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The number of employees affected has not yet been disclosed by LexaMar's parent company, Magna International, Inc.'s Decoma unit. But the layoffs will be conducted by seniority and initially by volunteers, according to Scott MacKenzie of the Boyne Area Chamber of Commerce. It is hoped the layoff time period will not go beyond three months, he said.

The layoffs come just six months after the company was granted a reduction in property taxes by the city. The 12-year tax abatement is projected to result in a decrease of tax revenue to the city of about $23,000 in its first year.

LexaMar claimed that the tax abatement, or reduction, would enable it to retain local jobs. In its October 2006 request to the city, LexaMar stated that it had purchased $5.4 million in new equipment that would make it possible to capture additional work.

The city has the option of reducing the abatement term or of revoking the abatement. But city manager Michael Cain said on Monday that no action would be taken at this point.

"We'll keep track of the layoffs," Cain said, noting that occasional temporary layoffs are not uncommon in manufacturing. "If it looks like it will become permanent then we'll look at the tax abatement." LexaMar is one of the largest companies in Boyne City's industrial park and employs approximately 450 people.