Chowchilla employer Brake Parts to cut about 40 workers’ jobs

Brake Parts Inc., one of the largest private employers in Chowchilla and Madera County, will lay off approximately 40 workers over the next several weeks to become more competitive by moving production to Mexico, a company official told the Sun-Star on Tuesday.

The job cuts will reduce the Chowchilla plant’s workforce by about one-third, according to numbers provided by Randy Clausen, vice president of global human resources for the McHenry, Ill.-based company.

The employees affected primarily are production workers who help make calipers, a part that is bonded to brake pads and is used to apply pressure to stop a vehicle. Clausen said the company stands to save money by moving the work to its plant in Nuevo Laredo, Mexico.

“It’s largely a decision based on economics,” he told the Sun-Star by phone. “Most of our competition has moved this type of production to Mexico. We’ve been trying to balance the economics for some time.”

No employees were laid off at the plant Tuesday, Chowchilla City Administrator Brian Haddix said.

On April 29, the employer anticipates laying off 29 workers, followed by 16 more layoffs May 27, Haddix said.

The plant, at 711 S. Third St. in Chowchilla, employs 134 people. By the end of the layoff stages, 89 workers will remain to service the needs of California customers.

Stacy Curutchet, Chowchilla District Chamber of Commerce executive director, said in a statement to the Sun-Star that she was not privy to all the facts regarding the Brake Parts layoffs.

“However, the loss of jobs is a devastating blow to the economy of Chowchilla and its residents,” Curutchet said. “The Chamber will continue to work with the City of Chowchilla to encourage new businesses and manufacturing jobs here in Chowchilla.”

Curutchet also said it will be hard for those laid off to shop at other local businesses.

Dan Flanagan, a longtime resident and realtor at Roberta Flanagan Realtor Inc., said the city and businesses of Chowchilla need to work together to offset the loss of jobs.

“It’s like throwing a rock out in the middle of a lake,” Flanagan said of those who will get laid off. “The waves the rock makes are like the waves of economic loss: They may not buy food, then clothes, then furniture.”

Haddix said the city has worked hard to persuade Brake Parts to keep jobs in Chowchilla, including notifying the business about tax credits and incentives, and asking how Chowchilla can help.

According to presentation notes from an Oct. 22, 2015, meeting, the city’s objective was to get Brake Parts to retain 90 jobs in Chowchilla.

“It’s going to be hard on us, there’s no question about that,” Haddix said of the planned layoffs. “Brake Parts is a vital part of our community.”

But Haddix said the city has been having “active dialogue” with several businesses to potentially set up shop in Chowchilla. Haddix declined to name which businesses might bring jobs to town because discussions are in confidential stages.

Clausen said the incentives offered by Chowchilla and local authorities to Brake Parts “would not be significant enough to make any other decision.”

“It was much appreciated that they (attempted) to make it work, but the economics are so significantly different,” he said.

Asked whether California’s plans to increase its minimum wage to $15 had an impact on the company’s decision, Clausen said “it played no role.” Employees in Chowchilla, he said, already earn more.

The plant in Nuevo Laredo employs 210 people, he said. Privately held Brake Parts Inc. has even larger facilities in Asia, he said.

He credited the Chowchilla employees for having “worked tirelessly to be as efficient as they can.”

“It’s a great group of people. The unfortunate thing is global economics have created a situation where we have to make tough decisions in order to remain viable,” he said. “We’ll do whatever we can to help them transition.’

This story was originally published April 19, 2016 at 9:35 AM with the headline "Chowchilla employer Brake Parts to cut about 40 workers’ jobs."