Amidst Declining Truck Demand, Truck Manufacturer Cuts Jobs
Published On Dec 20, 2016
Volvo has announced to layoff 500 people working at its Dublin plant as a result of declining demand of its trucks in the market. As per the CV manufacturer, the layoff will take place in the month of February next year. This will be the second major layoff by Volvo after September 2016, when the truck and bus giant had cut off 300 jobs.
People comprising the entire second shift working at the Virginia, Dublin plant have been identified as the workers decided by Volvo to be laid off. Interestingly, Volvo has called the same batch of its workforce to work extra this coming Saturday. Volvo's work force also happens to be a part of several work unions.
John Mies, Volvo Group spokesperson on an earlier layoff this year had said, "We very much regret having to take this action, but we operate in a cynical market here in North America, and we have to adapt to market demand."
An individual who works in the shift slated for the layoff told the World Socialist Web Site, “It sets up perfectly for the union. They are holding their local elections in March, right after the layoffs take effect. If you are laid off the union doesn’t tell you when you can vote. So they exclude the workers who are most affected by their sell-outs policies from being able to vote them out.” The worker, also a member of the United Autoworkers Union (UAW) Local 2069, seemed agitated at the decision and union’s role.
The year 2015, in terms of truck sales, was the second best year for Volvo. But truck demand after that declined sharply by more than 20 percent in 2016. Forecasts have hinted towards production of only 252,000 units in 2017 in comparison to manufacturing of 327,000 units which was forecasted for production in 2014.
Volvo, during the present year, has already laid off around 800 workers. The current developments in the truck industry can be also counted as hints signalling tough times awaiting CV brands in North American and European countries.