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'Temporary' layoffs at Midland factory, pink slips at another

While ZF Automotive layoffs aren't 'permanent,' 26 workers have been terminated at Raytheon ELCAN

Two Midland factories have laid off staff with some being permanently terminated.

At the Raytheon ELCAN plant, the company has given pink slips to 26 employees.

“Delayed bookings in 2021 impacted Raytheon ELCAN’s results,” said integrated communications and government relations official Deborah Ratushniak, who is based at the company's Midland plant. “As such, we made the difficult decision to implement a workforce reduction for 26 employees at our Midland facility”

Ratushniak, who didn't say how many employees the plant currently has, said those impacted by the move received a separation package that “exceeds our statutory requirements” and includes career transition services along with continued access to the company’s employee and family assistance program.

“This is a difficult but necessary decision to assure that our company is positioned for long-term success,” she added.

Less than two kilometres away, ZF Automotive recently laid off an unspecified number of workers.

“Regarding recent layoffs, there have been no permanent layoffs at the Midland plant and no one has lost their job,” said  ZF North America senior communications manager John Wilkerson.

While Wilkerson said a “high percentage of the workforce” was laid off last month, he emphasized that they were all temporary layoffs.

Wilkerson said ZF is continuing to flex its production schedules based on customer orders, which have been inconsistent due to the persisting materials shortages in the automotive industry.

The shortages “have caused customers to either significantly reduce or even shut down their production lines periodically due to lack of the components they need to build vehicles,” Wilkerson said.

“The most efficient way to deal with this is to suspend operations for a period of time – typically a week or less – and then call everyone back to work," he added. 

Wilkerson said the Midland plant, which manufactures seat-belts and employs about 300 people at its two Midland plants, must match the specific timeframe and output of its customers since it’s not efficient to build excess inventory and that this affects when employees will return to work.

“Again this is dependent on demand from the customer – as customer orders dictate we bring all employees back," he said. 

Wilkerson also discussed the Ontario government’s recent $1.2-million commitment to help the company expand its product line in Midland. When the funding was announced in October, Economic Development, Job Creation and Trade Minister Vic Fedeli said the move is expected to help create 27 jobs and retain 136 jobs.

“As with all of our plant processes, the new chrome-plating line runs dependent on customer demand,” Wilkerson said. “But for certain the $8 million total investment in the chrome plating line, including the $1.2 million grant from Ontario province, is evidence of the positive future for our business.”

And while Wilkerson said continued effects from the parts shortages mentioned earlier are predicted to be a reality into 2022, the good news is that the underlying demand for new vehicles is there.

He added: “Consumers want to buy so we are hopeful that once we get through this phase the industry and our plant will be consistently going strong.”

Over at Raytheon ELCAN, the company recently announced it had teamed up with Leonardo Germany to deliver main combat sights to the Bundeswehr, the German Armed Forces.

“The Specter DR dual-role sight is Canadian technology and battle-proven with forces across NATO,” said Mike Lewis, rifle sights mission area lead for Raytheon ELCAN. “The variable magnification and durability of the Specter is a great advantage for the German Armed Forces.”

Deliveries of the almost 108,000 sights started in the third quarter of 2021.

Ratushniak didn’t respond to a request for comment by publication on whether this new contract could result in more staff being needed at Raytheon ELCAN's Midland operation.


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Andrew Philips

About the Author: Andrew Philips

Editor Andrew Philips is a multiple award-winning journalist whose writing has appeared in some of the country’s most respected news outlets. Originally from Midland, Philips returned to the area from Québec City a decade ago.
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