Logistics company plans to lay off 52 workers - The Monitor: News

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Logistics company plans to lay off 52 workers

Print
Font Size:
Default font size
Larger font size

Posted: Tuesday, October 30, 2012 5:56 pm

McALLEN — Neovia Logistics Services, formerly known as Caterpillar Logistics Services, plans to lay off 52 workers from the company’s McAllen plant by Dec. 31.

The logistics company plans to lay off 40 warehouse workers and 12 other employees between Thursday and Dec. 31. Neovia notified McAllen of the impending layoffs in a letter dated Oct. 23.

“Neovia expects these layoffs to be permanent,” reads the letter. “The entire plant will not be closed.”

Platinum Equity, a Los Angeles-based mergers and acquisitions firm, purchased Caterpillar Logistics Services from Caterpillar, the equipment manufacturer, and renamed the division Neovia Logistics Services. Caterpillar and Platinum Equity announced the approximately $750 million transaction Aug. 1, according to a news release.

Platinum Equity couldn’t be reached for comment Tuesday about the layoffs. The McAllen plant’s human resources manager directed requests for comment to Caterpillar Logistics, the equipment company’s in-house logistics division, which couldn’t be reached Tuesday afternoon.

It’s not clear how many people work at the McAllen plant.

In 2006, McAllen inked an economic development agreement with Caterpillar Logistics Services, which indicated the company planned to hire 200 people during the next five years. McAllen agreed to pay $1,000 to the logistics company for every job created.

City records, though, show McAllen paid the logistics company $46,000, well short of the maximum $200,000 allowed by the incentive agreement. McAllen also offered help with property taxes and job training funding.

The five-year agreement ended before Platinum Equity acquired and renamed the logistics company.

--

Dave Hendricks covers McAllen and general assignments for The Monitor. He can be reached at dhendricks@themonitor.com and (956) 683-4452.

--

TWITTER

Follow Dave Hendricks on Twitter: @dmhj

More Events