A almost 50-year-old manufacturing plant in Alabama will close its doors in the coming month.
Grede LLC, a metal casting company that manufactures automotive, commercial vehicle, and industrial parts, informed its 220-member workforce in February that its Brewton, Alabama facility would be closing.
A company spokeswoman stated that its Brewton operations, which began in 1976, are closing because the factory has been unable to meet its “pre-COVID volumes.”
All manufacturing operations are planned to be completed by the end of the year, however a Grede representative confirmed that the facility will stay open for storage purposes.
Though employees were informed of the company’s plans in February, the WARN notice—postings needed by federal law to advise workers before mass layoffs and plant closures—documenting the intent to close is dated April 1 and effective May 22, according to the Alabama Department of Commerce.
The WARN statute compels employers with more than 100 employees to post these notices 60 days in advance of action, however this notice is only 52 days before the anticipated closing date. Matt Hladki, Grede’s chief administrative officer, stated that the business sent the WARN notice regarding the impending closure of operations to the State of Alabama, Brewton mayor, and United Steelworkers on March 20, which met federal standards.
The company said that affected employees have been offered alternatives to shift to other Grede locations or severance payouts if they desire to quit the organisation.
