TRW Automotive in Rogersville is in the process of calling back hourly employees, who were temporarily laid-off early last year, for the purpose of a plant-wide permanent layoff of approximately 40-50 workers, which will begin next week. The local factory will eliminate it’s third shift, and remaining workers will be shifted to the floor to fill vacant positions and be forced to take a pay-cut.
Times-New article is here.
What’s next?
The people in Rogersville, where TRW has always been voted Best Place to Work, don’t want to hear this. Often, they’ll ask your opinion: “So, you think they’ll layoff more/ shut it down?” Don’t be mislead. They don’t want you to answer honestly. Whereas most of us here in Rogersville rely on TRW in some form or another – whether it be as our employer, as a customer for suppliers, one of the nearby restaurants which derives a large portion of their revenue from the workforce or any other market where those cuts will have a ripple effect which is just about all of them… they want you to say, “Nah. They’ve been shutting down that place for 20 years. It ain’t fell yet.”
Unfortunately, this isn’t the truth. TRW has never faced a meltdown of this type.
The Big 3 auto woes have hit all North American auto components manufacturers particularly hard and in more than one way. Reductions in production volume and capacity were already beginning to squeeze companies reliant on sales to automakers. Consequently, TRW Automotive has been cutting staff and production both in the US and abroad for the past year.
Now companies are worried about the solvency of the Big 3 (particularly GM) and keeping a close eye on their receivables.
U.S. automakers pay about $15 billion to suppliers each month for parts delivered in the previous 45 to 75 days. The scheduled GM payment for February: $5 billion to $7 billion (reduced from usual $15 million because of extended vehicle production slowdowns in December and January.) Although approximately 70% of TRW Automotive’s total sales comes from outside the Big Three, the company got 10 percent of its revenue from GM last year and had roughly $2.83 billion in receivables in the third quarter of `08.
And no one was expecting February to be pleasant.
In fact, earlier this month, it was reported that both the Original Equipment Suppliers Association and the Motor & Equipment Manufacturers Association, the trade group representing TRW and Lear, were talking with the Treasury Department about getting up to $25.5 billion in government aid to address the immediate cash needs and longer term viability of the motor vehicle parts supplier industry.
MEMA press release is here.
So the truth: I expect more cuts. Initially, those will be in the salaried sector and then production again. And if US sales don’t turn around, a complete shut-down.
But what I will say, “Nah, they been saying that for years. It’ll be fine.”
laid off since jan 4, 2009, made other plans, any laid off fellow employees, dont kid your self, find a new line of work. At least that way if they call you back you have a option. Good idea to look at jobs related to energy, medical, food industry etc., in other words a necessity. You have to wonder who is going to buy a vehicle from a co. that went bankrupt with no gaurentee if it will make it even as a smaller co.. Best wishes to all …Dirty.