First Student, a school transportation company, is set to close its Red Wing, Minnesota, facility this summer, resulting in layoffs for its employees. The closure comes after the company lost a significant local contract. The layoffs are expected to occur between June 16 and June 30.
What happened
First Student will permanently close its Red Wing location at 714 Bench St. following the loss of its contract with Red Wing Public Schools.
How many employees affected
Approximately 49 employees will be laid off as a result of the facility closure.
Why layoffs happened
The closure and subsequent layoffs are directly tied to First Student losing its contract with Red Wing Public Schools.
Company background
First Student is a school transportation provider. The Red Wing facility provided transportation services to Red Wing Public Schools.
Industry impact
The closure impacts school transportation services in the Red Wing area. The affected employees are represented by Teamsters Local 120, and the Minnesota State Rapid Response Team will assist the impacted workers.
What's next
The facility will close between June 16 and June 30. Affected employees have bumping rights within the company. The Minnesota State Rapid Response Team will coordinate assistance for the impacted workers.
Source: patch.com