Cynthia Fugate, The Times staff writer
In September 2007, Michigan-based Federal-Mogul Corp. announced it was expanding its restructuring plan in response to the challenging conditions in the global automotive market.
Friday, the company made good on that announcement and laid off 55 workers, according to Frankfort's Federal-Mogul Corp. Human Resource Manager Dan Frey.
"This is directly related to what's going on in the economy," Frey said.
The company employs 450 workers.
Frey said employees were told about the layoffs when they arrived for work Friday morning.
"I think most people knew it was coming," he said. "People read the newspaper and watch the news and there was generally some concern about whether or not something like this would happen."
Frey said company sales were "off by about 40 percent" in January.
The Frankfort division manufactures a variety of automotive, heavy duty, and industrial oil and grease seals. The facility also manufacturers Unipistons sealing products for the automotive industry and is the primary rubber polymer producer for Federal-Mogul's sealing operations in the United States and Mexico.
Elsewhere in the Industrial Park, NTK Precision Axle Corp. hasn't laid off workers, but it has taken advantage of "shut down weeks," according to the plant's Human Resource Manager Dennis Brown. The Frankfort division makes parts for wheel hub bearings and axles for constant velocity joints.
The company employs 180 workers and Brown said NTK's business is pretty close to Federal-Mogul's decline.
"We're about the same at 40 percent," he said.
The 24-hour operation runs on three shifts. Brown refused comment on whether it may be shutting down an entire shift.
"We have no permanent layoffs, we have partial department shut downs," he said. "I wouldn't want to comment on that right now."
Missouri-based Emerson Appliance Control laid off 40 workers at its Frankfort facility Monday. The latest round follows a Sept. 12, 2008, staff reduction of 32 employees. With the staff cutbacks, there are 105 workers left at the local facility.
The Frankfort plant produces electro-mechanical timers that are used in washing machines to control cycles.
Emerson Appliance Controls Spokesman Emily Umbright said the layoffs are due to the softening of the housing market and slowing demand for products.
"It's forced us to make this difficult change which allows us to remain competitive and continue to serve our customers," Umbright said.
When asked about the layoffs, Frankfort Mayor Chris Pippenger focused on the financial aspects in regard to city and county funds.
"This is something that is going to affect city and county money," he said. "Every time somebody gets laid off, it takes money from the municipalities and we've been stating this for quite a while."
Pippenger said the layoffs had more "to do with the automotive business," and that "hopefully we can get things turned around, which is what I've been saying for quite a while."
Local workers who may find themselves seeking employment fall into an unemployment barrel with about 2.6 million out of work Americans.
The Labor Department on Friday released its latest unemployment figures that show the nation's unemployment rate jumped to 7.2 percent in December, the highest level in 16 years. Nervous employers cut 524,000 jobs, making 2008 the worst year in modern history for American workers.
In 2008, the economy lost a net total of 2.6 million jobs, which is the most since 1945 when nearly 2.8 million jobs were lost, according to the report.
Additionally, construction companies cut 101,000 workers and manufacturers slashed 149,000 jobs. Professional and business services got rid of 113,000 jobs and retailers eliminated nearly 67,000 jobs. The leisure and hospitality reduced its work force by 22,000, according to the government report.
All told, 11.1 million people were unemployed in December.
Copyright © 2024 The Frankfort Times