The employment woes related to the New River Valley Volvo plant continue to get worse, as a Salem company may be forced to shutdown at year’s end, causing more than 100 people to lose their jobs.

Salem Preferred Partners, that is located on Rowan Street in Salem, recently notified the state of its pending closure.

“We gave the state a conditional WARN notice that we may have to cease operations,” said Ed Feaster, Chief Financial Officer for SPP in a phone interview with EverythingNRV.com. “if we have to close, 104 jobs will be terminated.”

The company, which delivers trucks for Volvo, would cease its operations at its Salem location by Dec. 31, 2008.

“We will no longer deliver axles and engines for the Volvo Dublin plant come Dec. 31, 2008,” said Feaster. “Volvo has determined to insource its grooming work as part of a deal with the United Auto Workers. In addition, our three-year axle contract expires on Dec. 31, 2008.”

“We bided on a new contract with Volvo, but Volvo officials awarded the bid to another company,” added Feaster.

Feaster would not say what company got the new contract or why Volvo did not renew the contract. "I rather leave it up to Volvo officials to speak from their end, he said."

Phone calls to Jim McNamara, Volvo spokesman, were not returned on Wednesday.

Feaster went on to say that the Salem’s plant only current contract is with Volvo.

“We are hoping to get some new contracts in before year’s end. But, if that fails, we will have to close down,” noted Feaster.

Lester Hancock, UAW Local 2069 President, did confirm to EverythingNRV.com Wednesday afternoon that one of the items the union did achieve during its strike negotiations was to insource the grooming work, instead of outsourcing it.

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