By SEÁN O'DONNELL, Times-Mail
sodonnell@tmnews.com
BEDFORD - It hasn't been a good week for some of Bedford's auto industry workers.
Thirty-eight Visteon Corp. employees received word that they will be indefinitely laid off; 15 of those layoffs are effective Monday. The other 23 layoffs will be effective Nov. 6.
Visteon spokesman Jim Fisher said in a phone interview Friday, "The layoff ... is related to reduction in our customer vehicle production volume and is in terms with our collective bargaining agreement (made in 2004)."
Visteon manufactures parts mainly for Ford vehicles.
"Visteon is committed to operating as efficiently as possible," Fisher said. "And this (new round of layoffs) is also constant with the company's three-year plan to quickly restructure our business and improve our operations."
He said those laid off were selected by seniority in accordance with the collective bargaining agreement.
"We announced these to employees on Oct. 9," Fisher said.
And though Fisher pointed out the layoffs are indefinite and that those laid off retain recall rights, he said, "At this point, we don't foresee that."
On the other side of town, GM Powertrain announced to about 20 of the 210 employees who opted for the buyout offered in July that the retirement date has been moved from Jan. 1, 2007, to Nov. 1.
GM Powertrain Plant Manager John Lancaster said by phone Friday the early retirement move is because of a decrease in business during the last quarter.
"We've tried to hold on for a period of time," he said. "But with the slight downturn in business, we had no choice."
The early retirees were "selected by their (job) classification," Lancaster said, "if there's a need to have that classification by the end of the year.
"We have made those (early retirement) contacts this week," he said. "That way, they have the opportunity to get things in line between now and November."
But for employees such as Mike McHargue, that's still not enough time.
"The first time I went to talk ... about it," McHargue said, "I asked if I could wait until Jan. 1 to retire, and she said no."
His reason for wanting to retire Jan. 1 was Social Security. For every month retired before the full retirement age of 65 years and 8 months, Social Security benefits are decreased. McHargue, who works third shift at the Foundry, said he will lose between $50 and $60 in Social Security benefits by retiring in November instead of January.
However, McHargue went back and was later told he could retire Jan. 1.
"I would have never signed up for this attrition program if I couldn't stay until Jan. 1," he said, "because it will cut into my Social Security check."
Machine repairman Paul E. Marion will turn 61 in January, and he decided then was a good time to end his 381⁄2 years of employment at the Foundry. He made plans to see his daughter and grandchildren after his Jan. 1 retirement date. He also planned on having a retirement check then.
"Normally when you retire," Marion said, "you apply for the paperwork 90 days ahead of time."
Marion went Oct. 2 to apply for his retirement paperwork so he could get his retirement check at the first of the year. Now, he said, "I might get a check in December, if I'm lucky."
Lancaster said the possibility of making the retirement date earlier "was part of the deal because there was a stipend ... that each plant, on an individual basis, determined the need."
Marion confirmed the buyout agreement did state he could be let go before: "It had to be by Jan. 1. When they told us we could stay until Jan. 1, it was a commitment to us. ... Whether the paperwork said we could stay until Jan. 1 or not, they made a commitment. And it's a binding commitment, as far as I'm concerned."
Lancaster said he personally reviewed the buyout agreement with each employee and with the employees as a group.
However, Marion said he did not meet with Lancaster. And though McHargue was present at the group meetings, he said he's never met with Lancaster face to face.
"In the long run," McHargue said of the forced early retirement, "it's probably not a big deal. But right now, it's just not right."
"As far as I'm concerned," Marion said, "there's plenty of work at the plant. ... They (management) just have to open their eyes. They're rebuilding six machines. Somebody (will be) doing my machine repair work. It's an outside contractor, is my guess."
Lancaster did confirm temporary employees are being brought in to work at the Foundry, but he said the temps were "obviously not in the same classification that we're moving on the retirements. They're more in the production classification, and most of what we're exercising here are other classifications."
But, according to Marion, those being forced to retire early "know the job, they can do the job and they're far more experienced than the people they're bringing in.
"Of course, the company's explanation is it's a different account, but it's the same pocket."