American Red Cross makes 'tentative decision' to eliminate 230 jobs in region

Rachel Greco | Lansing State Journal

The American Red Cross confirmed Wednesday a "tentative decision" to limit the organization's operations in the region, eliminating 230 jobs - or 80% of its workforce - in its Great Lakes Blood Service Region, which includes Lansing.

In a statement Wednesday Chris Hrouda, president of the American Red Cross Biomedical Services, said the organization will "limit its operations — mainly mobile blood drives" beginning in November in the service region, which includes Lansing, Muskegon, Petoskey, Flint, Kalamazoo and Kentwood/Grand Rapids.

"This decision is in response to a continued industry-wide decline in the demand for blood products and the need for consolidation of operations to ensure we can deliver cost-effective and reliable products and services for patients in need," Hrouda said in an email to the State Journal. "These changes would allow us to focus our Biomedical Services in other geographies that generate more concentrated efficiencies and a better economic profile."

Hrouda said 230 jobs will be eliminated in the process, though his statement did not specify a timetable for layoffs.

"We are committed to doing the most we can to help make this proposed transition as smooth as possible, including reaching out to area employers to help affected employees find new jobs," he said.

Lance Rhines is senior service representative for Office and Professional Employees International Union Local 459, which represents 160 of the employees impacted by the job eliminations. Rhines said Wednesday that employees learned about the job cuts in a morning meeting with Red Cross officials.

Rhines said the majority of impacted employees his union represents, including nurses and lab technicians, are full-time, making between $12 and $27 an hour.

Red Cross spokesman Todd Kulman said the agency employs 290 people in the region, and another 250 people work elsewhere in Michigan.

Kulman said the Red Cross is "legally obligated" to provide unions an opportunity to propose alternatives.

Rhines said union officials met with Red Cross officials Wednesday in hopes of discussing alternatives to the job cuts. He said he's "cautiously optimistic" that they'll be avoided.

"We are running some numbers now and we are meeting again tomorrow," Rhines said. "We're taking this one day at a time, but our goal is to keep the region open and keep the jobs in Michigan."

According to Hrouda, the changes will not affect the availability of Red Cross blood products in Michigan.

"We will continue to collect blood donations at our two fixed sites in Flint and Lansing, as well as in our Southeast Michigan Blood Services Region located in Detroit," Hrouda said.

Contact Rachel Greco at (517) 528-2075 or rgreco@lsj.com. Follow her on Twitter@GrecoatLSJ