Greenbrier Suspends Railcar Operations at Oregon Facility
[Ensure you have all the info you need in these unprecedented times. Subscribe now.]
The Greenbrier Cos. is cutting hundreds from its workforce and suspending railcar production at its Portland, Ore., facility due to the economic impact of the coronavirus, the company announced April 16.
The Lake Oswego, Ore.-based international supplier to the freight rail transportation markets said the workforce reductions at the facility will impact some 200 employees.
“It is difficult to part with Greenbrier Gunderson workers who have served us for many years and persevered through this and other national emergencies,” CEO William Furman said in a statement. “We plan to keep and deploy some of our most experienced team members to other locations in our network, where different kinds of railcars are built. Current conditions require us to simplify and streamline our organization.”
Greenbrier said in the announcement that all impacted employees are entitled to receive severance packages based on years of service along with various state and federal government benefits. Employees also are eligible to receive enhanced government benefits.
“The safe and efficient movement of goods is integral to economies around the world,” Furman said. “Rail transportation is essential for supply chains in light of the COVID-19 crisis, providing smoother and safer border crossings and reducing the risk of viral transmission by human contact.”
Greenbrier said the adjustments in production and staffing levels are to respond to current and anticipated levels of new freight railcar demand. These decisions also coincide with the company’s earlier announced plans to cut costs and strengthen its balance sheet globally.
The Portland facility will suspend production of its food-grade refrigerated and insulated boxcar line when work in progress concludes in July. Greenbrier said that line may restart after the coronavirus crisis subsides.
Greenbrier also ended production on its double-stack intermodal line because of the impact of the virus. There has been a surplus of intermodal units in the North American rail fleet and declining intermodal rail loadings, it said.
The North America manufacturing workforce reductions primarily have occurred in Mexico as well as reductions at select international locations. Greenbrier has reduced its global workforce by 3,700 employees during its current fiscal year, a downsizing of more than 20%.
Marine operations at the facility are continuing normally with nearly 500 full-time workers and a backlog that extends through 2020. The company said that its worldwide operations constitute essential infrastructure and essential businesses. — Transport Topics
Want more news? Listen to today's daily briefing:
