By Derek R. Smith, Daily Reporter
dsmith@greenfieldreporter.com
GREENFIELD - Keihin Indiana Precision Technology plans to permanently lay off about 180 employees - or 20 percent of its local workforce - as it continues to struggle with the effects of the recession on the battered automotive market.
"This is the first time that we've had to permanently reduce headcount," human resources manager Krista Horine said this morning. "We're trying to work with our associates as much as possible. It just sickens us that we're to this point."
The layoff will affect both hourly and salaried employees. Those who lose their jobs will receive a severance package.
Some employees are volunteering to leave their jobs.
"We have associates coming up and saying, 'We'd like to do this,'" Horine said. "We are a very, very busy department right now."
Honda Motor Co., Keihin's major customer, has fared relatively well compared to other automakers, but even Honda has felt the effects of the recession, Horine said.
Sales for Honda fell 8.2 percent in 2008. The recent auto sales numbers have been bad for foreign and domestic automakers alike. General Motors reported a loss of $9.6 billion for the fourth quarter and said it burned through $6.2 billion in cash while seeking government help.
Keihin Indiana Precision Technology manufactures air and fuel management systems for Honda automobiles, including intake manifolds and fuel delivery systems. It has been the county's largest employer for years and is celebrating its 20th anniversary in Greenfield.
Keihin also has facilities in Muncie; Tarboro, N.C.; and Capac, Mich.
KIPT has dealt with the difficult auto manufacturing environment in phases while trying to protect workers from losing their jobs, Horine said.
Faced with lower Honda volumes last year, KIPT offered to let workers volunteer to take unpaid days off. In October, about 70 percent of the plant shifted to a four-day work week that aimed at higher efficiency.
In December, KIPT notified its employees that, in January, it would begin accepting volunteers for temporary layoffs in four- to eight-week increments. The plant also laid off about 100 temporary workers and reduced most operations to two shifts.
Also, KIPT cut associates' pay by 5 percent and management's pay by 10 percent, Horine said.
"We didn't hear any grumbling from that," she said. "Everybody understood what was going on."
As KIPT tries to forecast the U.S. auto market, a recovery - and increased orders from Honda - looks a long way off, Horine said.
KIPT employees have until April 10 to decide if they want to leave the company and get a severance package.
The Associated Press contributed to this report.