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Local News

PUBLISHED: Wednesday, October 11, 2006
Jobs lost at Lapeer Metal



Citing unforeseen economic conditions in the automobile manufacturing industry, particularly at General Motors and Ford, Lapeer Metal Stamping recently gave 87 employees notice they will soon be out of a job.

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The Lapeer-based corporation operates two plants in Lapeer, as well as in Dearborn, Mt. Clemens and Sebewaing. The layoffs are expected to occur between now and December.

Company officials did not return phone calls for comment.

The firm mailed letters to area government officials explaining its layoff notice.

Dave Taylor, chairman of the Lapeer County Board of Commissioners, received word last week.

"It's sad to see," Taylor said. "It hurts when you see people get laid off."

Taylor has been retired from GM for 15 years.

"These are definitely tough times for the auto makers, and Michigan always takes the biggest hit when things go bad," he said.

In Lapeer, LMS operates two plants and reportedly employs as many as 250 workers.

The company had announced plans to eliminate 50 jobs in May from its Lapeer facilities at 930 S. Saginaw and 1070 Clark Street, according to a letter sent to the City of Lapeer. Those layoffs were averted following negotiation of a new labor contract. The company maintains its corporate headquarters on South Saginaw Street.

Employees at the Lapeer facilities reportedly earn $14 an hour, while employees at the non-union plant in Sebewaing in Huron County make on average $8 an hour.

Dale Kerbyson, Lapeer city manager, also confirmed that he received the company's latest layoff notice. Kerbyson, Patricia Lucas, executive director of the Lapeer Development Corporation, and a representative of the Michigan Economic Development Corporation are scheduled to meet with LMS corporate officers Thursday morning.

"It's an unfortunate situation," Kerbyson said. "The City of Lapeer and the Lapeer Development Corporation work very close together to retain and attract business to the community. We want to learn what the situation is and see if we can be of any assistance. We're also always looking to diversify through high-tech and bio medical research firms that aren't as tied to the automobile industry."

According to city tax records, LMS has been doing business in Lapeer since 1973.

LMS is a Hispanic minority-owned company specializing in the manufacture of metal stampings and assemblies for the automotive industry. It produces brake assemblies and fuel tank shields for GM's Yukons and Suburbans, and floor and dashboard reinforcements for the Hummer.

Some of the LMS employees are represented by UAW Local 9699 in Marlette. A union representative could not be reached for comment as of press time.

According to the company's Web site, LMS employs more than 500 workers between its facilities and serves companies such as General Motors, DaimlerChrysler, Ford Motor Company, and Borg Warner. Among its products, the company manufactures skid plates, fuel tank shields, firewall assemblies, brake and clutch modules, frame reinforcements, cargo tie downs, child seat tethers and hinge assemblies.

The company is a Tier-1 supplier controlled and operated by The Diez Group, the largest Hispanic minority-owned manufacturing company in Michigan. All LMS facilities have obtained QS-9000 and ISO-9002 certification along with numerous awards.

Jeffrey Hogan can be reached at (810) 664-0811, Ext. 8113 or jeff.hogan@lapeergroup.com.





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