Koyo cutting jobs as auto industry slows down
By GENE ZALESKI, T&D Staff Report Thursday, March 05, 20092 comment(s) | Default | Large
Koyo Corporation's Orangeburg bearing plant is losing about 80 jobs due to a weakening economy and reduced demand from automotive customers, company officials say.
Most of the reductions are being made through voluntary cuts, such as furloughs, according to Human Resources Area Manager Stephen Hudson. But they also include involuntary cuts, although the total number hasn't been decided yet.
"Koyo's voluntary separation program was very successful," Hudson said. "Over 90 percent of Koyo's targeted reductions were met through its voluntary separation program, which greatly reduced the number of involuntary separations."
The Orangeburg plant employed about 491 prior to the job reductions.
The cuts began Feb. 20 and are targeted to conclude on March 6 at the Orangeburg plant as well as Koyo's Bearing Division plants in Blythewood and Telford, Tenn. The three plants could lose a combined total of 100 to 125 jobs, although that could change.
"Before considering these adjustments, the company had already taken other actions to reduce labor-related costs such as elimination of temporary and contract workers, elimination of overtime, reduced work weeks and even voluntary unpaid time off by some employees, but those actions were not enough," Hudson said in a prepared statement.
Hudson said on Feb. 2, the company held meetings with all employees about the voluntary programs, which included a voluntary unpaid furlough with continued medical and insurance benefits during the furlough, and a voluntary buy-out. Employees were also told there could be an involuntary reduction in force.
Koyo is not the only industry in the automobile sector feeling the pinch.
Statewide, the automobile sector lost 1,500 jobs losses between Dec. 2007 and the third quarter of 2008, according to Steve McLaughlin of the S.C. Employment Security Commission.
ESC labor analyst Sam McClary says it does not look like the economy will turn around anytime soon.
"People are more conservative in their spending and people even with fairly good credit are having trouble getting loans," McClary said. "I think we will have to see a turnaround on the national level before it filters down to us right now."
Orangeburg County Development Commission Executive Director Gregg Robinson said the county is working with Koyo on capital improvements and expressed confidence that the market and job sector will bounce back.
"Labor is one of those things consistently that is targeted when companies look to tighten their belt due to a lack of sales," he said.
Koyo Corporation/JTEKT North America is a supplier of steering systems, driveline components and bearings to North American automotive manufacturers. It employs more than 2,900 people in North America at sales offices, technical centers and nine manufacturing locations.
T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com.
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orangeburger wrote on Mar 5, 2009 8:10 PM:
Employers need to look at jobs in a totally different light. Gone are the days of lazing around, 2 hour lunches, working 36 hours and getting paid for forty, coming to work at whim, etc. If the employees are not serious and agree to 20-50% paycut depending on the demand for products and services, it may not be possible to tide over the serious economic crisis. The benefits packages need to be critically reassessed. If enough employers drop health insurance, the insurance costs will drop. If employees are asked to pay 50% of the insurance costs they will use these services more responsibly. Thank God, local companies have no unionized labor to screw up the messy job situation even more royally. . "
Chris' Cloths wrote on Mar 5, 2009 3:20 PM: