Monday morning, Federal-Mogul told their workforce in St. Johns, that the 60-year-old plant will close by the end of 2008, putting 420 people out of work.
The company says they'll lay off about 300 people this July, another 100 or so by the end of 2007. The rest will remain until the end of the contract in 2008, when they will close the plant. Federal-Mogul says the work they do will go to four other plants; two in the US, two out of the country. They say it is simply about global competition.
"The action today is a result of the difficult business challenges and the need to improve global competitiveness. This is in no way a reflection on the commitment of the St. Johns employees," they said in a statement.
The union says it will have a deep impact on their workforce and on their community. "Until it really happens to you, I think stunned and devastated are the words that come to mind," Ray Trevino, UAW Local 925 president says.
He says the union will now negotiate with the corporation for a severance package. They will attempt to get them to reconsider. They don't expect much success.