[ardecila]

Train-maker Talgo to begin layoffs
By Sharif Durhams of the Journal Sentinel
Updated: 1:26 p.m.

Talgo Inc. announced Wednesday that it would start the process of laying off workers involved in building two trains for Wisconsin on Milwaukee's north side.

The move prompted Milwaukee Mayor Tom Barrett to criticize Gov. Scott Walker and his fellow Republicans, claiming their opposition to a major expansion of passenger rail was hurting the prospects of jobs for Milwaukee workers.

As many as 35 jobs would be lost at Talgo's Milwaukee facility June 3 because of a decision by the state to decline federal funding for passenger rail that would have prompted Talgo to build more trains for Wisconsin. Barrett said a decision by Republican lawmakers last month could put another 30 maintenance jobs at risk.

In a letter dated Monday, the Spanish train maker notified unions that it would start laying off employees involved in building two trains for Wisconsin. That layoff does not affect employees who would be involved in maintaining the trains, but the maintenance jobs are also in jeopardy because of a decision by state lawmakers last month to cut off funding for a study on building a maintenance facility for the new trains. The company sent a similar letter to state officials Tuesday.

Despite Walker's decision to decline a $810 million federal grant to extend passenger rail service from Milwaukee to Madison, the governor's administration supported borrowing $2.5 million for planning a new maintenance base for two trains Talgo workers were building in Milwaukee. The new trains would have replaced 20-to 30-year-old Amtrak equipment that's used on the Hiawatha line from Milwaukee to Chicago.

A legislative committee led by Republicans voted to cut off that funding last month after the state Department of Transportation estimated that using the Amtrak equipment would be $10 million a year cheaper than using new state-owned trains. Talgo says the state would save $12 million a year by using its equipment, including $260,587 in fuel costs.

What a waste. Talgo, you're welcome to set up shop down in Illinois.