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Trucking company announces job cuts after end of Kroger contract

A transportation and logistics company announced 69 layoffs later this year as a result of a contracting change with Kroger.

Cardinal Logistics Management Corp. said the layoffs will occur Dec. 2.

In a letter to state workforce officials on Monday, the company said it had “experienced an unexpected termination of a major business contract, causing a substantial reduction in business that will result in a mass layoff.”

The letter, required under the federal Worker Adjustment and Retraining Notification Act, was unclear on where the layoffs will occur. It cited the address of a recreation-oriented business in Salem where neither Cardinal nor Kroger has operations. A Cardinal official told Salem officials Tuesday that the address was in error, said Melinda Payne, who directs Salem economic development.

In a statement Tuesday, Kroger said it has made “a business decision not to move forward with one of its current contract carriers that deliver[s] products to our stores.”

Most of the affected workers are drivers, and efforts will be made to reassign them to other positions, Jeff Stupp, general counsel at Cardinal, said Tuesday.

Kroger said workers displaced from their jobs by the contract change “may apply to the carrier that received the additional work.”

Kroger’s main warehouse complex for the area is in Roanoke County, where trucks are used for the transportation of goods.

Cardinal is based in Concord, North Carolina.

Source of article click here : The Roanoke Times

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