Delco Remy, Roadway to cut local jobs

By Jennifer Jacob Brown / staff writer

January 08, 2009 11:58 pm

— Officials with Delco Remy and Roadway Express have confirmed large cutbacks are planned for their Meridian operations.
Roadway Express will make cutbacks as part of a company-wide integration program being implemented by parent transportation company YRC. Some have said as many as 100 or more jobs could be lost.
Meanwhile, auto parts manufacturer Remy Inc. will lay off 40 employees at their Delco Remy plant in Marion, citing the shaky economy and the ailing auto industry as reasons for the cutbacks.
A YRC representative who wished to remain anonymous said that Roadway's local city driving work will remain in Meridian, but the dock, switching, and line-haul work will transfer to the Jackson facility.
"This consolidation is part of the integration of YRC Worldwide's Yellow and Roadway national networks to create a single, more efficient network," the representative said.
Roadway did not confirm the number of employees that will be laid off, but did confirm that the Meridian facility currently employs 248 people.
The majority of those impacted will have the opportunity to maintain their jobs and transfer to Jackson, and all others will have opportunities to transfer elsewhere in the U.S., the representative said.
YRC began to consolidate its Yellow and Roadway operations last year. Success in doing so has prompted the company to speed up the integration process, which the company expects will reduce costs and improve service.
Along with Roadway Express YRC is the holding company for Yellow Transportation and numerous other trucking lines.
A local Yellow employee said similar cutbacks are not expected at Meridian Yellow Transportation operations.
Delco Remy informed employees of expected cutbacks Thursday. Both hourly wage and salaried employees will be subject to lay off.
Delco Remy will continue operations at a reduced level and does not plan to close the plant, a Remy spokesperson said. Some operations will move to an outsourced distribution center in Texas.
The plant currently employs about 100 people, including both direct employees and contractors. Remy will not provide laid-off workers with an opportunity to transfer, but will provide severance pay, outplacement assistance, and benefit continuation.
Remy is a supplier for General Motors, whose serious financial troubles have been well-publicized in the national media.
"The automotive decline combined with with the tough economic climate is causing everyone (in the auto industry) to look at their business and make sure it's running efficiently," said Dawn Griffin, a human resources official at Remy.
Griffin said Remy has not planned any layoffs at its Taylorsville facility.