Buffalo NFTA woes blamed for GMI layoffs
Written by William C. Vantuono, Editor-in-ChiefProblems in refurbishing 27 light rail vehicles for Buffalo’s Niagara Frontier Transportation Authority appear to have led to 23 employees being laid off by Gray Manufacturing Industries at its Hornell, N.Y., plant. GMI is working on the refurbishment as a subcontractor to AnsaldoBreda.
According to Hornell Mayor Shawn D. Hogan, continuing problems between NFTA and AnsaldoBreda have spurred the layoffs, jeopardizing GMI’s existence. Two NFTA cars have been ready for return to Buffalo since last July, but 25 other cars have yet to be addressed. “I fear the loss of an up-and-coming enterprise in a region that can ill afford to lose anything,” Hogan said. “There’s been no effort to resolve this stalemate.’
NFTA spokesman C. Douglas Hartmayer said some items have not met the prime contractor‘s satisfaction in order to fulfill its contract. They include problems with the communication system and concerns over what effects would result from fire. The issues can be addressed, Hartmayer said, adding NFTA has asked the head of AnsaldoBreda’s North American operations meet with NFTA to discuss the problem.
GMI President David Gray said he had no choice but to lay off workers due to the situation. “Obviously, we want to start as soon as possible,” Gray said, “but production is not moving forward.” GMI now is soliciting other contracts in order to survive.
Hogan noted the city of Hornell has a stake in the situation, since it extended economic development loans to GMI as part of continuing encouragement of its transit industry. The NFTA contract snafu is forcing GMI to seek deferment on repayment of its city loans.
