Times-Union staff report
Effects of the United Auto Workers strike by American Axle & Manufacturing Holdings Inc. have trickled down to Warsaw.
With no General Motors or Chevrolet vans to convert because of the strike, Warsaw's Explorer Van Co. had to lay off about 150 workers this week.
On April 11, Explorer Van President Steve Kesler said the company was facing a possible layoff because of the strike. At that time, Kesler said he hoped the strike would be settled last week, but when the strike did not end, Explorer ran out of vans to convert.
Monday, Kesler's fears came true, and 150 workers at the Warsaw plant had to be laid off. It is the company's first layoff in 27 years, which Kesler said is frustrating because the company has plenty of orders but no vans to convert.
When the strike began about eight weeks ago, Explorer Van had about 500 vans on the lot, which is about a six-week supply. In January and February, the company was converting about 15 vans a day. That number was reduced to 14 then 13 in March, and a few weeks ago, the company was converting 10 or 11 vans per week in an attempt to keep people working as long as possible.
Initially, Kesler said he thought the strike would last two or three weeks. He is surprised that the strike has lasted as long as it has, especially with the current economic conditions.
The company will remain open during the layoff, with employees in the service and parts department staying on duty and some senior workers converting up to five Ford vans per week. However, most employees will not be working 40 hours per week.
After the strike ends, it will take a week to 10 days for employees to be called back to work.
Employees affected by the layoff can collect unemployment benefits and will receive health benefits from Explorer for at least a couple of months.
Kesler hopes the strike will end and employees can return to work soon. March through August is normally when Explorer Van builds and sells the most vans.
Kesler said the layoff won't have a negative effect on the company long term and said the business had a good first quarter.
Normally, Explorer Van converts about 3,500 vans per year, with 3,200 of those coming from GM.
American Axle's five American plants, represented by the UAW, has been on strike for about two months. The primary reason for the strike is proposed wage and benefit cuts by American Axle. GM is American Axle's largest customer, and the strike has affected 30 GM plants and put about 500 people out of work in Mishawaka's AM General Hummer plant and Nyloncraft.