TG Missouri to temporarily lay off 150 workers

PERRYVILLE, Mo. -- Citing a sudden drop in auto sales in January, officials with TG Missouri announced Wednesday the company will temporarily lay off more than 150 production and support team workers effective Monday.

Company officials did not have a time frame in which the workers might be recalled.

Those affected by the cutbacks include maintenance technicians, shipping personnel, supervisors and specialists. After the layoffs, about 900 employees will work at the manufacturer of automobile safety systems and parts for such customers as Toyota, Honda and General Motors.

Automobile sales in January fell 37 percent overall compared to the same month in 2008. Sales dropped 49 percent at GM, 40 percent at Ford and 30 percent at Nissan and Toyota. That's the worst performance since June 1982, when the U.S. was in another recession.

"TG Missouri must survive the current downturn in business in order to meet our long-term goal of being a viable automotive supplier 10, 25 or 50 years from now," TG Missouri president Takashi Fujii said in a written statement.

To do that, the company must reduce its work force, Fujii said, adding that "we would like to remain optimistic that the automotive industry, along with the U.S. and global economy, will gradually improve in the next 12 to 18 months."

Employees will receive full medical benefits through March, though company officials said benefits could be extended further. Employees of the Missouri Department of Economic Development Rapid Response Team met Wednesday with affected employees to discuss the state's Dislocated Worker Program, unemployment insurance, training opportunities, re-employment services, workshops and other services offered by the Missouri Career Center.

Rhonda Ruark, general manager of corporate administration and human resources, said the 22-year-old company took countermeasures as sales began to decline last year in hopes of preventing the massive layoffs. Those measures included allowing nonmedical leaves of absence, instituting shorter work weeks where possible, job sharing and reduction of temporary staff from 115 to zero.

Perryville Mayor Debbie Gahan learned of the decision during a Wednesday morning meeting at city hall with Ruark and TG Missouri executive vice president Yasuhiro Kuroda. Gahan called the news "a tough blow" to the community of 7,667.

"Of course it's disheartening when people in our community are facing what we hope are short-term economic hardships," Gahan said. "Not everyone is prepared to meet day-to-day expenses when a paycheck isn't coming in.

"My empathy is with the employees and the company which has been so beneficial to this area," she said. "We're a tight community and when something like this happens to one of us, let alone 140, it happens to all of us."

bblackwell@semissourian.com

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