Lisle, Illinois-based Navistar, a manufacturer of commercial vehicles and components, has announced that it will be laying off 136 unionized assembly production workers at its Springfield, Ohio plant. The decision is an economic one conditioned by marketplace demand and the company’s overall production capacity. According to a company spokesperson, “Production line rates will be reduced in order to realign production with current demand. This cycle is normal for our business, and this is not a shift of production to other locations.”
According to a spokesperson for the United Auto Workers, ‘Layoffs will be administered based on seniority and affected workers will retain recall rights at the plant.”
In the 2019 Q3 earnings call, Troy Clarke, Navistar’s Chairman, President, and Chief Executive Officer noted, “Navistar’s backlogs are declining as well, and as you have seen, we are actively managing this by adjusting assembly line rates to create a balance between customer demand, inventory levels and a healthy backlog. Today weaker U.S. orders, as well as lower Mexico and Latin America orders has resulted in the need to reduce assembly line rates in both of our truck plants. We make these type of decisions everyday, actively managing our business appropriately with the goal of an efficient, order to delivery process. As a result, total company and dealer inventories remain at the low-end of the normal range at 85 days.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?