Temporary layoffs, retooling at GM plant cause negative ripple effects in Riverside

Layoffs at GM that are set to begin soon have created a ripple effect of more layoffs across the Kansas City region.
Published: Nov. 20, 2024 at 6:51 PM CST
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FAIRFAX, Kan. (KCTV) - The temporary layoffs and retooling of the General Motors plant in Fairfax, Kansas, so they can begin making the fully electric Chevrolet Bolt have made way to negative ripple effects in Riverside, Missouri.

The latest Worker Adjustment and Retraining Notification (WARN) letter was sent to Riverside Mayor Kathy Rose about the 144 permanent layoffs at Martinrea Riverside LLC.

An excerpt from that letter reads, “The first round of layoffs is expected to occur on December 6, 2024, but it is anticipated that certain employees will be retained until approximately on or around January 17, 2025.”

Those layoffs will impact approximately 69 workers during that first date, and then approximately 75 employees on the second date.

A previous WARN letter from Yanfeng, another GM Autoparts vendor, announced 444 employees would be laid off and the plant will permanently close. The layoffs were scheduled to between last week, and next week.

A third WARN letter from Adient plc also notified Mayor Rose of 169 permanent layoffs would be implemented between November 11th and two weeks later.

Mayor Rose sent KCTV5 a statement about the negative ripple effect that is occurring in Riverside.

“While there is never a good time to see these job losses, it is an especially difficult time for those affected with the holiday season upon us,” Rose said in the letter in part.

Penske Logistics also announced 72 temporary layoffs in a WARN letter previously shared with KCTV. OP Mobility, based in Fairfax, WARN letter from the same time-period notified of 72 employees that were being laid off as well.

Virgil White owns KC Burger t in Riverside. Some of the employees that have been impacted eat at his restaurant.

“Since probably the first of November is really when we’ve noticed a lot of the Yanfeng employees not coming here for lunch,” White said. “We would do orders for GM every Friday, and I haven’t seen an order for GM – once this month.”

The first round of temporary layoffs at GM will occur this Friday with approximately 680 workers. The second round of temporary layoffs consisting of approximately 1,015 will occur in January.

The GM employees are scheduled to return to work after the plant is retooled, and per union contract they will receive 75 percent of their salary during the down period.