CBS Detroit – The WARN Act, or Worker Adjustment and Retraining Notification Act is a service to give notice to Michigan workers of companies planning layoffs. It requires companies to give advance notices to the state of layoffs or closings if they plan to layoff a significant part of their labor force.
Since March over 80 businesses have given WARN notices across the state, with 58 being in Southeast Michigan. One of those businesses who recently gave a WARN notice is AK Steel on 4001 Miller Rd. in Dearborn. In a letter sent to the state wrote, “made the difficult decision to permanently shut down” due to “rapidly deteriorating business conditions”. AK Steel owned by Cleveland-Cliffs, said this shutdown will take place July 5th, and will affect 343 employees.
Another massive layoff affecting Detroit is Hotel-Casino MGM Grand Detroit. In their letter to the state, they have already instituted absences/furloughs with 2-weeks pay for all full-time employees with benefits for eligible employees until August 31.
MGM Grand has said due to the extension of the shutdown and that reopening plans for Michigan hotel-casinos will be probably last, that they have had to take many actions to close operations. Saying that current furloughs and layoffs “may continue beyond six months and/or could be permanent.” The layoffs at MGM Grand Casino has placed 2,632 workers in Detroit on unemployment.
According to Bridge Michigan, the U.S. Department of Labor statistics put Michigan at number two in national unemployment claims. With 817,185 claims for unemployment, or 16.5% of the workforce. Hawaii is curently number one in the nation.
University of Michigan Economist Don Grimes told Bridge Michigan that our state gets hit harder because of our reliance on durable goods manufacturing. It’s projected 1.2 million jobs could be lost in Michigan by mid-year with a forecasted unemployment rate of 23%.
The state of Michigan is increasing call center workers to alieve the massive response to the overburdened unemployment processing system. With staff working around the clock serving an average of 75,000 calls daily.
Department of Labor and Economic Opportunity Director Jeff Donofrio told Bridge Michigan, “We’re committed to making sure every eligible Michigander receives their full unemployment benefits during this crisis. The only way we’ll be able to turn the corner economically is to slow and stop the transmission of this virus.”
© 2020 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Information from Bridge Michigan contributed to this report.
