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SIA to end pay for hourly production associates during coronavirus pandemic

Following weeks of pay for employees during the coronavirus pandemic, Subaru of Indiana Automotive announced Tuesday it will end for hourly production associates.

Posted: Apr 7, 2020 4:23 PM
Updated: Apr 7, 2020 6:47 PM

LAFAYETTE, Ind. (WLFI) — Following weeks of pay for employees during the coronavirus pandemic, Subaru of Indiana Automotive announced Tuesday it will end for hourly production associates.

According to the company, beginning April 13, all associates deemed non-essential during the shutdown will no longer receive pay. As of now, the Lafayette plant is closed until at least April 17. Production has been halted since March 23. 

"While SIA has been pleased to provide full pay for three weeks for all associates, including most temporary production associates, it's no longer sustainable while production is suspended amid health concerns, declining market demand and supply chain issues," the company said in a memo.

Associates will qualify for unemployment benefits under the federal government's $2 trillion stimulus package. SIA associates will retain their health insurance and other benefits. 

The company encouraged associates to file for unemployment as soon as possible. For instructions on how to do so, SIA said employees should visit mySIA and click Resources and then Coronavirus.

Salaried associates, who can work remotely, should discuss with their manager, the company said. 

"Thanks for your cooperation and understanding during this unprecedented situation," the memo said. "SIA remains committed to keeping associates safe and health while balancing the need to protect SIA's financial stability and ensure our collective livelihoods. By supporting each other during this difficult time, we remain positioned to achieve long-term success together."

Subaru of Indiana Automotive is Tippecanoe County's second-largest employer behind Purdue University. More than 6,000 employees work at the Lafayette manufacturing plant, the only one outside of Asia. The Ascent, Impreza, Legacy and Outback are all produced at the facility off State Road 38.

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