Janesville71°

LSI announces layoffs

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Kayla Bunge
May 4, 2008
— At least one General Motors supplier has announced it will lay off employees this summer, and another is likely to follow suit.

Logistic Services Inc. notified the state that it will lay off 132 employees at its Janesville plant the first week of July.


It’s a move that United Auto Workers Local 95 President Mike Sheridan calls a “trickle down” from GM’s announcement Monday that the Janesville assembly plant will eliminate one shift in July.


LSI officials could not be reached for comment Saturday.


Chuck Huhn, second vice president of Local 95, which represents 235 workers at LSI in Janesville, said the slowdown at GM means a slowdown at LSI. The supplier likely will eliminate its second shift and beef up its first shift, he said.


Most of the layoffs will involve drivers and warehouse workers.


LSI sequences parts and delivers them to the GM assembly plant in Janesville.


Sheridan said the announcement from LSI might only be the first of many in the weeks following GM’s announcement.


He said Lear Corp. could be next to lay off employees.


Brad Dutcher, first vice president of Local 95, which represents 675 workers at Lear in Janesville, could not be reached for comment Saturday.


Lear supplies interiors and seat systems to the GM assembly plant in Janesville.


Sheridan said Local 95 has been in meetings with the state Department of Workforce Development to ensure all laid off employees have access to unemployment benefits and retraining programs.


“A lot of people get frustrated and think, ‘GM this and GM that,’” he said. “We represent all of those facilities.”


GM’s announcement Monday came on the heels of continued slow sales of full-size pickups and sport-utility vehicles. The Janesville plant builds Chevrolet Suburbans and Tahoes and GMC Yukons.



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