LOWER MACUNGIE TWP., Pa. — Mack Trucks will lay off 250 to 350 workers at its Macungie-area facility, the company confirmed Friday.
The job reductions will occur over the next three months in part because of market uncertainty and the impact of tariffs, the truck maker said in a prepared statement.
"Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs," company spokeswoman Kimberly Pupillo said.
Mack Trucks notified employees of the layoffs Thursday.
Local 677 of the United Auto Workers represents 2,300 of the 2,700 employees at Mack assembly plant in Lower Macungie. It bargained a five-year contract in November 2023 after a nearly six-week strike.
"We regret having to take this action, but we need to align production with reduced demand for our vehicles," the company's statement said.
UAW President Shawn Fain criticized the company's decision in a statement Thursday, noting the Stellantis Board of Directors approved a several-billion-dollar dividend and are considering an additional stock buyback, also valued at $2.6 billion.
"Two weeks ago, Stellantis said the sky was falling because of auto tariffs, and said they had to lay off workers, claiming they are losing money," Fain said in the statement.
"But then all of a sudden, a miracle happened: they found billions of dollars, nearly half of last year’s profits, to pay to Wall Street.
“This is everything that has been wrong with corporate America for decades. Instead of investing in the autoworkers and facilities that make this company run, Stellantis is putting Wall Street over Main Street.
"Stellantis could create thousands of good paying jobs in America in very short order by utilizing excess capacity in places like Toledo South Assembly in Ohio, Belvidere Assembly in Illinois, Mack, Warren, Trenton Engine in Michigan, and plants in Kokomo, Indiana.
"It’s time for Stellantis to stop looting the Rust Belt for short-sighted Wall Street jackpots. INVEST IN US!”
'Honor its promise to America'
The union is calling on "working-class allies" to sign a petition calling for Stellantis to "honor its promise to America by reinvesting profits into building the American Dream — not into stock buybacks and dividends for the wealthy few."
On Friday, while visiting Bethlehem Fire Department, Gov. Josh Shapiro touched on the layoff announcement, calling it "deeply troubling." Shapiro previously discussed the local impact of tariffs while at Fegley Brew Works and said the Mack Trucks announcement is another example of "how the tariffs are negatively impacting Pennsylvania."
"I think that's really unfortunate," Shapiro said. "I'm hopeful that the President will back off of this unilateral action on tariffs, create some calm in the marketplace, as opposed to the chaos that exists now, and allow great private companies — iconic companies like Mack — to feel the comfort and the peace that it's a safe time to invest in the future, whether in their product line or in their workers.
"Unfortunately, too many of them feel right now as a result of the chaos that the President's brought from these tariffs, now is the time to hold and not invest, and that's really unfortunate for the Lehigh Valley."
State Rep. Josh Siegel, D-Lehigh, called it "a clear signal of the dangerous economic instability" caused by the policies put in place under the Trump administration — especially tariffs.
"Once again, American workers are being sacrificed at the altar of political theater," Siegel said in the release. "The tariffs — erratic, broad and poorly targeted — are crushing core U.S. industries like trucking and manufacturing.
"Communities like the Lehigh Valley, built on generations of hard work and industrial pride, are now being asked to carry the burden of this administration’s incompetence.
"These are good-paying union jobs that our community cannot afford to lose.
“These 350 workers are not just numbers — they are parents, neighbors, veterans and skilled tradespeople who built America’s backbone. And they deserve better."
"Standing by silently while working families suffer is unacceptable; they must protect Lehigh Valley workers."State Rep. Josh Siegel
Siegel called on U.S. Rep. Ryan Mackenzie, R-Lehigh Valley, to act now in favor of the workers, citing Mackenzie's congressional campaigning alongside Mack UAW workers.
"I'm disappointed to hear of Mack Trucks’ decision to lay off workers after several quarters of weakening growth and despite being awarded hundreds of millions of taxpayer dollars under the previous administration," Mackenzie said in an email to LehighValleyNews.com.
"I'm particularly disappointed that they have opted to do so on the heels of last year's decision to build new plants in Mexico instead of in our region.
"Lehigh Valley workers are among the best in the world, and I will continue to support policies that put American workers first and attract good paying jobs to our region."
Siegel also called on Pennsylvania U.S. Sens. John Fetterman, a Democrat, and Dave McCormick, a Republican, for the same.
"Standing by silently while working families suffer is unacceptable; they must protect Lehigh Valley workers," Siegel said in a news release.
No apparent WARN notice
The state Department of Labor and Industry posts Worker Adjustment and Retraining Notification, or WARN, notices online.
The WARN Act "mandates that employers give a 60-day notice before closing plants or conducting mass layoffs."
A WARN notice was not immediately available for Mack Trucks.
The only notices so far this month affect employees of Chartwells, Shark Therapeutics, Inc., Wawa (in Philadelphia County) and Corelle Brands, LLC.
A plant closing or mass layoffs would trigger a WARN notice, according to the department's webpage about the act.
In the event of a plant closing, the webpage says, "An employer must give notice if shutting down an employment site will cause 50 or more employees to lose their jobs in 30 days.
"This excludes those who worked less than six months or fewer than 20 hours per week."
For mass layoffs, a notice also is required at an employment site if "it affects 500 or more employees or 50-499 employees, making up over a third of the workforce," the webpage says.
"The same exceptions apply."
