Volkswagen will eliminate around 500 temporary workers at their Chattanooga plant.
According to WRCB in Chattanooga, the temporary workers are supplied by Aerotek, a workforce solutions provider. No VW employees will be affected.
VW issued the following statement about the cuts:
About two years after its official opening, the Volkswagen plant in Chattanooga has concluded its initial phase of production. The team members at VW Chattanooga have successfully met the needed market introduction volume, matching higher than estimated sales demand and filling the sales pipeline for the award-winning Passat. Initial increased labor demand of the new plant, which started producing a new product with new suppliers and a new workforce, has been offset by increased efficiency.
Due to this progress the existing three-shift system will be changed to a two-shift system by May 13th. The variable workforce, hired to meet peak labor demand during the initial phase, will be adjusted accordingly by June 30th.
About 500 positions of the variable workforce are affected, while no positions in the Volkswagen workforce are impacted.
WRCB says the temporary labor supplier accounts for about one-fifth of Volkswagen's labor force at the Chattanooga facility.