Layoffs hitting more workers tied to freight and distribution in Texas

Almost 1,200 employees in freight manufacturing, distribution and transportation are losing their jobs because of the impact of the coronavirus.

UTLX Manufacturing, which produces, repairs and leases railcars, announced it is laying off 81 employees in Houston. Image: UTLX

As the economy falters due to the ongoing coronavirus outbreak, businesses tied to freight, distribution and transportation continue to shed hundreds of jobs in Texas.

According to Worker Adjustment and Retraining Notification (WARN) Act notices filed in Texas, companies with layoffs in the manufacturing, logistics or distribution industry include Step Energy Solutions, Pioneer Frozen Foods, Zachry Industrial-LyondellBasell and UTLX Manufacturing.

Turner Industries, a heavy industrial construction and heavy hauling firm, announced it was laying off 105 employees at its facility in Pasadena, Texas. The company is also laying off 500 employees at its plant in Paris, Texas.

Officials at Turner Industries said the “layoffs are expected to be temporary, but Turner is unable to determine the length of the layoff at this time due to the unpredictable nature of the pandemic, the decrease in oil prices and the resulting market impacts.”

Zachry Industrial-LyondellBasell announced it has permanently laid off 288 employees in Houston as of Friday. The workers were part of construction crews building a $2.4 billion plastics, chemicals and refining plant along the Houston Ship Channel. 

UTLX Manufacturing, which manufactures, services and repairs railroad tank cars used primarily by the chemical, petrochemical and food industries, will cut 81 jobs at its manufacturing facility in Houston by June 1. UTLX Manufacturing is a subsidiary of Union Tank Car Co.

Pioneer Frozen Foods, which manufactures and distributes dry and frozen food products, announced it will temporarily lay off 70 people at its facility in Dallas. The company did not specify in its WARN notice which positions would be affected.

STEP Energy Services, an oilfield services company, announced it will permanently lay off 69 employees in Floresville and 76 employees in Midland. The layoffs will be completed by May 28. They include equipment operators, drivers and maintenance professionals, according to filings.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com