Janesville65.5°

More GM Janesville suppliers to shut down

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JAMES P. LEUTE
October 22, 2008
— The number of jobs that will be lost by the cessation of truck production at General Motors topped 1,800 Tuesday when two more GM suppliers filed notices of mass layoffs.

Logistic Services, Inc., commonly referred to as LSI, said it will close its operation on Venture Drive in Janesville and permanently lay off 159 employees.


Flint Special Services, a sister company to LSI, said it will close its facility on Conde Street and lay off 28 workers.


The layoffs at both companies, which stage materials for the GM assembly line, are expected on Dec. 23, the same day that GM has told the state it will lay off 1,253 workers at its Janesville plant that builds full-size sport utility vehicles.


GM announced last week that it will end production in Janesville in December as a result of slumping SUV sales fueled by a shift in consumer demand from the big trucks to smaller, more fuel efficient vehicles.


Lear Corp., another GM supplier, told the state last week that it would close its plant on Enterprise Drive in December and permanently lay off 371 workers. Lear supplies interiors and seating systems to the GM plant.


In June, GM announced that it would cut second-shift production in Janesville, a move that resulted in the layoffs of 1,334 people.


Taken together, GM's two announcements have triggered the layoffs of 3,145 workers at GM and its local suppliers.


The state's Department of Workforce Development said it will help dislocated workers find new jobs or update job skills and training.


The department's Dislocated Worker Program provides assistance to workers, companies and communities affected by mass layoffs or business closings.


Under state law, employers with 50 or more employees must give 60 days notice before a mass layoff or closing. Once the state becomes aware of such an event, a rapid response team schedules meetings with the companies and workers to determine what services to offer.


Each year, Wisconsin spends nearly $55 million to serve approximately 35,000 dislocated workers through a variety of programs.



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