By Jeff Tucker, Shelbyville News staff writer
Meridian Automotive Systems has announced a reduction of almost 200 jobs at the Shelbyville plant as local auto suppliers continue to struggle to stay afloat while the American auto industry is restructured.
The Shelbyville plant will stay open, despite the large number of job losses, said Shelbyville Mayor Scott Furgeson.
"They will still have over 100 employees left," the mayor said.
Chuck Woods, corporate director of human resources for Meridian Automotive Systems, announced the job cuts in a letter to Furgeson dated Monday.
"These reductions are being brought about due to a major customer unexpectedly announcing the immediate re-sourcing of a significant amount of business," Woods said. "Consistent with this, employment separations are expected to commence on or about June 1."
The major auto customer was not specified in the letter, although the announcement comes on the heels of General Motors Corp. filing for bankruptcy last week. Meridian has manufactured rubber or plastic mills, extrusion dies and injection molds for several automotive companies, including GM.
However, Furgeson said he believed the major customer that Meridian lost was the Chrysler Corp., which also is undergoing restructuring.
Furgeson said he was not surprised to receive the notice, as the local impact of the nation's ailing auto industry continues to be felt at Shelby County auto supply plants.
"Obviously, Meridian has been a long-standing company in our community. We're saddened by the news, but knowing the business that they're in - automotive - and with the automotive market being so bad, it doesn't surprise anyone," the mayor said.
"The good news is that they are not going out of business, and when the economy comes back, they'll probably be as strong as they are today," the mayor added.
Woods said the layoffs at the Shelbyville plant at 501 Northridge Drive would occur in three phases.
The first round of job cuts occurred at the start of this month when 153 positions were eliminated, Woods said.
Woods said the second round of work-force reductions would occur on or about Monday, when another eight positions will be eliminated.
The third and final planned phase of job cuts will take place between Aug. 24 and 31, when 37 more positions are slated for elimination.
"These dates are based on present information and could be revised at a later time," said Woods, who could not be reached directly Monday by The Shelbyville News. Several telephone calls by the newspaper to the local plant in recent days also have not been returned.
"This announcement and the above timetable are based on the best information currently available," Woods added. "However, various factors may still affect these plans and the timing of employee separations."
Woods provided Furgeson with a detailed list of the jobs to be cut at the Shelbyville plant.
A total of 108 assembly jobs are being cut, as well as 57 molding positions and 11 plant support positions.
The other job cuts are occurring in facilities, crib, maintenance, process, auditors, tooling and shipping, with a total work-force reduction of 198 employees.
As recently as 2006, Meridian had 370 employees, according to the Shelby County Chamber of Commerce Business & Community Directory.
Meridian, headquartered in Allen Park, Mich., is a supplier of technologically advanced metals, thermoplastics and composites products.
The company has a plant each in Canada and Mexico, four in Michigan, and three others in Indiana, including one in Rushville.