CHATTANOOGA,TN, (WDEF), A statement released this morning by Volkswagen in Chattanooga said
"Initial increased labor demand of the new plant which started producing a new product with new suppliers and a new work force has been offset by increased efficiency".
This means 500 temporary employees provided by staffing agency Aerotek will not be retained come mid May.
Lucas Hiler of Aerotek,"Around 500 people that are impacted by this there's also going to be 100 or over 100 people that are allowed to remain to be a part of the variable work force at Volkswagen".
Chattanooga Chamber are saddened by the loss of jobs but are relieved that Aerotek are already looking for alternative employment for the 500.
J. ED. Marston,"Heartened to hear that the employees have a number of weeks of notice where they will continue to receive pay and that they will be supported in finding additional jobs."
Aside from the 500 losing their jobs, 27 will be retained by VW on full time contracts and 120 variable staff from Aerotek will continue to work for VW .
Marston added that VW will is still in a very strong position,
"Even with this downsizing there still at about 2800 jobs so that's a substantial increase in a community of this size especially in the context of the great recession and very uneven and slow recovery that we have experienced since then."
Aerotek say they are also now working with the Chattanooga Regional Manufacturers Association.