By Boris Ladwig, The Republic
bladwig@therepublic.com
Cummins Inc. plans to temporarily lay off 125 at Columbus Midrange Engine Plant due to depressed demand for Dodge Ram pickup trucks.
The company Friday morning asked for volunteers for a layoff starting June 8 and hopes to bring them back to work in mid-August, said Mark Land, director of public relations.
The plant near Walesboro is the exclusive producer of the 6.7-liter diesel engines for the Dodge Ram.
Employees can take vacation during that period, then obtain unemployment benefits. They also can retain their benefits during the layoff so long as they continue to pay the employee portion of the benefit costs.
"This is not something we want to do," Land said.
However, lower demand for the 2008 Dodge Ram has resulted in an inventory glut, and Chrysler does not want to build any more trucks until mid-August, when new engines will be needed for the 2009 model year, Land said.
He also emphasized that layoffs at CMEP have not changed the company's plans to hire 600 for the light-duty diesel project at Columbus Engine Plant or 500 for the downtown Columbus office building.
As first-quarter sales and earnings indicated, most of Cummins' markets are faring well, Land said, but demand for pickup trucks in North American has declined, partially because of high fuel prices.
The company for months has had to adjust staffing at CMEP in response to fluctuating engine demand.
Cummins laid off about 100 temporary workers at the plant in October. About 90 temporary workers were rehired, but their contracts were not renewed after November.
About 500 Diesel Workers Union members at CMEP had an extended Christmas layoff, also because of lagging engine orders.