Are there Dana layoffs? Dana is a leading provider of fully integrated drivetrains and electrified propulsion systems for all passenger vehicles. Recently, Jeff Cole, the senior director of corporate communication for Dana, announced layoffs. The company has temporarily laid off 240 workers from its Fort Wayne facility.
These layoffs follow the United Auto Workers (UAW) strike’s negative effects on plant operations. Until agreements are reached between the union and automakers, those affected, as well as workers that serve Dana customers, will be let off.
Jeff Cole expressed hope that a deal between the union and the automakers would be reached shortly. Dana produces and supplies automotive components to the main three manufacturers. After the UAW stated on September 22, 2023, that the strike would be extended to three additional plants, this occurred. Let us know more about layoffs at Dana in this article.
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About the company
Dana Incorporated is a company based in the United States. It manufactures axles, driveshafts, and transmissions, as well as electrodynamic, thermal, sealing, and digital equipment. They are meant for conventional, hybrid, and electric vehicles. The company targets the light vehicle, commercial vehicle, and off-highway equipment markets with its goods and services.
The business was established in 1904. It is based in Maumee, Ohio. It employs close to 36,000 people throughout 33 nations. Sales of $8.6 billion were made by Dana in 2019. The business is part of the Fortune 500.
Dana Corporation declared bankruptcy
On March 3, 2006, Dana Corp. filed for bankruptcy protection for its U.S. business. Thus, it added its name to an expanding list of suppliers that the U.S. auto industry had struggled with. Thus, it was forced to make major reorganization decisions.
The business revealed that it was restating profits and cutting its profit prediction for 2005. This was due to accounting irregularities. Dana had been in a downward spiral.
Dana had a 46,000-person global workforce at that time. The auto supplier said in January 2006 that it lost around $1.3 billion in the third quarter of 2005 while realigning its company.
The business claimed that it filed for Chapter 11 protection to fix operational and financial issues. According to a statement from the company, “The general economic state of the industry, together with Dana’s failure to renew or expand its credit facilities on time, has severely restricted Dana’s liquidity.”
Just prior to the announcement, trading in Dana’s stock was suspended on the New York Stock Exchange. Shares decreased by 37 cents to 67 cents. In 2005, the stock reached a high of $17.03.
According to the company, the filing has no impact on its operations in Europe, South America, Asia, Mexico, or Canada.
Prior to the filing, Dana disclosed plans to slash expenses sharply. They planned it by shutting down three plants in Australia and North America. Also, it planned to reduce its salaried workforce by 5% and sell off a part of its business.
Michael Burns, the chairman and CEO of Dana, announced on Monday that the business would proceed with its reorganization plans.
For the period beginning in 2000 and ending in June, Dana reduced profits by $44 million in December. According to Dana, the adjustments were brought on by the company’s commercial vehicle unit’s incorrect accounting. They did it for client price increases and supplier reimbursement expenses.
In February 2006, the U.S. Securities and Exchange Commission announced that it had begun an investigation into Dana’s financial operations. It also saw any possible violations of federal securities laws.
In the midst of the UAW strike, Dana laid off 875 employees
An official from the auto supplier Dana Incorporated revealed layoffs on September 20, 2023. The company had temporarily laid off 875 local employees. They declined to make any more comments.
The United Auto Workers strike against the Big Three automakers started at midnight on September 15. This happened after contract negotiations fell through. It was on its sixth day when the Maumee-based business announced its mass layoffs.
The suppliers who are connected to the production plants have been affected by the strike. KUKA, which has offices in Toledo and many more in Detroit, employs a large number of unionized workers. They registered for strike benefits earlier that week.
So what occurred?” they said to the press on September 15, 2023, noting that they were unsure of what had happened. Then, on September 17, a text message informed reporters that they were not to report on September 18. A Dana Napoleon employee who wished to remain unnamed claimed these. On September 19, reporters received a message stating that they were not to report.
The worker claims that she will make half of what she usually earns while on unemployment benefits. “It’s tough. It truly is, she insisted.” “I am married and have two children. They enjoy having a mom there all the time, but my husband has to take on extra work to make up for my loss.”
Dana Toledo produces the striking Toledo plant of Stellantis. Likewise, Dana Napoleon provides parts for the Detroit, Michigan-based Ford facility that is now on strike.
She stated, “They’re going to do what makes them happy and what they feel would be in the best interest of all of them. But it doesn’t trickle down to us smaller enterprises that give them what they need. All they’re doing is making it more difficult for the smaller businesses to give them everything.”
