TOLEDO, Ohio — Following expected layoffs at the Jeep plant in Toledo and Worker Adjustment and Retraining Notification (WARN) notices issued by Stellantis, you may wonder what the WARN Act means.
According to the U.S. Department of Labor, the WARN Act, enacted in 1988, is intended to ensure "advance notice" in cases of the closure of businesses and mass layoffs.
The DOL says most employers with 100 or more employees must provide at least 60 days written notice of a plant closing that results in layoffs affecting 50 or more employees.
"Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs, and if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market," the DOL says.
The Department of Labor says the WARN Act gives workers time to seek a new job or retraining, but it does not require employers to provide paid time off to impacted employees.
"It is within the discretion of the employer to give the worker paid time off to look for another job," according to the DOL.
You can find WARN notices that have been issued in Ohio at this link. For more in-depth information on everything a WARN Act entails, click here.
Stellantis said Wednesday that approximately 1,100 employees at the Toledo Assembly Complex are expected to be indefinitely laid off as early as Jan. 5 due to a change in the operating pattern.
The company said they are moving from a two-shift to a one-shift operating pattern at the Toledo South Assembly Plant.
Stellantis provided the following statement to WTOL 11:
As Stellantis navigates a transitional year, the focus is on realigning its U.S. operations to ensure a strong start to 2025, which includes taking the difficult but necessary action to reduce high inventory levels by managing production to meet sales.
As a result, the Company will adjust the operating pattern at the Toledo South Assembly Plant, moving from a two-shift to a one-shift operating pattern, while also improving overall efficiency across the Complex. These actions will result in the indefinite layoffs of approximately 1,100 represented employees.
These are difficult actions to take, but they are necessary to enable the Company to regain its competitive edge and eventually return production to prior levels. In accordance with the 2023 Collective Bargaining Agreement, the Company will provide affected employees with one year of supplemental unemployment benefits (SUB) in combination with any eligible state unemployment benefits, equaling 74% of their pay, followed by one year of transition assistance. Healthcare coverage also will continue for two years.
The Company has issued WARN (Worker Adjustment and Retraining Notification) notices to the respective state and local governments as well as the UAW. These actions will be effective as early as Jan. 5, 2025.