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Citing low plant production volume and high salaries, Pilkington
Libbey-Owens-Ford announced Tuesday it will close the automotive glass
division of its plant in Lathrop, California. About
150 of the auto glass division's 175 workers will lose their jobs,
although no date has been announced, company spokesman Phillip Webb
said. The employees were notified Tuesday.
The
remaining 25 employees are likely to be absorbed into the Lathrop
plant's float glass division, which employs 186 workers. Float glass
products include windows used in residential and commercial building.
The automotive division has been
producing windshields and side windows for New United Motor
Manufacturing Inc., a joint venture of Toyota and General Motors in
Fremont, California. NUMMI makes Toyota Corollas along with Chevrolet
models formerly marketed as Geos.
Details including how the layoffs
will occur, severance pay and possible retraining opportunities have
not been determined, Webb said. Webb
said a lengthy study determined that the Toledo, Ohio-based company's
other auto glass plants, in the Midwest and Canada, produced at higher
volumes at lower salaries and thus are more profitable.
"Pilkington has looked at a wide
range of options," Webb said. "This was not a decision that
was made lightly."
Norm Markert, a Pilkington vice
president who oversees the automotive glass division, said the company
will work closely with United Steel Workers of America Union Local
418, which represents the Lathrop workers. Marvin
Weyers, the local's president, spent the day in the plant briefing
workers and could not be reached for comment.
Pilkington Libbey-Owens-Ford
registered $1 billion in sales in fiscal 1999, Webb said. The company
is owned jointly by United Kingdom-based Pilkington and Japan-based
Nippon Sheet Glass. Pilkington purchased the Lathrop plant in 1986. |