Champion Spark Plug to Layoff 243 Workers

Champion Spark Plug announced today that it will lay off more than a quarter of its workforce here, one month after members of the United Auto Workers union approved a new four-year contract.

The layoffs, which will begin March 22, will be phased in over the next four months, said William Walker, Champion’s director of industrial relations.

A total of 243 workers--119 people from the aviation products group and 124 from automotive operations--will lose their jobs. Another 62 people will be laid off at the company’s three other U.S. manufacturing facilities, he said.

“We explored every alternative to reducing the labor force. Even though the numbers are regrettable, it was the only way we could keep a significant number of manufacturing presence in Toledo,” Walker said.

“There is clearly too much capacity in the auto parts industry, and we have elected to balance production rather than close and consolidate plants,” he said.

Walker said UAW leaders were aware of the overcapacity situation when they agreed to a new national contract last month, which covers about 1,700 workers at the four Champion plants. The other plants covered under the contract are in Cambridge, Ohio; Detroit; and Burlington, Iowa.

Champion employs about 834 production workers in Toledo. About 730 workers have lost their jobs here since 1980.

“We informed them (UAW officials) of the possible consequences to Champion; specifically, that about 200 workers might be laid off in the coming months. As a result, it was a recognized fact in the negotiations and led to a major effort on the part of the company and the UAW to assure those who were laid off that they would receive benefits,” Walker said.

Under the terms of the new contract, Champion is guaranteeing full benefits for those who are laid off, he said.

In addition, the company canceled a debt of more than $1.5 million in earlier-paid benefits from the union supplemental funding account and guaranteed benefits account, Walker said.