Union workers at Workhorse Custom Chassis Inc. in Union City, Ind., have been told to brace for layoffs, according to WQLK-FM, Richmond, Ind.

The station today (Jan. 14) reported that 87 workers are expected to be laid off by the end of next month. The company has nearly 180 unionized employees.

The job reduction warning comes as union members approved a four-year contract resulting in pay cuts of between $3 and $4 an hour.

Workhorse launched its Union City operations in 1999. The company manufactures chassis for motorhomes and commercial step vans.