Layoff notices shock Cami
The automaker will cut at least 125 jobs as U.S. sales soften.
By NORMAN DE BONO, SUN MEDIA
Cami Automotive is cutting 125 jobs and more layoffs may be looming, shocking a plant that has enjoyed high sales and is preparing to assemble a new vehicle.
The Ingersoll manufacturer will see sales drop by 10,000 in a year as the American market continues to soften, Cami spokesperson Susan Nicholson said yesterday.
Three sport utility vehicles are made at the plant.
"We are keeping production very tight. There is intense competition in the SUV segment and we have to look at efficiencies," Nicholson said.
"These are not easy decisions. It is tough to come out with this now."
Cami is operated by GM and Suzuki, and GM has also decided to sell fewer vehicles to car rental agencies, Nicholson said.
Cami exports about 85 per cent of its vehicles to the United States, which is suffering an economic downturn.
As a result, the automaker expects to assemble about 165,000 vehicles this year, a drop of 10,000 from last year.
But the plant is also gearing up to assemble a new vehicle in 2008, and Cami will know early in 2008 whether that re-tooling may see another layoff in the spring, Nicholson said.
"There may be a potential reduction of the third shift," she said, adding that no totals are available as to how many workers may be laid off. These are potential reductions, there are no details on it."
Notices will go out this week to the 125 employees, who will be on permanent layoff. They will be off the job Dec. 29.
"Our segment of the market is very tight right now. There is a lot of competition," said Mike Van Boekel, chairperson of CAW Local 88 representing Cami workers.
"It is not good. There is a lot of uncertainty here right now. People are on edge."
The union wants the company to consider offering early retirement incentives as well as buyout packages to help offset the layoffs, as there are many workers over 55 who may welcome a package, Van Boekel said.
"We have had discussions on potential layoffs. We have given them the idea of buyouts and early retirement incentives. If we get some to take it, it may help keep our younger workforce."
But that is an issue that has to be negotiated between the company and union, Nicholson said.
Cami assembles the Pontiac Torrent, Chevrolet Equinox and Suzuki XL7 vehicles. It now employs about 2,700 workers, 2,300 of whom are represented by the CAW.
The new vehicle Cami will assemble next year has not been identified.
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