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March 27, 2020 10:39 AM

IAC cutting 622 jobs in Michigan, Ohio

Sarah Kominek
Plastics News Staff
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    Auto supplier IAC Group filed mass layoff notices in mid-March for three North American plants resulting in "permanent job loss" for a total of 622 employees

    The Luxembourg-based supplier reported its first layoff March 17 to the Michigan Department of Labor and Economic Opportunity for 77 employees at its plant in Alma, Mich. On March 19, it filed a notice for the layoff of 311 employees at its plant in Mendon, Mich.

    IAC is ceasing some operations at its Michigan plants due to ending a product cycle with one of its customers, a spokesperson for the group told Plastics News an emailed statement, and none of the layoffs are tied to the COVID-19 pandemic.

    "Any action that affects our employees is very difficult," IAC Group said in a statement. "However, we believe it is the appropriate decision based on the needs of our company and our customers at this time. IAC management will be working closely with the local unions and affected employees to support them and their families through this process."

    The supplier said it "deeply regrets" a two-part layoff and closure of its plant in Huron, Ohio, of 197 employees, reported to the Ohio Department of Job and Family Services March 20.

    The first round of layoffs at the Ohio plant will include 197 employees, effective May 22, and another 37 employees when the plant closes on or around July 31, IAC's notification to the state department said.

    "The decision to cease some operations in the Huron plant is part of the global strategy to secure IAC's business going forward," IAC Group said. "This was a difficult decision, but given the extremely competitive nature of the automotive business, this action was necessary.

    "Unfortunately, this decision affects a team for which we have a great appreciation for high performances during these years," IAC added. "That is why our primary focus is to take all the necessary measures to mitigate as much as possible the impact on our employees throughout this difficult process."

    "IAC management will be working closely with the union [United Auto Workers] and employees to manage the closing," it said in the statement.

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