By Boris Ladwig, The Republic
bladwig@therepublic.com
Cummins Inc. temporarily will lay off 163 employees at Columbus Midrange Engine Plant because of declining demand for Dodge Ram pickup trucks.
The company on May 30 had asked for 125 volunteers for a layoff starting June 8 with the expectation to bring them back to work in mid-August.
More employees than expected volunteered for the layoff, and the company accepted more than 125 partially to prevent having to temporarily transfer some employees to other Columbus plants, said Mark Land, director of public relations. 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.
The layoff begins Monday. The plant near Walesboro is the exclusive producer of the 6.7-liter diesel engines for the Dodge Ram. About 720 employees will work at the plant over the summer in three shifts.
High fuel prices have contributed to lower demand for the 2008 Dodge Ram. Due to high inventories on dealer lots, 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 last week.
Land said Friday the company tries to prevent layoffs, but given Chrysler's production rates, the company was pleased that forced layoffs were avoided.
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.
Land emphasized last week 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.