees affected are from the janitorial department, 11 are booth cleaners, two are service attendants, two others serve the electrical division, seven are employed in the mechanical division, and three are maintenance personnel.

The 10 non-union positions affected include nine supervisors and one safety manager.

“Except for hourly bargaining employees whose bumping rights are governed by seniority provisions contained in the collective bargaining agreement, employees do not have bumping rights,” the advisory says.

According to the WARN letter, GM notified Leadec Feb. 12 that certain contractual services “would no longer be required as of March 8, 2019.”

WARN notices must be filed 90 days in advance of a plant shutdown; this was filed about three weeks before the Lordstown facility plans to shut down.

Leadec is the third company associated with GM to post layoffs since the automaker announced in November that it would cease production of the Chevrolet Cruze on March 8 and place the plant on “unallocated” status.

Source Providers Inc., a division of Comprehensive Logistics, announced it would close its doors, affecting 180 employees. Lordstown Seating, a division of Magna, also announced earlier this year it would cease operations once production of the Cruze ends.

Published by The Business Journal, Youngstown, Ohio.