Delco Remy To Reduce Hourly Workers

ANDERSON, Ind. Bloomberg News reported that Delco Remy International Inc., an auto-parts maker owned by a Citicorp Inc. unit, will eliminate 84 hourly jobs in Anderson, Indiana, because of reduced North American demand for heavy-duty trucks.

The parts company on Monday is bringing back 116 workers who had been on voluntary layoff since the summer and a week later will fire 200 employees with less seniority, spokesman John Pyzik said. The net loss of jobs is 15 percent of the company's 550 hourly workers in Anderson, where Delco Remy is based.

Truckmakers have cut production and jobs as a glut of used vehicles and lower freight shipments have hurt North American demand. Delco Remy produces starter motors, alternators and other parts for makers of heavy trucks as well as cars and light trucks. The company also makes replacement parts.

Delco Remy has a total workforce of 950 people in Anderson, Pyzik said.

The job actions were reported earlier by the Anderson Herald Bulletin. The workers, who are represented by the United Auto Workers, will receive as much as 95 percent of their pay until Dec. 31 under the terms of their contract, the paper said.

Citigroup's Court Square Capital unit in March acquired the 47 percent of Delco Remy it didn't already own for about $109 million. Court Square and the Anderson, Indiana-based parts company's managers were major investors when General Motors Corp. spun off Delco Remy in 1994.