Feb. 4--In a domino effect, layoffs at big vehicle makers Caterpillar Inc. and John Deere have driven a Rochester manufacturer to lay off 68 workers.

"We're certainly disappointed that we couldn't work our way through this with all of our people, but you have to be conservative as you move forward," said Crenlo President Lance Fleming.

Crenlo is a contract manufacturer that makes products such as cabs from sheet metal and steel frames for construction and agricultural vehicles. It has 670 employees at two facilities in Rochester.

Fleming announced the layoffs at an employee meeting Tuesday. They will take effect Jan. 12.

The action follows last week's announcement that Crenlo's two top customers -- Caterpillar and John Deere -- were laying off 20,000 and 7,000 employees, respectively. Crenlo had already been working some four-day weeks to adjust to the slowdown.

"I told the employees, 'Our order book is down. I told you after two months of short work weeks that we'd do something different if we had to,'" he said.

Affected employees have 18-month recall rights, said Dave Zebaugh, president of the United Auto Workers Local 2125 and a Crenlo employee. He also confirmed reports that 68 workers were affected.

However, there's hope.

Some contracts for new products slated to start late in the second quarter and into the third quarter of 2009 could bring back some of those workers.

"We're optimistic that some of the people will be called back, because of the new business development coming in," said Fleming.

How does the union see the action?

"The U.A.W. is standing behind the company. They did it right by the contract as far as the layoffs," said Zebaugh. "They are just doing what they can do to retain as many as they can."

While unpleasant, the action was not unexpected, he added

"The writing has been on the wall," said Zebaugh. "He (Fleming) didn't want to lay off. He didn't want to resort to this; but if there is no demand, you have to do something."

The majority of employees support Fleming and the company in this because Crenlo "does have a recovery plan in progress," Zebaugh said.

The company, owned by New York-based Dover Corp., laid off more than 200 employees in 2001. But as the economy improved and the company gained strength, it brought many of them.

"We came back then, and we should come back from this," said Zebaugh.

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