In a Worker Adjustment and Retraining Notification on November 6, Automotive Component Carrier (ACC) has declared that it will no longer hold a contract with General Motors (GM) that originally saw the carrier supplying the American automaker will transportation services. ACC said that the company will “permanently reduce operations in support of this account at its Flint, Lansing, Saginaw and Fort Wayne, Indiana, sites effective with the close of business on January 2, 2016.”
The unlucky ACC workers who are being laid off will be represented by UAW Local 659.
Penske Logistics said that ACC and the UAW attempted to renew the existing contract back in May this year, a contract the the transport provider and automaker had for 20 years. The bad news broke in October, after the company was notified that it was the lowest bidder within the new contract talks with GM.
According to Penske, the ACC will still resume its trucking services to GM after January and will employ 220 truck drivers from UAW in Flint, Fort Wayne, Lansing, Millford and saginaw. At present, GM has said that it does not want to comment on the supplier contract negotiations.