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Thursday, August 12, 2004

Closing of Indiana auto supplier expected to cost 118 jobs this fall



The Associated Press

UNION CITY, Ind. - An Illinois-based auto industry supplier plans to close an eastern Indiana factory, costing 118 jobs.

Workers at Union City Body Co. were told Tuesday that the plant will shut down in October even though United Auto Workers union members had approved a contract in March agreeing to concessions aimed at keeping the factory open.

Officials of Highland Park, Ill.-based Grand Vehicle Works had cited health-insurance costs as a major obstacle during contract negotiations.

The plant in the town just north of Richmond, Ind., makes delivery vans for such customers as the U.S Postal Service. The company said 89 hourly workers and 29 salaried employees will be affected by the plant closure. Some workers will be offered jobs at a nearby sister plant based on their seniority.




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