“It’s clearly not normal right now. So, try to reach terms that will make everyone pleased while ending the strike. Also, to allow everyone to resume their normal lives,” she said. A representative for Dana said that no one knows how long the layoffs will persist.
About similar layoffs
On September 20, General Motors and Stellantis also disclosed layoffs. They also attributed it to the UAW strike. According to the Associated Press, Stellantis manufactures Jeep, Chrysler, and Dodge automobiles. They stated that it expects to fire hundreds of employees in Ohio and Indiana owing to “storage constraints.” This was brought on by the UAW strike at its assembly factory in Toledo, Ohio.
At the Toledo Machining Plant in Perrysburg Township, 68 people were laid off. The company issued a statement saying,
“Stellantis continues to closely watch the effects of the UAW strike action on our manufacturing operations.”
Stellantis owns the Toledo Jeep Assembly Complex. In the hours before the contract expired on September 14 at 11:59 p.m., one of the three unions was the one that UAW President Shawn Fain first urged to strike. Since then, its roughly 5,800 members and other supporters have been protesting at Toledo’s Big Three facilities.
Later, Stellantis declared that it had sent the UAW workers who were on strike a fresh contract proposal. Later on, union representatives stated they would examine the proposal’s provisions. But they were unable to respond.
Additionally, the union conducted a rally on September 20 in the early afternoon close to the Stellantis corporate office.
The protest takes place before a deadline set by UAW leaders for an extended strike on September 22. The UAW will extend the strike beyond the three plants that went on strike. This will happen in spite of what the union called “serious progress” in negotiations.
Again, layoffs happened at Dana Corp.
More than 200 employees at the Fort Wayne-based Dana Corp. have been temporarily laid off due to the UAW strike. This is according to company officials. The local steelworkers union claims that more than 200 employees at Dana Incorporated in Fort Wayne are currently without jobs.
United Steelworkers Local 903 member Greg Martin reported that Dana temporarily laid off 240 workers at the facility on State Boulevard. Given that the UAW strike’s future is still uncertain, they are unsure of how long those workers will be out of work.
On September 22, the president of the United Auto Workers (UAW) union announced the union’s decision. They decided to extend their strike to 38 GM and Stellantis parts distribution facilities. Three assembly factories went on strike last week:
- a Ford factory near Detroit,
- a GM facility north of St. Louis, and
- a Stellantis-owned Jeep plant in Toledo, Ohio.
The duration of the layoffs is unknown, as the union leader informed FOX 55. He claims that it might only last a short while or that it might be permanent. DANA has thus far declined to comment.
Response of Local USW 903 to DANA Layoffs
Employees of the United Auto Workers have been on strike for the past two weeks in protest of the three major autoworkers. We are learning that the strike is hitting DANA Incorporated. But it hasn’t yet affected the General Motors plant in Fort Wayne.
DANA has fired 240 workers. DANA produces axels and other components for the top three automakers: Ford, GM, and Stelantis. USW Local 903’s president is Greg Martin. During this difficult period, he wants to make sure his fellow workers are taken care of. He says:
“The reason they are fighting is so that our employees, who are also their employees, can ensure they receive the compensation they are owed. Since 2008–2009, when everyone lost their jobs, we haven’t experienced a layoff. Everyone has since put forth a lot of effort. Therefore, this is merely a minor hitch. We are currently being affected by their tampering with all the underlying providers. We can only hope that everyone remains resilient throughout. We shall all work together in unison. We are centered around that. All will be well as long as we maintain our faith.”
Gregory Martin claimed that there was a delicate balancing act to be done. It’s because they support the UAW and are pro-union while also caring about the laid-off workers.
“We are with them in their attempts to ensure that the employees receive the correct salary despite the challenges that they have faced. We all support it. Being a supplier for them, I am aware of the issue, but it is merely a component of what we do,” Martin added.
Martin claimed that Local 903 is a strong family and that the USW workers are a family. They’ll use every effort to support the fired employees.
Mike Bynum is the director of labor and community services for Unite Way in Allen County. He was at the Local 903 office, assisting with the creation of packages. It would help people who have been laid off better manage their finances. Bynum retired from Dana.
“I’ve been laid off before. So I know what the situation is that other people are facing when it comes to not being able to plan for either week-to-week or month-to-month on what your expenses are going to be or how you’re going to pay for those expenses,” said Bynum.
Martin claims that employees who have been let go may file for unemployment benefits. The layoffs are intended to be short-term and will stop once the UAW strikes are over.