Chrysler to end second shift at Fenton plant next year

ST. LOUIS -- Chrysler will eliminate the second shift at its minivan plant in suburban St. Louis effective New Year's Day, with about 1,000 workers losing their jobs, a company spokeswoman said Friday.

The move comes earlier than some workers expected. But Chrysler spokeswoman Michele Tinson said the company has said all along the cut would happen in the first quarter of 2008. Workers were informed in a letter giving 60 days' notice, sent Thursday.

Tinson said the workers will be on indefinite layoff and will continue to receive 98 percent of their pay.

Chrysler operates two plants in the southwest St. Louis County town of Fenton -- one that makes Dodge Ram pickup trucks, the other making Chrysler Town & Country and Dodge Caravan minivans.

The move will leave about 1,000 workers at the minivan plant. About 2,000 work at the pickup plant.

United Auto Workers officials did not return phone calls seeking comment.

Fenton Mayor Dennis Hancock said the community had already braced for the cutback -- it was announced in February.

"Of course we're concerned about the employees affected by this and we hope this is a short-term event and the market will pick up," Hancock said. "Hopefully everybody will go out and buy a new minivan for Christmas.

"The fact is both plants are still open, both plants are still producing vehicles. So it's not good news, but it certainly could be a lot worse."

The job cuts in Fenton are unrelated to an announcement Thursday that the automaker will cut up to an additional 10,000 hourly jobs and 2,100 salaried jobs through 2008. Fenton was spared from additional reductions, Tinson said.

The latest round of job cuts comes less than a week after just 56 percent of Chrysler's U.S. production workers and 51 percent of skilled trades workers approved a new contract. The majority of those who voted at both Fenton plants voted against the contract.

In February, Chrysler said it would cut more than 1,900 jobs at both assembly plants in Fenton. The cuts at the pickup plant have been taking place gradually over the past several months, partly through attrition. The February cuts were part of a nationwide plan to eliminate 13,000 jobs.

Tinson said the second-shift workers could be called back if minivan sales pick up. She said it is also possible they could eventually be offered jobs at other plants, depending upon market conditions.

Chrysler sales dropped 4 percent in the first 10 months of this year, and 2008 is expected to be another tough year.