CRRC Massachusetts layoffs hit Springfield plant

CRRC Massachusetts layoffs began Monday, March 16. That day, the company’s U.S. unit laid off 142 workers. U.S. Customs officials were still blocking railcar shells and other parts from China.

The company had announced the cuts in January at its Springfield plant. The move was meant to satisfy the required 60-day notice period. At that point, CRRC MA said 161 workers would be furloughed. Trains.com had reported that plan earlier. Still, a company spokeswoman told MassLive.com on Friday that the figure later fell because of turnover and operational changes.

After the cuts, 288 employees remain at the factory. Also, workers affected by the layoffs will continue to receive health benefits for two months.

CRRC Massachusetts layoffs stem from customs seizure

Production at the Springfield plant has been disrupted since last May. That was when U.S. Customs officials at the Port of Philadelphia seized railcar shells and other components. Railway Supply had covered that earlier. Also, the action was triggered by an alleged violation of a 2021 U.S. law.

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That law bans the import of goods made with forced labor by ethnic minorities in China’s Xinjiang region. At the time, CRRC said it was complying with the law. In addition, the company said it had provided documentation to Customs and Border Protection.

Those materials are still being held. Meanwhile, the continuing customs seizure of railcar shells has led to the current job cuts.

“The economic impact of this detainment has affected CRRC MA’s business operations significantly, hindering the company’s ability to import components to build its vehicles, thus preventing the manufacturer from operating at full capacity,” the company said in a statement reported by New England Public Media. “As a result, difficult personnel decisions were unavoidable.”

MBTA Red Line cars and the 404-car MBTA order

The disruption has also extended delays in CRRC’s effort to complete its 404-car MBTA order. The order is for the Massachusetts Bay Transportation Authority subway system. Separately, MassLive said the 152-car Orange Line order was completed in December. At the same time, only 58 of the 252 MBTA Red Line cars have been delivered.

All 404 cars had originally been due in 2023. Still, the pandemic, quality control issues, and other problems slowed construction. In 2024, the MBTA agreed to pay an additional $148 million. The plan was to complete the order by 2027. Trains reported that in March 2024.

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