Paccar plans more layoffs

The slowing U.S. market for heavy trucks is taking an even deeper bite out of Renton's Kenworth Truck factory.

More than 140 workers at the plant owned by Paccar in Bellevue will be laid off early next month, on top of about 340 layoffs earlier this year, according to a union representative. And the plant will shut down for at least two weeks.

The plant's "build rate" will drop from 30 trucks a day to 18, said Bernie Philips, business agent for the International Association of Machinists and Aerospace Workers. Machinists are the largest single group of workers at the plant.

Paccar treasurer Robin Easton said the layoffs and "shutdown days" are part of broader cutbacks at its Kenworth and Peterbilt divisions. Paccar-owned plants in Ohio, Texas and Tennessee also will be affected, he said.

Easton declined to specify how many workers would be laid off, locally or nationally, or how many people work at the Renton plant. But Philips of the machinists union said about 140 of his members would be laid off as of April 3, out of more than 360 at the plant.

Other union workers at the plant, such as Teamsters, painters and sheet-metal workers also will lose their jobs, as will salaried workers. Representatives of the other unions could not be reached for comment Friday.

The cuts are needed "to balance production levels with lower industry demand," Easton said.

Paccar and other truck makers posted record sales last year, as trucking companies rushed to buy ahead of tighter federal engine-emission rules that took effect this year. As a consequence, truck sales this year are expected to be far lower: Paccar's estimate for the entire U.S. and Canadian market is 200,000 to 230,000 heavy trucks, versus an estimated 320,000 last year.

In January, Paccar eliminated one shift each at the Kenworth plant in Renton and its Peterbilt plant outside Nashville, Tenn., laying off about 1,000 workers in total.

The cuts aren't limited to Paccar. Earlier this year, DaimlerChrysler unit Freightliner announced that it would lay off 800 of its 1,700 union workers in Portland — cuts that take effect Friday — and move production of its Freightliner-brand trucks to Mexico and North Carolina.

Paccar expects truck demand to pick up in the second half of this year; if it does, Easton said, the laid-off workers are eligible to be called back.

Shares of Paccar dropped $1.80 in trading Friday to close at $75.17, near its 52-week high of $78.23.

Drew DeSilver: 206-464-3145 or ddesilver@seattletimes.com