Ill. factory lays off 26 percent of work force

WOOD RIVER -- A railroad repair company in an Illinois suburb of St. Louis says it's been hit by the automobile industry's decline and must lay off 31 workers.

Manager Steven A. Prokopich of Wood River-based Watco Mechanical Services says demand for repairs to railroad cars is dropping as suffering automakers transport fewer vehicles by rail.

The blasters, painters and operators to be fired amount to 26 percent of Watco's work force of 120 people.

Prokopich says Watco is trying to get new contracts repairing other types of cars, including gondolas. He says the company hopes to eventually hire back some of the laid off employees.

United Steelworkers Local 9523 represents Watco workers. Vice President Jim Stumpe says employees understand the company's situation.