By ERIN EDGEMON, July 28, 2008
Posted: Wednesday, July 30, 2008 3:34 pm

Nissan is planning to cut 18 percent of its labor force in the next three years.

Workers affected by Nissan North America’s plan to cut 18 percent of its Middle Tennessee manufacturing labor force in three years will likely have difficulty finding jobs in today’s economy, said a local economist.

“Right now it is a tough environment in searching for jobs unless you have some special skills such as healthcare,” said David Penn, director of the Business and Economic Research Center at MTSU.

But he said Nissan’s Wednesday morning announcement isn’t “terribly unexpected” with the downturn of truck and sport utility vehicle sales and nearly $4 gasoline prices.

Nissan is offering a voluntary buyout program to its technicians and salaried employees at its assembly plants in Smyrna and Decherd. Employees are being offered a lump sum payment of $100,000 or $125,000, based on tenure, and medical and car purchase benefits.

Night shift truck production at the Smyrna plant will be eliminated by Aug. 11, Nissan announced.

Rising fuel prices and the slowdown in sales of full-size trucks and SUVs are contributing factors, the company said.

Nissan saw an overall sales decrease of 17.7 percent this June from the same month last year. Truck and SUV sales are down 37.8 percent this June from the same month last year.

In our current economy, the automotive sector is taking a hard hit, particularly sport utility vehicles and trucks,” said Holly Weber, vice president of economic development, Rutherford County Chamber of Commerce. “The decision by Nissan will give current employees the option of pursing alternate career paths while also increasing efficiency of the Smyrna and Decherd facilities.”

Penn said If workers taking the buyout can ride out the economic downtown over the next couple of years, then they could possibly gain employment at the Volkswagen plant coming to Chattanooga or automobile suppliers that may be expanding or entering the market.

The VW plant is expected to employ approximately 2,000. Production could begin as early as 2011.

Weber said there several Middle Tennessee manufacturing companies that are hiring.

A search on job listings Web site Monster.com shows positions available at such companies as Cummins Inc. in Nashville and Adecco Engineering & Technology in Smyrna.

Nissan buyouts will not just have a direct impact on Smyrna and Rutherford County, Penn and Weber said. Nissan’s Middle Tennessee manufacturing plants employ people from all over the midstate.

“We are working with the (Tennessee) Department of Labor, Nashville, Murfreesboro and other career centers in Middle Tennessee to offer alternate career opportunities within the area,” Weber said.

Lump sum payments of between $100,000 and $125,000 could allow some workers to gain more skills by attending college or technical school.

Nissan offered a voluntary buyout last year that about 775 employees took.

Erin Edgemon can be reached at 869-0812 and at eedgemon@murfreesboropost.com.