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Bridgestone Firestone is set to dismiss 148 hourly and at least 10 salaried employees this month at its LaVergne, Tenn. plant, citing decreased demand for car and light truck tires. The company says more layoffs could follow in June if “good faith discussions” with the union representing the workers are not productive.
The LaVergne facility, which employs about 1,700 people, also manufactures truck and bus tires; the possibility of a partial plant shutdown in June would not impact those production lines.
The drop in demand for auto tires has created too much unsold inventory. Continued consumer tire production, even at the current adjusted levels, “will only exacerbate the situation and add to that inventory,” according to Steve Brooks, president of manufacturing operations.
“In general, the tire industry in the United States — like many other industries — is facing significant challenges in the face of the global economic slowdown,” says Brooks.
“Even though we have taken a number of steps intended to align our consumer tire production levels with industry demand, including reducing daily unit production; curbing or eliminating overtime and extending shutdown dates, unfortunately we find it necessary to take this additional step,” he continues.
While no final decision has been made, company executives have told the union that “it may be necessary to cease most or all” car and light truck tire production at the LaVergne facility. The workers are represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW).
“Although it is not clear that this action, should it occur, rises to the level of a ‘partial plant closure’ within the context of the company’s collective bargaining agreement with the USW, the company provided union leadership a letter that can serve as a six-months notice of the potential cessation of passenger and light truck manufacturing at the plant. The announcement of the company’s intention to seriously consider elimination of consumer tire production at the LaVergne facility will have no impact on the plant’s production of truck and bus tires,” according to Bridgestone officials.
“Prior to making any final decisions and in the spirit of cooperation during these challenging economic times, the company stands ready to immediately begin discussions with the USW on what, if any, actions could be taken to continue consumer tire production at that facility. If, after these good faith discussions, the decision is made to cease most or all passenger and light truck tire production at the plant, the elimination of consumer tire manufacturing could occur on or before June 30, 2009. This action could result in the elimination of approximately 500 hourly and salaried jobs,” the officials report.
“While no final decision has been made regarding the elimination of consumer tire manufacturing at the LaVergne plant, the decision to put this idea ‘on the table’ for serious consideration was an extremely difficult one, as was the announcement of the layoff(s) beginning Dec. 21,” the company notes.
“The steps we announced…were taken only after serious consideration of our alternatives; however, these actions are necessary in order to ensure the health of our entire North American tire business,” adds Brooks. “The appropriate union officials, as well as government and community leaders, have been contacted to explain the situation at the plant. We have held and are continuing to hold meetings with our plant teammates as well,” he says.
The LaVergne plant began operations in 1972. It was the first tire-producing facility in North America for Bridgestone Corp., which purchased it from the Firestone Tire & Rubber Co. in 1983.
For more information, visit www.bridgestone-firestone.com.
