MILTON, Ga. – Exide Technologies, a global leader in stored electrical-energy solutions, today issued WARN (Worker Adjustment and Retraining Notification) Act notifications to its workforce at the company’s recycling facility in Vernon, Calif. The temporary layoffs will affect 20 salaried workers, along with 104 hourly employees who are members of the United Steel Workers Union, AFL-CIO, Local No. 675.
The company said it made the decision to temporarily lay off staff following the denial of Exide’s request from the South Coast Air Quality Management District Hearing Board (AQMD) for a variance to obtain a limited extension of time to comply with a new "negative pressure" operational standard contained within recently amended air quality regulations (Rule 1420.1) that govern the Vernon location. In addition, the Los Angeles Superior Court denied the company’s petition that would have allowed Exide to continue operating the Vernon facility until a trial on the legality of Rule 1420.1 could be held.
Either the variance or the petition would have permitted Exide to operate while implementing a Risk Reduction Plan previously approved by AQMD. The Risk Reduction Plan includes $5 million in operational improvements and capital investments to further reduce emissions, enhance compliance with the AQMD’s existing air quality regulatory standards, and help to ensure compliance with recently adopted air regulatory standards.
"Because our Vernon facility is not currently operating and not able to meet the new operational standard without the necessary time to purchase, install and test the required equipment, we had no choice but to make this very difficult decision to temporarily lay off most of our workers – some of whom are second- or third-generation Exide employees," said Robert Caruso, CEO of Exide Technologies. "We know these layoffs will be difficult for our employees and their families, and we thank them for their efforts and dedication to our company."
As Exide continues to evaluate the company’s alternatives regarding future operations at the Vernon recycling facility, the company has established arrangements with third-party recyclers to provide tolling and continues to negotiate additional purchases to satisfy lead requirements, both of which will allow the company to continue operations in the ordinary course.
"We understand that today’s announcement means parents and hard-working people in the community are now facing the daunting prospect of unemployment, and our thoughts are with them, along with the many suppliers and local business owners who count on Exide for steady income," added Caruso.
The layoffs are another blow for residents of southeast Los Angeles, which continues to wrestle with double-digit unemployment. The more than 100 union jobs at the plant offer stability and economic opportunity for dozens of working families in the heart of Los Angeles.
"This is a disappointing day – these are highly specialized, well-paying jobs that simply can’t be easily transferred to other industries," said David Campbell, secretary-treasurer, United Steel Workers, AFL-CIO, Local No. 675. "As California works to grow its green economy, we need our state leaders and local regulators to work collaboratively with large manufacturing companies to help them achieve California’s rigorous air quality standards, protect public health and concurrently provide these types of solid jobs to local families."
The Vernon facility, one of only two lead-battery recycling plants west of the Rocky Mountains, processed 25,000 car, truck, motorcycle and other lead-acid batteries every day in a closed-loop system, keeping them from being improperly dumped in landfills or shipped to places with weaker environmental controls. In automotive applications alone, the global car-park now exceeds one billion units, and approximately 98 percent of these vehicles operate with lead-acid batteries. These batteries contain lead, sulfuric acid and plastic, and what happens to them at the end of their service lives is as important as their performance under the hood. The Vernon facility has been recycling spent lead-acid batteries since the 1920s. Exide Technologies has operated the Vernon recycling facility since 2000.
