Benefits to stay in place; company will assist with aid applications
Honda has announced it will not continue to pay associates as it extends its production suspension.
“These unprecedented circumstances require that we take some difficult actions in order to cope with the economic impact of the COVID-19 pandemic,” Honda spokesman Chris Abbruzzese said Monday. “This includes temporarily implementing No Work Available (NWA) days during the continued production suspension in our plants.”
The production suspension impacts about 27,600 Honda associates in North America, including 4,100 associates at Marysville Auto Plant and 100 associates at Performance Manufacturing Center.
Abbruzzese said that while the company will not be paying employees, “all Honda associates will continue to receive their Honda benefits during this time.”
The company is also helping associates apply for government assistance while they are not receiving paychecks.
“We have shared with associates the process they can take to apply for state and federal benefits,” Abbruzzese said. “The recently enacted Coronavirus Aid, Relief and Economic Security Act (CARES), along with state benefits will provide associates substantial income replacement during this temporary suspension of production.”
The company initially announced it would suspend production from March 23 through March 30 and the company would, “continue to provide opportunities for associates to be paid.”
As the shutdown extended, Honda announced it would pay associates for some of the time off and allow them to use accrued or expected vacation to cover the loss of pay.
In an announcement Monday, the company said that “as the unprecedented economic impact of the fast-changing COVID-19 pandemic worsens, Honda continues to evaluate conditions and make temporary adjustments to its production operations in the U.S. and Canada.”
Honda said the extended production suspension is being implemented “in order to align product supply with a lack of market demand.”
With the shutdown, it is expected the company will reduce production by nearly 250,000 vehicles. The company said that COVID-19 impacts both the ability of associates to produce vehicles and consumers to buy them.
Officials said there has been, “continued steep decline in sales across the automobile and powersports industries.”
Ohio plants impacted include the Marysville Auto Plant, Performance Manufacturing Center, East Liberty Auto Plant, Honda of America Mfg. Anna Engine Plant and Honda Transmission Manufacturing of America. The production suspension also includes manufacturing plants in Indiana, Alabama, Georgia and Canada.
Company officials have told associates Honda is “committed to sharing information as this situation progresses and we thank you for your cooperation and flexibility during this challenging time.”