ACC to lay off 71 drivers after loss of GM contract
A company that provides transportation services for General Motors Co. has notified the state it will lay off 71 people in January at four locations in Michigan and Indiana because of an “unexpected loss of a fair market bid.”
Automotive Component Carrier Inc., in a Worker Adjustment and Retraining Notification or WARN notice dated Nov. 6, said it will no longer provide GM with some transportation services and will “permanently reduce operations in support of this account at its Flint, Lansing, Saginaw and Fort Wayne, Indiana, sites effective with the close of business on Jan. 2, 2016.”
ACC is a business unit of Penske Logistics. While 300 people are employed at the four sites, only 71 drivers are being laid off as a result of the loss of the GM contract, said Penske spokesman Randolph P. Ryerson.
The ACC workers who are impacted by the layoff are represented by UAW Local 659 in Flint.
Penske Logistics says ACC and UAW Local 659 in May submitted a bid to renew an existing contract that ACC has had for 20 years serving GM’s assembly plants in Lansing, Flint and Fort Wayne. It was notified in late October that it did not win the bid because it was not the lowest bidder.
ACC will continue to provide trucking services to GM following the layoffs and will employ 220 truck drivers from UAW Local 659 in Flint, Lansing, Saginaw, Milford and Fort Wayne, according to Penske.
Messages seeking comment were left Friday with representatives at UAW Local 659. A GM spokesman said the company does not comment on supplier contracts.
Also, Morley Companies Inc., in a WARN notice received by the state earlier this month, said it is closing its operation in Saginaw Township that conducts research for American Honda Motor Co. on or about Dec. 30. The closure is necessary after Morley in October received notice from iSKY that it would no longer be performing research services for Honda as of Dec. 30, the company said in the notice.
Jill Gushow, director of human resources for Morley, said Friday that the company has been able to place into other positions at Morley those affected by the end of the contract with TRGiSKY, a market research, analytics and consulting firm.
“Everybody’s still going to be working with us,” she said.
Gushow said she could not comment regarding Honda.
Honda did not immediately comment.