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Grob Joins Ford With Layoffs
Saturday, January 31, 2009 2:57 PM


(Source: The Lima News)trackingBy Bart Mills, The Lima News, Ohio

Jan. 31--LIMA -- A day after Ford Motor Company announced record losses, the news announced earlier in the week became official --70 workers at the Lima Engine Plant received notice they would be laid off indefinably.

The layoffs around the region Friday didn't end there.

Grob Systems Inc., in Bluffton, announced it was laying off 38 employees, effective Friday. The company manufactures machine tool equipment, primarily for the automobile industry.

Dave Rabe, president of United Auto Workers Local 1219 at the Lima Engine Plant, said Friday the 70 employees, some with 8 to 10 years on the job, were laid off as part of the company's efforts to scale back in the face of a drying economy and huge company-wide losses.

"It did become official. It's effective as of today," Rabe said.

The company has also scheduled a twoweek shutdown for February which will include most of the 730 employees at the plant, Rabe confirmed earlier.

The layoffs became official one day after Ford reported a record $14.6 billion full-year loss. The company has vowed to cut 2,500 whitecollar jobs and draw down its remaining credit line. Company officials repeatedly have said they have the funds to survive without a U.S. government bailout.

In Bluffton, Grob Systems will now see its employment drop to 191 workers.

In a release Friday, company officials said the Germany-based company is seeing a decline in contracts which lead to the layoffs.

"While we currently maintain an existing production backlog, our future business has been greatly affected by the current recession. This unfortunate situation has led to the decision for our company to lay off 38 employees," Grob officials said in the release.

The Ford and Grob layoffs are just the latest in a string of job losses in the region in recent weeks. Last week, Celina Aluminum Precision Technology laid off about 70 workers; AAP let 100 workers go from their St. Mary's plant; Van Wert's Eaton Corp. laid off nearly 150 employees; and Crown laid off an undisclosed number of workers at plants in New Bremen, New Knoxville, Celina and Fort Loramie.

-----

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Copyright (c) 2009, The Lima News, Ohio

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