Delphi Steering will lay off 775 employees, about 21 percent of the Buena Vista Township complex's work force.
Management and union leaders this morning told workers that 425 hourly and 350 salaried employees will lose their jobs in the coming weeks.
"We've anticipated this for some time," said Mike Hanley, president of United Auto Workers Local 699, which represents about 2,400 hourly workers at the facility.
The plant has had rolling temporary layoffs of hourly workers since the beginning of the year, Hanley said.
The layoffs are a response to rapidly declining volumes and volatility in the global automotive market, said David Barnas, executive director of global external affairs for Steering.
Steering has 1,220 salaried employees and 2,400 hourly workers in Buena Vista, headquarters for the steering division of Troy-based Delphi Corp.
"Delphi Steering will continue to evaluate its staffing needs and make the necessary adjustments based on customer volumes and related economic factors impacting our business," Barnas said.
"In this dynamic environment, it is possible that additional cost measures will be necessary to respond to rapidly declining volumes."
Salaried layoffs come across all corporate staffs and departments, including engineering, purchasing, manufacturing and sales.
The 350 white collar workers, about 28 percent of the salaried work force, includes 100 positions identified for reduction last summer. Those layoffs are effective Sunday, March 1. Supervisors will notify the remaining 200 salaried workers, who will then leave their jobs either in April or May.
The other 50 salaried positions were eliminated through attrition since July, and those positions will stay unfilled.
The 425 hourly jobs, which includes skilled trades and production workers, represents about 18 percent of the hourly work force. Jobs will end Sunday, March 1.
"Due to the advocacy of the local union and management, there will be a voluntary program," Hanley said. "Some people in the work force are more prepared to leave than others."
Those who volunteer will receive a severance and cut all ties with the company, he said. Low seniority workers will have an option of taking a layoff and retaining recall rights for a period of time or taking the severance and cutting company ties.
Lowest seniority workers have a little more than two years with the company, Hanley said.
Despite the challenges in the automotive industry, "we see a strong future for Steering," Barnas said. "Steering's in-house design and development capabilities provide a unique strength in the steering segment. Simply put, Steering is an important supplier to (original equipment manufacturers) worldwide."
Acquisition of Delphi Steering by Los Angeles-based private equity firm Platinum Equity, which emerged as a suitor for the company in January 2007, is pending.
Delphi Corp., which filed for bankruptcy protection in October 2005, had placed the steering division up for sale as a non-core business.
